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The 26-session corporate finance class will be webcast starting February 3, 2020, 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):
The link is to a pdf file which is good for tablets or iPads. If you want to print the file, download the powerpoint file. You can then choose to print the slides, one to a page, two or a page, in note format or whatever your heart desires. Updated for Spring 2020 class
Lecture
note packet 2: Capital Structure, Dividend Policy and Valuation (Sessions 16-26): The link is to a pdf file which is good for tablets or iPads. If you want to print the file. download the powerpoint file. You can then choose to print the slides, one to a page, two or a page, in note format or whatever your heart desires. .Updated for Spring 2020 class
Webcasts
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 four ways:
Options for following class
You can follow this class in other forums. One is YouTube, where I have created a playlist for the class. The other is iTunes U, where you can watch the webcasts and follow the class on your tablet or even smartphone.
Finally, you can read the emails that I send to the class by this link,as well as the newsletters for the class.
| Session (Click here) | Topics covered | Lecture notes |
A Preview of the class |
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| This is corporate finance! Themes for class Class Structure |
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| Post-class test and solution | ||
Corporate Finance Puzzle #1 |
Stakeholders versus Stockholders |
|
| More on class introduction/Project The objective in running a business - Value maximization versus Stock price maximization - The "utopian" world of price maximization - The real world intrudes |
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| Post-class test and solution | ||
In Practice Webcast #1 |
Collecting Data | |
Corporate Governance (Continued) |
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| Post-class test and solution | ||
Corporate Finance Puzzle #2 |
Activist Investors |
|
Alternatives to stock price maximization |
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| Post-class test and solution | ||
In Practice Webcast #2 |
Assessing corporate governance | Webcast Presentation HP Annual Report HP DEF14A |
In Practice Webcast #3 |
Analyzing the stockholder base | |
To diversify or not to diversify? |
||
| Risk and Return: Next steps - The CAPM - Alternatives to the CAPM - Inputs to the CAPM: The riskfree rate |
Lecture Note packet 1: 79-105 | |
| Post-class test and solution | ||
In Practice Webcast 4a |
Estimating a risk free rate |
|
Risk free Rates - Closure Equity Risk Premiums - The basis - Estimation procedures - Historical versus Implied Premiums - Country risk premiums - Company ERP |
Lecture Note packet 1: 106-130
|
|
| Post-class test and solution | ||
How risk averse are you?
|
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| Betas - Return Regression - Performance and risk assessment Bloomberg Betas - Index choices - Variations across service estimates |
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| Post-class test and solution | ||
In Practice Webcast #4b |
Estimate a company's equity risk premium | |
In Practice Webcast #5 |
Deconstructing a regression beta page | |
| Determinants of beta - Nature of products/services - Operating leverage - Financial leverage Betas as weighted averages - Acquisiton effects on beta |
Packet 1: Pages 151-166 | |
| Post-class test and solution | ||
Quiz 1: Review Session
|
Review session for quiz 1 | |
What's in a beta? |
||
| Bottom Up Betas - Getting pure play betas - Estimating divisional values - Betas and costs of equity by business |
Packet 1: Pages 167-180 | |
| Post-class test and solution | ||
In Practice Webcast #5a
|
Estimating a bottom up beta | |
10 (3/9/20)
|
Take the first quiz (a or b) and check out the solution (a or b) as well as the distribution of grades for the class. | Packet 1: 181-191 |
Betas for Private Companies |
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| Post-class test and solution | ||
Corporate Finance Case
|
Netflix Fit |
|
Cost of Capital (continued) |
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| Post-class test and solution | ||
In Practice Webcast #6 |
Debt and the cost of debt | Webcast |
12 (3/23/20)
|
Measuring investment returns - Hurdle rates for projects - Earnings to cash flows - Incremental cash flows - Time Weighted Incremental cash flows |
Packet 1: 225-252 |
| Post-class test and solution | ||
Sunk Costs: Theory and Reality |
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| Dealing with uncertainty Equity Analysis To hedge or not to hedge? |
Packet 1: 253-274 | |
| Post-class test and solution | ||
In Practice Webcast #7 |
Estimating ROIC and ROE | Webcast Walmart 10K (2013) Walmart 10K (2012) Spreadsheet |
Acquisition as a Project |
Packet 1: 275-303 | |
| Post-class test and solution | ||
Quiz 2: Review Session
|
Review session for quiz 1 | |
Sector Risk |
The set up & questions | |
Netflix Fit |
|
|
| Post-class test and solution | ||
In Practice Webcast #8 |
A "typical project": what and why? | |
16 (4/6/20) (Quiz-shortened session)
|
Quiz 2 online |
|
Project Side Benefits |
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| Post-class test and solution | ||
The US tax code (pre tax reform) |
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Capital Structure |
Packet 2: 1-25 | |
| Post-class test and solution | ||
In Practice Webcast #9 |
The trade off on debt versus equity | |
Capital Structure |
Packet 2: 25-61 | |
| Post-class test and solution | ||
The Dark Side of Debt |
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Enhanced Cost of Capital Approach |
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| Post-class test and solution | ||
In Practice Webcast #10 |
The optimal debt ratio | |
Quiz 3: Review Session |
Review session for quiz 3 | |
Following up on the optimal |
Packet 2: 102-114 | |
| Post-class test and solution | ||
Surplus notes: The best of all worlds? |
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| Designing the perfect financing - Ways of finding your perfect financing - Fixing mismatches Dividend Policy - Descriptive facts |
Packet 2: 115-149 | |
| Post-class test and solution | ||
In Practice Webcast #11 |
The perfect debt - Intuitive analysis - Macro regression |
|
| Dividend Policy - Descriptive facts - Dividend irrelevance - Taxes and Dividends |
Packet 2: 150-176 | |
| Post-class test and solution | ||
| Dividend Policy - Good, indifferent & iffy reasons for dividends - A Framework for Assessing Dividends/Cash Return |
Packet 2: 177-201 | |
| Post-class test and solution | ||
In Practice Webcast #12 |
The trade off on dividends (whether to pay them and/or increase them) | |
In Practice Webcast #13 |
Dividend Assessment - Measuring Potential Dividends (FCFE) - Judging cash return policy |
|
Dividend Assessment Valuation - First Steps |
Packet 2: 202-231 | |
| Post-class test and solution | ||
Valuation |
Packet 2: 232-254 | |
| Post-class test and solution | ||
Final Exam: Review Session |
Review session for final exam | |
| Closing presentation - A big picture review - Project findings |
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| Final Exam | Online final, but you can try this one instead. Take the final exam and check the solution |