Date
Topic/Text chapters
Case
Assignments/Readings
Feb. 28
No class
Mar. 7
Introduction (BMA 1,28/RWJ 1-3)
Capital budgeting (BMA 2,5-6/RWJ 4-6)
Mar. 14
Stock and bond valuation (BMA 3-4/RWJ 8-9)
Risk & return (BMA 7-8/RWJ 10-11)
Mar. 21
Test and review
Mar. 28
Cost of capital (BMA 9/RWJ 13)
Cost of capital
*Best practices in estimating the cost of capital: survey and synthesis
Apr. 4
Apr. 11
EVA (BMA 28)
Valuation/DCF method
*The real key to creating wealth
Apr. 18
EVA
Valmont
Evidence on EVA
Apr. 25
Payout Policy (BMA 16/RWJ 19)
Excess cash and shareholder payout strategies
May 2
Rockboro
*Reappearing dividends
May 9
Capital structure (BMA 18/RWJ 16)
Agency costs of free cash flow, corporate finance, and takeovers
May 16
Deluxe
*How to choose a capital structure
May 23
M & A (BMA 31/RWJ 29)
Creating value with mergers and acquisitions
May 30
Hybritech
Jun. 6
IPO
Evidence on what CFOs think about the IPO process
Jun. 13
Prada
Assessing growth estimates in IPO valuations
Jun. 20
Final Exam
TBA
The weights of the various components in determining the final grade will be:
A1. Class Participation 20%
A2. Exam 20%
A3. Cases and assignments 60%
Total 100%
Corporate Finance by Ross, Westerfield, Jaffe, 11th edition, 2016 (RWJ), or
Corporate Finance by Brealey, Myers, Allen, 12th edition, 2017 (BMA)
Some supplement materials of this course will be extracted from the following book as well.
Corporate Finance by Berk and DeMarzo, 4th edition, 2017