Corporate Finance
Master of Finance
LEE
Due in class: Monday Mar 10
Homework 1
You may collaborate on the homework assignments in groups of up to 4 students, however each
person must submit a separate writeup. If you elect to work with a group, please li
Corporate Finance
Master of Finance
LEE
Due in class: Monday Mar 17
Homework 2
I. Problems to be handed in
[3 questions from BMA +1 LEE question = 4 total]
BMA Chapter 4: Question 25, 29
BMA Chapter 6: Question 22
LEE Handin Question 1) Valuation of stoc
Lamont
Economics 1745
Lecture 3: Using discount rates
Goals of this lecture:

Expand the application of NPV to multiple periods
Show how markets facilitate moving money back and forth through time
Show some useful formulas
Apply these formulas to complic
Chapter 06  Making Investment Decisions with the Net Present Value Rule
CHAPTER 6
Making Investment Decisions with
The Net Present Value Rule
Answers to Problem Sets
1.
a, b, d, g, h.
2.
Real cash flow = 100,000/1.04 = $96,154; real discount rate = 1.08/
Bonds Lecture 4
LEE
Spring 2014
1
Roadmap
Treasury bonds: no risk of default = riskless
Zero coupon bonds
Yield curve, Expectations hypothesis
Coupon bonds
YTM, Law of one price
 N P V with different interest rates
Corporate bonds: risk of default
Def
Lecture 7
Risk and return overview
LEE Spring 2014
1
Roadmap
A look at aggregate risk of stocks and other financial assets
in US financial history
Here we look at timeseries risk
Forwardlooking risk premium
Statistical measures of risk
Broad asset cl
Corporate Finance (IMBA)
Lecture 1
Course Overview
Tsinghua SEM
Professor Hoan Soo LEE
Spring 2014
Lecture 1
1
Late evening of September 2, 2013
Microsoft Corporation (Market cap $315B)
announces acquiring most of Nokias phone
business for $7.2B.
Price
Lecture 10
CAPM and other factor
models
LEE Spring 2014
1
Roadmap
Leverage, diversification, and the financial crisis
Beta as a statistical object
Beta measures how stocklike assets are
Properties of Beta

Beta and leverage
Beta of a portfolio

Bet