The 26-session corporate finance class will be webcast starting January
31, 2011, 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
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 2011 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
2011 class
This page will include the webcasts from the current class. This page will
include the webcasts from the current class. The webcasts can be accessed in
one of three ways:
Streaming video (The file will be streamed to your computer. This will work only
if you have a good internet connection, but should be of the best quality)
Video podcast (The .m4v file will be downloaded to your computer and you can
watch the video using Quicktime or video software or on your iPod)
Audio podcast (The .mp3 file will be downloaded as an audio file and can be played
on any audio player)
The prior semester's webcasts can be found here.
If you want to join the Facebook page for this class (or just lurk), here is the link.
You can also get access to all of the emails sent for this class here.
Session (Click here) | Topics covered | Lecture notes |
This is corporate finance! Overview of class |
||
The Objective in Corporate Finance Maximize value, stockholder wealth and stock price Making the world safe for stock price maximization What can go wrong? |
Packet 1: 1-20 | |
Acquisitions and corporate governance The Bondholder-stockholder conflict Markets and Information Social costs |
Holdings
assessement Packet 1: 21-44 |
|
Market prices fail: What's next? - Alternative corporate governance systems - A different objective - Stock price maximization with limits The right objective Defining risk |
Packet 1: 45-73 | |
Firm Specific and Market Risk The "marginal investor" To the CAPM and beyond.. Inputs to the CAPM: The riskfree rate |
Packet 1: 74-93 |
|
Sovereign Default Spreads: What, why and how? Equity Risk Premium - Determinants - Estimation Approaches |
Packet 1: 94-111 |
|
Picking an equity risk premium Beta - The standard regression - Jensen's alpha - R squared |
Reading a Bloomberg beta page & Risk Checker spreadsheet Packet 1: 112-130 |
|
More thoughts on regression betas Determinants of betas - Discretionary products & services - Fixed cost structure - Financial leverage |
Packet 1: 131-150 | |
Bottom up Betas - Rationale - Process for estimating bottom up betas |
Beta:
Big Picture Packet 1: 151-165 |
|
Quiz 1: Review Session (3/3/11) Webcast, streamed (need a good internet connection) |
Review for quiz 1: Covers sessions 1-9 | Quiz 1 Review Material |
Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution Betas and costs of equity for private businesses
|
Packet 1: 166-174 | |
Definiing debt The cost of debt Leases as debt Weights for cost of capital |
Packet 1: 175-194 | |
The Investment Principle - Time weighted, incremental cash flow returns - What is a project? - Axccounting returns |
Packet 1: 195-215 | |
From earnings to cash flows |
Packet 1: 215-244 | |
Monte Carlo Simulations Equity Analysis - ROE - Cash flows to equity and NPV Valuing an acquistion target NPV vs IRR |
Packet 1: 245-277 | |
NPV vs IRR: Reinvestment assumptions Side costs and benefits - Opportunitiy costs - Cost of excess capacity |
Packet 1: 278-304 | |
Discussion of Apple iTV case Synergies in projects Options in projects Analyzing an existing project |
iTV
case presentation & excel spreadsheet Packet 1: 305- End |
|
Quiz 2: Review Session (4/5/11) Webcast,
streamed (need a good internet connection) |
Review for quiz 2: Covers sessions10-16 | Quiz 2 Review Material |
17 (4/6/11) Webcast, streamed (need a good internet connection) |
The Financing Decisions - What is debt? - The Life Cycle view of Financing - The trade off on debt: Pluses and Minuses - The Miller Modigliani Theorem |
Packet 2: 1- 27 |
Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution |
Packer 2: 28-47 | |
More on the cost of capital approach The follow up to the optimal - Why? - What if something goes wrong? - What if you invest, instead of buying back stock The enhanced cost of captial approach |
Packet 2: 47-73 | |
Determinants of optimal debt ratio: Cost of capital approach APV approach Relative Analysis Actual vs Optimal: Follow up steps |
Packet 2: 74-97 |
|
The right debt for your firm Approaches to finding the right debt - Intuitive Analysis - Project financing - Macroeconomic regressions |
Packet 2: 98-137 | |
The Dividend Principle - Descriptive facts - Three schools of though on dividends |
Packet 2: 138-165 | |
Quiz 3: Review Session (4/26/11) Webcast,
streamed (need a good internet connection) |
Review for quiz 3: Covers sessions17-21 | Quiz 3 Review Material |
Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution Three good reasons for paying dividends A framework for assessing dividend policy |
Packet 2: 166-187 | |
Dividends and FCFE How much cash is too much cash? A Framework for assessing dividend policy First steps in valuation |
Packet 2: 188-222 | |
Inputs to DCF valuation - Cash flows - Discount rates - Growth rates - Terminal value |
Packet 2: 223-246 | |
The Grand Finale - A final review - Wrapping it all up (to go) |
Closing presentation | |
Final exam: Review Session (5/12/11) Webcast,
streamed (need a good internet connection) |
Review for final exam (comprehensive) | Final Review Material |
Final exam (5/13/11) | Take the final (a or b) and check out the solution
(a or b) Check your grade against the distribution. |