The 26-session corporate financeclass will be taped starting January 26, 2004 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.
Lecture note packet 1: Management Objectives and Investment Analysis (Sessions 1-14: Download pdf file)
Lecture note packet 2: Capital Structure, Dividend Policy and Valuation (Sessions 15-26: Download pdf file)

Session (Click here)	Topics covered	Lecture notes
1 (1/26/04)	Introduction to Class First Principles of Corporate Finance	Syllabus for class Project Description
2 (1/28/04)	Maximizing Stockholder Wealth as an objective When stock price maximization is the only objective you need Stockholders and Managers: Who has the power?	Packet 1 (1-24)
3 (2/2/04)	Analyzing a company's stockholders Bondholder Interests versus Stockholder Interests Social Costs and Benefits Alternatives to Stock Price Maximization	Packet 1 (25-50)
4 (2/4/04)	The Bottom Line of the right objective The Investment Principle - What is a project? - Defining Risk - Measuring Risk (Alternative Risk and Return Models)	Packet 1 (51- 67)
5 (2/9/04)	Identifying the marginal investor Inputs to Risk and Return Models - The Riskfree Rate - Risk Premiums * Determinants * Survey, Historical and Implied Equity Premiums	Packet 1 (68-88)
6 (2/11/04)	Implied versus Historical Risk Premiums Setting up the Beta Regression Regression Diagnostics - The message in the intercept (Jensen's alpha) - Slopes, Betas and Standard Errors - What the R-squared tells you Reading the Bloomberg beta page	Packet 1 (89-103)
7 (2/18/04)	Expected Returns: Implications for investors and managers More on regression betas -The Right Index to use - The regression box Determinants of betas -Type of business	Packet 1 (104-115)
8 (2/23/04)	Determinants of betas (continued) - Operating Leverage - Financial Leverage Betas are weighted averages - Beta of a portfolio - Betas after mergers - Bottom-up Betas	Packet 1 (116-132)
9 (2/25/04)	Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution Power failure... No lecture.. Chaos ensues...
10 (3/1/04)	Divisional Costs of Equity Cost of Equity for private companies What is debt? The Cost of Debt	Packet 1 (133-147)
11 (3/3/04)	Synthetic versus Actual Ratings Tax Rates and Marginal Cost of Debt Market values of equity and debt Investment Analysis - Why earnings are different from cashflows - The Return Mantra	Packet 1 (148-168)
12 (3/8/04)	Measuring return on capital: Project and Firm From earnings to cashflows From cashflows to incremental cashflows Time Weighting: NPV and IRR	Packet 1 (169-193)
13 (3/10/04)	More on NPV versus IRR Country risk in project analysis Currency Choices and Real versus Nominal Equity Analysis A Place for What-if? analysis	Packet 1 (194-227)
14 (3/22/04)	Side costs from a project - Opportunity costs - Excess Capacity - Product Cannibalization Side benefits from a project Options to delay, expand and abandon	Packet 1 (228-248)
15 (3/24/04)	The solution to Nike Apparel The trade off on debt versus equity	Packet 2 (1-15)
16 (3/29/04)	Take the quiz (a or b) and check the solution (a or b). See where you stand against the class distribution. More on the debt / equity trade off The Miller Modigliani Theorem Financing Heirarchy	Packet 2 (16-35)
17 (3/31/04)	Coming up with an optimal debt ratio - The Cost of capital approach - Why moving to your optimal changes firm value	Packet 2 (26-58)
18 (4/5/04)	What if something goes wrong? Constrainted Optimals Optimal Debt Ratios with reinvestment Financial Service firms, Cyclical firms and private firms Adjusted Present Value Approach	Packet 2 (59-81)
19 (4/7/04)	Debt Ratio: The Relative Approach Getting to the Optimal Designing the Perfect Debt	Packet 2 (82-98)
20 (4/12/04)	Designing the Perfect Debt (continued) Approaches to debt design - Intuitive - Project-specific - Historical Data	Packet 2 (99-127)
21 (4/14/04)	Dividend Policy - Three features of dividend policy - Measuring dividends - yield and payout - Three Schools of Thought on Dividends	Packet 2 (128-154)
22 (4/19/04)	Analyzing Dividend Policy - Free Cashflows to Equity - How much cash is too much cash?	Packet 2 (155-182)
23 (4/21/04)	Take the quiz (a or b) and check the solution (a or b). See where you stand against the class distribution. Closing discussion of dividend policy Introduction to Valuation	Packet 2 (183- 198)
24 (4/26/04)	Estimating Cashflows Estimating Growth Estimating how long high growth will last	Packet 2 (199-215)
25 (4/28/04)	Inputs in stable growth phase Dividend Discount Model value of Deutsche Bank FCFE Valuation of Aracruz FCFF Valuation of Disney Connecting Value to financial decisions Relative Valuation: A very short introduction	Packet 2 (216-241)
26 (5/3/04)	Closing Presentation - An Overview of Corporate Finance - Project Summaries	Closing Presentation
	Take the final (a or b) and check the solution (a or b).