330.224 Investment and Financing 1
This course is in all assigned curricula part of the STEOP.
This course is in at least 1 assigned curriculum part of the STEOP.

2024S, VU, 2.0h, 3.0EC
TUWEL

Course evaluation

Properties

  • Semester hours: 2.0
  • Credits: 3.0
  • Type: VU Lecture and Exercise
  • Format: Presence

Learning outcomes

After successful completion of the course, students are able to understand and apply the most important fundamental principles in Finance and Capital Budgeting. In particular, these includes the transformation of cash flows across time, present value calculation, application and interpretation of various types of interest rates, valuation of investment projects and determination of project cash flows, arbitrage free valuation of bonds, determination of financing costs for short and long term credit financing instruments, and valuation of stocks using classic valuation methods.

Subject of course

Time value of money (valuation of cash flow streams, discounting ang compounding, present value and futures value, compound interest effect, net present value, perpetuity, annuity)

Interest Rates (discount rate, effective interest rate, term structure, spot rates, forward rates, interst rates and rating, discrete and continuous rates)

Investment Decision Rules (static vs. dynamic methods, NPV, stand-alone projects, internal rate of return, payback rule, choosing between projects)

Capital Budgeting (calculation of free cash flow and NPV, sensitivity and scenario analysis, sunk costs)

Valuing Bonds (Zero Bonds, coupon bonds, yield to maturity, arbitrage free valuation, term structure, clean vs dirty price, corporate bonds)

Credit Financing (long-term bank loan, short-term financing (overdraft facilities, customer prepayments, supplier credit)

Valuing Stocks (Dividend-Discount Model, Discounted Free Cash Flow Model)

Teaching methods

Presentation of main teaching topics;

Calculation and discussion of exercises;

Discussion of cases

Mode of examination

Immanent

Additional information

The first session is scheduled for Thursday, March 7th, 2024, 8:00, in lecture room HS 18 (Cuber).

The TUWEL course with all materials (slides, exercises, take home exams) will be available from March 1st, 2024, onwards.

Lecturers

Institute

Course dates

DayTimeDateLocationDescription
Thu08:00 - 10:0007.03.2024 - 27.06.2024HS 18 Czuber - MB Vorlesung
Wed18:00 - 20:0017.04.2024GM 1 Audi. Max.- ARCH-INF Test 1 - 330.224: Investition und Finanzierung 1
Wed18:00 - 20:0029.05.2024GM 1 Audi. Max.- ARCH-INF Test 2 - 330.224: Investition und Finanzierung 1
Investment and Financing 1 - Single appointments
DayDateTimeLocationDescription
Thu07.03.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu14.03.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu21.03.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu11.04.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Wed17.04.202418:00 - 20:00GM 1 Audi. Max.- ARCH-INF Test 1 - 330.224: Investition und Finanzierung 1
Thu18.04.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu25.04.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu02.05.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu16.05.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu23.05.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Wed29.05.202418:00 - 20:00GM 1 Audi. Max.- ARCH-INF Test 2 - 330.224: Investition und Finanzierung 1
Thu06.06.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu13.06.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu20.06.202408:00 - 10:00HS 18 Czuber - MB Vorlesung
Thu27.06.202408:00 - 10:00HS 18 Czuber - MB Vorlesung

Examination modalities

Test 1 (topics of the examination: written, short numerical tasks plus a view multiple-choice questions, achievable number of points: 40)

Test 2 (topics of the examination: written, short numerical tasks plus a view multiple-choice questions, achievable number of points: 40)

Several Take Home Exams (Solving of case examples and small exercises, in total achievable number of points: 20)

Exams

DayTimeDateRoomMode of examinationApplication timeApplication modeExam
Wed17:00 - 18:3019.03.2025GM 1 Audi. Max.- ARCH-INF written07.03.2025 08:00 - 18.03.2025 23:59TISSTest 1 - Gruppe A
Wed18:30 - 20:0019.03.2025GM 1 Audi. Max.- ARCH-INF written07.03.2025 08:00 - 18.03.2025 23:59TISSTest 1 - Gruppe B
Wed17:00 - 18:3002.04.2025GM 1 Audi. Max.- ARCH-INF written20.03.2025 08:00 - 01.04.2025 23:59TISSTest 2 - Gruppe A
Wed18:30 - 20:0002.04.2025GM 1 Audi. Max.- ARCH-INF written20.03.2025 08:00 - 01.04.2025 23:59TISSTest 2 - Gruppe B
Mon18:00 - 19:3005.05.2025GM 1 Audi. Max.- ARCH-INF written03.04.2025 08:00 - 04.05.2025 23:59TISSTest 3 - Gruppe A
Mon19:30 - 21:0005.05.2025GM 1 Audi. Max.- ARCH-INF written03.04.2025 08:00 - 04.05.2025 23:59TISSTest 3 - Gruppe B
Mon18:00 - 19:3019.05.2025GM 1 Audi. Max.- ARCH-INF written06.05.2025 08:00 - 18.05.2025 23:59TISSTest 4 - Gruppe A
Mon19:30 - 21:0019.05.2025GM 1 Audi. Max.- ARCH-INF written06.05.2025 08:00 - 18.05.2025 23:59TISSTest 4 - Gruppe B

Course registration

Begin End Deregistration end
30.01.2024 12:00 20.03.2024 23:59 20.03.2024 23:59

Curricula

Study CodeObligationSemesterPrecon.Info
033 282 Mechanical Engineering - Management Mandatory4. SemesterSTEOP
Course requires the completion of the introductory and orientation phase
033 526 Business Informatics Not specified4. SemesterSTEOP
Course requires the completion of the introductory and orientation phase
066 936 Medical Informatics Mandatory electiveSTEOP
Course requires the completion of the introductory and orientation phase

Literature

Jonathan Berk, Peter DeMarzo
Corporate FinanceGlobal Edition
6. Auflage, 2023
ISBN: 978-1-292-44631-8
Kapitel: 4, 5, 6, 7, 8, 9

Language

German