The 26-session corporate finance class will be webcast starting January 28,
2008, and the lectures will be available as Real Player files (You can download
Real Player for free by going to http://www.real.com).
You can get the supporting lecture notes by clicking on the pdf files below
- the pages covered by each lecture are provided next to each lecture. The
quality of the video is not great but the audio should be good.
You can download the lecture notes that I will be using for the classes below.
For the syllabus and other details, visit the home
page for the class.
Lecture
note packet 1: Management Objectives and Investment Analysis (Sessions 1-14:
Download
pdf
file. You can also get two
slides per page, if you want to save paper.) Updated
for Spring 2008 class
Lecture
note packet 2: Capital Structure, Dividend Policy and Valuation
(Sessions 15-26: Download
pdf
file). You can also get two
slides per page, if you want to save paper.) Not yet updated for Spring
2008 class
This page will include the webcasts from the current class. The prior semester's webcasts can be found here.
| Session (Click here) | Topics covered | Lecture notes |
| Introduction to Class First Principles of Corporate Finance |
||
| The Objective in Corporate Finance - Maximizing value versus price - The Utopian world of pure corporate finance - The stockholder- manager link |
Packet 1 (1-18) | |
| Managerial interests versus Stockholder interests Bondholders versus Equity Investors Markets and Information |
Holdings analysis |
|
| Markets versus Managers Social costs and benefits Alternatives to Stock Price Maximization Making your choice |
Packet 1 (36-59) | |
| Risk - What is risk? - A "good" risk and return model - The CAPM and alternatives |
Packet 1 (60-83) | |
The Riskfree rate |
Packet 1 (84-99) | |
| Implied Equity Risk Premiums Picking an equity risk premium Betas and Return regressions Jensen's Alpha |
Packet 1 (100-115) | |
| The R-squared Service Betas From betas to expected returns and cost of equity First steps in beta determinants |
Packet 1 (116-129) | |
| Determinants of Betas Betas as weighted averages - Beta after a merger - Bottom up beta for a company |
Packet 1 (130-147) | |
| Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution More on bottom up betats |
Packet 1 (148-153) | |
| Betas, Total Betas and Cost of equity for a private company Debt - What is debt? - The cost of debt |
Packet 1 (154-170) | |
| Dealing with Hybrids Weights for debt and equity Measuring returns - Cash flows versus Earnings |
Packet 1 (171-187) | |
Analyzing a Project| |
Packet 1 (188-209) | |
Incremental Cash flows |
Packet 1 (210-237) | |
| Preserving consistency: Currency effects, Real versus Nominal Equity Analysis What if? The place of sensitivity analysis Side costs and side benefits |
Packet 1 (238-264) | |
| The Home Depot Case More on side costs and benefits |
Presentation Packet 1 (265-274) |
|
| Take the second quiz (a and b) and check out the solutions (a and b).
Check out the distribution. The options to delay, expand and abandon in capital budgeting |
Packet 1 (275- End) | |
| The financing mix question The trade off on debt The Miller Modigliani Theorem |
Packet 2 (1- 28) | |
| The optimal debt ratio - Cost of capital approach |
Packet 2 (29-52) | |
| More on the cost of capital approach - Downside protection - Invest versus Stock buyback - Special cases - Determinants of the optimal debt ratio |
Packet 2 (53-74) Handout: CS Examples |
|
| The APV approach Relative Analysis From actual to optimal Basics of debt deisgn |
Packet 2 (75-96) | |
The five steps in designing the perfect debt |
Packet 2 (97-126) | |
| Take the third quiz (a and b)
and check out the solutions (a and b).
Check out the distribution. Closing thoughts on debt design Intoduction to dividends and stock buybacks |
Packet 2 (127-139) | |
| Dividends don't matter Dividends are bad (The tax argument) Dividends are good (Clientele effect, Signalling, Bondholder wealth) FCFE and a framework for assessing dividends |
Packet 2 (140-171) | |
| Examples of dividend analysis Basics of valuation |
Packet 2 (172- 210) | |
| Closing presentation - Corporate Finance as a whole.. | ||
| Take the final exam (a and b) and check out the solutions (a and b). Check out your grade.. |