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Professor André FARBER
Solvay Business School
Université Libre de Bruxelles
GEST-D-408 Advanced Finance
2007-2008
News
April 18, 2008: Solution for Daucus
Carotta has been posted
March 19,2008: for coming sessions, download slides
from Hugues Pirotte’s web site: www.solvay.edu/cours/pirotte
January 31,
2008: I have
started updating my website. Updated links are indicated with an **
**Course outline (pdf)
Formula sheet
Slides
1. **Introduction/ Asset Pricing
Models.
2.* *MM - Debt
and Taxes
3. **WACC
4. **APV -
Leasing
5. **Risky
debt: binomial
6. **Risky
debt: Merton model
7. **Optimal
capital structure: Leland model
More
on structural model +
Leland exponential model
8. Convertible
bonds, warrants
9. IPO, Seasoned Equity
Offering
10.Dividend policy
Problem
sets
Daucus Carotta
(Asset pricing models) – Class
solution NEW
Deutsche Stock Exchange (financing decisions with perfect
capital markets) Solution (PP)
Belgacom IPO
(debt and taxes) Solution (PP)
Eurotech (A)
+ Solution (PP)
Eurotech (B) + Solution (PP)
Practice Advance Finance
Questions (Part 1)
Questions (Part 2)
Answers (Excel files)
1. Fetco –
Valuation under uncertainty
2. YellowSub
– Financing Decisions in Perfect Capital Markets
3. GoGo –
Capital Structure with Corporate Taxes
4. BEC – Using the
WACC formulas
5. Clodoco – Using
the APV
6. BTC –
WACC (Revised April 2007)
7. Yopex – Highly Levered
Transaction
8. FLOP
– Leasing
9. Gaelic Real Estate –
Risky debt, binomial
10. Biotec – Agency Costs of
Leverage
11. Redleaf – Tradeoff theory
12. BlueTree – Tradeoff theory
(again)
13. CAPM
– Tradeoff model and the CAPM
14. Zoubowsky – Convertible debt
Excel files
I help you
prepare the exam, I have prepared Excel files with questions and answers
Capital structure - no taxes
Capital structure -
corporate taxes
Adjusted present value
calculation
Lease valuation
Miles Ezzel/Harris
Pringle Excel file used for example in slides
Risky
debt valuation models (corrected version)
Risky
debt (binomial model)
Risky debt (Merton’s model)
Leland
model illustration
Convertible bond
Bonds
with warrants
Readings NEW
Reading 1:
Efficient Market Hypothesis
Reading 2: MM
Propositions 40 years later
Reading 3:
Debt is good for you
Reading 4: Capital
structure – survey
Reading 5:
Capital Structure: Evidence
Reading 6: Modeling
Default Risk (shows practical application of Merton model)
Reading 7:
A Review of IPO activity
Reading 8: Dividend
puzzle
Past
exams
Here is a set of past exams (in French questions d'examens) with solutions +
exams from previous two years.
Examen Juin 2000 + Solution
Examen Juin 2001 + Solution
Exam June 2002 + Solution
Examen Juin 2003 +
Solution
Examen Juin 2004 + Solution
(revised 20-05-2005)
Exam June 2005 + Solution
Exam June 2006
Exam June 2007
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