The 28-session corporate finance class will be webcast starting September
5, 2007, and the lectures will be available as Real Player files (You can download
Real Player for free by going to http://www.real.com).
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 the class.
Lecture
note packet 1: Management Objectives and Investment Analysis (Sessions 1-15:
Download
pdf
file. You can also get two
slides per page, if you want to save paper.) Updated
for Fall 2007 class
Lecture
note packet 2: Capital Structure, Dividend Policy and Valuation
(Sessions 16-28: Download
pdf
file). You can also get two
slides per page, if you want to save paper.) Updated for Fall
2007 class
This page will include the webcasts from the current class.
| Session (Click here) | Topics covered | Lecture notes |
| 1 (9/5/07) | Introduction to Class First Principles of Corporate Finance |
|
| 2 (9/10/07) | The Objective in Corporate Finance |
Analyzing
ownership HDS page for Disney Packet 1: 1-15 |
| 3 (9/12/07) | Analyzing the board of directors/ corporate governance |
Packet 1: 16-35 |
| 4 (9/17/07) | Are markets short term? |
Packet 1: 26-57 |
| 5(9/19//07) | Closing thoughts on the "best objective" The essence of risk Measuring Risk The CAPM: An intuitive explanation |
Packet 1: 58-78 |
| 6 (9/24/07) | More on firm-specific and market risk |
Packet 1: 79-88 |
| 7 (9/26/07) | Equity risk premiums -What are we trying to measure? - Approaches to estimating risk premiums |
Packet 1: 89-103 |
| 8 (10/1/07) | Estimating beta - The beta regression - The intereept as a measure of performance - The R squared - The Bloomberg regression output |
Packet 1: 104-118 |
| 9 (10/3/07) | More on regression betas |
Packet 1: 119-135 |
| 10 (10/10/07) | Betas and Financial Leverage Betas as weighted averages - Portfolio betas - Betas after mergers - Bottom up Betas |
Packet 1: 136-151 |
| 11 (10/15/07) | Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution Bottom-up Beta for a private business The Total Beta Concept |
Packet 1: 152-162 |
| 12 (10/17/07) | Defining Debt The Cost of Debt Estimating market value of equity and debt Converting lease commitments to debt |
Packet 1: 162-176 |
| The case can now be downloaded, with the additional exhibit | Case Exhibit |
|
| 13 (10/22/07) | Closing thoughts on cost of capital Measuring Returns - Cash flows versus Earnings - Estimating earnings and return on capital |
Packet 1: 177-196 |
| 14 (10/24/07) | Return on Capital and EVA for a company From Earnings to Cash flows Incremental Cash flows |
Packet 1: 197-212 |
| 15 (10/29/07) | Time Weighted Incremental Cashflows Net Present Value vs IRR - Scale differences - Reinvestment Rate assumptions |
Packer 1: 213-240 |
| 16 (10/31/07) | Consistency with currency Real versus Nominal Equity Analysis What if? A place for sensitivity analysis Introduction to opportunity costs |
Packet 1: 241-263 |
| 17 (11/5/07) | Case Analysis |
Nike case analysis Nike solution (finite and longer life) Packet 1 (263-271) |
| 18 (11/7/07) | Take the quiz(a or b),
check the solution (a or b)
and compare your score to the distribution Options in projects - The option to delay and the value of patents - The option to expand and large markets - The option to abandon and the value of flexibility |
Packet 1 (272- End) |
| 19 (11/12/07) | The financing principle |
Packet 2 (1- 28) |
| 20 (11/14/07) | Using the cost of capital to compute the optimal - The set-up - Cost of Equity - Cost of debt - Why move to the optimal? |
Packet 2 (29- 52) |
| 21 (11/19/07) | More on cost of capital |
Packet 2 ( 53-78) |
| 22 (11/21/07) | Adjusted Present Value Approach Relative Capital Structure Life Cycle Bridging the Gap - Actual versus Optimal The Right Kind of Debt - Intuition |
Packet 2 (79-96) |
| 23 (11/26/07) | Designing the perfect bond |
Packet 2 (97-117) |
| 24 (11/28/07) | Take the quiz(a or b), check the solution (a or b) and compare your score to the distribution Closing Thoughts on Debt design |
Packet 2 (118-134) |
| 25 (12/3/07) | Three Schools of Thought on Dividends An argument that dividends are neutral.. The Tax argument against dividends Bad and Good Reasons for paying dividends |
Packet 2 (135-160) |
| 26 ( 12/5/07) | Tools for assessing dividend policy |
Packet 2 (161-186) |
| 27 (12/10/07) | More on dividend policy - Peer group analysis Valuation basics |
Packet 2 (187-216) |
| 28 (12/12/07) | An overview of the class Project summaries Finishing touches on valuation |
Closing presentation |