Modulbeschreibung

The students learn:

• to distinguish between different ways of financing
• to quantify the cost of capital and to optimize the capital structure of a company
• how to make capital budgeting decisions
• how to compute the value of bonds, shares and companies
• to analyse financial reports with financial figures for multinational companies
• to understand how financial reports in an international environment are prepared
• how financial positions in the financial report are valued
• the basics of business combinations (M&A)

Basic accounting knowledge

First part Corporate Finance (50%), second part Accounting (50%)

Professional competences:

Participants can:

• describe how financing, the cost of capital and the value of the company are interrelated.
• explain the purpose and content of a financial report.
• can explain and perform a business combination.
• assess a financial analysis of a company.

Methodological competences:

Participants can:

• explain the impact of different types of financing on the cost of capital and the capital structure
  policy.
• apply the time value of money concept in the context of capital budgeting decisions and the
  valuation of bonds, shares and companies.
• explain the content and the structure of an income statement, balance sheet and cashflow
  statement.
• quantify the valuation of inventories, long-lived assets, deferred taxes and provisions.
• assess the financial reporting quality.
• assess the financial performance with financial ratios and financial reporting quality.
• explain and apply business combinations (financial instruments, goodwill, equity accounting).
• describe the consequences of multinational operations in the financial report.

Self-competences:

Participants can:

• reflect the own results and the opinion of other students.
• challenge the opinion of other students.

Social competences:

Participants can:

• reflect the results and opinion of other students

Topic area I: Capital Budgeting and Valuation

• Time value of money
• Value of bonds and equities
• Capital budgeting
• Corporate valuation

Topic area II: Corporate Financing

• Debt and equity capital
• Capital raising
• Cost of capital
• Capital structure policy

Topic area III: Financial Reporting

• Introduction to financial reporting standards
• Introduction to income statements, balance sheets and cash flow statements
• Financial analysis technique

Topic area IV: Application of Financial Reporting Standards

• Inventories
• Long-lived assets
• Deferred taxes
• Long-term liabilities
• Provisions

Topic area V: Business Combinations & Financial Analysis

• Equity accounting, goodwill acccounting, financial instruments
• Multinational accounting
• Financial ratios
• Financial reporting quality

Front-of-class teaching, group work, case studies, exercises in class

Mandatory:

• Slides
• Exercises
• Further documentations and reader

Optional:

• None