The course deals with capital budgeting, financing and payout decisions. Assuming efficient capital markets as well as managers acting in the owner's interest and ignoring insolvency risk, a robust reference framework can be developed for the selection and control of various investment and financing alternatives. The problems between owners (principals) and managers (agents) or investors resulting from asymmetrical information distribution and conflicts of interests result, inter alia, in a realistic capital structure and dividend policy. Among other things, the relationship between risk and return, the influence of the capital structure on company value and various sources of financing are discussed.

Latest information on the course Corporate Finance can be found on the learning platform ILIAS.