Web Casts: Corporate Finance - Spring 2009

The 26-session corporate finance class will be webcast starting January 26, 2009, 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 2009 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.) Updated for Spring 2009 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
1 (1/26/09)
This is corporate finance!
Overview of class

Syllabus for class
Project Description

2 (1/28/09)
Group Project
The Objective in Corporate Finance
-Firm versus Equity value Maximizmation
- The Utopian world of stock price maximization
- The Real World
Packet 1: 1-15
3 (2/2/09)
Managerial Interests versus Stockholder Interests
Assessing potential conflicts of interest
Bondholders versus Stockholders
Information in financial markets
Packet 1: 16-35
Assessing holdings (HDS) in a company
4 (2/4/09)
Can we trust the market? For and against...
Social costs and benefits: Money behind the words
Alternatives to a market system
Defending a market system
Packet 1: 36-58
5 (2/9/09)
Closing thoughts on the "right objective"
The Hurdle Rate
- What is risk?
- Ingredients for a good risk and return model
- The CAPM
Packet 1: 59-83
6 (2/11/09)
Vodcast (downloadable)
Problems with the CAPM
Alternatives to the CAPM and why it endures
Inputs to the CAPM
- The riskfree rate
- Equity Risk Premiums

Front page of WSJ: Firm specific vs market risk

Packet 1: 84-98

7 (2/18/09)

Vodcast (downloadable)

Historical Risk Premiums
Country Risk Premiums
Implied Equity Risk Premiums
First look at Beta Regression
Ratings by country
Country risk premiums (a global map)
Implied risk premium spreadsheet (try it)
Packet 1: 99-114

8 (2/23/09)

Vodcast (downloadable)

Deconstructing the regression
- Jensen's alpha
- Betas and standard errors
- R squared
- Expected returns
Packet 1: 115-132

9 (2/25/09)

Vodcast (downloadable)

Final thoughts on regression betas - index domination and switching
Determinants of Betas
Bottom up Betas
- Basic idea
- Applications
Packet 1: 133-156
Quiz 1: Review Session
Streaming webcast
Vodcast (downloadable)
Audio podcast (downloadable)
Review session for first quiz Review packet

10 (3/2/09)

Vodcast (downloadable)

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: 157-161

11 (3/4/09)

Vodcast (downloadable)

Betas, Total Betas and Cost of equity for a private company
- What is debt?
- The cost of debt
Packet 1: 162-178

12 (3/9/09)

Vodcast (downloadable)

Dealing with Hybrids
Weights for debt and equity
Measuring returns
- Cash flows versus Earnings
Packet 1: 179-197

13 (3/11/09)

Vodcast (downloadable)

Analyzing a Project|
- Estimation issues
- Estimating Expected earnings
- The return on capital
- Firm-wide return on capital and EVA
- From earnings to cashflows
Packet 1: 198-217

14 (3/23/09)

Vodcast (downloadable)

Incremental Cash flows - The test
- Sunk Costs
- Allocated costs
Time Weighted Cash flows
NPV versus IRR
Packet 1: 218-240

15 (3/25/09)

Vodcast (downloadable)

Comparing projects with different lives
Preserving consistency: Currency effects, Real versus Nominal
Equity Analysis
What if? The place of sensitivity analysis
Side costs and side benefits

Packet 1: 241-273

16 (3/30/09)

Vodcast (downloadable)

Apple iTV case
Opportunity costs
Apple iTV presentation
Apple iTV worksheet
Packet 1: 274-280

17 (4/1/09)

Vodcast (downloadable)

Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution

The options to expand, delay and abandon

Packet 1: 281- End

18 (4/6/09)

Vodcast (downloadable)

Debt versus Equity
- Ubiquity of the choice
- Life cycle view
- The trade off on debt versus equity
Packet 2: 1-25

19 (4/8/09)

Vodcast (downloadable)

The financing heirarchy (and why it exists)
Tools for optimizing capital structure
- The cost of capital approach
Packet 2: 26-53

20 (4/13/09)

Vodcast (downloadable)

More on the cost of capital approach
Adaptations of cost of capital - enhanced cost of capital
Adjusted Present Value (APV)
Packet 2: 54-86

21 (4/15/09)

Vodcast (downloadable)

More on APV
Relative Analysis
Under levered and Over levered firms: A Framework for getting to the optimal
The Design of Debt

Packet 2: 87-105

22 (4/20/09)

Webcast (downloadable)

More on debt design
Three tools for debt design
- Intuitive Analysis
- Project financing
- Macro regressions
Introduction to Dividends
Packet 2: 106-145
Quiz 3: Review Session
Streaming webcast

Review session for first quiz Review packet
23 (4/22/09)
Webcast (downloadable)

Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution

Will we see a drop in buybacks?
Dividend payuot ratios and yields
Three Schools of Thought on Dividend Policy

Packet 2: 146-159

24 (4/27/09)

Webcast (downloadable)

Why dividends may make sense for some companies
Assessing dividend policy: The cash trust nexus
FCFE verusus Dividends
Packet 2: 16-189

25 (4/29/09)

Webcast (downloadable)

Dividend Analysis continued
Introduction to Valuation
- Equity versus firm valuation
- Inputs to valuation
Packet 2: 190-230

26 ( 5/4/09)

Webcast (downloadabkle)

The Grand Finale' Closing presentation
Summaries of all companies analyzed
5/8/09 Take the final (a or b), check the solution (a or b) and compare your score to the distribution