Investment and Financial Management (MiM)

What it is about

You learn how to assess investment projects and analyze financial decisions of companies. The module combines corporate-finance theory (e.g., capital structure, cost of capital, capital budgeting) with practical mathematical foundations for evaluating interest and financial instruments. In the end you can prepare investment decisions and capital plans as well as mathematically evaluate bonds, stocks, and options.

What you will be able to do

• Name and apply important corporate metrics
• Determine optimal capital structure
• Evaluate investment projects (NPV, IRR) with and without taxes
• Determine cost of capital (cost of equity and debt, WACC)
• Create investment and capital-budget plans
• Apply fundamentals of financial mathematics (interest, annuities, amortization)
• Understand and evaluate bonds, stocks and option products
• Create and apply mathematical models for financial products

What the module consists of

• Lecture (Corporate Finance)Conveying the theoretical foundations and applied examples for corporate financing and investment evaluation
• Exercise (Mathematical Basics)Practical deepening of financial mathematics and valuation of financial instruments

Teaching method

• Lecture presentations with slidesExplanation of theoretical foundations and presentation of applied examples
• Short exercises during the lectureDeepening the material through solving problems in the session
• Quiz questions at the end of sessionsSelf-check and consolidation of understanding
• Real-world examples and calculation tasks in the exercisesApplication of financial mathematics and valuation techniques to practice-oriented problems
• Optional additional exercise (subject to availability)Discussion of model solutions to multiple-choice questions and problems