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The 28-session corporate finance class will be webcast starting January 25, 2016, 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 2016 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 2016 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 |
This is corporate finance! Overview of class |
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Post-class test and solution | ||
The Corporate Life Cycle |
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The last themes in corporate finance The Project The objective in running a business - Value maximization versus Stock price maximization - The "utopian" world of price maximization |
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Post-class test and solution | ||
In Practice Webcast #1 |
Collecting Data | |
The real world intrudes |
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Post-class test and solution | ||
Price versus Value |
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More on the objective function |
Packet 1: 29-60 | |
Post-class test and solution | ||
In Practice Webcast #2 |
Assessing corporate governance | Webcast Presentation HP Annual Report HP DEF14A |
Risk and Return - Defining Risk - The CAPM - Alternatives to the CAPM |
Packet 1: 61-87 | |
Post-class test and solution | ||
To diversify or not to diversify? |
||
The Risk free Rate Equity Risk Premiums - The basis - Estimation procedures - Historical ERP |
||
Post-class test and solution | ||
In Practice Webcast #3 |
Analyzing the stockholder base | |
In Practice Webcast #4 |
Estimating a Risk free rate |
|
How risk averse are you?
|
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Equity Risk Premiums |
Packet 1: 107-123 | |
Post-class test and solution | ||
In Practice Webcast #4a |
Estimate a company's equity risk premium | |
Betas - Return Regression - Performance and risk assessment |
||
Post-class test and solution | ||
What's in a beta? |
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Determinants of beta - Nature of products/services - Operating leverage - Financial leverage Betas as weighted averages - Acquisiton effects on beta - Introduction to bottom up betas |
Packet 1: Pages 141-159 | |
Post-class test and solution | ||
In Practice Webcast #5 |
Deconstructing a regression beta page | |
Bottom Up Betas - Getting pure play betas - Estimating divisional values - Betas and costs of equity by business - Converting costs of equity from one currency to another - Cost of equity for a privately owned business |
Packet 1: Pages 157-172 | |
Post-class test and solution | ||
Quiz 1: Review Session (3/1/16)
|
Review session for quiz 1 | |
Sector Risk |
The set up & questions | |
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. (Link for distribution not active yet) |
Packet 1: 174-183 | |
Private Business Costs of equity |
||
Post-class test and solution | ||
Corporate Finance Case (due March 30 @10.30 am) |
Netflix Studio Investment |
Will be posted after 3/30/16) |
In Practice Webcast #5a
|
Estimating a bottom up beta | |
Cost of Capital (continued) |
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Post-class test and solution | ||
Sector Risk |
The set up & questions | |
Measuring investment returns - Accounting earnings & returns - Earnings to cash flows - Incremental cash flows - NPV and IRR - Currency Effects |
Packet 1: 212-232 | |
Post-class test and solution | ||
In Practice Webcast #6 |
Debt and the cost of debt | Webcast |
Dealing with uncertainty Equity Analysis To hedge or not to hedge? |
Packet 1: 233-263 | |
Post-class test and solution | ||
Acquisition Valuation |
Packet 1: 264-303 | |
Post-class test and solution | ||
In Practice Webcast #7 |
Estimating ROIC and ROE | Webcast Walmart 10K (2013) Walmart 10K (2012) Spreadsheet |
Side Benefits on Projects |
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Post-class test and solution | ||
Sunk Costs: Theory and Reality |
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The Netflix Studio |
|
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In Practice Webcast #8 |
A "typical project": what and why? | |
Quiz 2: Review Session (4/1/16)
|
Review session for quiz 2 | |
Take the second quiz (a or b) and check out the solution (a or b)as well as the distribution of grades for the class. | Packet 2: 16-21 | |
The trade off on debt (continued) - The Added Discipline of Debt - Expected Bankruptcy Costs - Agency Costs |
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Post-class test and solution | ||
The US tax code |
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More on the cost of capital approach - Concerns and Considerations - Extensions of approach - Determinants of the optimal |
Packet 2: 22-51 | |
Post-class test and solution | ||
In Practice Webcast #9 |
The trade off on debt versus equity | |
More on the cost of capital approach |
Packet 2: 51-77 | |
Post-class test and solution | ||
The Dark Side of Debt |
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Reasons why the optimal varies across firms |
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Post-class test and solution | ||
In Practice Webcast #10 |
The optimal debt ratio | |
Moving to the optimal |
Packet 2: 100-118 | |
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: 119-153 | |
Post-class test and solution | ||
In Practice Webcast #11 |
The perfect debt - Intuitive analysis - Macro regression |
|
Quiz 3: Review Session (4/22/16) |
Review session for quiz 3 | Presentation Past Quiz 3s Solutions to past Quiz 3s |
Take the second quiz (a or b) and check out the solution (a or b)as well as the distribution of grades for the class. | Packet 2: 154-169 | |
The trade off on debt (continued) - The Added Discipline of Debt - Expected Bankruptcy Costs - Agency Costs |
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Post-class test and solution | ||
Designing the perfect financing - Ways of finding your perfect financing - Fixing mismatches Dividend Policy - Descriptive facts |
Packet 2: 170-206 | |
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 |
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Designing the perfect financing - Ways of finding your perfect financing - Fixing mismatches Dividend Policy - Descriptive facts |
Packet 2: 207-237 | |
Post-class test and solution | ||
In Practice Webcast #14 |
Valuation - Getting updated numbers - Valuing a business - The key drivers of value |
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Valuation - Approaches - Drivers of intrinsic value - Changing value |
Packet 2: 238-258 | |
Post-class test and solution | ||
Closing presentation - A big picture review - Project findings |
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Final: Review Session (5/10/16) |
Review session for final exam | |
Final Exam |
Take the final exam and check the solution | |
Final Grade |
Enter your scores and check your grade in this spreadsheet. |