The lectures will start on March 25th, 2025!
The course adresses students in the International Business and Finance program who are excempt from studying abroad (or participate in a 4-semester double degree program).
Learning from a history of financial crises - and refering to the cases from our Financial Market Decisions Class in the first term -, students understand the need for financial supervision and regulation on a global scale. They are able to critically reflect the shortcomings of former regulatory approaches (“lessons learned” from the past). Students acquire a thorough picture of today’s national and supranational supervisory authorities and institutions involved in the process of financial supervisory and regulatory standard-setting. Students understand the different pillars of today’s regulatory and supervisory framework ("Basel III") and are able to develop recommendations for further improvement. They understand the need for market regulation and are able to describe the major elements of MAR (Market Abuse Regulation). Recent regulations like MiCA (Markets in Crypto Assets) or DORA (Digital Operational Resilience Act) will also be covered.
By deeply researching and analyzing the financial situation of a major global bank, students understand the effect of the regulations which were developed and refined over the last 20 years. They learn to interpret published financial statements and understand the limitations of interpreting financial statements following different accounting standards.
The grade will comprise of
- A written exam
- Up to 30% bonus points from the semester project
- Up to 10% bonus points from Datacamp assignments
- Dozent/in: Michael Feucht
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· Learn quickly · in a risk-free way · to gain practical experience with lasting, long-term effects The management simulation is an interactive teaching and learning system based on the principle of: Learning Business by Doing Business The training objectives the Business Simulation The Business Simulation will help teach you to: · Make better business decisions · Gain experience thinking about the overall impact of your decisions · Think more effectively about the links between different decision areas · Define economic goals and strategies and implement them in a dynamic and competitive environment · Understand the fundamentals of marketing · Analyze financial figures and put insight into practice · Learn to use business tools like cost accounting and income analysis · Maintain control of a business under uncertain conditions and time constraints · Maintain overall control of difficult tasks · Learn to think and act in an inter-disciplinary way · Develop the ability to structure and solve problems · Develop a view for the essential problems of a business · Practice effective communication through visualization |
- Dozent/in: Michael Freiboth
COURSE SUMMARY
The lectures on CORPORATE FINANCE & VALUATION will extend our theoretical framework and discussions of our first term lectures on VALUING SECURITIES.
The lectures will be this summer term every Monday from 8:00-11:20 am (class room # W1.03).
COURSE DESCRIPTION & METHODOLOGY
The understanding how companies create value, how they measure value creation and how they finance on equity and debt capital markets their investments to scale their business is the intellectual backbone of any market economy. This is also the essence of this lecture series. We will learn that companies create only value by investing capital they raise from investors on equity and debt capital markets to generate future cash flows at rates of return exceeding their specific risk adjusted cost of capital.
This is paramount to understand as equity capital markets, and here especially technology stocks, travelled fast north lately to elevated level. So, what is the fair value bandwidth of such digital business designs and platform companies, like Google, Tesla, Uber, Airbnb or Netflix?
Additionally, we will discuss the distinct sources of financing for corporations which are on the one side internally-generated funds, like depreciation and retained earnings, and on the other side debt as well as equity as major sources of external funds. Start-ups use primarily venture capital, a special kind of risk-equity funding. Investment Banks support companies to place their securities on global debt (bond) or equity (IPO, shares) markets. The theme here is that debt and equity comes in many forms. As in biodiversity the variety is the very spice of life. We will analyze the specifics of the capital structure theory by starting with the classical MODIGLIANI & MILLER Model and their IRRELEVANCY THEOREM for perfect capital markets and will extend this model by introducing market imperfections like taxes and costs of default. Within corporate valuations the capital structure is a crucial ingredient for the calculation of the weighted average cost of capital of the firm (or, mathematically speaking, the denominator of the Discounted Cash Flows (DCFs).
LITERATURE & LECTURE MATERIAL
Lecture presentations will be released ahead of time. Lectures, articles and further readings as well as web references will be posted on Moodle.
As mandatory text books we will use:
- Damodaran, A. (2012). Investment Valuation – Tools and Techniques for Determing the Value of Any Asset. 3rd ed., New Jersey: Wiley & Sons.
