Advanced Corporate Finance 2015

(ESC 2 Transcontinental Track)

Finance theory from Yale

http://www.youtube.com/course?list=ECEDC55106E0BA18FC

Corporate Finance by David Thesmar from HEC Paris

https://itunes.apple.com/fr/itunes-u/corporate-finance-david-thesmar/id489799136

**650 open courses

http://www.openculture.com/freeonlinecourses

Free Courses

http://www.openculture.com/freeonlinecourses

Financial Markets (2011) with Robert Shiller

http://www.youtube.com/course?list=EC8FB14A2200B87185

** Finance Theory I, Fall 2008, by Andrew Lo from MIT

http://ocw.mit.edu/15-401F08

Course page at Moodle

http://v2.grenoble-em.com/course/view.php?id=566

Syllabus

https://sites.google.com/site/zhaoshan75/courses/acf/Acf_syllabus.pdf

Outline

https://sites.google.com/site/zhaoshan75/courses/acf/outline.pdf

Slides

https://sites.google.com/site/zhaoshan75/courses/acf/all_crop.pdf

A summary of basic Corporate Finance knowledge below (largely based onChapter 3-7 of Berk-DeMarzo book)

https://sites.google.com/site/zhaoshan75/courses/acf/Course_Summary_CF.pdf

You can also find the solution of the Berk DeMarzo 2011 Corporate Finance book （2nd edition） here. (new!)

http://v2.grenoble-em.com/mod/resource/view.php?id=31843

Course Summary (largley based on Chapter 8, 9, 10, 12, 14-16 of Berk-DeMarzo book) (new!)

https://sites.google.com/site/zhaoshan75/courses/acf/Summary_ACF.pdf

Key concepts of the textbook

http://wps.pearsoned.co.uk/ema_ge_berk_cf_2/148/37902/9703132.cw/index.html

Useful files for finance

https://sites.google.com/site/zhaoshan75/corpfinance/Timeline.pdf

https://sites.google.com/site/zhaoshan75/corpfinance/review_expon.pdf

https://sites.google.com/site/zhaoshan75/corpfinance/summation_symbol.pdf

Financial Glossary

https://sites.google.com/site/zhaoshan75/corpfinance/Glossary.pdf

You can find the textbook below. In general, you do not need to read the book because the slides and exercises

are the most important. But, you can read it if you need more explanation.

http://www.itu.dk/~mounma/bouba/CorporateFinance/

Session 1

Preclass assingment

Watch the video (first 26 minutes only) below to understand what is finance and why finance is fascinating.

http://ocw.mit.edu/courses/sloan-school-of-management/15-401-finance-theory-i-fall-2008/video-lectures-and-slides/introduction-and-course-overview/

A summary of basic Corporate Finance knowledge below (largely based onChapter 3-7 of Berk-DeMarzo book)

https://sites.google.com/site/zhaoshan75/courses/acf/Course_Summary_CF.pdf

Have a quick look at the WSJ article below to see an example of arbitrage.

https://sites.google.com/site/zhaoshan75/courses/acf/Example_BMW_WSJ.pdf

Slides

https://sites.google.com/site/zhaoshan75/courses/acf/part_0.pdf

Problem set

https://sites.google.com/site/zhaoshan75/courses/acf/ps1.pdf

the proof of perpetuity shortcut formular

https://sites.google.com/site/zhaoshan75/courses/acf/Perpetuity_Formula.pdf

Links

http://www.investopedia.com/terms/h/hedgefund.asp

http://en.wikipedia.org/wiki/Hedge_fund

http://en.wikipedia.org/wiki/James_Harris_Simons

http://en.wikipedia.org/wiki/Warren_buffet

The second use of the term "arbitrage"

http://riskencyclopedia.com/articles/arbitrage/

Session 2

Slides

https://sites.google.com/site/zhaoshan75/courses/acf/part_1.pdf

Problem set

https://sites.google.com/site/zhaoshan75/courses/acf/ps2.pdf

The Excel file to calculate IRR and NPV can be downloaded here https://sites.google.com/site/zhaoshan75/corpfinance/IRR2.xlsx

Steps to solve a NPV question https://sites.google.com/site/zhaoshan75/corpfinance/Steps.pdf

Additional examples on capital budegting

https://sites.google.com/site/zhaoshan75/courses/corpfinance_hr13/Exercise_2.docx

https://sites.google.com/site/zhaoshan75/courses/corpfinance_hr13/Exercise_2.xlsx

Session 3

Slides

https://sites.google.com/site/zhaoshan75/courses/acf/08berk.pdf

Problem sets

Exercise 8.1, 8.2 8.3 from the exercise book.

https://sites.google.com/site/zhaoshan75/courses/acf/BD_SM_2015.pdf

what is a share repurchase?

https://sites.google.com/site/zhaoshan75/courses/acf/ses4.docx

Example: The iBond by Apple

http://www.fool.com/investing/general/2013/05/06/apples-record-bond-issue.aspx

Solution

https://sites.google.com/site/zhaoshan75/courses/acf/BD_SM08_final_sn_ge.pdf

Session 4

Slides

https://sites.google.com/site/zhaoshan75/courses/acf/all_crop.pdf

Exercise book: 9.2 9.8 9.15 9.18 9.22 9.25

Solution

https://sites.google.com/site/zhaoshan75/courses/acf/BD_SM09_final_sn_ge.pdf

Table 9.1 (it is needed for some questions in the exercise book)

https://sites.google.com/site/zhaoshan75/courses/acf/table91.pdf

Example: Repurchases and dividends by Apple since 2012

http://appleinsider.com/articles/14/10/21/apple-inc-surprises-with-massive-17-billion-q4-stock-buyback

Additional explanation

https://sites.google.com/site/zhaoshan75/courses/acf/ses4.docx

Session 5

Problem sets

Exercise book: 14.1

Solution

https://sites.google.com/site/zhaoshan75/courses/acf/BD_SM14_final_sn_ge.pdf

Continuous Assessment

Continuous assessment will be a one-hour test. It will be based on the lectures, in class exercises, and homework.

Sample Continuous assessment:

https://sites.google.com/site/zhaoshan75/courses/acf2015/sample_cont.docx

https://sites.google.com/site/zhaoshan75/courses/acf2015/sample_cont_solution.docx

Session 6

Problem sets

Exercise book: 15.1 15.2 15.6 16.1 16.2.

Final Exam

The exam will last 2 hours. It will be based on our lecture notes and exercise book. As the teaching, it will be divided into two parts (The first part is for Prof. Shan Zhao and the second part is for Prof. Anton Lominadze). It is a close book exam. A calculator with exponential function can be used. But please write down the necessary steps clearly. Here is a sample final exam

https://sites.google.com/site/zhaoshan75/courses/acf/Sample_exam.docx

Solution

https://sites.google.com/site/zhaoshan75/courses/acf/Sample_exam_solution.docx

Useful Links

** Highly Recommended

* Recommended

1) Major Links

** http://www.ft.com (free registration using GEM email box)

*http://finance.yahoo.com

MarketWatch, a subsidiary of Dow Jones

http://www.marketwatch.com

http://www.reuters.com/finance/stocks