4909190: Financial Decision Making

Qualifications

• • Know the most prominent decision theories. They are aware of the important human biases in financial decision making.
  • Understand how rational solutions can be found by applying classical decision models and are aware of the differences between these model solutions and the solutions humans normally come up with.
  • Solve decision problems by using DT models and quantitative methods. They find the strategic aspect of a problem and transform it into a simplified game/problem.
  • Evaluate of Investments with EUT, MVT and PT.
  • Know the most prominent rules for Capital Budgeting and Structuring
  • Understand the consequences of changes in the capital structure
  • Know a variety of financing tools and their applicability
  • Know how to value a company
• • Know methods in decision theory.
  • Use theories, methods and models on unknown decision situations. Calculate optimal solutions and equilibria.
  • Compare different methods for measuring and controlling risk and uncertainty in decision processes.
  • Evaluate decision and analysis methods in mini cases and find appropriate models for solving typical problems.
  • Know how to use a range of instruments to control the capital structure of a corporation.
  • Choose suitable financing and investment tools
  • use methods and models on unknown decision situations. Calculate optimal solutions and interpret them.
• • Understand and critically discuss the arguments of fellow students.
  • Work on financial decision making problems and solve mini cases as well as examples in small groups and discuss them in front of class.
  • Evaluate the solutions of fellow students, explain carefully why they might be seen as right or wrong.
  • Understand the problems of fellow students, react on critical discussion without being offended.
  • React to other opinions and solutions and defend their own solution without being offended.
• • Listen carefully, read and repeat, practice until they understand the logic and mathematics the models are based upon.
  • Work together and motivate other students who tend to give up as a reaction to the difficulty of mathematical problems.
  • Take responsibility and organize/explain solutions to others