Corporate Finance (NYU MBA Course WEBCAST) by Aswath Damodaran
Description
What is corporate finance?
Every decision a business makes has financial implications,and the decisions that affect the finances of the business are corporate financial decisions.
A business that is broadly defined, but is all fit under the rules of corporate finance.
Purpose of the course
To give you the ability to understand and apply the theory,in real world situations,the technology that is developed in corporate finance.
Class motto:If it is not applicable, Who cares?.
To give the overall picture of corporate finance, so that you can understand how things fit together.
Class motto:you can forget the details, but doní ‘ miss the story.
To show that corporate finance is fun.
Class motto:Do we still enjoy?
Lecture 1:
This is corporate finance!
Class overview
Lecture 2:
Purpose of corporate finance
Maximize value, shareholder wealth and share price
Making the world safer for maximizing stock prices
What goes wrong?
Acquisitions and corporate governance
Bondholders and shareholders dispute
Market and information
Social cost
Lecture 3:
Acquisitions and corporate governance
Bondholders and shareholders dispute
Market and information
Social cost
Lecture 4:
Market prices fail:what’s next?
The utility’s corporate governance structure is an opt-in company.
– Another purpose.
– Limited stock price maximization
Right purpose
Definition of risk
Lecture 5:
Company-specific and market risk
“Limit investors””
To CAPM and beyond..
Input to CAPM:risk-free rate
Lecture 6:
What is the government’s default spread and why?
Stock risk premium
– Queuing
– Estimation approach
Lecture 7:
Selection of stock risk premium
Beta version
– Standard regression
– Jensen Alpha.
– R squared.
Lecture 8:
More thoughts on the regression beta
Beta determinant
–Any products and services
– Fixed cost structure
– Financial leverage
Lecture 9:
Bottom-up beta
– Rationale
– The process of estimating the bottom-up beta
Lecture 10:
The cost of capital for beta and private companies
Lecture 11:
Definition of debt
Cost of debt
Lease as debt
Capital cost weight
Lecture 12:
Investment principle
– Time weighted, incremental cash flow return
-What is a project?
– Axccounting return
Lecture 13:
From revenue to cash flow
– Impact of depreciation
– Maintenance cap ex
– Working capital
From cash flow
– Sinking costs
– Assigned expemses
From incremental to time-weighted cash flow
– NPV vs IRR
Lecture 14:
Monte Carlo
Stock analysis
-ROE
– Cash flow to capital and NPV
Get Target rating
NPV vs IRR
Lecture 15:
NPV vs IRR:reinvestment assumptions
Side costs and benefits
– Opportunitiy cost
– The cost of excess capacity
Lecture 16:
Apple ITV case discussed
Project Synergy
Project options
Analysis of existing projects
Lecture 17:
Funding decisions
– What is debt?
– Life cycle view of funding
– Debt tradeoffs:Plus and minus
– Miller-Modigliani’s theorem
Lecture 18:
Funding patriarchy
Cost of capital approach to optimize the debt ratio
Lecture 19:
Learn more about the cost of capital approach
Follow-up to optimal
– Why?
– What if something goes wrong?
-If you invest, repurchase shares instead
Enhanced cost of Captial approach
Lecture 20:
Determining factors for an optimal debt ratio:capital cost approach
APV approach
Relative analysis
Actual and optimal:follow-up procedures
Lecture 21:
The right debt for your company
How to review debt
– Intuitive analysis
– Project financing
– Macroeconomic regression
Lecture 22:
Dividend principle
– Explanatory facts
– Three schools in spite of dividends
Lecture 23:
Three good reasons to pay dividends
Framework for evaluating dividend policy
Lecture 24:
Dividends and FCFE
How much cash is too much cash?
Framework for evaluating dividend policy
The first step of evaluation
Lecture 25:
Input to DCF evaluation
– Cash flow
– Discount rate
– Growth rate
– Terminal value
Lecture 26:
Grand finale
– Final review
– Wrap it all up (to go)
Financial development course
Financial development is the provision of information on investment potential, capital allocation, corporate monitoring, corporate governance, transactions, diversification, risk management, savings mobilization, pooling, and easing of the exchange of goods and services.
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Course Features
- Lectures 0
- Quizzes 0
- Duration Lifetime access
- Skill level All levels
- Language English
- Students 163
- Assessments Yes
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