601.667 (21S) BUS 4: Capital Budgeting and Financing

Sommersemester 2021

Registration deadline has expired.

First course session
29.04.2021 08:30 - 10:30 online Off Campus
... no further dates known

Overview

Due to the COVID-19 pandemic, it may be necessary to make changes to courses and examinations at short notice (e.g. cancellation of attendance-based courses and switching to online examinations).

For further information regarding teaching on campus, please visit: https://www.aau.at/en/corona.
Lecturer
Course title german BUS 4: Capital Budgeting and Financing
Type Course (continuous assessment course )
Course model Online course
Hours per Week 2.0
ECTS credits 2.0
Registrations 30 (60 max.)
Organisational unit
Language of instruction English
possible language(s) of the assessment English
Course begins on 29.04.2021
eLearning Go to Moodle course

Time and place

Please note that the currently displayed dates may be subject to change due to COVID-19 measures.
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Course Information

Intended learning outcomes

  • Solve problems related to
    • Time value of money
    • Investment appraisal
    • Investment timing
    • Long-term financing
    • Short-term financing
    • Leasing
  • Gain a thorough understanding of how to use tools in appraising investment opportunities
  • Transfer theoretical knowledge to real world financial decision making

Teaching methodology including the use of eLearning tools

Students will elaborate problems on:


  • Time value of money, net present value, annuities, perpetuities
  • NPV with investment opportunities, payback, internal rate of return,
  • Investment timing,  replacement decisions
  • Short term financing, working capital line of credit, trade credit
  • Long term financing, raising equity and debt capital
  • Leasing

All problems will only be stated in class. Students will then work on finding the solution and finally present it.

Course content

This course will extend the theoretical foundations of capital budgeting & financing presented in the lecture (601.666). This is achieved by working on practical problem statements.

Prior knowledge expected

VO Capital Budgeting & Financing (601.666)

Literature

  1. Brealey, Myers, Allen (2014). Principles of Corporate Finance, Global edition.
  2. Berk, DeMarzo (2011). Corporate Finance, 2nd edition.

Examination information

Im Fall von online durchgeführten Prüfungen sind die Standards zu beachten, die die technischen Geräte der Studierenden erfüllen müssen, um an diesen Prüfungen teilnehmen zu können.

Examination methodology

Elaborate and present problems related to capital budgeting and financing

Closed book exam

Examination topic(s)

  • Time value of money, net present value, annuities, perpetuities
  • NPV with investment opportunities, payback, internal rate of return,
  • Investment timing,  replacement decisions
  • Short term financing, working capital line of credit, trade credit
  • Long term financing, raising equity and debt capital
  • Leasing

Assessment criteria / Standards of assessment for examinations

50% - solving and presenting problems in class

50% - closed book exam at the end of the semester

Grading scheme

Grade / Grade grading scheme

Position in the curriculum

  • Bachelor's degree programme International Business and Economics (SKZ: 516, Version: 19W.1)
    • Subject: Principles of Business (Compulsory subject)
      • 1.5 BUS 4: Capital Budgeting and Financing ( 0.0h KS / 2.0 ECTS)
        • 601.667 BUS 4: Capital Budgeting and Financing (2.0h KS / 2.0 ECTS)
          Absolvierung im 1., 2., 3., 4. Semester empfohlen

Equivalent courses for counting the examination attempts

Sommersemester 2024
  • 601.667 KS BUS 4: Capital Budgeting and Financing (2.0h / 2.0ECTS)
Sommersemester 2023
  • 601.667 KS BUS 4: Capital Budgeting and Financing (2.0h / 2.0ECTS)
Sommersemester 2022
  • 601.667 KS BUS 4: Capital Budgeting and Financing (2.0h / 2.0ECTS)
Sommersemester 2020
  • 601.667 KS BUS 4: Capital Budgeting and Financing (2.0h / 2.0ECTS)