Econ 135: Corporate
Finance
Fall Quarter 2009
Last updated: 11/16/09
Instructor: Kai Pommerenke,
Ph.D.
Contact: kpommere@ucsc.edu
and (831) 459-3916
Office hours: MW 10:45-11:45AM
and by appointment, 429 E2
Class meets: MWF 9:30-10:40AM, Thim Lecture 001
Website: http://people.ucsc.edu/~kpommere/econ135
Current
· Problem set 3 due on Monday, Nov. 23
· UST case due on Friday, Nov. 20.
· Project and Excel template
· Midterm exam on Wednesday at 9:30AM
o Scope: what we covered in class from chapters 1-9 and the two case studies
o Be on time and bring a calculator
o Please hand in only one write-up per group
o PS1: answer key and spreadsheet answer for 2-22
o PS2: answer key
· Ocean Carriers case now due this Friday, Oct. 30
o You must use a spreadsheet to calculate the NPV (Excel tips)
o Please hand in your group answers at the beginning of class
· Capital budgeting example, Pro forma statement example
· The economist article on the nature of wealth
· New York Times article and video series about private equity
· Please purchase 3 cases available from HBS course website ($11.85 total)
· Syllabus (updated 9/30)
Schedule
|
Week |
Topic |
|
Case
(Friday) |
|
|
1 |
9-28 |
Introduction,
corp. governance |
RWJ 1; JT 1
|
Enron |
|
2 |
10-5 |
Fin. statements,
time value of money |
RWJ 2-5 |
|
|
3* |
10-12 |
Bond and stock
valuation |
RWJ 6-7, 10 |
|
|
4 |
10-19 |
NPV and capital
budgeting |
RWJ 8-9 |
|
|
5* |
10-26 |
Cost of capital
and WACC |
RWJ 11, 12 |
Ocean Carriers |
|
6 |
11-2 |
Review, midterm,
project outline |
RWJ 1-9, PF
lessons 1-5 |
|
|
7 |
11-9 |
Capital structure (W
is holiday) |
RWJ 13 |
UST |
|
8* |
11-16 |
Raising capital, dividend policy |
RWJ 15, 14 |
|
|
9 |
11-23 |
Short term financing (F
is holiday) |
RWJ 16 |
|
|
10* |
11-30 |
M&A, review |
CF 29 |
|
* Problem set
due in class on Friday