Wirtschaftswissenschaftliche Fakultät

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Course Details



Prof. Wilkens
WIW-10001


Corporate Finance II: Portfolio Choice and Capital Structure

Lecturer: Dr. Sebastian Heiden, Dr. Martin Rohleder
Type: Lecture
Exam: Written exam
ECTS: 5
Term: Summer
Level: Bachelor
Limitation: None

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.


For further information or application procedure please check the module manual and the website of the chair.