The 26-session corporate finance class will be webcast starting January 25, 2010, and the lectures will be available as webcasts that can either be watched online or downloaded. 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 this class .
Lecture Notes
Lecture
note packet 1: Management Objectives and Investment Analysis (Sessions
1-15: Download
pdf
file. You can also get two
slides per page, if you want to save paper.) Updated
for Spring 2010 class
Lecture
note packet 2: Capital Structure, Dividend Policy and Valuation
(Sessions 16-26: Download pdf
file). You can also get two
slides per page, if you want to save paper.) Updated for Spring
2010 class
Emails sent during the class
Email chronicles: Spriung 2010
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 |
||
| The objective in corporate finance - Maximize firm value vs stockholder wealth vs stock price - The Classicial onjectve - What can go wrong? |
Packet 1: 1-20 | |
More on Managerial versus Stockholder Interests |
Packet 1: 21-43 Analyzing holding structures |
|
| Alternatives to stock price maximization Why I would stick with market based mechnisms Closing thoughts on objectives First steps on risk |
Packet 1: 44-67 | |
| Ingredients for a good risk and return model The CAPM Alternatives to the CAPM The role of the marginal investor Riskfree rates |
Packet 1: 68-92 | |
Riskfree rates when there is no default free entity |
Packet 1: 93-109 |
|
| Final thoughts on equity risk premiums Betas - Regression betas - Intercept and Jensen's alpha - R Squared |
Implied equity risk premium Packet 1: 109-127 |
|
| More thoughts on regression betas Expected Returns and Costs of Equity Determinants of betas - Business mix - Fixed costs (operating leverage) |
Packet 1: 128-145 | |
| Determinants of betas (continued) - Financial leverage Betas as weighted averages - Betas after mergers - Bottom up Betas |
Packet 1: 146-160 | |
| Quiz 1: Review Session (2/25/10) |
Streaming
webcast Audio podcast (downloadable) |
Quiz 1 Review Material |
Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution More on divisions betas |
Packet 1: 161-170 | |
Total betas: A solution for private businesses |
Packet 1: 171-194 | |
| Measuring Returns - Cash flows versus Earnings - What is a project/investment? - Accounting returns |
Packet 1: 195-216 | |
| From earnings to cash flows (depreciation, cap ex and working capital) From cash flows to incremental cash flows Time weighted incremental cash flows Dealing with uncertainty |
Packet 1: 217-243 | |
| Sensitivity Analysis and Simulations Equity analysis: ROE and cash flows to equity Mutuallly exclusive investments: NPV versus IRR |
Packet 1: 244-282 | |
| Comparing Projects with different lives Side Costs from Projects - Assets with existing alternative uses - Assets with future alternative uses Side Benefits from Projects |
Packet 1: 283-309 | |
| Nike Case Analysis The Options in Investments |
Nike case analysis Finite & Infinite life nos Packet 1: 310-End |
|
Quiz 2: Review Session (3/30/10) Webcast, streamed (need a good internet connection) |
Review for quiz 2 | Review presentation |
Take the quiz (a or b), check the solution (a or b) and compare your score to the distribution The Financing Principle |
Packet 2: 1-16 | |
| The downside of debt - Bankruptcuy costs - Agency costs The Miller Modigliani Theorem The cost of capital approach |
Packet 2: 17-47 | |
| More on the cost of capital approach Key questions to answer Cost of capital approach for family group companies, private companies and commodity companies |
Packet 2: 48-68 | |
20 (4/12/10) (Warning: The slides in the presentation do not match the audio. Please pirnt off slides 69 through 97 and try to keep up manually) Webcast,
streamed (need a good internet connection) |
The Enhanced Cost of Capital Approach Estimating optimal financing for a bank The Adjusted Present Value (APV) Approach Relative Capital Structure Analysis |
Packet 2: 69-97 |
| Getting from the actual to the optimal Designing the perfrect bond - Rationale for matching debt to assets - Steps in debt design The intuitive approach to debt design |
Packet 2: 98-113 | |
| Quantitative approaches to debt design - Project analysis - Historical regressions Comparing the 'right" debt to actual debt Basics of Dividends - Dividend facts - Assessing dividends |
Packet 2: 114-149 | |
Quiz 3: Review Session (4/20/10) Webcast, streamed (need a good internet connection) |
Review for the third quiz | Review presentation |
Take the quiz (a or b), check the solution (a or b) and compare your score to the distribution The trade off on Dividend Policy |
Packet 2: 150-171 | |
| A framework for analyzing dividends - How much did the company return to stockholders? - How much could it have? (FCFE) - Can I trust the managers with the cash? |
Packet 2: 172-203 | |
Final thoughts on dividend policy |
Packet 2: 204-242 | |
| Wrapping it all up (using project summary numbers) - A Big Picture view of corporate finance - Review of the class - Valuation loose ends |
Presentation for class | |
5/6/10 Webcast, streamed (need a good internet connection) |
Final exam review | Review Presentation |
| The Final Exam | Take the final exam (a or b), check the solutions (a or b). Check your overall grade for the class |