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401-8913-00L 6 Credits MSC D-MATH
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Advanced Corporate Finance I (University of Zurich)

No enrolment to this course at ETH Zurich. Book the corresponding module directly at UZH as an incoming student. UZH Module Code: MOEC0455 Mind the enrolment deadlines at UZH:
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Last Updated: 2026-02-05 15:47:28

Abstract

This course develops and refines tools for evaluating investments (capital budgeting), capital structure, and corporate securities. The course seeks to deepen students' understanding of the link between corporate finance theory and practice.

Objective

This course develops and refines tools for evaluating investments (capital budgeting), capital structure, and corporate securities. With respect to capital structure, we start with the famous Miller and Modigliani irrelevance proposition and then move on to study the effects of taxes, bankruptcy costs, information asymmetries between firms and the capital markets, and agency costs. In this context, we will also study how leverage affects some central financial ratios that are often used in practice to assess firms and their stock. Other topics include corporate cash holdings, the use and pricing of convertible bonds, and risk management. The latter two topics involve option pricing. With respect to capital budgeting, the course pays special attention to tax effects in valuation, including in the estimation of the cost of capital. We will also study payout policy (dividends and share repurchases). The course seeks to deepen students' understanding of the link between corporate finance theory and practice. Various cases will be assigned to help reach this objective.

Content

Topics covered 1. Capital structure: Perfect markets and irrelevance 2. Risk, leverage, taxes, and the cost of capital 3. Leverage and financial ratios 4. Payout policy: Dividends and share repurchases 5. Capital structure: Taxes and bankruptcy costs 6. Capital structure: Information asymmetries, agency costs, cash holdings 7. Valuation: DCF, adjusted present value and WACC 8. Valuation using options 9. The use and pricing of convertible bonds 10. Corporate risk management

General Information

Language
English
Levels
MSC
Frequency
Yearly recurring

Examination

Type
graded semester performance
Registration modalities, date and venue of this performance assessment are specified solely by the UZH.

Course Components

Type Title Time & Place Hours
lecture with exercise Advanced Corporate Finance I (University of Zurich)
**Course at University of Zurich**
  • Tue 14:00-15:45
  • Tue None-None
  • Tue 10:15-12:00
  • Tue None-None
4 h weekly

Offered In

  • Mathematics Master
    • Application Area (Only necessary and eligible for the Master degree in Applied Mathematics. One of the application areas specified must be selected for the category Application Area for the Master degree in Applied Mathematics. At least 8 credits are required in the chosen application area.)