Corporate Finance (FNCE 3010)

Corporate Finance (FNCE 3010)
Fall 2009

Nov 19, 2009

Minicase 2, solution

Nov 18, 2009

I have uploaded to CULearn all of the grades I have for all assignments this semester. A score of "-1" inicates an excused absence (this will not count against you when final grades are computed). Please check that I have everything recorded correctly.

Nov 17, 2009

Here is a histogram of the exam 2 scores. The average was 80. Although this is slightly lower than I expect will be required to meet the college mandated GPA of 2.8 for this course, I did not curve these. As a result, I expect to be able to curve the scores on the final exam to have an average of about 83. Whatever happens, I expect the final GPA for this class to be very close to 2.8 (the maximum allowed by the college).

Here are the solutions:

Nov 16, 2009

Some of you may be interested in this:

The undergraduate International Business Club is organizing a Global Business Communication Panel with 4 speakers from Iceland, Japan, Korea, and Libya to speak about business and etiquette from their respective countries.

Date: Tuesday, November 17
Time: 6:15-7:15 pm
Place: Koelbel 330

Nov 14, 2009

Please read RWJ chapters 12.3-12.6 and 18.

HW 18 (due Thursday, Dec 3)
Cost of capital: Slides 19; HW 19 (due Thursday, Dec 3)
Dividend policy: Slides 20; HW 20 (due Thursday, Dec 3)

Study Finance in London in the Summer of 2010: Information Meeting

Professor Palmer would like to announce that a few spots remain for the 2010 Leeds School of Business Summer London Finance Seminar. This course offers a unique opportunity for business students with broad financial, economic, political, and international business interests to study in London and Paris. The five week summer program is structured around prominent lecturers and site visits. To learn more, please join Professor Palmer at one of two meetings on Wednesday, November 18th: 12 pm in KOBL 235 or 6 pm in KOBL 302.

Nov 7, 2009

Please read RWJ chapters 15 and 16.

Statistics slides (with notes)
Statistics minicase (due Thursday, Nov 19)
Modigliani-Miller: Slides 17, updated
Capital structure: Slides 18

Nov 5, 2009

Statistic slides
Modigliani-Miller: Slides 17

Oct 30, 2009

Midterm will be Tuesday Nov 3

This is to confirm that the midterm will be on Tuesday, Nov 3.

Thanks to everyone that provided feedback on this issue.

I will be in my office today from 2 to 4 if anyone wants to stop by. Also, I will be holding regular office hours Monday from 4 to 5.

Oct 29, 2009

Office hours Friday 2:00-4:00

I won't be in my office today, but will hold office hours tomorrow (Friday) from 2-4.

Hope everyone is staying safe and having fun.

Oct 28, 2009

The midterm will be postponed until next week.

Thanks for everyone who provided feedback about this. The overwhelming majority of people that I heard from were in favor of postponing.

I think it will need to be on Tuesday, but will make the final decision later this week.

Update: We will not have class tomorrow, but I will try to be around for a couple of hours in the afternoon to answer questions in case anyone has some. I will let you know more details tomorrow when we see what the weather is like.

(Hope you all at least had the chance to get out and have some fun playing in the snow!)

Oct 27, 2009

Oct 26, 2009

NEITHER HW 13 NOR HW 14 will be collected.

The reading assignment for Slides 14 should be 12.1-12.3 (it was originally posted incorrectly as chapters 12 and 15).

Also, be sure to read especially chapters 14 and 20 which include a lot of (mostly) review information on long-term financing that we may not have talked about in class but that you should know.

Oct 24, 2009

Remember: the second midterm is on Thursday. It will cover everything we have done since the first midterm.

The solution for HW 14 is posted below. You do not need to turn this in on Tuesday. Please use it to study for the midterm.

Quiz 5, posted below, is for practice only. You do not need to turn it in. (In case you are wondering, there is no Quiz 4).

Oct 21, 2009

Oct 17, 2009

Please read RWJ chapters 12.1-12.3.

Remember that the second midterm will be on Thursday, Oct 29.

Slides:

CAPM, part I: Slides 14; HW 14 (due Tues, Oct 27).

Oct 14, 2009

Oct 10, 2009

Please read RWJ chapters 9.1-9.5 and 10.

Here is the quiz from Thursday. Please turn this on Tuesday (Oct 13).

Slides and HW:

Risk and return: Slides 13; HW 13 (due Tues, Oct 27).

Oct 6, 2009

Exam 1 results:

The curve was computed using Y = .83*X + 24, where X is the raw score and Y is the curved score. The average score for the exam (after curving) was 84.

