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The 26-session corporate finance class will start on February 1, 2021, and tand the sessions will be online, though recordings will be acceible 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 2021 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 2021 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 Preview of the class |
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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) |
||
| Post-class test and solution | ||
Corporate Finance Puzzle #2 |
Activist Investors |
|
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 |
In Practice Webcast #3 |
Analyzing the stockholder base | |
To diversify or not to diversify? |
||
Market-based Solutions |
Lecture Note packet 1: 65-95 | |
| Post-class test and solution | ||
In Practice Webcast 4a |
Estimating a risk free rate |
|
Risk & Return Risk free Rates Equity Risk Premiums - The basis - Estimation procedures |
Lecture Note packet 1: 96 -115
|
|
| Post-class test and solution | ||
How risk averse are you?
|
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Equity Risk Premiums Betas |
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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 |
|
Beta Regressions |
||
| Post-class test and solution | ||
Corporate Finance Puzzle #5 |
What's in a beta? |
|
| Determinants of Betas Betas as weighted averages Beta after an acquisition Bottom Up Betas - Getting pure play betas - Estimating divisional values - Betas and costs of equity by business |
Lecture Note packet 1: 159-177 | |
| Post-class test and solution | ||
In Practice Webcast #5 |
Deconstructing a regression beta page | |
In Practice Webcast #5a
|
Estimating a bottom up beta | |
Quiz 1: Review Session
|
Review session for quiz 1 | |
9 (3/8/21) |
Quiz 1 | Lecture Note packet 1: 178-188 |
Bottom up Betas (continued) |
||
| Post-class test and solution | ||
Corporate Finance Case (Due Matrch 31, before class)
|
Google GCar |
|
Cost of Capital (continued) |
||
| Post-class test and solution | ||
In Practice Webcast #6 |
Debt and the cost of debt | Webcast |
| Measuring investment returns - First Principles - Hurdle rates for projects |
Lecture Note packet 1: 213-235 | |
| Post-class test and solution | ||
Sunk Costs: Theory and Reality |
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| Measuring investment returns - Earnings to cash flows - Incremental cash flows - Time Weighted Incremental cash flows - Dealing with currencies - Dealing with uncertainty |
Lecture Note packet 1: 236-263 | |
| Post-class test and solution | ||
In Practice Webcast #7 |
Estimating ROIC and ROE | Webcast Walmart 10K (2013) Walmart 10K (2012) Spreadsheet |
Equity Analysis |
Lecture Note packet 1: 264-289 | |
| Post-class test and solution | ||
Sector Risk |
The set up & questions | |
In Practice Webcast #8 |
A "typical project": what and why? | |
Investment Interactions |
Lecture Note packet 1: 290-328 | |
| Post-class test and solution | ||
Quiz 2: Review Session
|
Review session for quiz 2 | |
Google GCar Discussion |
||
| Post-class test and solution | ||
Closing up investment analysis |
Lecture Note Packet 1, pages 339-341 & Lecture Note packet 2: 1-20 |
|
| Post-class test and solution | ||
The US tax code (pre 2017 tax reform) |
||
The Debt Trade off (contd) |
Lecture Note packet 2: 21-54 | |
| Post-class test and solution | ||
In Practice Webcast #9 |
The trade off on debt versus equity | |
More on the Cost of Capital Approach |
Lecture Note packet 2: 55-88 | |
| Post-class test and solution | ||
The Dark Side of Debt |
||
The APV Approach |
Lecture Note packet 2: 89-113 | |
| Post-class test and solution | ||
In Practice Webcast #10 |
The optimal debt ratio | |
Surplus notes: The best of all worlds? |
||
Designing the perfect financing |
Lecture Note packet 2: 114-147 | |
| Post-class test and solution | ||
Quiz 3: Review Session |
Review session for quiz 3 | |
In Practice Webcast #11 |
The perfect debt - Intuitive analysis - Macro regression |
|
Dividend Policy |
Lecture Note packet 2: 148-177 | |
| Post-class test and solution | ||
Good Reasons for paying dividends |
Lecture Note packet 2: 177-208 | |
| 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 |
|
Final Exam: Review Session |
Review session for final exam | |
Dividend Assessment (continued) |
Lecture Note packet 2: 209-232 | |
| Post-class test and solution | ||
Valuation |
Lecture Note packet 2: 233-255 | |
| Post-class test and solution | ||
| Closing presentation - A big picture review - Project findings |
