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363-0561-00L 3 Credits BSC , DS , MSC D-USYS , D-ARCH , D-MTEC , D-GESS
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Advanced Finance

Lecturers & Examiners: Dr. Silke Klara Waterstraat
Not for MAS students belonging to D-MTEC! Students, who have already successfully completed the course “363-0561-00 Financial Market Risks” can't register again.
VVZ CR n/a

Last Updated: 2026-06-01 11:33:41

Abstract

The course explores advanced financial decisions encountered by corporate managers and demonstrates how financial theory can be applied to address practical, real-world challenges.

Objective

After taking this course, students will be able to: • Analyze and evaluate corporate financial decisions, including debt financing, risk management, mergers, and acquisitions, using advanced financial theories and practice-oriented tools. • Assess financial risks and implement risk management strategies using options, futures, forwards, and swaps. • Conduct financial planning and working capital management, including financial analysis, inventory management, cash flow optimization, and credit policies. • Integrate sustainability principles into financial decision-making. • Explore and apply emerging trends in finance, such as fintech innovations, digital transformation, and the regulatory responses to financial crises, to real-world business challenges.

Content

Financial management plays a crucial role in shaping a company's future, as today's capital investment decisions can define the industries and opportunities the firm will engage in 10, 20, or more years from now. This course focuses on the key financial decisions corporate managers face, covering major topics such as debt financing, risk management, financial planning and working capital management, mergers and acquisitions and recent trends. Students will not only develop the tools and mindset of a financial practitioner based on financial theory but also explore practical applications through real-world examples. Advanced Finance builds on the lecture Introduction to Finance. Students will learn about options and their valuation, as well as debt financing, covering credit risk and corporate debt valuation. The risk management section focuses on hedging with options, futures, forwards, and swaps including currency risk hedging. The course also addresses financial planning and working capital management, emphasizing financial analysis, working capital, inventory, and cash management. Additionally, students will examine mergers and corporate restructuring, including leveraged buyouts and private equity. Finally, key topics such as fintech innovations, sustainable finance and regulation, and financial crises and regulatory responses provide insights into the future of finance and its role in fostering stability and sustainability. All lecture topics are complemented with real-world examples and sustainability aspects given its increasing importance in financial management. Part I: Options 18.02.2025: Understanding Options (Book Chapter: 21; Key Points: Calls, Puts and Shares) 25.02.2025: Valuing Options, Real Options (Book Chapters: 22,23) Part II: Debt Financing 04.03.2025 (online): Credit Risk and the Value of Corporate Debt (Book Chapter: 24) 11.03.2025 (online): The Many Different Kinds of Debt (Book Chapter: 25; Key Points: Long-term Bonds, Convertible Securities, Bank Loans, Commercial Papers) 18.03.2025: Leasing (Book Chapter: 26; Key Points: Operational and Financial Leases) Part III: Risk Management 25.03.2025: Managing Risk (Book Chapter: 27; Key Points: Reasons for Hedging, Reducing Risks with Options, Futures Contracts, Forwards, Swaps) 01.04.202: International Financial Management (Book Chapter: 28; Key Points: FX Markets, Hedging Currency Risk) Part IV: Financial Planning and Working Capital Management 08.04.2025: Financial Analysis (Book Chapter: 29; Key Points: Financial Ratios and Statements, Measuring Efficiency, Liquidity and Leverage) 15.04.2025: Financial Planning, Working Capital Management (Book Chapter: 30, 31; Key Points: Working Capital, Accounts Receivable and Credit Policy, Inventory Management, Cash Management) 22.04.2025: Easter Break Part V: Mergers, Corporate Control and Governance 29.04.2025: Mergers (Book Chapter: 32) 06.05.2025: Digital Treasury, Guest lecturer Part VI: Additional Topics 13.05.2025: Fintech and Digital Transformation in Finance (Book Chapter: -; Key Points: Blockchain, Cryptocurrencies, Digital Banking, Robo-Advisors, Peer-To-Peer Lending and Crowdfunding) 20.05.2025: Sustainable Finance, Sustainability Regulation and ESG Investing (Book Chapter: -; Key Points: ESG, Sustainability Regulation, Green Bonds, Impact Investing) 27.05.2025: Financial Crises and Regulatory Response, Guest lecturer

Resources

Literature

Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans: Principles of Corporate Finance. International Student's Edition, 14th Edition

General Information

Language
English
Levels
BSC , DS , MSC
Frequency
Yearly recurring

Examination

Type
end-of-semester examination
Mode
written 90 minutes
Aids
A non-programmable calculator. 1 DIN A4 Sheet to be completed by the student (content to be chosen by the student, both sides of the sheet can be used)

Course Components

Type Title Time & Place Hours
lecture with exercise Advanced Finance
On the following dates, lessons will take place online: 4 / 11 March 2025. The lecture takes place in presence (except for the data mentioned above) and will be recorded. We would like to point out that this lecture was read under the title "363-0561-00 Climate Economics and Finance" and "363-0561-00 Financial Market Risks" in previous semesters. Students, who have already successfully completed the course "363-0561-00 Climate Economics and Finance" or "363-0561-00 Financial Market Risks" in previous semesters can't register again.
  • Tue 10:15-12:00 (ETF C 1)
  • 04.03 Date 10:00-12:00 (ON LI NE)
  • 11.03 Date 10:00-12:00 (ON LI NE)
2 h weekly

Offered In