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Corporate Finance (304-0-20)

Instructors

Konstantin Wilhelm Milbradt
847/491-8618
Global Hub 4487
Office Hours: By Appointment
Professor Milbradt's research interests are in financial economics, specifically in how financial frictions affect asset prices, the macroeconomy, corporate decisions, and mortgage markets. In his recent work, he theoretically and empirically investigates how heterogeneity of homeowner's prepayment decisions affects prices in the conforming mortgage market, and how different contract designs would change these prices. Professor Milbradt holds a PhD from Princeton University and a BA from Oxford University (UK). Before joining Kellogg School of Management, he served as an Assistant Professor of Finance at the MIT Sloan School of Management.

Meeting Info

Frances Searle Building 1441: Mon, Wed 2:00PM - 3:20PM

Overview of class


*INFORMATION IS SUBJECT TO CHANGE*


Effects of time and uncertainty on valuation and decision making. Discounting techniques, stock and bond valuation, capital budgeting, firm valuation, capital asset pricing model, financial options.


BUS_INST 304 answers managers' and investors' most fundamental finance question: how should a project or
an asset be valued? Managers must determine the value of building a factory, entering a new market, or
purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the
value of financial securities to decide how to invest their wealth. Using a combination of lectures and
business cases, BUS_INST 304 teaches the discounted cash flow and multiples methods to value projects or
assets. These valuation tools lay the foundation for all work in capital markets and corporate finance.

Registration Requirements

Prerequisites: ECON 201, 202, STAT 210 or equivalent, MATH 212 or 220, BUS INST 301

May not receive credit for both this course and ECON 360-1. Not for students who have previously taken KELLG_FE 310-0.

Evaluation Method

Your grade in the course will be based on 20% video quizzes, 25% five group case studies, 15% midterm,
30% final, 5% class participation, 5% peer review.

Class Materials (Required)


  1. Title: CORPORATE FINANCE
    Edition: 5
    Author: Berk & DeMarzo
    ISBN: 9780136713753
    Publisher: PEARSON
    Estimated Price (eTextbook): $59.99

  2. There will be a study.net course packet available for purchase online. Approximate cost will be: $20

    3. Class Materials (Suggested)


    MyLab Finance is not required but could be useful to students wanting access to additional practice problems.



    1. Title: CORPORATE FINANCE
      Edition: 5
      Author: Berk & DeMarzo
      ISBN: 9780135161029
      Publisher: PEARSON
      Estimated Price (MyLab Finance with Pearson eText): $104.99
      *See textbook acquisition instructions posted on the Canvas website for details on how to acquire access to MyLab Finance + Loose-leaf version of the Textbook at a reduced price of $123.99.

      2. Class Notes

      There are no waitlists for BUS_INST courses. If the class closes before your registration time, please check back.

      For more information, please view sample syllabus: https://businessinstitutions.northwestern.edu/courses/course-descriptions/index.html

      Class Attributes

      Attendance at 1st class mandatory

      Enrollment Requirements

      Enrollment Requirements: Prerequisite: Students must have credit for ECON 201, ECON 202, STAT 210, MATH 218-1 or 220-1, and BUS_INST 301, or equivalent courses. Students that previously took KELLG_FE 310-0 may not register for this course.

      Associated Classes

      DIS - Tech Institute Lecture Room 4: Tues 5:00PM - 5:50PM