TEJU ("teach you") finance

In this module, we learn how to estimate project cash flows. The relevant cash flow is the so-called net cash flow (NCF), which indicates how much money a project is expected to generate for the providers of capital. The estimation of the relevant cash flows is arguably the most important step in any capital budgeting exercise.

The module first explains in detail what NCFs are and what basic rules we have to remember when estimating the NCFs of projects. In the process, we learn how to compute Incremental Net Cash Flows and we practice this knowledge with a number of examples and case studies. The module then shows how to make sure that we treat inflation in a consistent way. Finally, we discuss how to include important non-financial goals, such as environmental, social, and governance (ESG) factors into our considerations, using a so-called Adjusted Present Value (APV) approach.

Dieses Modul gibt eine kurze Einführung in die wichtigsten Grundlagen der Finanzbuchhaltung:

• Was ist die Bilanz und wie können wir sie interpretieren?
• Was ist die Erfolgsrechnung und wie können wir sie interpretieren?
• Wie sind Bilanz und Erfolgsrechnung verknüpft?
• Wie beeinflussen typische Geschäftsvorfälle die Bilanz und Erfolgsrechnung eines Unternehmens?

In this module, we learn how to read and analyze financial statements. Most importantly, we learn how to quickly assess the financial health and performance of a company and how to interpret the most important financial ratios. Very often, a detailed financial analysis is the starting point for important corporate decisions. Financial analysis also provides very useful information for Financial Planning and Valuation.

This module introduces you to the most popular valuation approach among practitioners: Relative valuation. Its popularity is based on the fact that relative valuation is fairly simple to conduct and very easy to communicate. However, in order to properly apply this method, we need to take a careful look at what valuation multiples actually are and how we can use them to value firms or their equity. We also take a careful look at the most popular multiple among financial analysts: The P/E ratio.

When valuing firms, the market generally assumes a very long-term perspective. This module shows how to incorporate such a long-term perspective in our firm valuation framework. It also discusses key relations between growth, investment policy, and value creation in the long run. Finally, it presents a simplified model that allows us to assess the value of mature companies with only 5 assumptions.

It turns out that the expected cash flows that arise after the years that are typically covered by the financial plan financial plan often account for 50% or more of firm value. It is therefore crucial to understand and assess this so-called continuing value.

This modules inquires into the relevance of financing decisions in the real world. In particular, it takes a close look at the various costs and benefits of debt financing, including tax effects, distress costs, and potential "agency" problems. We also present a simple yet powerful model to better understand the incentive implications of debt financing as well as the valuation of debt and equity. Finally, the module presents the major capital structure theories and illustrates how firms can solve the various trade-off to find an optimal leverage range.

This module focuses on the fascinating process that converts privately held firms into public corporations. The module starts with a discussion of the main advantages and disadvantages of going and being public. Then it discusses in detail the various ways of tapping into public equity markets. In particular, it takes a close look at Initial Public Offerings (IPOs), in which firms hire an underwriting syndicate of investment banks to help with the marketing, pricing, and allocation of the shares. We present a simple model to understand the total costs of an IPO as well as its implications for the value and ownership allocation of the firm. Next, we study alternative ways of going public, including Direct Listings and Direct Public Offerings. We conclude the module with an overview of recent trends in the context of "digitalization," where new platforms emerge to cut out the underwriters and open public equity to a much broader base of firms and investors (e.g., Crowd Financing). In this context, we also discuss the potential risks and benefits that the emerging blockchain technology poses when firms engage in crowd financing via Initial Coin Offerings (ICOs).

Mergers and Acquisitions (M&A) have tremendous economic relevance and constitute a crucial mechanism in an economy's reallocation of resources. This course focuses on important financial aspects of M&A transactions. After discussing the various forms of takeover, we present the standard M&A process and the valuation challenges that are associated with that process, in particular with respect to the anticipated net synergies of the deal. Then we study the key considerations of how to set the offer price and its composition (e.g., cash vs. stock deals). We look at how the deal structure affects the risk- and value allocation among the parties, and we close with a discussion of why creating value with M&A is easier said than done.