Financial Management (B)

Students are endowed with a set of financial tools which are indispensable for understanding a company from a financial perspective. Managers have to decide which investments they should make and how to finance them. Therefore, this course will provide the knowledge of analytical techniques which are used to value both investment projects and financial assets. Moreover, this course will introduce the risk-return analysis in terms of a Capital Asset Pricing Model, and cover contract theoretical aspects of investment.

Content:

Basic concepts: net present value, internal rate of return
Investment under uncertainty
Moral Hazard and Adverse Selection in Finance
Portfolio theory, Capital Asset Pricing Model, hedging
Capital structure: financial leverage, Modigliani-Miller theorem
Sources of financing, capital market instruments, cash management

Documents & Course Organization:

E-Learning

Core Literature:

Brealey, R. A./Myers, S. C., Principles of corporate finance. Tata McGraw-Hill Education, 7th ed. 2003.

Additional Readings:

Arnold, G., Corporate Financial Management, Pearson/Prentice Hall, 3rd ed. 2005.
Eichberger, J./Harper, I.R.: Financial Economics, Oxford UP, 1997.
Howells, P./Bain, K., Financial Markets and Institutions, Prentice Hall, 3rd 2000.