Corporate Finance II

Corporate Finance II

Debt Financing

 

Course offering details

Regular cycle Course is every Summer semester
Date and time next Summer 2020
Audience Students with Specialization
Instructor Prof. Dr. Dirk Schiereck
Supervisor  
Examination in context of “Fundamentals of Finance II” 01-16-0M02/6 or especially for Incomers (01-16-2G04)
(Examination dates)

Course Description

Whereas “Corporate Finance I” focuses primarily on equity financing, “Corporate Finance II” aims for ways a company can finance itself via debt. We first introduce bank based lending. Theoretical models on the existence of banks, optimal credit contracts, credit rationing, and relationship banking are covered. Second, we introduce market based lending. We discuss the characteristica of different kind of bonds and the fundamental principals in bond valuation. Finally, debt contracts and derivaties are covered.

Prerequisites

No prerequisites. A working knowledge of topics covered in the introductory course “Investition und Finanzierung” are helpful.

Literature

  • Hartmann-Wendels, T./Pfingsten, A. & Weber, M. (2007): Bankbetriebslehre. Kapitel B-C, 4. (Aufl.). Berlin: Springer.
  • Brealey, R. A./Myers, S. C. & Allen, F. (2006): Principles of Corporate Finance, (8th ed.). Boston: McGraw-Hill.

Materials

The course will be supported by moodle . Here you will find all materials you will need for course.