Chair of Finance

EEMBA - European Executive MBA

Core Course: Corporate Finance

Corporate Finance is a core course of the European Executive MBA (EEMBA) as well as of the General Management Programme (GMP). The course is directed at executive students without prior knowledge in financial management. The objective of this course is to introduce the students to the basic concepts, principles, and tools of corporate finance, and provide them with an overview of the role of the financial manager.

Instructor: Prof. Dr. Ulrich Pape

Content

Foundations of Corporate Finance

• Finance, the Financial System, and Financial Instruments
• Present Value and the Opportunity Cost of Capital
• Valuation of Common Stocks and Straight Bonds

Capital Budgeting

• Net Present Value (NPV)
• Internal Rate of Return (IRR) and Other Investment Criteria
• Risk and Return, and the Capital Asset Pricing Model (CAPM)
• Weighted Average Cost of Capital (WACC)

Financial Policy 

• Capital Structure Policy
• Dividend Policy and Share Buybacks

Overview of Derivatives

• Options and Option Strategies
• Futures, Swaps, and Hedging Strategies

Firm Valuation

• Fundamentals
• Discounted Cash Flow Analysis

Literature

• Brealey, R./ Myers, St./ Allen, F.: Principles of Corporate Finance, 9th ed., New York et al. 2008.
• Koller, T./ Goedhart, M./ Wessels, D..: Valuation – Measuring and Managing the Value of Companies, 4th ed., Wiley, New York et al. 2005.