This video discusses the three question facing a financial manager that we will spend most of course addressing.
Watch on Screencast Back to Video ListThis video discusses the different types of business forms and their respective advantages and disadvantages.
Watch on Screencast Back to Video ListThis video discusses some more detail on corporations including the different types. We also introduce the goal of the financial manager.
Watch on Screencast Back to Video ListThis video discusses the conflict of interest created due to agency problems, the resulting agency costs, and some potential solutions to aligning the interests.
Watch on Screencast Back to Video ListThis video discusses the flow of cash between the firm and financial markets as well as wraps up the module.
Watch on Screencast Back to Video ListThis video introduces accounting concepts, specifically we discuss key assumptions and principles of accounting.
Watch on Screencast Back to Video ListThis video finishes the discussion of accounting by looking at key constraints. We then discuss financial reporting, why do we require reporting and what type of reporting is required.
Watch on Screencast Back to Video ListThis video introduces the income statement. We review the overall concept and look at both a simplified fictional example as well as examples for real companies.
Watch on Screencast Watch full I/S video Back to Video ListThis video goes into detail on the main line items found on an income statement. Specifically we discuss revenue and operating expenses, i.e. all items above EBIT.
Watch on Screencast Watch full I/S video Back to Video ListThis video continues to discuss the income statement items below EBIT. We also discuss shares outstanding, EPS, and EBIT vs EBITDA.
Watch on Screencast Watch full I/S video Back to Video ListThis video introduces the balance sheet. We review the overall concept and look at both a simplified fictional example as well as examples for real companies. We briefly discuss the concept of debits and credits.
Watch on Screencast Watch full B/S video Back to Video ListThis video goes over the accounts on the left-hand side of the balance sheet, i.e. Assets.
Watch on Screencast Watch full B/S video Back to Video ListThis video goes over the accounts on the right-hand side of the balance sheet, i.e. Liabilities and Equities. Note: you can skip the discussion of leases.
Watch on Screencast Watch full B/S video Back to Video ListThis video discusses the cash flow statement.
Watch on Screencast Back to Video ListThis video introduces the concept of free cash flow or cash flow from assets.
Watch on Screencast Back to Video ListThis video introduces and motivates our learning of financial statement analysis. We discuss generally what is financial statement analysis, how do we do it, and more importantly why do we do it.
Watch on Screencast Back to Video ListThis video introduces common size financial statement analysis. We discuss both vertical and horizontal analysis of the balance sheet and income statement, perform a basic example, discuss interpreting results, and lastly some caveats.
Watch on Screencast Back to Video ListThis video calculates common size financial statements for Stitch Fix.
Watch on Screencast Stitch Fix Common Size Back to Video ListThis video introduces the concept of ratio analysis.
Watch on Screencast Back to Video ListThis video goes through the four main types (groups) of ratios: Liquidity, Asset management, Leverage, Performance.
Watch on Screencast Back to Video ListThis video covers the breakdown of ROE using the Dupont identity as well as the concept of benchmarking using a time-trend or peer groups.
Watch on Screencast Back to Video ListThis video goes over common issues/concerns when performing ratios analysis. We also look at ratios for Stitch Fix and four industry peers. We conclude with n overview of the entire module.
Watch on Screencast Stitch Fix Ratios Back to Video ListThis video goes over the pdf formula sheet we discuss how each ratio is calculated, what it measures, and how to interpret.
