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PTMBA2022_Core A - Corporate Finance

Course code
Course type
PT MBA Lecture
Weekly Hours
FS 2021
Prof. Dr. Christian Andres
Please note that exchange students obtain a higher number of credits in the BSc-program at WHU than listed here. For further information please contact directly the International Relations Office.

This course covers the basic principles of corporate finance and develops the necessary practical tools for financial decisions and corporate valuation.

After a brief introduction, which motivates the goals of a firm against the background of different corporate governance regimes, we will take a closer look at the relationship between stock prices and the cost of equity. In this context, we will discuss practical guidelines to derive the cost of capital for single projects and for the whole firm. We will then cover the determinants of the optimal debt/equity mix and the consequences for a firm’s cost of capital and valuation.

In addition, the course will provide an overview of a firm’s external financing alternatives (debt and equity), with a focus on the security issuance process (IPOs). Additional topics include select issues in corporate governance, such as the board of directors and executive compensation, as well as a brief introduction into mergers and acquisitions (M&A).

  • Develop an understanding of different financing sources and their implications
  • Become familiar with the concepts of costs of equity, debt, and weighted average costs of capital (WACC)
  • Become sensitive to the role of agency problems and information asymmetries in a corporate environment and their impact on financing conditions
Date Time
Saturday, 27.02.2021 08:45 - 17:45
Saturday, 13.03.2021 08:45 - 17:45
Saturday, 27.03.2021 08:45 - 17:45
Saturday, 10.04.2021 09:00 - 13:00
Agency Theory, CAPM, NPV calculations, WACC
Brealey, Richard A., Stewart C. Myers and Allen, Franklin (2019): "Principles of Corporate Finance", Irwin McGraw‐Hill, 13th edition
20% individual case write-ups, 30% Group case assignment, 50% Final Exam
Managerial Finance
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