Class History: Corporate Finance (Spring 2017)
This page summarizes all the classes of the course Corporate Finance in Spring 2017.
Summary
Regular classes were scheduled to be held on Tuesdays at 2:20 – 3:35 PM (room 602), and Thursdays at 2:20 – 3:35 PM (room 602). Total number of classes was 35, consists of 21 scheduled classes and 14 extra classes. Extra classes were held at different times.Â
[January 17] Class 1
Room 602
Orientation class and an overview of the whole course.
[January 19] Class 2
Room 602 at 2:20
Chapter 1: Cashflow of a firm; types of firms; sole proprietorship business; partnership business; corporations.
[January 24] Class 3
Room 602 at 2:20
Goal of a firm; profit maximization; wealth maximization; work of CFOs; financing decision; investment decision; dividend decision; balance sheet model of a firm.
[January 26] Class 4
Room 602 at 2:20
Types of firms based on performance; growth firms; defensive firms; cyclical firms; speculative firms; types of firms based on strategy; defensive strategy; offensive strategy; low cost strategy; diversification strategy.
[January 31] Class 5
Room 602 at 2:20
Present value; future value; end of chapter 1.
Chapter 2: Independent projects; mutually projects.
[February 2] Class 6
Room 602 at 2:30
NPV; NPV rules; IRR; IRR rules; how to find out IRR without a financial calculator.
[February 7] Class 7
NPV vs. IRR; the interpretation of NPV from the perspective of firm’s value and stock price; interpretation of IRR; assumption of IRR; NPV profile.
[February 9] Class 8
Room 603, from 10:00 to 11:00. Class started at 10:00 AM instead of 2:20 PM, due to the orientation program of new students.
MIRR; calculation of MIRR; interpretation of MIRR; profitability index; calculation and interpretation of profitability index.
[February 13] Class 9
Room: B-301, from 11:25 to 12:35 - EXTRA CLASS
Payback period in details.
[February 14] Class 10
Room 602, from 2:20
DPBP, review of MIRR. End of Chapter 2.
[February 16] Class 11
Room 602, from 2:20 to 3:35
Start of Chapter 3. Annual reports basics. How to create BS and IS from transaction and other data.
[February 16] Class 12
Room 602, from 3:45 to 5:00 - EXTRA CLASS
Introduction to ratio analysis. Liquidity ratios, leverage ratios, activity ratios, profitability ratios.
[February 28] Class 13
Room 602, from 3:00 to 4:30
Common size BS and IS. Off balance sheet loans. Window dressing. Cash flow statements. Statement of retained earnings.
[March 2] Class 14
Room 1002, from 2:00 to 3:15
Model Test 1. Click here to view results. [Details]
[March 2] Class 15, Class 16
Room 1002, from 6:00 to 7:00 PM (class 15: EXTRA CLASS), and 7:00 to 8:15 PM (class 16: EXTRA CLASS).
Solve class. Solving problems of the model test.
[March 4] Midterm Exam
Syllabus: Chapter 1, 2, 3. Click here to view results.
[March 14] Class 17
Room 602, from 2:20
Start of Chapter 4. Dividend basics. Important dates related to dividend. Price calculation after ex-dividend date. Calculation of market efficiency using information on price change after dividend.
[March 16] Class 18
Room 602, from 3:00 to 4:00
Share repurchase. Cash dividend vs. share repurchase.
[March 21] Class 19
Room 602, from 2:30 to 3:30
Stock dividend. Price adjustment after stock dividend. Profit from stock dividend when market is inefficient. Why do firms give stock dividend.
[March 23] Class 20
Room 602. from 2:30 to 3:30
Stylized facts of dividends. EPS. Mathematical problem on stock dividend. Impact of share repurchase on EPS and ROE. Cash dividend vs. stock repurchase. End of chapter 4.
[March 23] Class 21
Room 602, from 3:30 to 4:25 - EXTRA CLASS
Surprise test on share repurchase: Click here to view results.
[March 30] Class 22
Room 602, from 3:30 to 4:30
Start of chapter 5. Cost of capital basics. WACC defined and explained. Calculation of WACC.
[April 4] Class 23, Class 24
Room 602, from 2:20 to 3:35 (class 23), and 3:35 to 4:45 (class 24: EXTRA CLASS).
After tax cost of debt. Cost of preferred stock. Cost of retained earnings using DCF, CAPM, and BYRP approach. Cost of newly issued equity. Flotation costs. How to reduce WACC. End of chapter 5.
[April 6] Class 25
Room 602, from 2:35 to 3:40
Start of chapter 6. The basics of capital structure. Levered and unlevered firms. Leverage. Impact on leverage on EPS (Plan-A and Plan-B).
[April 6] Class 26
Room 602, from 3:40 to 5:00 - EXTRA CLASS
Break even EBIT. Advantage and disadvantage of leverage. How to find out break even EBIT using a short formula. Interpretation of break even EBIT.
[April 13] Class 27, Class 28
Room 1002, from 1:00 to 2:00 (class 27), and 2:00 to 3:00 (class 28: EXTRA CLASS).
DOL, DFL, and DTL. MM proposition 1 and 2 without tax. MM proposition 1 and 2 with tax. Assumptions of MM propositions. End of chapter 6.
Start of chapter 7. BV, NAV, MV, and MVA.
[April 13] Class 29, Class 30
Room 1002, from 3:30 to 4:30 PM (class 29: EXTRA CLASS), and 4:30 to 5:45 PM (class 30: EXTRA CLASS).
NOPAT; WACC at book value; EVA; DuPont analysis.
[April 18] Class 31
Room 602, from 3:30 to 4:30 PM.
Model Test 2. Click here to view results. [Details]
[April 18] Class 32, Class 33
Room 602, from 6:15 to 7:30 PM (class 32: EXTRA CLASS), and 7:30 to 8:30 PM (class 33: EXTRA CLASS).
Solving problems of Model Test 2. Review of the whole syllabus. Counseling class.
[April 22] Final Exam
Room 601, from 2:00 to 4:00
Syllabus: Chapter 4, 5, 6, 7. Click here to view results.
[May 3] Class 34, Class 35
Room: IT Lab, from 1:00 to 2:15 (class 34: EXTRA CLASS), and 2:15 to 3:30 PM (class 35: EXTRA CLASS).
Click here to view the announcement.
How to make the assignment –> practical demonstration.
These two classes, combinedly, was the last class of this course, and also the last class of the whole BBA program of some students.