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The 26-session corporate finance class will be webcast starting January 30, 2017, 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 2017 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 2017 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 |
A Preview of the class |
||
| This is corporate finance! Themes for class Class Structure |
||
| Post-class test and solution | ||
Corporate Finance Puzzle #1 |
Corporate Governance, Family Group Style |
|
| 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 |
||
| Post-class test and solution | ||
In Practice Webcast #1 |
Collecting Data | |
Corporate Governance (Continued) |
||
| Post-class test and solution | ||
Corporate Finance Puzzle #2 |
Dual Class Shares: I want your money, but not your input! |
|
| Alternatives to stock price maximization The strongest argument for price maximization Defining risk and first steps in risk & return |
||
| Post-class test and solution | ||
In Practice Webcast #2 |
Assessing corporate governance | Webcast Presentation HP Annual Report HP DEF14A |
In Practice Webcast #3 |
Analyzing the stockholder base | |
| Risk and Return: Next steps - The CAPM - Alternatives to the CAPM - Inputs to the CAPM: The riskfree rate |
Lecture Note packet 1: 77-98 | |
| Post-class test and solution | ||
To diversify or not to diversify? |
||
Risk free Rates - Closure Equity Risk Premiums - The basis - Estimation procedures - Historical versus Implied Premiums - Country risk premiums - Company ERP |
Lecture Note packet 1: 99-121 | |
| Post-class test and solution | ||
In Practice Webcast 4a |
Estimating a risk free rate |
|
In Practice Webcast #4b |
Estimate a company's equity risk premium | |
How risk averse are you?
|
||
| Betas - Return Regression - Performance and risk assessment Bloomberg Betas - Index choices - Variations across service estimates |
||
| Post-class test and solution | ||
In Practice Webcast #5 |
Deconstructing a regression beta page | |
| From Beta to Expected Return Determinants of beta - Nature of products/services - Operating leverage - Financial leverage Betas as weighted averages - Acquisiton effects on beta |
Packet 1: Pages 138-153 | |
| Post-class test and solution | ||
What's in a beta? |
||
Quiz 1: Review Session (Recorded from Spring 2016, Sorry!)
|
Review session for quiz 1 | |
| 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 |
Packet 1: Pages 154-173 | |
| Post-class test and solution | ||
In Practice Webcast #5a
|
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. | Packet 1: 174-183 | |
Debt |
||
| Post-class test and solution | ||
Corporate Finance Case (due March 29 @10.30 am) |
Home Depot Furniture |
Will be posted after 3/29/17) |
Sector Risk |
The set up & questions | |
Cost of Capital (continued) |
||
| Post-class test and solution | ||
In Practice Webcast #6 |
Debt and the cost of debt | Webcast |
| Measuring investment returns - Hurdle rates for projects - Earnings to cash flows - Incremental cash flows - Time Weighting Incremental cash flows (NPV & IRR) |
Packet 1: 211-233 | |
| Post-class test and solution | ||
Sunk Costs: Theory and Reality |
||
| NPV and IRR Dealing with uncertainty Equity Analysis To hedge or not to hedge? |
Packet 1: 233-264 | |
| Post-class test and solution | ||
In Practice Webcast #7 |
Estimating ROIC and ROE | Webcast Walmart 10K (2013) Walmart 10K (2012) Spreadsheet |
Acquisition as a Project |
Packet 1: 265-303 | |
| Post-class test and solution | ||
Sector Risk |
The set up & questions | |
Home Depot Furniture |
|
|
| Post-class test and solution | ||
In Practice Webcast #8 |
A "typical project": what and why? | |
Capital Structure |
Packet 2: 1- 24 |
|
| Post-class test and solution | ||
Quiz 2: Review Session (4/4/17)
|
Review session for quiz 2 | |
The US tax code |
||
| 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. (Will be available when grading is done) | Packet 2: 25-38 | |
| The Cost of Capital Approach to Optimization - The Miller Modigliani Theorem - Financing Hierarchies - Introduction to the Cost of Capital Approach |
||
| Post-class test and solution | ||
In Practice Webcast #9 |
The trade off on debt versus equity | |
| More on the cost of capital approach - Why do it & what if something goes wrong - Concerns and Considerations |
Packet 2: 39-68 | |
| Post-class test and solution | ||
The Dark Side of Debt |
||
Enhanced Cost of Capital Approach |
||
| Post-class test and solution | ||
In Practice Webcast #10 |
The optimal debt ratio | |
Moving to the optimal |
Packet 2: 97-118 | |
| Post-class test and solution | ||
Surplus notes: The best of all worlds? |
||
| 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 |
|
Dividend Policy |
Packet 2: 154-188 | |
| Post-class test and solution | ||
Quiz 3: Review Session (4/25/17) |
Review session for quiz 3 | |
| 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: 189-207 | |
| The cash/trust approach to assessing dividend policy - Potential Dividends (FCFE) - Framework for Cash Return |
||
| Post-class test and solution | ||
In Practice Webcast #13 |
Dividend Assessment - Measuring Potential Dividends (FCFE) - Judging cash return policy |
|
Dividend policy (continued) |
Packet 2: 208-237 |
|
| Post-class test and solution | ||
| Valuation - Approaches - Drivers of intrinsic value |
Packet 2: 238-253 | |
| Post-class test and solution | ||
| Closing presentation - A big picture review - Project findings |
||
Final: Review Session (5/10/17)
|
Review session for final exam | |
Final Exam (5/12/17) |
Take the final exam and check the solution | |
Final Grade |
Enter your scores and check your grade in this spreadsheet. |