Capital Budgeting

The course begins with a definition of the reference point for assessing the merits of investment projects and clarifying basic concepts. Building on this, approaches to capital budgeting such as the net present value method, the internal rate of return method, the annuity method and payback will be presented and analysed. Then, the net present value method is extended by the introduction of taxes and an analysis of risk. On the basis of a case study, the economic prerequisites for value-generating projects and strategies are worked out. Finally, concepts for ex-post analysis and control of investment decisions (performance measurement) are discussed.

Introduction to Corporate Finance

The course starts with a discussion and categorization of possible sources of financing. Then, concepts for liquidity measurement including cash flow definitions and financial planning, the influence of risk on credit agreements and the wealth of lenders and borrowers, the procurement of equity capital by companies with and without access to the stock exchange (venture capital, IPO or seasoned equity offering) as well as financing by debt will be discussed.

Latest information for the Capital Budgeting & Introduction to Corporate Finance course can be found on the learning platform ILIAS.