Business Unit Strategy and Corporate Finance

Instructors

Talks by industry experts: Horst Bertram (Baader Bank)

General Description

The course deals with the interrelation of strategic considerations and corporate finance. For instance, we will also compare the pros and cons of different forms of capital (bank loans, bonds, equity, convertibles etc.) to fund growth. We will also discuss the different financial exit strategies (spin off, auction, leveraged buyout etc.) if a company decides to split-off a segment that is considered non-core by its management. We are mainly using the textbooks "Richard A. Brealey, Stewart C. Myers, and Franklin Allen: Principles of Corporate Finance, 9th edition and M. Grinblatt, and S. Titman: Financial Markets and Corporate Strategy."

Contents

Chapter 1: Recap finance basics

Chapter 2: Growth strategies

Chapter 3: Corporate restructuring

Chapter 4: Distribution mechanisms

Chapter 5: Capital structure

Chapter 6: Agency issues and incentive systems

Chapter 7: Real option valuation

Chapter 8: Risk management and hedging

Chapter 9: Financial planning and working capital management

Course Material

Available to students via Moodle. Required password to download course material will be provided in the first lecture.

Book list
Selected books for the course

Exams

Final exam: February 13, 2015

Time: 12pm; room: H4/5

(90 minutes, 100% of the final grade) The exam is "open" form.

Exam inspection will take place on Feb. 23rd from 10:30 to 11:30am

Location: Heho 22, room 2.19

Retake exam: April 1, 2015

Time: 10am; Room: H3

Course Schedule

Mondays, 2:00 pm - 4:00 pm and Tuesdays, 12:00 pm - 2:00 pm; there will be one problem solving session (replacing a lecture) every second week.

Classroom: H12

The course is open for

Bachelor of Science (6 credits)

Master of Finance (7 credits, one additional assignment needed for MFin students). Further details regarding the assignment will be given in class and posted on Moodle.