Preface

The seminar is open to Bachelor students only. The allocation of topics is on 08.02.2012 at 6.00 p.m among the students present at that time. Arriving earlier does not increase your chances of getting allocated a topic. If you are unable to come, you can send Eugene Muluka an email with your preferences (list three topics). Students sending email requests will be allocated a topic as long as there are free places in the seminar.

To successfully pass the seminar you need to write a paper and give a presentation. Papers can be written either in German or English and should be 15-20 pages long as a team of two or 20-25 pages long as a team of three. For hints how to write a paper see our guidelines. You need to hand in a printed version and also a digital one (*.pdf/ *.doc/ *.docx). The seminar talks will be in German if all participants understand German. Otherwise they will be held in English. You will have around 45 minutes to present your work.

Your paper and your presentation will be graded and lead to one grade (equally weighted). Therefore you have to register until 16.04.2012 for the seminar at the Higher Educations Services Portal!

For each topic, you should provide a literature review (this should extend beyond the given literature). For some topics, you will have to work on a practical part in which you should get familiar with empirical analysis (accessing data on Datastream or Bloomberg and performing quantitative analyses). If you choose one of these topics you should know how to use Excel and/or other data analysis tools.

Some weeks after the allocation and before your presentation your supervisor will arrange meetings to discuss your literature and your paper's outline. So you can assure yourself on not missing the point.

Time Table

Topics

1. Company valuation
Here you are expected to conduct a valuation using DCF and Multiples of Centrotherm photovoltaics, one of the world's leading suppliers of process technology and key equipment for the production of solar silicon, solar cells and solar modules.

Literature:
Fernández P (2007), Company valuation methods. The most common errors in valuations. IESE Business School, Working Paper series.

Studenten: Markus Dimmer und Tilman Hager
Betreuer: Eugene Muluka

2. Valuation of financial service firms
There are issues which have to be considered when valuing companies in the Financial Service sector. This is mainly because the cash flows of a financial service firm cannot be easily estimated and most financial service firms operate under a regulatory framework that governs how they are capitalized, where they invest and how fast they can grow. In this seminar paper you are expected to conduct a valuation of the Commerzbank AG using DCF, Dividend  Discount and Excess Return models.

Literature:
Damodaran A (2009), Breach of Trust: Valuing Financial Service Firms in the post crisis era. New York University, Working Paper series.

Studenten: Daniel Glunz und Maximilian Kraus
Betreuer: Eugene Muluka

3. Valuation of internet companies
Web based social networks are currently one of the fastest growing industries and are therefore appealing to investors. The question however arises whether or not this is just another bubble similar to the one in the one experienced at the start of the century. In this seminar paper you are expected to conduct a valuation of LinkedIn using multiples, free cash flow valuation and the DCF method.

Literature:
Damodaran A (1999), The Dark Side of Valuation: Firms with no Earnings, no History and no Comparables. New York University, Working Paper series.

4. Capital budgeting under Uncertainty
Here you will look at the valuation of multiperiod cash flows in a world where prices are determined according to the CAPM. You are also expected to do your own analysis.

Literature:
Fama E (1977), Risk-Adjusted Discount Rates And Capital Budgeting Under Uncertainty. Journal of Financial Economics (5).

Fama E (1996), Discounting under uncertainty. Journal of Business (69)

5. Estimating Betas
You should give a review on common methods used for estimating betas, including ones that can be used for non-listed firms or business segments. You should also implement and compare some of the methods for an empirical data set.

Literature:
Bowman R & Susan R (2006), Using Comparable Companies to Estimate the Betas of Private Companies. Journal of Applied Finance, 71-81.

Studenten: Christian Bückle und Tobias Ginter
Betreuer: Prof. Dr. Gunter Löffler


6. Is Beta dead?
There have been numerous debates on whether beta is dead or alive. You are expected to review the literature and present and discuss findings for and against the hypothesis, “Beta is dead”.

Literature:
Levy H (2010), The CAPM is Alive and Well: A Review and Synthesis. European Financial Management 16(1), 43–71

Studenten: Steffen Würz und Alexander Behr
Betreuer: Matthias Böhm

7. Debt Crises – a historical perspective
In this paper you should give a review of historical debt crises and discuss lessons that we can draw for the current situation in Europe. You should also discuss whether countries that default are shut out from capital markets.

Literature:
Reinhart C & Rogoff K (2011), From Financial Crash to Debt Crisis. American Economic Review 101(5), 1676 –1706

Studenten: Jonathan Kling und Lena Herzog
Betreuer: Eugene Muluka

8. European Debt Crisis: What can we learn from others
Debt brakes or bank regulation are only two slogans of the recent debt crisis. In this seminar paper you should provide an overview on lessons that can be drawn from other fiscal/monetary unions (e.g. the US).
 
Literature:
Henning C.R & Kessler M (2012): Fiscal Federalism: US History for Architects of
Europe's Fiscal Union. Peterson Institute for International Economics, Working Paper 12-1.

Studenten: Sebastian Schilpp und Julian Plabst
Betreuer: Matthias Böhm

9. Are Eurobonds the solution to the EU Debt Crisis?
There are currently a lot of discussions on whether or not to introduce Eurobonds as a solution to the Debt Crisis in the European Union. Your task here would be to discuss possible variants of Eurobonds and their pros and cons.

Literature:
euro-nomics.com/wp-content/uploads/2011/09/ESBiesWEBsept262011.pdf