Watch on Screencast Financial Ratios Back to Video ListThis video introduces the concept of time value of money and discusses its importance and usage in both personal and corporate finance. (11:54)
Watch on Screencast Back to Video ListThis video introduces the key players in time value of money (Future Value, Present Value, Interest Rate, and Time o Number of Periods). We also discuss the tools we will use to solve these problems: primarily using Excel.(4:12)
Watch on Screencast Back to Video ListThis video goes over how to calculate future and present values, the difference between simple and compound interest, and compounding vs discounting. Lastly we discuss the relationship between present (future) value, time, and rates. (14:38)
Watch on Screencast Back to Video ListThis video goes though several example problems of solving for future value and present value. (9:35)
Watch on Screencast Back to Video ListThis video briefly discusses the approach to solving for rates and time followed by a series of examples. We finish with a wrap-up of the material covered in the model and its importance. (12:40)
Watch on Screencast Back to Video ListThis video provides an overview of the modules, motivates the importance of the key concepts, and introduces the idea of cash flows (or payments) to our time value of money problems. We conclude with two examples. (20:31)
Watch on Screencast Back to Video ListThis video looks at an example with uneven cash flows and discusses applying this skill to evaluating recently signed professional hockey contracts. (5:54)
Watch on Screencast Back to Video ListThis video introduces the concept of annuities and perpetuities. We discuss and observe through an example of calculating future values the difference between an ordinary annuity and an annuity due. (13:37)
Watch on Screencast Back to Video ListThis video continues our look at annuities by completing an example of calculating present values. (8:58)
Watch on Screencast Back to Video ListThis video continues our look at annuities by examining examples when the payment and compounding periods are more frequent than annually (14:06)
Watch on Screencast Back to Video ListThis video continues our look at annuities by completing one more example and we also look at an example related to perpetuities.(8:13)
Watch on Screencast Back to Video ListThis video looks at solving annuity and perpetuity problems with a constant growth rate, g. (10:26)
Watch on Screencast Back to Video ListThis video discusses how interest rates are quoted, leading to a discussion of Annual Period Rate (APR) vs Effective Annual Rate (EAR). We complete several examples of calculating APR and EAR. (15:20)
Watch on Screencast Back to Video ListThis video examines how to solve annuity problems where the number of payment periods per year is not equal to the number of compounding periods per year. We finish with a lead into future modules and personal finance topics by discussing different loan types.(15:20)
Watch on Screencast Back to Video ListThis video overviews the topics covered in this module and discusses how to perform a bond valuation. (8:13)
Watch on Screencast Back to Video ListThis video goes over three bond valuation example problems, including semi-annual coupon payments and solving for both price and YTM. (9:01)
Watch on Screencast Back to Video ListThis video goes over the relation between bond prices and interest rates (YTM). We also discuss interest rate risk, current yield, and capital gains yield. (10:11)
Watch on Screencast Back to Video ListThis video goes over multiple bond terms and features including the indenture, seniority, security, call provisions, covenants and bond ratings, among many others. (15:28)
Watch on Screencast Back to Video ListThis video discusses other types of bond issuers (US treasuries and Muni Bonds)and types of bonds (floaters and zeroes) as well as a brief overview of the bond market. (8:47)
Watch on Screencast Back to Video ListThis video discusses the difference between real rates and nominal rates and performs a few examples to illustrate the concepts. The fisher effect is also introduced. (12:36)
Watch on Screencast Back to Video ListThis video goes over the term structure of interest rates and US Treasury Yield curve. We also discuss other premium factors like default risk. (12:55)
Watch on Screencast Back to Video ListThis video introduces and motivates the module. We discuss the importance of capital budgeting decisions and introduce the tools we will learn about throughout the module. (10:00)
Watch on Screencast Back to Video ListThis video introduces the criteria for which we will evaluate each capital budgeting tool. We also introduce the sample project we will use as a sample throughout the module. (5:06)
Watch on Screencast Back to Video ListThis video introduces the net present value (NPV) capital budgeting tool. We discuss the concept and theory of the measure, how to calculate, the decision rule for accept/reject, apply it to our sample project and lastly tie the measure back to our decision criteria and discuss the pros/cons. (12:06)
Watch on Screencast Back to Video ListThis video introduces the payback period capital budgeting tool. We discuss the concept and theory of the measure, how to calculate, the decision rule for accept/reject, apply it to our sample project and lastly tie the measure back to our decision criteria and discuss the pros/cons. (10:26)
Watch on Screencast Back to Video ListThis video introduces the internal rate of return (IRR) capital budgeting tool. We discuss the concept and theory of the measure, how to calculate, the decision rule for accept/reject, apply it to our sample project and lastly tie the measure back to our decision criteria and discuss the pros/cons. (12:00)
Watch on Screencast Back to Video ListThis video discusses the first of two scenarios in each IRR and NPV might disagree: Non-conventional cash flows. (10:15)
Watch on Screencast Back to Video ListThis video discusses the second of two scenarios in each IRR and NPV might disagree: Mutually Exclusive Projects. (8:18)
Watch on Screencast Back to Video ListThis video discusses a few other capital budgeting tools that exist, the importance and usage of capital budgeting tools, and summarizes the three tools: NPV, payback, and IRR. (10:36)
Watch on Screencast Back to Video ListThis video goes through two examples of capital budgeting decisions applying all three tools. We also look at the real world college and buy vs lease decisions. (20:31)
