Grading The grade of A is reserved for those who demonstrate extraordinarily excellent performance. The grade of A- is awarded only for excellent performance. The grade for good performance in this course is a The grades of D+, D, and D- are not awarded at the graduate level. B+/B. Please refer to the for grade appeal information. Tentative Course Calendar *The instructor reserves the right to alter course content and/or adjust the pace to accommodate class progress. Pre-course readings: Chapters 1 and 2 of Berk and DeMarzo. If you cannot read these chapters for the first class, it is important that you do so for the second class. Week Content Reading 1 Valuing cash flows Chapters 3, 4, and 5 Net present values 2 Chapter 7 Fundamentals of capital budgeting 3 Debt and equity financing Chapter 14 Modigliani-Miller Quiz 4 Debt and taxes Chapters 15 and 16 The cost of bankruptcy Optimal capital structure: the trade-off theory Agency costs: time-permitting 5 Chapter 17 Information and pay-out policy Quiz 6 Chapter 18 More on capital budgeting (with leverage and market imperfections) 7 Risk and return Chapter 10 and Chapter 12 Systematic versus idiosyncratic risk Evaluating the cost of capital Quiz 8 Final
Grading The grade of A is reserved for those who demonstrate extraordinarily excellent performance. The grade of A- is awarded only for excellent performance. The grade for good performance in this course is a B+/B. The grades of D+, D, and D- are not awarded at the graduate level. Please refer to the for grade appeal information. Tentative Course Calendar *The instructor reserves the right to alter course content and/or adjust the pace to accommodate class progress. Pre-course readings: Chapters 1 and 2 of Berk and DeMarzo. If you cannot read these chapters for the first class, it is important that you do so for the second class. Week Content Reading 1 Valuing cash flows Net present values Chapters 3, 4, and 5 2 Fundamentals of capital budgeting Chapter 7 3 Debt and equity financing Modigliani-Miller Quiz Chapter 14 4 Debt and taxes The cost of bankruptcy Optimal capital structure: the trade-off theory Agency costs: time-permitting Chapters 15 and 16 5 Information and pay-out policy Quiz Chapter 17 6 More on capital budgeting (with leverage and market imperfections) Chapter 18 7 Risk and return Systematic versus idiosyncratic risk Evaluating the cost of capital Quiz Chapter 10 and Chapter 12 8 Final
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