Wirtschaftswissenschaftliche Fakultät

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Corporate Finance II: Portfolio Choice and Capital Structure


Please be aware:

The lecture "Corporate Finance II: Portfolio Choice and Capital Structure" is exclusively available for incoming foreign students at the University of Augsburg. Anyone who is currently not enrolled as an exchange student at the University of Augsburg is not allowed to attend this lecture.

This class is held entirely in English.

Docent:

The course is taught by Prof. Dr. Yarema Okhrin and Dr. Martin Rohleder.

Application for participation please send to Dr. Martin Rohleder.

Topics:

In the first part of this course, students will get the intuition for understanding risk and return. It also explains the distinction between diversifiable and systematic risk. On this basis, students will get to know models for optimal portfolio choice, capital asset pricing and calculating the cost of capital. Further, students will examine the role of behavioral finance and relate investor behavior to the topic of market efficiency and alternative models of risk and return. In the second part of this course, students will learn how a firm should raise the funds it needs to undertake its investments and the firm's resulting capital structure. Students will focus on examining how the choice of capital structure affects the value of the firm in the perfect world and with frictions such as taxes and agency issues. Finally, students will learn to determine the optimal payout policy. After the course, students will be able to evaluate the risks and costs associated with a firm's business and determine the firm's optimal capital structure.

Dates

There are four lecture blocks and each lecture block consists of three parts:

  • Wednesday, 09.05.2018: 08:15-09:45 h & 10:00-11:30h & 12.15-13.45h
    • Room 1207
  • Wednesday, 16.05.2018: 08:15-09:45 h & 10:00-11:30h & 12.15-13.45h
    • Room 1207
  • Wednesday, 30.05.2018: 08:15-09:45 h & 10:00-11:30h & 12.15-13.45h
    • Room 1207
  • Wednesday, 06.05.2018: 08:15-09:45 h & 10:00-11:30h & 12.15-13.45h
    • Room 2207

The exam is expected to take place at 20.06.2018.

Literature:

The lecture is based on the following textbook:

  • Jonathan Berk & Peter DeMarzo (2010): Corporate Finance, global ed. of 2nd revised ed., Pearson Education.

We strongly recommend students to make sure that they have access to this book throughout the whole lecture. Several copies are available at the university library.

Examination:

The final examination of this course is a written exam of 60 minutes. As well as the course, the exam is completely in English. Students may use a calculator during the exam which may not be programmable.