LFU:online

Department of Banking and Finance Department of Banking and Finance

Mag. Dr. Florian Hauser Mag. Dr. Florian Hauser, +43 512 507 73005

434201

PS Financial Management

PS 2

3,5

GdM: Investition und Finanzierung, 4 core modules from the field business administration (§ 6 Abs. 2 bachelor curriculum) must have been passed. BWL (151) und VWL (140): The first phase of your study program must be completed or at least 10 courses must be completed.

weekly

each semester

English

The objective of the seminar (PS) is to allow students to deepen their understanding of certain concepts presented in the lecture. After completing this course, students shall be able to • calculate trough basic models by hand, • compute basic applications of models in MS Excel and • critically assess the applicability of models in the field of finance.

• Basics: Return calculation with and illustration of financial data. • Case study: includes the computational implementation of basic concept with real world da-ta and the presentation of results in a paper. • Portfolio Theory: Return and risk of portfolios, diversification, minimum variance portfolio, capital market line. • Market equilibrium: calculations of betas, systematic and unsystematic risk. • Efficient markets theory: price formation in markets (experiments), trading institutions, market efficiency and empirical evidence, long-term and short-term anomalies. • Corporate finance: Capital structure and cost of capital. The traditional vs. the Modigliani Miller approach.

In the seminar students apply and deepen their knowledge of certain topics presented in the lecture in an interactive environment. Calculations in portfolio theory, CAPM, and corporate finance are done with real-world data to allow students to assess the applicability of financial models in real world problems. A case study with considerable workload (to be worked out in MS Excel) enables students to develop know-how in computational model building as well as team skills. Class-room experiments foster students to integrate acquired skills.

Assignments, written exams and contributions

Brealey/ Myers/ Allen: Principles of Corporate Finance, Global Edition, 2011 (former editions are also OK). Schredelseker: Grundlagen der Finanzwirtschaft, 2002

12.03.2014