Solution: Form A, Form B, Form C, Form D, Form E, Form F
Histogram of scores

Oct 3, 2009

Please read RWJ chapters 5, 14, and 20.

Also, I forgot to post the previous reading assignment, which should have been chapter 8.

Be prepared for a quiz on capital budgeting this week (time permitting). A problem based on real options is likely.

Minicase:

Minicase 1 (due Tues Oct 20).
You should work in groups on the minicase. Suggested group size is 3 people (2-4 people is OK). Please turn in one paper per group. These should be typed. Do not turn in a spreadsheet. You should copy your calculations to a text document and provide some explanation and analysis.

Slides and HW:

Bonds: Slides 10; HW 10 (due Tues, Oct 13).
Common stock: Slides 11; HW 11 (due Tues, Oct 20).
Preferred stock: Slides 12

Additional resources:

Sept 27, 2009

Announcements:

Finance Job Fair, Thursday, October 1 from 6:30 - 8pm in the Stadium Club at Folsom Field
Leeds London Seminar in International Finance: Interest meeting on Thursday October 15th at 5:00 in KOBL 210.

Sept 27, 2009

Slides and HW:

Capital budgeting 3: Slides 08; HW 08 (due Tues, Oct 13).
Real options: Slides 09; HW 09 (due Tues, Oct 13).

Sept 21, 2009

Sept 19, 2009

Announcements:

The first midterm is on Thursday Sept 24 during the regular class time.
- Remember to bring your financial calculator!
- Please attend the section for which you are signed up unless you make prior arrangements with me (due to seating constraints).
- Also, please be sure to make prior arrangements with me in case of any special needs.
Remember, office hours are now Mon 4-5 and Wed 3-4. I may be a few minutes late this Wednesday, since I have to get a flu shot at 2:15. But, I should be in my office within a few minutes of 3 (I hope) and can stay late if need be.
Leeds London Seminar in International Finance: Interest meeting on Thursday September 24th at 5:00 in KOBL 210.

Resources:

Quiz 2 (Due Tues Sept 22)
You may work together on this, but each person should hand in their own paper. You may also use the book, your notes, and the slides (and any other resources).
2008 Exam 1
The material covered in 2008 may have been different that what we have covered this year. The format of the exam may also be different. This is intended for reference only.
Review slides

Sept 15, 2009

I will not be able to have office hours this Friday because of a Finance division seminar.

In the future, office hours will be Mon 4-5 and Wed 3-4.

Remember that the first midterm will be next Thursday (Sept 24). The midterm will be in class (usual time and place). It will cover everything up to Slides 1-7 as well chapters 2-4 and 6-7 of the book.

Sept 11, 2009

Please read RWJ chapters 6 and 7 (we will skip chapter 5 for now and return to it in a couple of weeks).

Also, be ready for a quiz (if time permits). The quiz could be on anything we have covered up to that time (but be especially ready for a long-term planning problem).

Slides and HW:

Capital budgeting 1: Slides 06; HW 06 (due Tues, Sept 22).
Capital budgeting 2: Slides 07; HW 07 (due Tues, Sept 22).

Sept 9, 2009

Sept. 5, 2009

Continue studying RWJ chapter 3 and review Chapter 4.

Slides and HW:

Cash flow discounting: Slides 05; HW 05 (due Tues, Sept 15).

Additional materials:

Aug. 29, 2009

Be ready for a quiz sometime during the week. The quiz could cover anything covered up to that point. Especially, be prepared to compute cash flows and financial ratios.

Slides and HW:

Long-term planning: Slides 03; HW 03 (due Tues, Sept 15).
Long-term planning (continued): Slides 04

Additional resources:

Guidelines for turning in homework:

Each assignment should start on a fresh sheet of paper.
Put your name and the assignment number at the upper right hand corner of the first page of each assignment.
Staple all assignments due into a single bundle (staple in the upper left-hand corner of the page).
Fold the bundle lengthwise such that the back of the last page is facing outward.
Write your name, section, and the assignment(s) being handed in on the outside of the bundle (this page should be otherwise blank).

Aug 24, 2009

Welcome to FNCE 3010, Corporate Finance

Slides, assignments, and announcements will be posted to this site.

Here are the slides and HW for the first week: Please read Chapters 2-3 of Ross, Westerfield and Jaffe "Corporate Finance" (RWJ hereafter).

Slides and HW:

Financial statements: Slides 01; HW 01 (due Tues, Sept 8).
Financial ratios: Slides 02; HW 02 (due Tues, Sept 8).