After completing this course the student will have the ability to:
- distinguish the methods of company valuation and capital budgeting and to know the advantages of each method.
- price companies and investment projects by use of the DCF method.
- calculate cost of capital
- estimate cash flows and to use the findings for further calculations
- deal with shortage of capital
- check the robustness of investment decisions using sensitivity analysis and to calculate critical values of input variables
- consider the flexibility within investment projects and companies within real options
Furthermore, after completing this course the student will have the ability to:
- activate their mathematical and statistical knowledge
- deal with options for action usual in practice
- grasp the complexity of economic relationships and effects
- work autonomously when solving homework examples
- identify and price strengths and weaknesses, potential and risk