Watch on Screencast Back to Video ListThis video goes discusses the key concepts for the module and introduces project cash flows. Specifically, we learn about relevant cash flows and the stand-alone principle. (6:20)
Watch on Screencast Back to Video ListThis video discusses sunk costs and opportunity costs and whether or not these are relevant cash flows. (12:38)
Watch on Screencast Back to Video ListThis video discusses other pitfalls when thinking about relevant cash flows. Specifically, potential side effects, investments into NWC, and financing costs. (6:57)
Watch on Screencast Back to Video ListThis video introduces the concepts of pro-forma financial statements and discusses the steps to making a capital investment decision. We work through an example by creating pro-forma financial statements from list of assumptions/inputs and calculate the appropriate cash flows. (11:53)
Watch on Screencast Back to Video ListThis video reviews the effect of NWC on cash flows, introduces depreciation schedules, and goes over the cash flow implications of an asset sale. (9:59)
Watch on Screencast Back to Video ListThis video discusses alternative approaches to calculating operating cash flows and summarizes the module. (5:30)
Watch on Screencast Back to Video ListThis video briefly overviews the concepts to be covered in the module and discusses the process of raising money through venture capital. The last ten minutes of the video discusses the case of Theranos and Elizabeth Holmes, a firm that raised significant funds through VC financing and ended up worth nothing in the end. (21:55)
Watch on Screencast Back to Video ListThis video goes through the process of going public. Specifically, we discuss the timeline and procedure of performing an IPO, review example registration statements and prospectus. We also discuss a few alternative issue methods to the traditional IPO. (13:44)
Watch on Screencast Back to Video ListThis video discusses underwriters; what they are, what they do, and how they do it. (11:57)
Watch on Screencast Back to Video ListThis video the phenomenon of IPO underpricing — what is it and why does it exist. We also discuss seasoned equity offerings (SEO) and summarize all the costs associated with going public. (10:57)
Watch on Screencast Back to Video ListThis video walks through two IPOs (King Entertainment and Twitter) from early funding to final outcomes and goes through a couple exercises in calculating shares needed and flotation costs. (14:25)
Watch on Screencast Back to Video ListThis video introduces the first of two payout methods we will cover — dividends. (12:59)
Watch on Screencast Back to Video ListThis video introduces the second of two payout methods we will cover — repurchases. (9:28)
Watch on Screencast Back to Video ListThis video continues our discussion on payout policy. Topics include facts and figures, information content, and pros/cons of each method. We also introduce stock dividends and splits (15:02)
Watch on Screencast Back to Video ListThis video goes though example problems showing the irrelevance of payout policy (when we exclude any frictions) and the effects of stock splits and dividends. We also recap the key learning concepts from the module. (14:04)
Watch on Screencast Back to Video ListThis video introduce the module concepts and learning outcomes and discusses the approach to intrinsic valuation of a stock and starts to build out a dividend based model. (14:04)
Watch on Screencast Back to Video ListThis video goes through three cases of applying a dividend growth model to valuation: 1) Zero Growth; 2) Constant Growth 3) Non-Constant Growth (two stage) (14:04)
Watch on Screencast Back to Video ListThis video discusses the drivers of required return (dividend yield and capital gains yield or growth) and discusses the requirements for growth (investment and return). Lastly, we discuss why companies with no current dividend payment are not priced at zero. (14:04)
Watch on Screencast Back to Video ListThis video introduces the concept of performing stock valuation using trading multiple/comparables i.e., relative valuation. We also discuss the implementation of Price-to-earnings (PE) and Enterprise Value-to-sales (EV/Sales) to estimate the price. (8:54)
Watch on Screencast Back to Video ListThis video discuss terms and features related to common and preferred stock. We will discuss dual class stock. (7:53)
Watch on Screencast Back to Video ListThis video discuss auction (NYSE) and dealer (NASDAQ) stock markets. Key features and functions are discussed as two the markets are compared and contrasted. (12:11)
Watch on Screencast Back to Video ListThis video revisits a few dividend growth model example problems and overview the key learning concepts from the module. (8:15)
Watch on Screencast Back to Video ListThis video provides an overview of module topics and discusses the first lesson from capital markets history by examining average returns. (14:00)
Watch on Screencast Back to Video ListThis video discusses the second lesson from capital markets history by examining return variability, i.e. variance and standard deviation. (10:50)
Watch on Screencast Back to Video ListThis video discusses the difference between an arithmetic mean and a geometric mean when looking at average returns. (6:24)
Watch on Screencast Back to Video ListThis video discusses the concept of capital market efficiency and the efficient market hypothesis. (7:05)
Watch on Screencast Back to Video ListThis video introduces students to expected returns and the variance of expected returns. We also discuss portfolios and the calculation of returns and variances for a portfolio of assets. (13:43)
Watch on Screencast Back to Video ListThis video introduces the concept of diversification, what diversification implies about systematic and unsystematic risk, and how to measure unsystematic risk, i,e, beta. (14:32)
Watch on Screencast Back to Video ListThis video formalizes our discussion of the risk-return tradeoff by introducing students to the security market line, the concept of market equilibrium, and lastly the capital asset pricing model (CAPM). (11:57)
Watch on Screencast Back to Video ListThis video works through the extra practice problems from the end of the lecture slides. We solve these problems in Excel using approaches discussed in the lecture videos as well as using Excel functions to complete calculations more efficiently. (25:19)
Watch on Screencast Back to Video ListThis video reviews accessing and downloading financial data using both Library resources as well as financial websites.
Watch on Screencast Back to Video List