The 26-session corporate financeclass will be taped starting January 27, 2003 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 and audio leaves much to be desired but it will get better over time. 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.
Management Objectives (Download pdf file)
Measuring Risk (Download pdf file)
Measuring Return (Download pdf file)
Optimal Capital Structure and Designing Debt(Download pdf file)
Dividend Policy (Download pdf file)
Valuation (Download pdf file)
Closing Presentation (Download pdf file)
The first three topics are in lecture note packet 1 and the last 3 comprise lecture note packet 2.

Session (Click here)	Topics covered	Lecture notes
1 (1/27/03)	Introduction to Class First Principles of Corporate Finance	Syllabus for class Project Description Management Objectives (1-6)
2 (1/29/03)	When is stock price maximization sufficient? What can go wrong with stock price maximization?	Management Objectives (7-32)
3 (2/3/03)	Alternatives to Stock Price Maximization An Argument for Stock Price Maximization (Warts and all)	Management Objectives (33-54)
4 (2/5/03)	Introduction to Risk and Return Models in Finance The Capital Asset Pricing Model Alternatives to the CAPM The Riskfree Rate	Measuring Risk (55-75)
5 (2/10/03)	Estimating Equity Risk Premiums Conceptual Roots Survey Risk Premiums Historical and Country Risk Premiums Implied Equity Risk Premiums	Measuring Risk (76-90)
6 (2/12/03)	Analyzing the beta regression Intercept and Performance Measurement Betas and Standard Error R-Squared The Use of Expected Returns Understanding Service Betas	Measuring Risk (91-108)
7 (2/19/03)	Regression Betas and Indices Determinants of Regression Betas Type of Business Operating Leverage Financial Leverage	Measuring Risk (109-125)
8 (2/24/03)	Betas as weighted averages - Beta after a merger - Estimating bottom-up betas - The Rationale for bottom-up betas	Measuring Risk (126-135)
9 (2/26/03)	Take the quiz and check your solution. Betas for private companies Defining comparable firms	Measuring Risk (136-142)
10 (3/3/03)	Defining Debt The Cost of Debt Estimating Market value of Debt Converting Operating leases to debt Cost of Capital	Measuring Risk (143-157)
11 (3/5/03)	Measuring Investment Returns Earnings versus Cashflows Accounting Rates of Return Depreciation and Cap ex	Measuring Returns (158-178)
12 (3/10/03)	Time Weighted Returns NPV versus IRR When they are different Which one is better?	Measuring Returns (179-206)
13 (3/12/03)	Loose Ends in Project Analysis Currency and Political Risk Currency effects on NPV Real and nominal NPV Equity Cashflows and NPV Sensitivity Analysis	Measuring Returns (206-227)
14 (3/24/03)	Side Costs and Benefits in Projects Options embedding in projects	Measuring Returns (228-246)
15 (3/26/03)	The Financing Decision - Debt versus Equity - The Benefits of Debt - The Costs of Debt - The MM Theorem	Capital Structure (1-27)
16 (3/31/03)	The Cost of Capital - Reviewing its computation - Why it matters - Minimizing Cost of Capital: Steps	Capital Structure (28-42)
17 (4/2/03)	Take the quiz and check your solution. Computing the optimal cost of capital Estimating cost of equity at different debt ratios Estimating cost of debt at different debt ratios Estimating change in firm value at different debt ratios	Capital Structure (43-53)
18 (4/7/03)	Optimal Debt Ratio (Cost of capital approach) Dealing with downside risk Buying stock versus reinvesting in business Exceptions: Private firms, financial service firms	Capital Structure (54-75)
19 (4/9/03)	APV approach to Optimal Debt Ratios Relative Analysis: Optimal Debt Ratio A Framework for moving to the optimal debt ratio	Capital Structure (76-91)
20 (4/14/03)	Designing Debt - Matching Debt to Assets - The Five Steps in designing perfect debt - Intuitive Analysis of the Perfect Debt - Quantitative Analysis of the Perfect Debt	Capital Structure (92-121)
21 (4/16/03)	What if your actual debt does not match your perfect debt? Dividend Policy Characteristics of dividend policy at US companies Measuring dividends: Yields and Payout Ratios Three Schools of thought on dividend policy The MM Dividend Proposition Dividends are Bad: The Tax Argument Dividends are good	Capital Structure/ Dividend Policy(122-152)
22 (4/21/03)	Reasons for paying more dividends: Signalling and Expropriation A Framework for Analyzing Dividend Policy	Dividend Policy (153-173)
23 (4/23/03)	Take the quiz and check your solution. Analyzing Dividend Policy: Examples Spin offs, split offs and divestitures: A very brief analysis	Dividend Policy (174-185)
24 (4/28/03)	Valuation: Introduction - Basics of DCF valuation - Equity versus Firm Valuation - Estimating Discount Rates - Estimating Cashflows - Fundamental (Sustainable) Growth Rates	Valuation (186-208)
25 (4/30/03)	Valuation: Continued - Stable Growth and Terminal Value - Growth Patterns - Valuation Examples (Deutsche Bank, Aracruz, Disney)	Valuation (209-239)
26 (5/4/03)	Closing Thoughts Summaries of DCF Valuation	Closing Presentation
	Take the final and check out the solution If you have taken all of the quizzes and the final, you can see what your grade would have been in this class (Honor system)