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University of Oldenburg
20.10.2021 17:26:17
wir082 - Corporate Finance (Complete module description)
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Module label Corporate Finance
Module code wir082
Credit points 6.0 KP
Workload 180 h
Institute directory Department of Business Administration, Economics and Law (Economics)
Applicability of the module
  • Bachelor's Programme Business Administration and Law (Bachelor) > Aufbaubereich Wirtschaftswissenschaften
  • Bachelor's Programme Business Informatics (Bachelor) > Akzentsetzungsbereich Wirtschaftswissenschaften
  • Bachelor's Programme Economics and Business Administration (Bachelor) > Akzentsetzungsmodule
  • Bachelor's Programme Mathematics (Bachelor) > Nebenfachmodule
  • Bachelor's Programme Sustainability Economics (Bachelor) > Wahlpflichtbereich
  • Dual-Subject Bachelor's Programme Economics and Business Administration (Bachelor) > Aufbaumodule
  • Dual-Subject Bachelor's Programme Economics and Business Administration (Bachelor) > Schwerpunkt Management und Ökonomie
  • Master of Education Programme (Vocational and Business Education) Economics and Business Administration (Master of Education) > Mastermodule
  • Master's Programme Business Informatics (Master) > Module der Wirtschafts- und Rechtswissenschaften (Master)
  • Master's Programme Computing Science (Master) > Nicht Informatik
Responsible persons
Prokop, Jörg (Module responsibility)
Lehrenden, Die im Modul (Authorized examiners)
Prerequisites
Skills to be acquired in this module
Students

• understand the role corporate finance plays in today’s business environment,
• are able to make consistent investment decisions based on established financial models both under certainty and under uncertainty,
• are able to place these models in within the broader context of economic theory, including both neoclassical theory and principal-agent theory,
• are able to assess the limitations of these models,
• analyze firm’s main sources of (long-term) financing.
Module contents
Course outline:
1. Introduction
2. Valuation and Capital Budgeting
3. Risk and Return
4. Long-Term Financing
This course is an introduction to corporate finance. It covers typical tools and techniques used in making investment and financing decisions, and it provides insights into their theoretical foundations. The concept of time value of money and net present value is discussed in detail, first under certainty, and then in the presence of uncertainty. We will examine the relationship between an investment’s risk and its return, and discuss ways to derive risk-adjusted cost of equity capital. In addition, the course provides insights into firms’ main sources of (long-term) financing.

The topics covered in this course are relevant for financial decision-making in various areas of business management, including operations management, marketing, and in particular corporate strategy.
Reader's advisory
Main textbook:
Hillier, Ross, Westerfield, Jaffe & Jordan, Corporate Finance, current edition, McGraw-Hill (especially chapters 1, 2, 4-10, 14).
Supplementary readings:
Berk & DeMarzo, Corporate Finance, current edition, Boston (Mass.).
Brealey, Myers & Allen, Principles of Corporate Finance, current edition, Boston (Mass.).
Schmidt und Terberger, Grundzüge der Investitions- und Finanzierungstheorie (4. Aufl.), 1997, Wiesbaden.
Links
Language of instruction English
Duration (semesters) 1 Semester
Module frequency jährlich
Module capacity unlimited
Modullevel / module level ---
Modulart / typ of module je nach Studiengang Pflicht oder Wahlpflicht
Lehr-/Lernform / Teaching/Learning method
Vorkenntnisse / Previous knowledge Financial Accounting (wir060)
Statistik I (wir150)
Managerial Accounting (wir032)
Einführung in die VWL (wir041)
Mikroökonomische Theorie (wir120)
Course type Comment SWS Frequency Workload of compulsory attendance
Lecture
2 28
Tutorial
2 28
Total time of attendance for the module 56 h
Examination Time of examination Type of examination
Final exam of module
within three weeks after the last lecture
written exam