Dr. P.V. Viswanath



Economics/Finance on the Web
Student Interest

  Courses / FIN 340/  

FIN 340/ FIN 680F: Valuation of the Firm
Course Outline and TimeTable


Fall 2008


Class Meeting Week and Days


Projects and other Deadlines

Meeting 1
September 4

Introduction and Overview of Firm Valuation (Slides)

Read Damodaran, Chapter 4; Choose firms

Meeting 2
Sept 11

Firm Valuation (Continuation)

Do Problems from Chapter 4

Meeting 3
Sept 18

Porter Analysis (Slides)
Industry and Competitive Analysis

Porter Analysis due Sept. 25

Meeting 4
Sept 25

Presentation of Porter Analyses
Equity Risk and Expected Return (Slides; Excel file on diversification);

Read Damodaran, Chapters 7, 8
Problems from Chapter 4 to be turned in

Do Problems from Chapter 7

Meeting 5
October 2

Estimating Hurdle Rates for Firms (Using the CAPM; Slides)

Industry and Competitive Analysis ready
Compute Cost of equity capital, cost of debt capital and WACC
Do Problems from Chapter 8

Meeting 6
Oct 16

Estimating Cost of Capital (Excel file on Beta Computation)

Exam based on Chapters 4, 7 and 8

Meeting 7
Oct 23

Presentation of WACC computations

Meeting 8
Oct 30

Earnings to Cashflow

Damodaran, Chapters 9 and 10

Meeting 9
November 6

Earnings to Cashflow (contd.); Adjustment of Operating Cashflows and R&D
Cost-of-Capital Presentations

Meeting 10
Nov 13

Forecasting Cashflows (Slides)
SBUX Example

Damodaran, Chapters 11 and 12

Meeting 11
Nov 20

Presentation of Cashflow estimations/ Estimating Growth Rates and Terminal Values

Meeting 11
Dec 4
Different Valuation models -- DDM, FCFE and FCFF Damodaran, Chapter 14

Meeting 12
Dec 11

Review and Final Presentations  
Meeting 13
Dec 18
Final Exam Exam based on Chapters 9-12, 14

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