BEM 107: Applied Corporate Finance and Investment Banking

Professor: Bradford Cornell
Prerequisites: BEM 103
Time: Wed 7-10pm in Baxter 125
Office Hours: Wed 6-7 pm and by appointment in Baxter 325

Course Description:

This course builds off the concepts studied in the introductory corporate finance course and applies them to the primary investment banking issues of financing and valuing and companies and analyzing corporate transactions. Stress is on bridging the gap between theory and practice, a gap which can be alarmingly high.

• Syllabus

Readings

• Analysts reports - Asquith
• Damodaran on Real Options
• Damodaran on the Value of Liquidity
• Event Study Example (Excel)
• GOOGLE Valuation (Excel)
• Iridium Case
• Kothari on Event Studies
• Lazard and Time-Warner
• Merrill Lynch Comparable Analytics
• Milgrom and Roberts
• Paramount case
• Ruback Capital Cash Flows
• Shleifer and LaPorta on Investor Protection and Valuation
• Weston Chapt 1
• Weston Chapt 6
• Weston Chapt 8
• Weston Chapt 11
• Weston Chapt 13

Damodaran Book

• Preface
• Chapter 1
• Chapter 2
• Chapter 3
• Chapter 4
• Chapter 5
• Chapter 6
• Chapter 7
• Chapter 8
• Chapter 9
• Chapter 10
• Chapter 11
• Chapter 12
• Appendix 1
• Appendix 2
• Appendix 3
• Appendix 4

Cornell Corp Val

• Chapter 4: The Direct Comparison Approach
• C4F1 Chart for Stata Corp (Excel)
• C4T1 Price Earnings Analysis for Spinoff (Excel)
• C4T2 Appraisal of Bank Zero
• C4T3 Earnings for Stata Corp (Excel)
• C4T4 Comp of FEC using earnings (Excel)
• C4T5 Comp of FEC using debt free cf (Excel)
• C4T6 Comp of FEC using sales (Excel)
• Chapter 7: The Cost of Capital
• C7F2 Yields on one month treas bills 80-89 (Excel)
• C7F3 Altman data (Excel)
• C7T2 Illus of the Default Prem v Risk Prem (Excel)
• C7T4 Betas for Selec Com Stock 84-89 (Excel)
• C7T5 Risk Prem on the Mkt (Excel)
• C7T5 Risk Prem on the Mkt (2) (Excel).xls)
• C7T6 Arith Avg of Annual Rtrns (Excel)
• C7T7 Calc Beta for FEC (Excel)
• C7T8 FEC WACC Calc Using Bk Wghts (Excel)
• C7T8 WACC for FEC 7-1-89 (Excel)
• C7T9 DCF of FEC (2) (Excel).xls)

Lecture Exhibits

• PP for Definition of the Firm.ppt