1. 1 (of 22) FIN 468: Intermediate Corporate Finance Topic 1–Introduction and Review Larry Schrenk, Instructor

2. 2 (of 22) Introduction Larry Schrenk, Instructor  E-Mail: schrenk@american.edu  Office: 8 Hurst  Office Telephone: 202-885-2794 Course Page http://auapps.american.edu/~schrenk/FIN468/FIN468.htm Syllabus (Next Week)

3. Textbook Finance 434 Managerial Finance 1, Wiley Custom Learning Solutions.  This book is a custom book created in collaboration with Texas A&M University from two books in the CFA Investment Series: Corporate Finance: A Practical Approach by Clayman, Fridson, and Troughton and Equity Asset Valuation by Stowe et al. Calculator 3 (of 22)

4. Schedule Week 1 Introduction and Review Week 2 Financial Statement Analysis Ch. 1 Week 3 Capital Budgeting Ch. 2 Week 4 Discounted Dividend Valuation Ch. 3 Week 5 Free Cash Flow Valuation Ch. 4 Week 7 Residual Income Valuation Ch. 5 Week 8 Market-Based Valuation: Price Multiples Ch. 6 Week 9 Cost of Capital Ch. 7 Week 10 Capital Structure and Leverage Ch. 8 Week 12 Mergers and Acquisitions Ch. 9 Week 13 Behavioral FinanceTBA Week 14 Real OptionsTBA 4 (of 22)

5. Grading Exams (3 @ 25%)75% Project 25% NOTE: I do note round grades 5 (of 22)

6. Goals Finance  Theory  Calculation  Real World Practice Excel Economic/Financial Thinking 6 (of 22)

7. Themes I Valuation: PV of Expected Cash Flows Trade-Offs, e.g., Risk-Return Trade-Off Diversification No Arbitrage 7 (of 22)

8. Themes II Incentives Agency Problems Asymmetric Information 8 (of 22)

9. TVM Time Value of Money  Three Motives Discounting and Compounding  Single Dollar  Mixed Cash Flows  Annuities and Perpetuities  Non-Annual 9 (of 22)

10. Rates Rates of Change  Growth  Inflation  Discounting/Compounding Inflation  Real  Nominal 10 (of 22)

11. Statistics Measures  Mean  Standard Deviation, Variance  Covariance, Correlation Techniques  Histograms  Linear Regression 11 (of 22)

12. CAPM Diversification Market versus Non-Market  versus  Capital Asset Pricing Model 12 (of 22)

13. Cost of Capital WACC Capital Stucture 13 (of 22)