Learning Goals

  • How firms make investment, financing, capital structure, and dividend decisions
  • Valuation methodologies of fixed income securities, equities, and capital investments
  • Project choice, mergers and acquisitions, and security issuances
  • The capstone of the course is an equity research report and presentation on a publicly-traded firm

Pre-requisites

  • Accounting and Financial Analysis (FIN212a, may be taken concurrentlyby MSF)or
  • Instructor permission

Rules of the road

  • No open laptops/tablets or cell phones in class
  • Arrive on time and be prepared
  • Cases: you may work individually or in groups of two
  • Equity research report/presentation: you must work in groups of four

Course materials

  • Corporate Finance(CF) by Ivo Welch (3rdedition)Use as reference text
  • Free online at
  • All cases (shown in italics) may be purchased at:
  • All other non-case readings will be posted on Latte
Grading
  • In-class exams: Mid-term (25%) and Final (25%)
  • Case analyses (25%), equity research report/presentation (15%), participation (10%)
  • Low class/quality participation will result in a final grade of B
  • All work is submitted electronically and graded work is returned within 48 hours

Office Hours

  • Tuesdays/Wednesdays: 11 am – 2 pm
  • Thursdays: 9:20 pm
  • Fridays 12:30 – 2 pm
  • Walk-in and by appointment - email me at

Other

  • Take and display your name cards to class
  • Seats will be assigned, and you will use the same seat for the remainder of the class
  • If you have a documented disability, please see me
  • You are expected to follow Brandeis’s policies on academic integrity
  • Check


Mtg. / Topics / Read (before class) / Deliver (before class)
1 /
  • Introduction
  • Discounted cash flows
  • Bond valuation
/ CF 1, 2, 3; Latte readings: Time Value of Money – Derivation of Equations; Bond Duration
2 /
  • Equity valuation
/ Reports/presentations for: Athenahealth (ATHN), iRobot (IRBT) and Nuance (NUAN) /
  1. Walt Disney Company’s Sleeping Beauty Bonds
  2. Company for equity report (include team composition)

3 /
  • Capital budgeting
/ CF 4
S&P Industry Reports: Airlines, Oil & Gas /
  1. Mercury Athletic Footwear
  2. Business description of equity report

4 /
  • Returns/Yields
  • Uncertainty
/ CF 5, 6 /
  1. Investment Analysis and Lockheed Tri-Star
  2. Industry analysis of equity report

5 /
  • CAPM
  • Industry Analysis
/ CF 9 / Pacific Grove Spice Co.
6 / In-class mid-term exam
7 /
  • Market imperfections
  • Behavioral finance
/ CF 10, 11 / Strategy/Management sections of equity report
8 /
  • Capital Budgeting
  • Cash Flow Statements
/ CF 12, 13 /
  1. MW Petroleum (A) & (B)
  2. Investment summary of equity report

9 /
  • Comparables
  • Financial ratios
  • Pro formas
/ CF 14, 20 /
  1. The Acquisition of Consolidated Rail Corporation (A) & (B
  2. Final equity reports

10 /
  • Corporate claims
  • Capital structure
/ CF 15, 16 / Dividend Policy at FPL Group (A) & (B)
11 /
  • Taxation
/ CF 17, 18 / Presentation of equity reports
12/13 /
  • Comprehensive material review
  • Wrap-up and conclusions
  • Final exam review