Investments
Component code / course code:
Semester: winter / summer
ECTS credits: 5
Lecture hours per week (SWS): 4
Lecturer: Prof. Dr. Weilepp
Prerequisites: The students possess basic knowledge of business and economic contexts as taught in modules 01 to 11 in the first semesters of the basic studies. This includes the likewise taught (financial) mathematical and statistical knowledge.
Qualification objectives:
An understanding of the various investment theory approaches and their areas of application as well as their limitations is developed after attending the course.
The connection between dynamic investment procedures and the concept of value in business administration is understood and can be applied to various examples or asset classes, such as fixed-income securities, company valuations,
derivatives, etc.
Course contents:
- The company's figures (balance sheet, income statement and cash flow statement)
- Basic procedures of investment appraisal
• Static methods (cost comparison calculation, profit comparison calculation, profitability calculation and annuity
calculation)
• Dynamic methods (net present value method, annuity method, internal rate of return calculation, levelised
cost of electricity) - Valuation of various financing instruments or asset classes:
• Bonds and their interest rate risk
• Unconditional forward transactions (forwards, futures and swaps) and conditional forward transactions (options)
• Methods of company valuation (equity method, WACC method and APV method, multiplication method)
Teaching format (e.g. online/in person lecture/Seminar/Lab etc.): Inverted classroom, self-study, plenary sessions, working groups
Examination type: written exam
