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Corporate Finance: The Compressed, Speeded up but not Compromised Version

This is a compressed corporate finance class, but I will try to cover the entire subject matter in 3 days. I know that this sounds intimidating, especially if you have never taken a corporate finance class before. However, trust me, it is doable. In fact, read this before you go on.

Before you begin

In Class

Readings & Problem Sets
Project Update Practice Quizzes
1,2,3 (Management Objectives & Hurdle Rates) Readings: Chapters 1,2,3,4

Problem Sets:
Management Objectives
(Download solutions in pdf file)
Risk, Return and Hurdle Rates (Download solutions in pdf file)

Parts I-II
Review Regression

Practice Quiz 1a (covers sessions 1 & 2)
Download solution

Watch review webcast
Practice Quiz 1b (covers session 3)
Download solution
Watch review webcast
4 (Measuring Investment Returns) Readings: Chapters 5,6

Problem Sets:
Measuring Investment Returns (Download solutions in pdf file)

Parts III
Estimate your cost of capital and return spread
Practice Quiz 2 (covers session 4)
Download solution
Watch review webcast
4,5 (Capital Structure) Readings: Chapters 7,8,9

Problem Sets:
Capital Structure: The Choices (Download solutions in pdf file)
Capital Structure: The Optimal Mix (Download solutions in pdf file)

Parts IV-VI

Compute your optimal capital structure and constrained optimal capital structure

Practice Quiz 3 (covers session 4)
Download solution

6 (Dividend Policy and Valuation) Readings: Chapters 10,11,12

Problem Sets:
Dividend Policy: Framework for Analysis (Download solutions in pdf file)

Parts VII-IX

Review your company's dividend policy

Practice Quiz (covers sessions 4 & 5)
Download solution (pdf)


Bonus round

Value your company

Practice Final Exam (You don't have one but take this if you want to check whether you get the big picture)

Side Readings

  1. Into the Abyss: What if nothing is risk free?
  2. Equity Risk Premium: The 2012 Edition
  3. Innovative Financing and Capital Structure
  4. Beyond Dividends: Alternative Ways of returning "value" to stockholders
  5. To Hedge or not to Hedge: A Big Picture View of Risks
  6. Valuing Acquisitions
  7. Valuing young and start-up businesses
  8. Valuing distressed businesses

The Project

For examples from the applied corporate finance book as well as solutions, try the supporting sites. The latest edition of the book, which ties in most closely with the notes is the fourth edition:


However, if you have the third editiion, it should be close:

And if you don't have the book, the lecture notes will do.