Dr. P.V. Viswanath

pviswanath@pace.edu

Class Notes and Spreadsheets

MBA 673 Notes: Applying Financial Theory to Strategic Decision-Making

• Notes
  • Dupont Analysis Decomposition
  • McKinsey Proposal to separate operating from non-operating components in GAAP
  • Smith's notion of Profit Leveraging and the Dupont Model
  • Capital Structure and Competitiveness
  • Capital Structure and Labor Policies
• Slides
• Student Questions and Answers
• Porter Analysis
• Dupont Analysis
• Capital Structure and Stockholder Incentives
• Capital Structure and Operational Strategy
• Capital Structure and Competitive Strategy
• Hedging and Corporate Strategy

Primary Materials Based on Berk and DeMarzo

• Comments from Class
• Important Terms and Concepts
• Financial Markets and Institutions (Slides)
• Chap. 1, 29: The Corporation (Slides)
• Chap. 2: Introduction to Financial Statement Analysis (Slides) (Slides on Dupont Analysis)
• Chapters 3-5: Arbitrage and Time Value of Money (Slides)
• Chap 6: Investment Decision Rules (Slides)
• Chap 7: Fundamentals of Capital Budgeting (Slides)
• Chap 8: Valuing Bonds (Slides)
• Chap 9: Valuing Stocks (Slides)
• Cap 10: Capital Markets and the Pricing of Risk (Slides)
• Chap 14: Capital Structure in a Perfect Market (Slides)
• Chap 15: Debt and Taxes (Slides)
  Chap 16: Financial Distress, Managerial Incentives, and Information (Slides)

MBA 648 Notes: Managerial Finance
Supplementary Materials

• Common Misconceptions in Finance
• The Role of Science in the Study of Finance
  Additional Material Related to Chap. 3 of Damodaran's Corporate Finance
• A primer on Probability
• A note on Regression Analysis
• Vassar Stats: Website for Statistical Computation
  Great site for learning more about Statistics, and how to do it!
• Techniques for Constructing Efficient Portfolios
  Contains material useful for Chapter 5 of Damodaran's Corporate Finance.
• The Capital Asset Pricing Model
  Additional material related to Chap. 5 of Damodaran's Corporate Finance.
• Alternative Investment Rules
  Additional Material related to Chapter 7 of Damodaran's Corporate Finance.
• Efficient Capital Markets and Corporate Finance
• Perspectives on Diversification
  Additional Material corresponding to Chapter 5, 17 of Damodaran's Corporate Finance.
• Innovations in Corporate Finance
• Material related to Chapter 17 of Damodaran's Corporate Finance.
• Equity Valuation
  Corresponds to Chapter 23 of Damodaran's Corporate Finance; useful for Chapter 18 as well.
• Options
  Material Related to Chapter 27 of Damodaran's Corporate Finance.
• Campbell Harvey's Notes on Option Valuation
  Additional Material Related to Chapter 27 of Damodaran's Corporate Finance.
• Campbell Harvey's Notes on Option Arbitrage Relations
  Additional Material Related to Chapter 27 of Damodaran's Corporate Finance.
• Asset Based Financing: The case of Leasing

MBA 648 Spreadsheets

• Excel file demonstrating how to construct and analyse a portfolio with two assets

Primary Materials Based on Bodie, Merton and Cleeton

• Chap. 1: Financial Markets and Institutions (Slides)
• Chap. 2: The Financial Environment (Slides)
• Chap. 3: Accounting and Finance (Slides)
• Chapter 17: Financial Statement Analysis (Slides)
• Chapter 4: The Time Value of Money (Slides)
• Chapter 5: Valuing Bonds (slides)
• Chapter 6: Valuing Stocks (slides) (Also check out these advanced slides on Stock Valuation)
• Chapter 7: Net Present Value and Other Investment Criteria (slides)
• Chapter 8: Using Discounted Cash-Flow Analysis to Make Investment Decisions
• Chapter 10: Introduction to Risk, Return, and the Opportunity Cost of Capital (My notes on "Determination of the Discount Rate for Risky Assets" plus a primer on probability)
• Chapter 11: Risk, Return, and Capital Budgeting
• Chapter 12: The Cost of Capital
• Chapter 13: An Overview of Corporate Financing;
• Chapter 14: How Corporations Issue Securities
• Chapter 15: Debt Policy (My notes on Capital Structure)
• Chapter 16: Dividend Policy

Readings

• La Rocca, Maurizio. Capital Structure and Corporate Strategy, Chapter 3 in "Capital Structure and Corporate Financing Decisions," H. Kent Baker and Gerald Martin (eds), Wiley and Sons, Hoboken, NJ, 2011.