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ACF short

 


This is a compressed corporate finance class, but I will try to cover the entire subject matter in 2 days. I know that this sounds intimidating, especially if you have never taken a corporate finance class before. However, trust me, it is doable.

Before you begin

In Class

Session
Readings & Problem Sets
Project Update Quizzes
1,2 (Management Objectives & Hurdle Rates) Readings: Chapters 1,2,3,4

Problem Sets:
Management Objectives
(Download solutions in pdf file)
Risk, Return and Hurdle Rates (Download solutions in pdf file)

Parts I-II
Regression
Practice Quiz
Download solution (pdf)
3 (Measuring Investment Returns) Readings: Chapters 5,6

Problem Sets:
Measuring Investment Returns (Download solutions in pdf file)

Parts III
Check your numbers
Rating
Debt value
Levered Beta
WACC
Practice Quiz
Download solution (pdf)
3,4 (Capital Structure) Readings: Chapters 7,8,9

Problem Sets:
Capital Structure: The Choices (Download solutions in pdf file)
Capital Structure: The Optimal Mix (Download solutions in pdf file)

Parts IV-VI

Spreadsheets:
capstru.xls (Unconstrained)
capstruenhanced.xls (Constrained)

Practice Quiz
Download solution (pdf)
4 (Dividend Policy and Valuation) Readings: Chapters 10,11,12

Problem Sets:
Dividend Policy: Framework for Analysis (Download solutions in pdf file)

Parts VII-IX
dividends2015.xls (Dividends)
fcffsimpleginzu2015.xls (Valuation)
Practice Quiz
Download solution (pdf)
      Practice Final Exam (You don't have one but take this if you want to check whether you get the big picture)

The Project

The Companies

Company Bloomberg packet Consolidated Excel sheet Optimal Capital Structure
Ranbaxy Info Packet Consolidated Worksheet Spreadsheet
Tube Investments Info Packet Spreadsheet
SKF India Info Packet Spreadsheet

Titan Watches

Info Packet Spreadsheet
Bharti Airtel Info Packet Spreadsheet
India Cements Info Packet Spreadsheet
Brittania Info Packet Spreadsheet
Reliance Industries Info Packet Spreadsheet
Dr. Reddy's Labs Info Packet Spreadsheet
Bajaj Auto Info Packet Spreadsheet
Wipro Info Packet Spreadsheet
Shopper's Stop Info Packet Spreadsheet

Indian Company Database

I have created a database that contains my estimates of costs of equity, debt and capital for all publicly traded Indian companies in July 2015. This database also includes other key corporate finance numbers such as measures of investment return, profit margins, debt ratios and dividend payout. There are two ways you can access this database:

  1. Excel Spreadsheet: You can download the Excel spreadsheet and use the look up worksheet that is embedded in it.
  2. Online Database: I am experimenting with an online database that may be easier for some of you to use. Please let me know how it works:
  3. Loading...

Books and Other Material

For examples from the applied corporate finance book as well as solutions, try the supporting sites. The latest edition of the book, which ties in most closely with the notes is the fourth edition.

acf3

And if you don't have the book, the lecture notes will do.