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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 .
I1Lecture 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)
i2Lecture 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:

  1. Streaming video (The file will be streamed to your computer. This will work only if you have a good internet connection, but should be of the best quality)
  2. Video podcast (The .m4v file will be downloaded to your computer and you can watch the video using Quicktime or video software or on your iPod)
  3. Audio podcast (The .mp3 file will be downloaded as an audio file and can be played on any audio player)
  4. YouTube videos (if you have slower internet connection and/or a small device).

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 Preview of the class
A very brief introduction to Corporate Finance
 

1 (1/27/25)

  1. Recorded Session (need NYU login)
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube
This is corporate finance!
Themes for class
Class Structure
  1. Syllabus for class
  2. Project Description
Post-class test and solution
Corporate Finance Puzzle #1

Stakeholders versus Stockholders

  1. The Business Roundtable Statement on Stakeholders
  2. My blog post on stockholders versus stakeholder wealth maximization

The set up & questions

2 (1/29/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube
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

  1. Project Description
  2. Lecture Note Packet 1: 18
Post-class test and solution
In Practice Webcast #1
Collecting Data
  1. Webcast
  2. SEC website
  3. SEC Live
  4. FRED (Federal Reserve)

3 (2/3/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

Corporate Governance (Continued)
- Performative Corporate Governance
- Managerial Interests versus Shareholder Interests
- Assessing power structure at a company
Stockholders vs Bondholders: Getting "Nabiscoed"
Markets
- Information Delay/Fraud
- Market Irrartionalitiies - The Elvis Test
Social costs and benefirts

  1. Lecture Note Packet 1: Pages 18-50
Post-class test and solution
Corporate Finance Puzzle #2

Family Group Corporate Governance

  1. My post on family group company corporate governance
  2. My post on the Adani Group
  3. Hindenburg Report on the Adani Group

The set up & questions

4 (2/5/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 

Alternatives to stock price maximization
- Managerial Corporatism
- Confused Corporatism
- Crony Corporatism
Stakeholder Wealth Maximization & ESG
Constrained Corporatism

  1. Lecture note packet 1: 51-78
Post-class test and solution
In Practice Webcast #2
Assessing corporate governance Webcast
Presentation
HP Annual Report
HP DEF14A

5 (2/10/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 

 

Wrapping up the End Game
Risk and Return: Next steps
- What is risk
- The CAPM
- The Marginal Investor

Lecture Note packet 1: 79-103
Post-class test and solution
Corporate Finance Puzzle #3

To diversify or not to diversify?

  1. The Case for Diversification (Markowitz)
  2. The Case for Concentration
  3. The Behavioral Evidence on Investor Behavior
  4. My blog post on whether to diversify

The set up & questions

6 (2/12/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 

 


Risk & Return
Risk free Rates
Equity Risk Premiums - A Start

Lecture Note packet 1: 104-131

 

Post-class test and solution
In Practice Webcast #3
Analyzing the stockholder base
  1. Webcast
  2. Presentation
  3. Activist Investing Newsletter
  4. An updated listing of activist investors
In Practice Webcast #4a

Estimating a risk free rate

  1. Webcast
  2. Presentation
  3. Moody's ratings (3/13)
  4. CDS spreads (3/13)

Quiz 1: Review Session

  1. YouTube video

 


Review session for quiz 1
  1. Presentation
  2. Past Quiz 1s
  3. Solutions to past Quiz 1s
Corporate Finance Puzzle #4

How risk averse are you?

  1. As stocks gyrate, it is time to measure your risk tolerance.
  2. Measuring your risk aversion

The set up & questions

7 (2/19/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 

Equity Risk Premiums
- Implied ERP
* What is it?
* Why does it change over time?
- Country ERP

Lecture Note packet 1:  132-155

Post-class test and solution
In Practice Webcast #4b The logic and the measurement questions behind equity risk premiums are examined in this webcast.
  1. Webcast
  2. Presentation
    Spreadsheet
  3. S&P 500 on buybacks
  4. S&P 500 earnings
In Practice Webcast #4c
Estimate a company's equity risk premium
  1. Webcast
  2. Presentation
  3. ERP & GDP spreadsheet
  4. (You can get the updated ERP & GDP numbers on my website)

8 (2/24/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 

Beta Regressions
- Reading the regresssion
- Limitations of regression betas
- Betas and Expected Returns
- A Start on Determinants of Betas
- Betas as weighted averages

  1. Lecture Note packet 1: 156-177
  2. Bloomberg Data Guide
Post-class test and solution
Corporate Finance Puzzle #5

What's in a beta?

  1. GameStop's beta

The set up & questions

9 (2/26/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 



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)

 

Celsius Eats

  1. The Case (pdf)
  2. Food/Snack companies (Excel file)
Due on March 19 as a group project before class
In Practice Webcast #5
Deconstructing a regression beta page
  1. Webcast
  2. Bloomberg beta page
  3. Spreadsheet for analysis
  4. Disney Annual Report (2012)
  5. Excel regression beta page
  6. Disney (Raw Data)
  7. S&P (Raw Data)

In Practice Webcast #5a

 

Estimating a bottom up beta
  1. Webcast
  2. United Technologies 10K
  3. Spreadsheet for bottom up beta

10 (3/3/25) (Quiz-shortenened session)

  1. Recorded Session (Just the first 45 minutes)
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

Quiz 1, solution and grade distribution Lecture Note packet 1: 197-209

Cost of Capital (continued)
- More on the cost of debt
- Market values for debt and equity
- Lease committments to Debt
- Weights for debt and equity

Post-class test and solution

11 (3/5/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 


More on cost of capital
Investment Analysis
- Earnings versus Cashflows
- What is a project
- First steps on Disney Rio

Lecture Note packet 1: 209-235
Post-class test and solution
In Practice Webcast #6
Debt and the cost of debt

Webcast
Home Depot 10K
Home Depot 10Q
S&P rating for HD
Spreadsheet

12 (3/10/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 

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
Corporate Finance Puzzle #6

Sunk Costs: Theory and Reality

  1. The sunk cost fallacy
  2. My blog post on the Yankees' A Rod Problem & sunk costs
  1. The set-up and questions

13 (3/12/25)

  1. Recorded Session
  2. Video podcast (downloadable)
  3. Audio podcast (downloadable)
  4. YouTube

 

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

  1. YouTube video

 


Review session for quiz 2
  1. Presentation
  2. Past Quiz 2s
  3. Solutions to past Quiz 2s