The 26-session corporate finance class will be webcast starting January 22,
2007, and the lectures will be available as Real Player files (You can download
Real Player for free by going to http://www.real.com).
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 the class.
Lecture
note packet 1: Management Objectives and Investment Analysis (Sessions 1-14:
Download
pdf
file. You can also get two
slides per page, if you want to save paper.) Updated
for Spring 2007 class
Lecture
note packet 2: Capital Structure, Dividend Policy and Valuation
(Sessions 15-26: Download
pdf
file). You can also get two
slides per page, if you want to save paper.) Updated for Spring
2007 class
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 |
| 1 (1/22/07) | Introduction to Class First Principles of Corporate Finance |
|
| 2 (1/24/07) | The Objective in Corporate Finance |
Packet 1 (1-18) |
| 3 (1/29/07) | More on stockholders and managers: Assessing the potential for conflict |
Analyzing ownership |
| 4 (1/31/07) | Are markets too short term? |
Packet 1 (35-59) |
| 5 (2/5/07) | What is risk? Ingredients of a good risk and return model The CAPM Alternatives to the CAPM |
Packet 1 (60-82) |
| 6 (2/7/07) | The Riskfree Rate |
Packet 1 (83-101) |
| 7 (2/12/07) | Betas - Regression set up - Intercepts and Jensen's alphas - R Squared - Adjusted Beta |
Packet 1 (102-118) |
| 8 (2/14/07) | More on regression betas Expected Return and Cost of Equity Determinants of Betas Betas as weighted averages |
Packet 1 (119-144) |
| 9 (2/21/07) | Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution |
Packet 1 (145-148) |
| 10 (2/26/07) | Bottom up Betas (continued) Private company betas and costs of equity What is debt? The Cost of Debt |
Packet 1 (149-165) |
| 11 (2/28/07) | More on synthetic ratings The tax rate for cost of debt Weights for debt and equity Dealing with Hybrids Investment Principle- Introduction |
Packet 1 (166-187) |
| 12 (3/5/07) | Accounting Returns ROIC and EVA Cash Flows |
Packet 1 (188- 205) |
| 13 (3/7/07) | Incremental Cash Flows Time Weighting Cash flows - NPV and IRR Comparing NPV to IRR Comparing projects with different lives |
Packet 1 (206-235) |
| 14 (3/19/07) | Picking an investment decision rule Non-domestic projects: Risk and Currency Issues Equity Analysis Sensitivity Analysis Side costs and Benefits |
Packet 1( 236-263) |
| 15 (3/21/07) | Class cancelled | iTV case analysis (Excel) iTV Group Conclusions |
| 16 (3/26/07) | The Case: Presentation Side benefits and side costs The Options to Delay, Expand and Abandon |
iTV
presentation |
| 17 (3/28/07) | Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution |
Packet 1 (281-287) Packet 2 (1-12) |
| 18 (4/2/07) | The disadvantages of debt The financing heirarchy The Miller-Modigliani Theorem The Cost of Capital Approach to Optimal Debt Ratio |
Packet 2 (13-44) |
| 19 (4/4/07) | Follow-up to the Cost of Capital analysis |
Packet 2 (44-74) |
| 20 (4/9/07) | The APV approach to optimal debt ratios Relative analysis: Sector debt ratios Moving to the optimal |
Packet 2 (75-93) |
| 21 (4/11/07) | Designing the perfect financing - The reason to match debt up to cash flows - Steps in the process - Macro regressions and debt design - Mismatches and fixing them |
Packet 2 (94-128) |
| 22 (4/16/07) | Dividend Policy - Key facts about dividend policy (and trend lines) - Three Schools of Thought on Dividends - Dividends don't matter - Dividends are bad - Dividends are good |
Packet 2 (129-157) |
| 23 (4/18/07) | Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution |
Packet 2 (158-173) |
| 24 (4/23/07) | Examples of dividend policy analysis Peer group dividend policy The basics of valuation |
Packet 2 (174-210) |
| 25 (4/25/07) | Estimating cashflows Estimating growth The terminal value |
Packet 2 (211-233) |
| 26 ( 4/30/07) | The grand finale... | Project Summary |
| 5/2/07 | Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution |