Universität Wien
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040410 EK KFK CF: Corporate Finance (2014W)

8.00 ECTS (4.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work

Ein Vorziehen dieser LV ist nur moeglich, wenn bereits Principles of Finance positiv absolviert wurde
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

  • Tuesday 07.10. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 14.10. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 21.10. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 28.10. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 04.11. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 11.11. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 18.11. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 25.11. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 02.12. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 09.12. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 16.12. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Wednesday 07.01. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 13.01. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 20.01. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 27.01. 11:30 - 16:00 Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock

Information

Aims, contents and method of the course

The aim of the course is to develop a framework to think about how firms finance their activities. We will go back and forth between developing theories and confronting them to specific real life examples. We start by analyzing the firm’s financing decision in perfect markets. We outline the role of taxes in financing and project valuation. Incorporating the notion of financial distress and bankruptcy we draw the Static Trade-off Theory of Capital Structure. We then focus on the potential conflicts of interest between shareholders and debt holders and between shareholders and management, and their implication for the firm’s capital structure decision. We conclude this part by discussing dynamic considerations the firm might have when setting its capital structure.
Our second topic will focus on the firm’s payout policy, i.e., we will look at the question of when and how the firm is to distribute excess cash to shareholders. We show, that, as with capital structure, a firm can create value by its payout policy only in the presence of some market imperfection such as taxes, agency costs, transaction costs or asymmetric information between management and investors.
The third topic of the course discusses the motives for mergers, the cost and benefits of mergers, and possible takeover tactics.

Assessment and permitted materials

There will be a midterm and a final exam accounting for 40% and 50% percent of the final grade, respectively. Class participation is encouraged and contributes to 10% of the final mark.

Minimum requirements and assessment criteria

Discuss the financing decisions of corporations.
Understand the importance of asymmetric information and signaling in capital markets and financial decisions.
Critically discuss the question of the dividend policy a firm should follow.
Analyze the merits of mergers, acquisitions and other restructurings.

Examination topics

Lecture notes will be distributed on each lecture.

Reading list

Association in the course directory

Last modified: Mo 07.09.2020 15:29