Corporate Finance: Newsletter – March 23, 2012

Where we are in class…

Where you should be in the project…

Data Notes…

While you have a pause in the action, please review where you are in the project. You need to have a cost of capital for your firm and you should have computed the economic value added for your firm. To compare your company’s return spread to that of the sector, you can use my EVA dataset on my web site:

http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html

If any of you are interested in reading more about EVA, you can try the paper on value enhancement on my web site:

http://www.stern.nyu.edu/~adamodar/New_Home_Page/papers.html

Miscellaneous FAQs

When is the next quiz and what will it cover?

The next quiz is on Monday, April 4, and it will cover the cost of capital calculation and the investment return section of the notes (from page 145 or so to the end of part I). We should be done with this by the next two sessions and you can start working through practice problems, whenever you get a chance. In the book, the relevant chapters are the last part of chapter 4, chapter 5 and chapter 6.

What do I do if a 10-K comes out in the next week or two for my firm?

I would suggest that you update your analysis. In fact, I would strongly recommend that when you build spreadsheets for your firm, you set up a separate input page, where you can update numbers and have them reflected in the entire analysis.