• The lecture notes files are provided in Adobe Acrobat Reader's PDF format.
  - if you don't have the Reader, you may download it free via this PDF Reader link
• Most of the lecture notes are posted here, and may be updated when/if necessary during the semester! You may/should print them and bring to class for your convenience! If you use laptop for notes taking - you may save these slides as a text - e.g. word document. Disclaimer: The only purpose of these e-notes is to alleviate the burden of your note-taking during my lectures. These notes are not a substitute for your regular class attendance. There's more to lectures than these notes.

• posted: Aug 2012
  Introduction to Corporate Finance : Lecture Notes L01
  - finance defined, basic economic and finance concepts, firm defined, firm vs. markets, separation theorem of investment and consumption choices, agency problems.
• posted: Aug 2012
  extra readings
  - a paper on 'Value Maximization and Corporate Objective Function. We'll briefly talk about corporate goals.
  - a brief note : R. Coase theorems - on firms v. markets, transaction costs, property rights and economic outcomes.
• posted: Aug 2012
  Evidence from the field : practice of corporate finance paper.
  - special topic paper, for class discussion. What are the best practices in the field of corporate finance.
• posted: Aug 2012
  Financial Modeling in Excel ...
  - Basic Finance functions in Excel, Sensitivity Analysis - Data Tables, Random Number generators and Monte-carlo scenario analysis - modeling future scenarios based on random outcomes; creating histograms.
  - Fina Functions, Sensitivity Analysis in Excel, and the same as Excel2003 file.
  - random number generators, and Monte carlo scenario analysis; and hybrid-car evaluation project - Monte Carlo app.
  
• posted: Aug 2012
  Valuation Review : Lecture Notes L02
  - review of basic valuation concepts, discounted cash flow analysis, bonds and bond pricing, structure of interest rates, cost of debt Rd; stock prices, cost of equity Rs; debt V. equity comparison.
• posted: Aug 2012
  Note on annuities
  - PV (or FV) of annuities starting one period from now ('regular annuities') V. annuities starting immediately ('annuities due')
• posted: Aug 2012
  Accounting statements, Financial Cash-Flow : Lecture Notes L03
  - review notes, intro to project evaluation, NPV; basic financial accounting statements, financial cash flow.
• posted: Aug 2012
  Capital Budgeting : Lecture Notes L04
  - review notes, corporate financial policies; capital budgeting, tools: Net Present Value (NPV) and IRR, sensitivity and scenario analysis, sources of value creation...
• posted: Aug 2012
  Capital Structure : Lecture NOTES L05
  - corporate financing policy, determinants of optimal capital structure, theory and empirics; why firms use debt
• posted: Aug 2012
  capital structure readings :
  - (a) Merton Miller's explanation of firm capital structure MM's pizza story;
  - (b) Barclay/Smith : Capital Structure puzzle - evidence revisited.
• posted: Aug 2012
  Risk and Cost of Capital (WACC) estimation : Lecture NOTES L05-b
  - estimatng cost of capital (Re and WACC) for levered firms; equity risk and leverage; firm risk V. project-specific risk and discount rates; multidivisional firms; steps for WACC case study.
• posted: Aug 2012
  Corporate Financial Distress and Bankruptcy : Lecture NOTES L06
  - financial distress and bankruptcy, direct and indirect costs, Ch. 7 and ch. 11 of bankruptcy code; agency costs of debt, the corporate under-investment and over-investment problems, asset switching
• posted: Aug 2012
  Long-term Financing and Securities Innovation : Lecture NOTES L07
  - debt, equity, hybrid securities and their features, securities innovation, security design value drivers
• posted: Aug 2012
  Extra materials and readings :
  - Basic capital securities features overview.
  - Security design and Innovations, by Emmery/Finnerty, Journal of Applied Corporate Finance.
  - Here's a recent Economist' Survey of Financial Innovation - (it's a large file, so it may download slowly). All files are password protected (you need the usual id/pass); or you may find these in the UGA's Main Library or thru Library's website.
• posted: Aug 2012
  Investment banking and securities issuance : Lecture NOTES L08
  - the role of investment bankers in the issuance process, sec. issue procedures, IB syndicates, sec. issuance & transaction costs; announcement effects; IPOs and reasons to go public - costs and benefits
• updated: 2 NOV 2012
  Firm Valuation - Capital budgeting and Valuation of levered firms : Lecture Notes L10
  - how to value levered firms/projects, various approaches : FCF(a)/WACC, FTE, APV; multiples-ratio valuation
  - based on Berk/DeMarzo ch.18;
• posted: JAN 2012
  Corporate Governance, Control - Mergers : Lecture Notes Lx1
  - M&As, terminology, valuation issues; DaimlerChrysler merger
• posted: Aug 2012
  Extra notes - Fairness Opinion in Valuation :
  - here's an example : fairness opinion filed with the SEC for DaimlerChrysler merger.
• posted: Aug 2012
  International Finance : Lecture Notes Lx2
  - exchange rates, PPP, IRP, expected and hedged cost of foreign borrowed funds
• posted: Aug 2012
  Efficient Markets, Anomalies, and Behavioral Biases : Lecture NOTES Lx3
  - market efficiency and corporate value creation
  - behavioral biases and their impact on financial markets, corporate and personal decision making
• posted: Aug 2012
  Options in Corporate Finance and REAL OPTIONS : Lecture NOTES Lx4
  - firm valuation and capital budgeting when substantial project flexibility exists - real options;
  - corporate strategy and decision trees; executive compensation; Arundel case app.
  - review the financial options part of L05 (see the next set) if you are not familiar with the financial options and terminology
• posted: Aug 2012
  Risk Management and Derivatives : Lecture NOTES Lx5
  - corporate finance version on Derivatives - terminology;
  - operational and financial hedges; good and poor reasons for hedging; Lufthansa minicase.

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