601.667 (21S) BUS 4: Capital Budgeting and Financing
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.
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
- Brealey, Myers, Allen (2014). Principles of Corporate Finance, Global edition.
- 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 schemePosition 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
-
1.5 BUS 4: Capital Budgeting and Financing (
0.0h KS / 2.0 ECTS)
-
Subject: Principles of Business
(Compulsory subject)
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)