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 |
| This is corporate finance! Overview of class |
||
| 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 | |
| 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 |
|
| 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 | |
| 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 | |
| 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 |
|
| 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 |
|
| Deconstructing the regression - Jensen's alpha - Betas and standard errors - R squared - Expected returns |
Packet 1: 115-132 | |
| 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 |
| 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 | |
| Betas, Total Betas and Cost of equity for a private company Debt - What is debt? - The cost of debt |
Packet 1: 162-178 | |
| Dealing with Hybrids Weights for debt and equity Measuring returns - Cash flows versus Earnings |
Packet 1: 179-197 | |
| 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 | |
| Incremental Cash flows - The test - Sunk Costs - Allocated costs Time Weighted Cash flows NPV versus IRR |
Packet 1: 218-240 | |
Comparing projects with different lives |
Packet 1: 241-273 | |
| Apple iTV case Opportunity costs |
Apple
iTV presentation Apple iTV worksheet Packet 1: 274-280 |
|
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 | |
| Debt versus Equity - Ubiquity of the choice - Life cycle view - The trade off on debt versus equity |
Packet 2: 1-25 | |
| The financing heirarchy (and why it exists) Tools for optimizing capital structure - The cost of capital approach |
Packet 2: 26-53 | |
| More on the cost of capital approach Adaptations of cost of capital - enhanced cost of capital Adjusted Present Value (APV) |
Packet 2: 54-86 | |
More on APV |
Packet 2: 87-105 | |
| 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 |
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? |
Packet 2: 146-159 | |
| Why dividends may make sense for some companies Assessing dividend policy: The cash trust nexus FCFE verusus Dividends |
Packet 2: 16-189 | |
| Dividend Analysis continued Introduction to Valuation - Equity versus firm valuation - Inputs to valuation |
Packet 2: 190-230 | |
| 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 |