Date

Topic/Text chapters

Case

Assignments/Readings

Mar. 1

Introduction (BMA 1,28/RWJ 1-3)

Mar. 8

Capital budgeting (BMA 2,5-6/RWJ 4-6)

Mar. 15

Stock and bond valuation (BMA 3-4/RWJ 8-9)

Mar. 22

Test and review

Mar. 29

Risk & return (BMA 7-8/RWJ 10-11)

Apr. 5

No class

Apr. 12

No class

Apr. 19

Cost of capital (BMA 9/RWJ 13), EVA (BMA 28)

Cost of capital

*Best practices in estimating the cost of capital: survey and synthesis

*The real key to creating wealth

Apr. 26

EVA, Valuation/DCF method

EVA

Evidence on EVA

May 3

Payout Policy (BMA 16/RWJ 19)

Excess cash and shareholder payout strategies

May 10

Payout Policy (BMA 16/RWJ 19)

Payout

*Reappearing dividends

May 17

No class

May 24

Capital structure (BMA 18/RWJ 16)

Agency costs of free cash flow, corporate finance, and takeovers

May 31

Capital structure (BMA 18/RWJ 16)

Capital structure

*How to choose a capital structure

Jun. 7

M & A (BMA 31/RWJ 29)

Creating value with mergers and acquisitions

Jun. 14

M & A (BMA 31/RWJ 29)

M&A

Jun. 21

IPO

Evidence on what CFOs think about the IPO process

Jun. 28

Final Exam