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The 26-session corporate finance class will start on January 27, 2025, and tand the sessions will be online, though recordings will be accesible on multiple platforms.
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. 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 2025 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 2025 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 on YouTube. I have created a playlist for the class, where the sessions will be posted sequentially with links to slides and other material.
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 |
A very brief introduction to Corporate Finance |
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| This is corporate finance! Themes for class Class Structure |
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| Post-class test and solution | ||
Corporate Finance Puzzle #1 |
Stakeholders versus Stockholders |
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| More on class introduction/Project The objective in running a business - Value maximization versus Stock price maximization - The "utopian" world of price maximization - The real world intrudes |
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| Post-class test and solution | ||
In Practice Webcast #1 |
Collecting Data | |
Corporate Governance (Continued) |
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| Post-class test and solution | ||
Corporate Finance Puzzle #2 |
Family Group Corporate Governance |
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Alternatives to stock price maximization |
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| Post-class test and solution | ||
In Practice Webcast #2 |
Assessing corporate governance | Webcast Presentation HP Annual Report HP DEF14A |
Wrapping up the End Game |
Lecture Note packet 1: 79-103 | |
| Post-class test and solution | ||
To diversify or not to diversify? |
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Risk & Return Risk free Rates Equity Risk Premiums - A Start |
Lecture Note packet 1: 104-131
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| Post-class test and solution | ||
In Practice Webcast #3 |
Analyzing the stockholder base | |
In Practice Webcast #4a |
Estimating a risk free rate |
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Quiz 1: Review Session
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Review session for quiz 1 | |
How risk averse are you?
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Equity Risk Premiums |
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| Post-class test and solution | ||
| In Practice Webcast #4b | The logic and the measurement questions behind equity risk premiums are examined in this webcast. | |
In Practice Webcast #4c |
Estimate a company's equity risk premium |
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Beta Regressions |
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| Post-class test and solution | ||
Corporate Finance Puzzle #5 |
What's in a beta? |
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Bottom Up Betas - Getting pure play betas - Estimating divisional values - Betas and costs of equity by business - Betas for private businesses |
Lecture Note packet 1: 178-196 | |
| Post-class test and solution | ||
Corporate Finance Case (Due March 19, before class)
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Celsius Eats |
Due on March 19 as a group project before class |
In Practice Webcast #5 |
Deconstructing a regression beta page | |
In Practice Webcast #5a
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Estimating a bottom up beta | |
10 (3/3/25) (Quiz-shortenened session)
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Quiz 1, solution and grade distribution | Lecture Note packet 1: 197-209 |
Cost of Capital (continued) |
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| Post-class test and solution | ||
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Lecture Note packet 1: 209-235 | |
| Post-class test and solution | ||
In Practice Webcast #6 |
Debt and the cost of debt | Webcast |
| Measuring investment returns - First Principles on measuring returns - Hurdle rates for projects - Estimating earnings and cash flows |
Lecture Note packet 1: 236-266 | |
| Post-class test and solution | ||
Sunk Costs: Theory and Reality |
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| Measuring investment returns - Time Weighted Incremental cash flows - Dealing with currencies - Dealing with uncertainty Equity-based analysis Hedging |
Lecture Note packet 1: 266-296 | |
| Post-class test and solution | ||
In Practice Webcast #7 |
Estimating ROIC and ROE | Webcast Walmart 10K (2013) Walmart 10K (2012) Spreadsheet |
Quiz 2: Review Session
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Review session for quiz 2 | |