- Feix, T. (2020). End-to-End M&A Process Design - Resilient Business Model Innovation. Wiesbaden: Springer Science.
- Feix, T. (2021). Valuing Digital Business Designs and Platform Companies - An Integrated Strategic and Financial Valuation Framework. Springer Science Global Book Series: The Future of Business & Science. Wiesbaden: Springer Science.
- Koller, T.; Goedhart, M.; Wessels, D. (2020). Valuation – Measuring and Managing the Value of Companies", 7th edition, 2020. NY: Wiley.
Additional text books, articles and web-literature will be used for specific lectures. You should also prepare yourself by regularly reading the Economist (weekly) and the Financial Times (daily).
COURSE REQUIREMENTS
Students are expected to carefully review the assigned reading materials before each session, diligently work on the assigned problems, questions, and cases, and to participate actively in the class discussions. You should be prepared to spend some time to digest the material, as well as to work on the assignments and case studies. Timely submission of the assigned work is critical. Late submissions will not be accepted.
TIMING & TOPICS
Our flow of topics will be:
- Introduction to Corporate Finance & Valuation: THE TAO OF VALUE
- Alternative Valuation Approaches
- Financial & Performance Diagnostics
- Linking Financial with Strategic Diagnostics
- Forecasting Performance and Cash Flows: Planning Period & Continuing Value
- Corporate Finance and Cost of Capital: Levered & Unlevered
- The Walk from Operating to Enterprise to Equity Value and Value per Share & Valuation Framing with Multiples
- Valuation Embedded in "Pictures of the Future"
- Dozent/in: Thorsten Feix
COURSE SUMMARY
Whereas the 2010s have been littered by rapidly evolving markets with patterns of digital disruption, business model innovation, boundary-less competition of platforms and the reconfiguration of global value chains, the 20s – and that is not just an outcome oft the COVID-19 pandemic – will demand robust strategies and business designs. The latter will be paramount to increase shareholder value and realize competitive advantage. Business strategies have to be sensitive to their specific ecosystem and, therefore, should be tailor-made.
The course on "Platform & Digital Business Design Strategies" develops a framework for assessing, designing and implementing robust, value enhancing business models and platform strategies.
The course will center around 4 strategy days. We will apply a flipped class-room concept.
COURSE DESCRIPTION & METHODOLOGY
We will use flipped classrooms, case studies, discussions, mini-projects, and provide an overview of game changing strategic and innovation issues of the 2020s to create a productive in class learning environment.
The course will be structured around the following textbooks and groundbreaking articles:
- Amit, Zott, & Massa (2010). The Business Model - Theoretical roots, recent developments, and future research. IEDE Business School Working Paper.
- Feix, T. (2021). Valuing Digital Business Designs and Platform Companies - An Integrated Strategic and Financial Valuation Framework. Springer Science Global Book Series: The Future of Business & Science. Wiesbaden: Springer Science.
- Hamel, G. (2006). The why, what, how of management innovation. Harvard Business Review.
- Magretta (2002). Why Business Models Matter. Harvard Business Review.
Scientific articles, as well as a rich set of case studies from my new book will supplement the lectures. We will emphasize theory and analytics, but also teach the course from an applied perspective.
COURSE REQUIREMENTS
Students are expected to carefully review the assigned reading materials before each session, diligently work on the assigned problems, questions, and cases, and to participate actively in the class discussions. You should be prepared to spend some time to digest the material, to work on the assignments and case studies. Timely submission of the assigned work is critical. Late submissions will not be accepted.
TIMING & CONTENT OF STRATEGY DAYS
(sessions will be on-campus, class-room W2.11)
# Day 1 - March 21, 2025, 9am-5pm: Digital & Green (Circular) Business Designs and the 10C Model
# Day 2 - April 4, 2025, 9am-5pm: Digital & Green (Circular) Business Designs, Patterns and Strategies
# Day 3 - April 11, 2025, 9am-5pm: Platform & Green (Circular) Business Designs, Strategies & Levers
# Day 4 - May 4, 2025, 9am-5pm: Presentation of Term Papers
- Dozent/in: Thorsten Feix