The 26-session corporate financeclass will be taped starting January 24, 2005 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 and audio leaves much to be desired but it will get better over time. 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 2005 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 2005 class

Session (Click here)	Topics covered	Lecture notes
1 (1/24/05)	Introduction to Class First Principles of Corporate Finance	Syllabus for class Project Description
2 (1/26/05)	Maximizing Stockholder Wealth as an objective When stock price maximization is the only objective you need Stockholders and Managers: Who has the power?	Packet 1 (1-20 )
3 (1/30/05)	Overpaying on an acquisition Unprotected lenders Fraudlent and Delayed Information Social Costs and Benefits Alternatives to Stock Price Maximization The Self Correcting Aspect of Stock Price Maximization	Packet 1 (20-50)
4 (2/2/05)	Choosing an Objective Measuring Hurdle Rates - Defining Risk - Measuring Risk - The Capital Asset Pricing Model - Alternatives to the CAPM	Packet 1 (51-67)
5 (2/7/05)	More on the Marginal Investor Riskfree Rates Risk Premiums - Intuitive Rationale - Approaches	Packet 1 (68-83)
6 (2/9/05)	Risk Premiums for Emerging Markets Implied versus Historical Risk Premiums Betas - Setting up the regression - Regression Diagnostics	Packet 1 (84-103)
7 (2/14/05)	More Regression Diagnostics Regression: Which index to use? Determinants of Betas: Type of Business	Packet 1 (104-118)
8 (2/16/05)	Operating leverage Financial Leverage Betas as weighted averages - Betas after mergers - Bottom up betas	Packet 1( 119-135)
9 (2/23/05)	Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution Estimating bottom up betas for emerging market and financial service companies Estimating costs of equity for private companies	Packet 1 (136-142)
10 (2/28/05)	Estimating the cost of equity for a private firm What is debt? The cost of debt - Synthetic ratings - The tax advantage Estimating market values for debt and equity	Packet 1 (143-158)
11 (3/2/05)	Measuring Returns - Earnings versus Cashflows - Return on capital - EVA	Packet 1 (159-181)
12 (3/7/05)	Incremental Cashflows NPV versus IRR	Packet 1 (182-210)
13 (3/9/05)	NPV: Adjusting for country risk Currency choice and NPV Real versus Nominal NPV Opportunity costs	Packet 1 (211-236)
14 (3/21/05)	Options in Capital Budgeting The Financing Mix Question Advantages of Debt	Packet 1 (237-End) Packet 2 (1-12)
15 (3/23/05)	Disadvantages of Debt The Trade Off revisited The Miller Modigliani Proposition Ways of coming up with an optimal	Packet 2 (13-37)
16 (3/28/05)	Take the quiz (a or b) and check the solution (a or b). Check your score against the distribution. The Home Depot Case Analysis First Steps in Optimal Capital Structure	Home Depot Analysis Packet 2 (38-45)
17 (3/30/05)	The Cost of Capital Approach: Optimal Debt Ratio Firm Value and Stock Price Changes from Recapitalization What if something goes wrong?	Packet 2 (46-62)
18 (4/4/05)	Investing additional debt instead of buying back stock The Cost of Capital Approach - Financial Service firms Normalizing Earnings Private Firms The APV Approach Relative Analysis	Packet 2 (63-85)
19 (4/6/05)	Life Cycle Approach to Optimal Capital Structure Moving to the Optimal	Packet 2 (86-97)
20 (4/11/05)	Designing the Perfect Bond	Packet 2 (98-117)
21 (4/13/05)	Macroeconomic Regressions and Debt Design Dividend Policy - Paradigms - Schools of Thought	Packet 2 ( 118-143)
22 (4/18/05)	The tradeoff on dividend policy - The Tax Effect on Dividends - Bad reasons for paying dividends - Good reasons for paying dividends Measuring FCFE	Packet 2 (144-167)
23 (4/20/05)	Take the quiz (a or b) and check the solution (a or b). Check your score against the distribution. Analyzing dividend policy	Packet 2 (167-185)
24 (4/25/05)	Valuation - Equity versus Firm Valuation - Discount Rates - Cash Flows - Expected growth rates	Packet 2 (186-216)
25 (4/27/05)	Terminal Value Valuation Examples Tying valuation to corporate finance	Packet 2 (217-246)
26 (5/2/05)	A Review of Corporate Finance A Project Summary	Presentation
	Take the final exam and check the solutions.