Corporate Finance Outline

Brandenburg University of Applied Sciences – Masterstudiengang Betriebswirtschaftslehre M. Sc. Module: Corporate Finance Winter term 2019/2020

Dear students, I am pleased to welcome you to the finance specialization track in the management master program of Brandenburg University of Applied Sciences. This track consists of two modules: Corporate Finance and Corporate Valuation and Financial Modeling. Corporate Finance focuses on cash flow calculation, capital budgeting, capital market theory, capital structure, dividend policy, and financial risk management. The competences you acquire from this module are a basis for the areas discussed in the module Corporate Valuation and Financial Modeling.

Teaching concept On a general note, I motivate you to take responsibility for achieving your learning goals. I consider myself as your learning coach who is happy to accompany on your way to academic success. In this sense I have planned a course that allows you to gain understanding for theoretical concepts and their real-life applications. I am convinced that this course prepares you well to be successful in any finance- related job. That said, I am open for your suggestions and happy to get your feedback on the course.

Time exposure To follow the class, please reactivate your knowledge of your bachelor studies’ introductory finance class, your accounting class and your financial mathematics class. A prior finance specialization in your bachelor studies is not necessary. The language of the course is English (classroom sessions incl. lectures, exercises, case discussions, and the exam). Please consider that the module description assumes a workload of 180 hours. This means that you will only be successful if you prepare classes and perform follow-up work. I strongly recommend you to go to the library and read textbooks on Corporate Finance (see literature recommendations at the end of this text) to broaden and deepen your knowledge. The timeline (see below) helps you to plan your workload for this term. I highly recommend attending the classroom sessions and I am looking forward to discussing your further questions relating to Corporate Finance in the classroom sessions.

Grading: Written Exam › 90 minutes › date: tbd › relevant topics: all topics covered in the module › permitted aids: (non-programmable) calculator

Structure of the module

Classroom sessions start at 08:30 in room WWZ 221. Please note that the timeline given below is preliminary. Amendments in the agenda will be communicated in prior classroom sessions and via Moodle notifications. Corporate Finance Outline

Date Unit 03.10. No class - Holiday 10.10. Lecture - Role of the CEO 17.10. Lecture - Cash flow calculation 24.10. No class - Klausurtagung Fachbereich Wirtschaft 31.10. No class - Holiday 07.11. Exercises and case study - Cash flow calculation 14.11. Lecture and exercises – Capital budgeting 21.11. Lecture and case study – Capital budgeting 28.11. Lecture – Capital market theory 05.12. Exercises and case study - Capital market theory 12.12. Lecture – Capital structure and dividend policy 19.12. Exercises - Capital structure and dividend policy 09.01. Lecture – Financial risk management 16.01. Exercises – Financial risk management 23.01. Q&A session - Exam preparation

Teaching material All relevant material is available on Moodle. Please sign in for the following course: BWLM SB Corporate Finance and Policy WS 2019 https://moodle.th-brandenburg.de/course/view.php?id=6032 The teaching material will be updated weekly. For exercises and case studies please bring your laptop, if possible. I recommend printing out the material for each session so that you can take notes.

Central reading recommendation: › Hillier, D.; Ross, St.A.; Westerfield, R.W.; Jaffe, J.F.; Bradford, J.: Corporate Finance. 2nd European ed., McGraw-Hill 2013. (Several copies available in the THB library.)

For additional reading I recommend: › Ross, St. A.; Westerfield, R. W.; Jaffe, J. F.: Corporate Finance. 7th ed., McGraw-Hill 2005. › Brealey, R. A.; Myers, S. C.: Principles of Corporate Finance. 6th ed., McGraw-Hill 2000. › Copeland, T. E.; Weston, J. F.; Shastri, K.: Financial Theory and Corporate Policy. 4th ed., Addison

I wish you every success and a great learning experience with the module Corporate Finance.

Dr. Sebastian Geissel Visiting Professor | General business administration specializing in financial management [email protected]