Study program:

International Finance (M.Sc.)

Academic level and semester:

Master, 2^nd semester

ECTS credits/workload per semester:

8 / 200

Contact hours per week/contact hours per semester:

6 / 70

Type/Teaching method:

Two Lectures + Tutorial (mandatory)

Frequency:

Lecturer:

Content:

The module Applied Quantitative Corporate Finance provides students with advanced analytical and practical skills in corporate finance, building on prior knowledge from related business disciplines. The module focuses on quantitative valuation methods and their application in imperfect capital markets. As models based on perfect capital markets neglect relevant risk factors, the integration of risk management and corporate finance enables a comprehensive assessment of corporate value and risk. 

In the component Company Valuation, students value a DAX-listed company. The course covers major valuation approaches, including discounted cash flow methods, WACC, APV and equity approaches, multiples (trading and transaction multiples), and acquisition financing. 

The component Corporate Finance on Imperfect Capital Markets addresses risk management in corporate finance and introduces theories and models of imperfect capital markets. Students analyse company-specific risks, prepare business plans, apply Monte Carlo simulation for risk aggregation, and conduct company valuations under imperfect market conditions. 

The module comprises three interrelated components that must be taken concurrently: Company Valuation, Tutorial: Company Valuation, and Corporate Finance on Imperfect Capital Markets.

Textbooks:

Ernst D., Häcker, J. (2017, editors): Financial Modeling - Business excellence in Financial Management, Corporate Finance, Portfolio Management and Derivatives, Basingstoke (England) and New York (US)

Recommended for:

Undergraduates, graduates

Prerequisites:

Restrictions:

None

Assessment: