Special Topics in Banking and Finance: Corporate Finance

Part of the Required Elective Module ("Alternatives Pflichtmodul") Banking and Finance.

Main objectives

The aim of the course is to introduce the students with the basic concepts of Corporate Finance. We will study: equity and debt finance, how to value different types of bonds, the capital structure and dividend policies.

Course outline

This is a tentative schedule. I will determine the pace of class based on the overall student feedback and participation.

  1. Introduction
  2. The finance function and capital market
  3. Arbitrage and the Law of One Price
  4. Long-term finance: equity finance 
  5. Long-term finance: debt finance, hybrid finance and leasing
  6. Valuing bonds
  7. The cost of capital and capital structure
  8. Dividend policy

Course cycle

Each winter term


Required Readings:

All relevant material, i.e. slides and exercises, is going to be available on the moodle platform of this course.

D.Watson, A.Head, Corporate Finance – Principles and Practice, Prentice Hall – Pearson Education Ltd

J. Berk, P. DeMarzo, Corporate Finance, Pearson Education Ltd

Recommended Readings:

Ivo Welch, Corporate Finance 2 ed., book.ivo-welch.info/ed2/.

John Graham, Scott B. Smart, William L. Megginson ,Corporate Finance: Linking Theory to What Companies Do [Book], 3 ed, South-Western College Pub, 2010.

Wallstreet Journal