FNCE 100: Corporate Finance
Wednesday, May 5th, 4 to 6 PM in JMHH G06
You may bring 2 sheets of paper with writing on front and back to the test
Final is cumulative
Monday, April 26th, 10:30-12:00, JMHH F85 (Anant Jalan)
Tuesday, April 27th, 10:30-12:00, JMHH F85 (Jessica Wachter)
| Name | Office Hours | |
| Jessica Wachter | Tues. 4/27, 5/4, 1:30-3:00 in SHDH 2322 | jwachter@wharton.upenn.edu |
| Richard Evans | Wed. 4/28, 5/5, 9:15-10:45 in SHDH 2331 | evansr@wharton.upenn.edu |
| Robert Irwan | Wed. 4/28, 2:30-4:00 in SHDH 2409 and Tues. 5/4, 10-11:30 in SHDH 2413 | irwanr@wharton.upenn.edu |
Jessica A. Wachter
Office Hours: Tu. 1:30-3:00 in SH-DH 2322
Email: jwachter@wharton.upenn.edu
| Name | Office Hours | Notes | |
| Anant Veer Jalan | Mon. 10:30-12:00 in SHDH 2409 | ajalan@wharton.upenn.edu | |
| Richard Evans | Wed. 9:15-10:45 in SHDH 2331 | evansr@wharton.upenn.edu | |
| Robert Irwan | Wed. 2:30-4:00 in SHDH 2409 | irwanr@wharton.upenn.edu |
| Assignment (Due April 15th In Class) | Excel Data | Solutions |
Updated course outline (1st half)
Midterm Solutions - Section 001
Midterm Solutions - Section 002
Outline of Portfolio Analysis and the CAPM (updated)
Handout 1: Geometric Average vs. Arithmetic Average
Handout 2: Numerical Examples of Mean, Standard Deviation, and Correlation
Handout 3: Proof of Mean-Variance Formulas (Optional)
Handout 4: Gains from Diversification
Handout 5: News Clippings on Diversification (Optional)
Handout 6: Portfolio Variance with Many Risky Assets
Handout 7: Optimal portfolios when there is a riskless asset
Handout 8: Understanding the CAPM
Handout 9: News clippings on the CAPM (Optional)
Handout 10: Applying the CAPM to Capital Budgeting
Handout 11: Understanding Market Efficiency
MSO chart (Market efficiency in action)
Handout 12: News clippings on market efficiency (Optional)
Handout 13: MM Propositions I and II
Handout 14: MM with Corporate Taxes
Handout 15: News Clipping on Bankruptcy Costs (Optional)
Handout 16: Examples of Capital Budgeting with Leverage
Handout 17: Definitions and Payoffs at Expiration of Calls and Puts
Handout 18: News Clippings on Options (Optional)
Handout 19: Numerical Examples of Put-Call Parity and Minimum Value
Handout 20: Arbitrage Proofs for Put-Call Parity and Minimum Value (Optional)
| Date | Subject | Readings |
| Tues 3/16 | Expected Returns and Risk | RWJ 9, 10.1, 10.2, H01, H02 |
| Thurs 3/18 | Portfolio Allocation with Two Risky Assets | RWJ 10.3, 10.4, H02 (cont.), H03*, H04 |
| Tues 3/23 | Portfolio Allocation with Multiple Risky Assets | RWJ 10.5, 10.6, H05*, H06 |
| Thurs 3/25 | Portfolio Allocation with a Riskless Asset and Multiple Risky Assets | RWJ 10.7, H07 |
| Tues 3/30 | Capital Asset Pricing Model | RWJ 9.4 (review), 10.8, 10.9, H08, H09* |
| Thurs 4/1 | Capital Budgeting under Uncertainty | RWJ 12.1--12.5, 12.6*, H10 |
| Tues 4/6 | No class | |
| Thurs 4/8 | Market Efficiency | RWJ 13, H11, H12* |
| Tues 4/13 | Capital structure and the MM theorems | RWJ 15.1--15.4, H13 |
| Thurs 4/15 | Capital Structure under Market Frictions | RWJ 15.5, 16.1, 16.2, 16.3*, 16.4, H14, H15* |
| Tues 4/20 | Valuation and Capital Budgeting for the Levered Firm, Begin Options | RWJ 17.1*, 17.2*, 17.3, 17.4*, 17.5*, 22.1--22.4, H16, H17 |
| Thurs 4/22 | Valuation of Options | RWJ 22.5*, 22.6, 22.7 (p.620-621), H18*, H19, H20* |
| Problem Set #1 | Solutions #1 | ||
| Problem Set #2 | Solutions #2 | ||
| Problem Set #3 | Solutions #3 | ||
| Problem Set #4 | Solutions #4 | ||
| Problem Set #5 | Solutions #5 | ||
| Capital Budgeting - RWJ 7.3, 7.13, 7.17, 7.26, 7.33 | |||
| Problem Set #6 | Solutions #6 | ||
| Problem Set #7 | Solutions #7 | ||
| Problem Set #8 | Solutions #8 | ||
| Problem Set #9 | Solutions #9 | ||
| Problem Set #10 (Not to be handed in) | Solutions #10 |