The 26-session corporate finance class will be webcast starting January
30, 2012, 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 2012 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
2012 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 Coursekit page for this class (or just lurk), here is
the
link.
| Session (Click here) | Topics covered | Lecture notes |
1 (1/30/12) Webcast, streamed (need a good internet connection) FAILED |
This is corporate finance! Overview of class |
|
Project description The objective in corporate finance |
Packet 1: 1-19 | |
| Stockholder interests vs Managerial interests Information and Market Inefficiencies Social Responsibilty in Decision Making |
Packet 1: 20- 47 | |
| Alternatives to Stock Price Maximization The Case for Stock Price Maximzation restated First steps in Risk |
Holdings
assessement Packet 1: 47-69 |
|
| The CAPM Alternatives to CAPM |
Risk Breakdown: Test Packet 1: 70-86 |
|
Using the CAPM |
Riskfree rates: Test Packet 1: 86-113 |
|
7 (2/22/12) Webcasts for the class had technical failure but I made a webcast in my office that recreated the class. |
Betas - The Regression Beta - Service Betas - Expected Returns |
Country risk premiums Packet 1: 114-133 |
| Closing thoughts on regression betas Fundamental determinants of betas Betas as weighted averages - Beta after a merger - Bottom up beta introduction |
Updated beta page for Disney Packet 1: 134-156 |
|
| Mechanics of bottom up beta estimation - Betas by business - Correcting for cash Total Betas |
Packet 1: 157-173 | |
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 |
Packet 1: 174-183 | |
| Defining debt The cost of debt |
||
| Hybrid Securities Weights for debt and equity Cost of capital Measuring Investment returns: The case for cash flow |
Packet 1: 184-206 | |
Measuring returns |
Packet 1: 207-228 | |
| Time weighting cash flows: NPV and IRR Dealing with uncertainty Equity versus Firm Analysis |
Packet 1: 229-256 | |
| More on equity vs firm analysis An acquisition as a capital budgeting project Project interactions - Mutually exclusive projects - Projects with different lives |
Packet 1: 257-295 | |
| The Case Project side costs - Opportunity costs - Product cannibalization Project side benefits Options in projects (to delay, expand and abandon) |
Nike Case presentation Nike finite case Nike perpetual life Packet 1: 296-314 |
|
Project choices for existing projects |
Packet 1: 315-End Packet 2: 1-20 |
|
Quiz 2: Review Session (3/3/11) Webcast, streamed (need a good internet connection) |
Review for quiz 1: Covers sessions 1-9 | Quiz 2 Review Material |
| Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution | Packet 2: 21-37 | |
| More on the debt trade off The Miller Modigliani Theorem The Financing Heirarchy First steps in the optimal financing mix analysis |
||
| Cost of capital as optimizing tool - Steps in process - Mechanics Enhanced cost of capital approach |
Packet 2: 38-72 | |
| The determinants of the optimal debt ratio APV approach Relative to sector and market Following up the optimal |
Packet 2: 73-98 | |
| Designing the "perfect" debt - The basic idea: Debt that behaves like equity - The steps in designing the perfect bond - Approaches for debt design |
Packet 2: 99-136 | |
21 (4/18/12) Another technical problem (this is getting old). First 10 minutes has no audio. Webcast, streamed (need a good internet connection) |
The Dividend Principle - Facts about dividend policy - The life cycle view of dividends - Three Schools of Thought on Dividends |
Packet 2: 137-158 |
| Bad reasons for paying dividends Good reasons for paying dividends Assessing dividend policy: First steps |
Packet 2: 159-189 | |
Quiz 3: Review Session (3/3/11) Webcast, streamed (need a good internet connection) |
Review for quiz 3: Covers sessions 16-21 | Quiz 3 Review Material |
| Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution | Packet 2: 190-201 | |
| Dividend Assessment: FCFE vs Dividends Trust and Dividends |
||
Dividend Assessment (continued) |
Packet 2: 202-236 | |
| Valuation (continued) - Estimating terminal value - From operating asset to equity value - Value and Corporate Finance |
Packet 2: 237-End | |
| Reviewing the class, using the project as the base. | Summary of summaries | |
Quiz 3: Review Session (3/3/11) Webcast, streamed (need a good internet connection) |
Review for final exam: Cumulative | Final Review Material |
| The Final Exam | Take the final (a or b), check the solution (a or b) and compare your score to the distribution |