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Web Casts: Corporate Finance - Spring 2015
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The 26-session corporate finance class will be webcast starting February 2, 2015, 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 2015 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 2015 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 Yellowdig, an online site, where you can post your thoughts on the class topics and participate in discussions. 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 |
||
| Post-class test and solution | ||
Corporate Finance Puzzle #1 |
The Soaring Swiss Franc & its hapless victims |
|
| The objective in running a business - Value maximization versus Stock price maximization - The "utopian" world of price maximization - The real world intrudes |
Project Description |
|
| Post-class test and solution | ||
In Practice Webcast #1 |
Assessing corporate governance | Webcast Presentation HP Annual Report HP DEF14A |
More on the objective function |
Packet 1: 19-45 | |
| Post-class test and solution | ||
Corporate Finance Puzzle #2 |
Corporate Governance: The Shake Shack Story |
|
| Alternatives to stock price maximization The strongest argument for price maximization Defining risk and first steps in risk & return |
Packet 1: 45-70 | |
| Post-class test and solution | ||
In Practice Webcast #2 |
Analyzing the stockholder base | |
Corporate Finance Puzzle #3 |
Risk and Return: Greed, Hubris and Fear |
|
| Risk and Return: Next steps - The CAPM - Alternatives to the CAPM - Inputs to the CAPM: The riskfree rate |
Packet 1: 71-98 | |
| Post-class test and solution | ||
In Practice Webcast #3 |
Estimating a Risk free rate |
|
| Equity Risk Premiums - The basis - Estimation procedures - Historical versus Implied Premiums - Country risk premiums - Company ERP |
Packet 1: 98-119 | |
| Post-class test and solution | ||
Corporate Finance Puzzle #4 |
Firm Specific and Market Risk |
|
| Betas - Return Regression - Performance and risk assessment Determinants of Betas |
Packet 1: 120 - 139 Bloomberg Data Guide |
|
| Post-class test and solution | ||
In Practice Webcast #4 |
Deconstructing a regression beta page | |
| Closing thoughts on regression betas 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 138-156 | |
| Post-class test and solution | ||
Corporate Finance Puzzle #5 |
||
| 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 |
Start of the class slide Packet 1: Pages 156-172 |
|
| Post-class test and solution | ||
Quiz 1: Review Session (3/7/14)
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Review session for quiz 1 | Presentation Past Quiz 1s Solutions to past Quiz 1s |
In Practice Webcast #5
|
Estimating a bottom up beta | |
| 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: 173-183 | |
Private Business Costs of equity |
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| Post-class test and solution | ||
Corporate Finance Case (due April 1 @10.30 am) |
Apple's iCar |
Will be posted after 4/1/15) |
Corporate Finance Puzzle #6 |
||
Cost of Capital (continued) |
Yankee infield Packet 1: 184-213 |
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| Post-class test and solution | ||
In Practice Webcast #6 |
Debt and the cost of debt | Webcast |
| Measuring investment returns - Accounting earnings & returns - Earnings to cash flows - Incremental cash flows |
Packet 1: 214-241 | |
| Post-class test and solution | ||
Corporate Finance Puzzle #7 |
Sunk Costs: Theory and Reality |
|
| Dealing with uncertainty Equity Analysis To hedge or not to hedge? |
Packet 1: 242-270 | |
| Post-class test and solution | ||
In Practice Webcast #7 |
Estimating ROIC and ROE | Webcast Walmart 10K (2013) Walmart 10K (2012) Spreadsheet |
NPV versus IRR |
Packet 1: 271-305 | |
| Post-class test and solution | ||
Corporate Finance Puzzle #8 |
The Frozen Franchise |
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The Apple iCar |
Apple iCar - Presentation - Excel spreadsheet Packet 1: 309- End |
|
| Post-class test and solution | ||
In Practice Webcast #8 |
A "typical project": what and why? | Presentation Webcast |
Capital Structure |
Packet 2: 1- 25 |
|
| Post-class test and solution | ||
Quiz 2: Review Session (4/7/15)
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Review session for quiz 2 | Presentation Past Quiz 2s Solutions to past Quiz 2s |
Corporate Finance Puzzle #9 |
Debt and Distress |
|
| 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: 32-49 | |
| The Cost of Capital Approach to Optimization - Introduction to the Cost of Capital Approach - Steps - Applications (and caveats) |
||
| Post-class test and solution | ||
In Practice Webcast #9 |
The trade off on debt versus equity | |
| More on the cost of capital approach - Concerns and Considerations - Extensions of approach - Determinants of the optimal |
Packet 2: 50-77 | |
| Post-class test and solution | ||
Weekly Puzzle #10 |
Leveraged Recapitalization |
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Reasons why the optimal varies across firms |
Walgreens: Optimal Capital Structure Packet 2: 78-99 |
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| Post-class test and solution | ||
In Practice Webcast #10 |
The optimal debt ratio | |
Moving to the optimal |
Packet 2: 100-124 | |
| Post-class test and solution | ||
Weekly Puzzle #11 |
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 - Dividend Yield & Payout |
Packet 2: 125-153 | |
| Post-class test and solution | ||
In Practice Webcast #11 |
The perfect debt - Intuitive analysis - Macro regression |
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Dividend Policy |
Packet 2: 154-188 | |
| Post-class test and solution | ||
Quiz 3: Review Session (4/28/15)
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Review session for quiz 3 | Presentation Past Quiz 3s Solutions to past Quiz 3s |
Weekly Puzzle #12 |
GM's Stock Buyback |
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| Take the third quiz (a or b) and check out the solution (a or b)as well as the distribution of scores for the class. | Packet 2: 189-206 | |
| Good reasons for paying dividends - The Dividend Clientele story - The Dividend Signaling story - The Bondholder expropriation story The cash/trust approach to assessing dividend policy |
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| 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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Dividend policy (continued) |
Packet 2: 207-233 |
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| Post-class test and solution | ||
Weekly Puzzle #13 |
The Auto Industry: Capital Misallocation and Investor Power
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| Valuation - Approaches - Drivers of intrinsic value - Changing value |
Packet 2: 234-255 | |
| Post-class test and solution | ||
In Practice Webcast #13 |
Valuation - Getting updated numbers - Valuing a business - The key drivers of value |
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| Closing presentation - A big picture review - Project findings |
Closing presentation Project summaries |
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Final: Review Session (5/14/15)
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Review session for final exam | |
| The Final Exam (5/17/13) | Take the final exam (a or b) & check the solution (a or b). You can also check your grade on the class |