SAIS 380.760
Corporate Finance

Outline

Course Announcements

 
Prof Gordon Bodnar
Fall 2009

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Course notes and materials are available by clicking on the lecture titles and problem set and case names or proceeding directly to the download page.  Access is restricted. Lecture notes and handouts are in Adobe *.PDF format and require an Acrobat reader to access. If you do not have an Acrobat reader, you may download one from Adobe's home page.

The readings can be found in the textbook by Berk and DeMarzo (BD) or on reserve (R) or on the web (W) using the links provided.

Date

Lect #

Title

Readings

Assignments

9/1

1

The Financial System and Financial Statement Basics

EXTRA: FINSIMS – Ratios

EXTRA: Article on proposed new financial statements - CFO.com

    Problem Set #1  - Due TUES 9/15 12:00pm (email to Corpfin@jhu.edu)

9/8

2

Time Value of Money - the mathematics of finance

BD: Chapters 3, 4 and 5
W: Understanding The Time Value Of Money – Investopedia 
W: Calculating The Present And Future Value Of Annuities – Investopedia

EXTRA: FINSIMS – TVM 

    Problem Set #2   - Due FRIDAY 9/18 12:00pm (email to Corpfin@jhu.edu)

9/9 - 9/19   Financial Calculator Sessions - T.A. Sessions during this period

W: TI BAII PLUS on-line Tutorial (at http://www.tvmcalcs.com/baiiplus.htm)
W: TI BA II PLUS PROFESSIONAL on-line Tutorial (at http://www.tvmcalcs.com/baiiplus_professional.htm)

If you decide to try to use an other calculator, i.e., HP10BII HP12C, tutorials can be found for these and other possible financial calculators at  http://www.tvmcalcs.com/

 9/15

 3

Valuing Bonds and Stocks and Using NPV to Make Investment Decisions

BD: Chapters 8, 9 and 6
W: Bond Basics - at investopedia.com
W: Stock Basics - at investopedia.com
W: Digging Into The Dividend Discount Model  – at Investopedia.com

EXTRA: FINSIMS – Bonds  FINSIMS – Stocks

   Problem Set #3  - Due FRIDAY 9/25 12:00pm (email to Corpfin@jhu.edu)

9/22

4

Risk and Return and Asset Pricing Models

BD: Chapters 10, 11 and 12
W: Statistics Review - classnote
Optional reading: BD Chapter 13

EXTRA: FINSIMS – Cost of Capital        FINSIMS – Portfolio Theory 

    Problem Set #4  -  Due FRIDAY 10/2 12:00pm (email to Corpfin@jhu.edu)

9/29

5

Capital Budgeting

BD: Chapter 7 
W: Discounted Cash Flow Analysis - Investopedia

EXTRA: FINSIMS – Cash Flows
    

 Homework Case #1: Toll House Cookie Case - Due FRIDAY 10/9 12:00pm (email to Corpfin@jhu.edu)

10/6

6

Corporate Financing 

BD: 23 and 24
DL: Roundtable on Market Efficiency (on download page) 
DL: Passive Investment Strategies and Efficient Markets (on download page)
W: IPO Basics - investopedia.com (on download page)      

TBD

REVIEW SESSIONS                                                       

 Sample Exams 

10/13

OCTOBER 13 Midterm Exam (lects 1 - 6) in class

10/20

7

Capital Structure

BD: Chapters 14, 15 and 16

 Problem Set #5 -  Due WED 10/28 12:00pm (email to Corpfin@jhu.edu)

10/27

8

Problem Set #6 -  Due WED 11/4 12:00pm (email to Corpfin@jhu.edu 
 

11/3

9

Advanced Valuation with Capital Structure

BD: Chapters 18 and 19
 

  Homework Case #2 - Target Valuation  - Due FRIDAY 11/13 12:00pm (email to Corpfin@jhu.edu)

11/10

10

Options and Option Pricing

BD: Chapters 20, 21 and 22
W: Options – Investopedia
W: Options and Option Pricing  - Investopedia

EXTRA: W: Options Basics - Interactive Web program from the Options Industry Council
EXTRA: FINSIMS – Options
EXTRA: Option Pricing Calculator - Option Industry Council

Extra Reading:   DL: The Real Power of Real Options – from Corporate Finance

  Problem Set #7 – Due FRI 11/20 12:00pm (email to Corpfin@jhu.edu)

11/17

11

Risk Management 

BD: Chapter 30
W: Insurance – Wikipedia
W: Beginner’s Guide to Hedging  - Investopedia 
W: Definition of a Futures Contract  - riskglossary.com
W: What is an Interest Rate Swap? - from  Earthlink site
DL: Examples of Interest Rate and Currency Swap Pricing - classnote

 Problem Set #8  - Due  WED 12/2 12:00pm (email to Corpfin@jhu.edu)

12/1

12

BD: Chapters 28 and 29
W: What is Corporate Governance – IFC
W: Corporate governance: A basic foundation for the global economy  (at http://www.oecdobserver.org/news/fullstory.php/aid/317)
W: The Sarbanes-Oxley Act of 2002: An overview, Analysis and Caveats 
W: Sarbanes Oxley after 5 years – Economist
W: The Follies of Regulation - H Manne (WSJ)

TBD

Review for Final Exam  TBD

Sample Exams

12/15

  DECEMBER 15 Final Exam  9:00am - 12:00pm

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