Class History: Corporate Finance (Summer 2019)

Course: Corporate Finance (Summer 2019)

- Regular classes: 13
- Extra classes: 3
- Total classes: 16
- Class time:
  - Monday 12:30 PM
  - Wednesday 12:30 PM

Class 1

June 17, Room: 601, Time: 12:45 - 14:00

What is corporate finance? Types of firms based on ownership structure. Types of firms based on performance. Corporate strategy. Cash flows of a firm. Goals of a corporation. Tasks of a CFO.

Class 2

June 19, Room: 602, Time: 12:55 - 13:55

Merger and acquisition. Synergy from a merger/consolidation.

Capital budgeting. Types of projects. Why is capital budgeting important? NPV.

Class 3

June 24, Room: 602, Time: 12:40 - 13:50

Profitability index, payback period, and discounted payback period.

Class 4

June 27, Room: 701, Time: 13:30 - 14:30

NPV profile, crossover rate, and IRR.

Class 5 (Extra)

June 27, Room: 601, Time: 14:50 - 16:15

Assumptions and drawbacks of IRR. The concept of MIRR. Comparison of various CID tools. What to do when conflicting results are found by multiple CID tools?

An overview of the midterm exam syllabus.

Midterm Exam

July 6 at 3:00 PM

Syllabus: Chapter 1, 2.

Class 6

July 22, Room: 702, Time: 12:50 - 14:10

Annual reports. Balance sheet and income statement. How to create an income statement and balance sheet from raw data.

Class 7

July 29, Room: 703

Dividend and distribution. Dividend policy. Types of dividend. Dates associated with dividends. Cash dividend: pros and cons. Impact of cash dividend on share price.

Class 8

July 31, Room: 702, Time 12:30 - 14:00

Stock dividend and reasons behind giving it to the shareholders. Impact of stock dividend on share price and balance sheet. Share repurchase: pros/cons. Impact of share repurchase on ROE and EPS.

Class 9

August 5, Time 13:15 - 14:40

Stylized facts and fashion about dividend. What is loan? Types of loan. Single installment loans. Amortization schedule.

Class 10

August 19, Time 13:15 - 14:45, Roon 703

Loan balance. Mathematical problems regarding loan balance. Loan balance vs. maturity of CP loans. Costs associated with the loans. Effective cost of borrowing.

Class 11, Class 12 (Extra)

August 21, Roon 702,

Time: 12:30 - 13:45 (Class 11); 13:45 - 14:45 (Class 12)

Cost of capital. Capital components. Kd, KdT, Ke, Kp, and Ks. Weighted average cost of capital.

Class 13

August 27, Roon 702, Time: 12:40 - 14:00

Common size balance sheet and income statement. Ratios: liquidity, leverage, and activity ratios.

Class 14

August 29, Roon 702, Time: 13:30 - 15:00

Model test.

Class 15 (Extra), Class 16 (Extra)

August 29, Roon 702,

Time: 16:00 - 17:15 (Class 15); 17:15 - 18:30 (Class 16)

Ratios: Profitability and market value ratios. BV, NAV, MVA, and EVA.

Assignment.

Final Exam

September 7

Syllabus: Chapter 3 - 7.