FIN 4414 Financial Management Course Syllabus Spring 2010 Term

INSTRUCTOR: Dr. T. Craig Tapley Graham-Buffett Master Lecturer of Finance Section: Section: Room: 2109 Monday and Wednesday, Periods 3-4 (9:35 a.m. 11:30 a.m.) 7111 Monday and Wednesday, Periods 5-6 (11:45 a.m. 1:40 p.m.) 112 Matherly Hall

Office Hours: Wednesday (2:00 p.m. - 3:00 p.m.) Thursday (1:00 p.m. - 2:30 p.m.) CONTACT INFORMATION: Office: Phone: Fax: E-Mail: 329 David Stuzin Hall (352) 392-6654 (352) 392-5237 ctapley@ufl.edu http://vista.courses.ufl.edu/

Class Webpage:

COURSE MATERIALS: TEXTBOOK 1. Financial Management: Theory and Practice (12th Edition), Eugene F. Brigham and Michael C. Ehrhardt, Thompson/South-Western, 2008, ISBN: 0-324-42269-5. The official textbook for the class will be an excellent reference book as you start your career, as you may easily find that there will be times, on the job, when you need to reference prior material, or formulas, covered in your corporate finance classes at UF. However, books have become somewhat expensive, so you may, instead, purchase the 11th or 10th Edition of the book, typically at a cheaper price, through various online booksellers. However, there are minor differences between the 10th, 11th, and 12th editions; mainly in the order of the chapter. These differences should not impact your ability to perform well in this class, but you may need to map the chapters in the 10th or 11th Edition to those assigned in the 12th Edition. This is your responsibility, not mine. You may also use the textbook used in FIN 3403: Fundamentals of Financial Management (12 Edition), Eugene F. Brigham and Joel F. Houston, Thompson/South-Western, 2010. Like above,
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you may also purchase the 11th or 10th edition of this book. Although not as detailed in places as the Theory and Practice textbook, you may find that this book will meet most of your needs when reviewing the material we will cover in class. CASES / NOTES (Packet Available at Target Copy Center) 1. A Note on Team Process, Maria T. Farkas and Linda A. Hill, Harvard Business School Note #9402-032, Harvard College, 10/4/01, 17 Pages. Body Shop International Plc 2001: An Introduction to Financial Modeling, Robert M. Conroy and Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F-1349, University of Virginia, Revised 10/8/2001, 18 Pages. Warren E. Buffett, 1995, Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F-1160, University of Virginia, Revised 12/2001, 19 Pages. Value Creation, Net Present Value and Economic Profit, Robert S. Harris, Darden Graduate School of Business Note #UVA-F-1164, University of Virginia, 1/10/1997, 16 Pages. Valmont Industries, Inc., Jay Caver, Jennifer Hill, Kenneth Eades, Darden Graduate School of Business Administration Case #UVA-F-1191, Revised 2/2004, 21 Pages. Clarkson Lumber Company, Harvard Business School Case 9-297-028, Harvard College, Revised 10/96, 6 Pages. "The O.M. Scott & Sons Company", Harvard Business School Case #9-209-102, Harvard College, Revised 02/84, 11 Pages. Padgett Paper Products Company, William W. Sihler, Darden Graduate School of Business Administration Case #UVA-F-1156, University of Virginia, Revised 09/99, 17 Pages. Texaco Aviation Transport Services (A), Susan Bowen and Mark E. Haskins, Darden Graduate School of Business Administration Case #UVA-G-0539, University of Virginia, Revised 11/12/1998, 9 Pages. Boeing 777, Dena Gollish and Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F-1017, University of Virginia, Revised 11/97, 26 Pages. Euroland Foods S.A., Robert F. Bruner and Casey S. Opitz, Darden Graduate School of Business Administration Case #UVA-F-1356, University of Virginia, 11/27/2001, 12 Pages. Glaxo Italia S.p.A:The Zinnat Marketing Decision, Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F-1014, University of Virginia, Revised 01/98, 22 Pages. Project Financing: An Economic Overview, Robert F. Bruner, Herwig Langohr, and Anne Campbell, Darden Graduate School of Business Administration Note #UVA-F-1035, University of Virginia, Published 2/8/1995, 12 Pages.

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Euro Disneyland S.C.A.: The Project Financing, Robert F. Bruner, Herwig Langohr, and Anne Campbell, Darden Graduate School of Business Administration Case #UVA-F-1034, University of Virginia, Revised 4/98, 17 Pages. Methods of Valuation for Mergers and Acquisitions, Susan Chaplinsky, Michael J. Schill, and Paul Doherty, Darden Graduate School of Business Note #UVA-F-1274, University of Virginia, Revised 7/04, 19 Pages. FedEx Corp. versus United Parcel Service if America, Inc.: Who Will Deliver Returns from China?, Robert F. Bruner, Sean Carr, and Marc Lipson, Darden Graduate School of Business Case #UVA-F1601, University of Virginia, 9/3/2009, 14 Pages. Crocs, Inc. Marc Lipson and Gaurav Gupta, Darden Graduate School of Business Case #UVA-F1589, University of Virginia, 8/20/2009, 17 Pages. General Mills Acquisition of Pillsbury from Diageo PLC, Robert F. Bruner, Darden Graduate School of Business Administration Case # UVA-F-1326, University of Virginia, 2001, 14 Pages. JetBlue Airways IPO Valuation, Michael Schill, Darden Graduate School of Business Administration Case #UVA-F-1415, University of Virginia, 8/04, 20 Pages. Polaroid Corporation, 1996, Robert F. Bruner and Susan Chaplinsky, Darden Graduate School of Business Administration Case #UVA-F-1181, University of Virginia, Revised 06/98, 20 Pages.

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COURSE OVERVIEW: I have taught this course in the past as an applied case course with a review of introductory material, as well as a discussion of additional finance theory not covered in the introductory course. I will continue to follow this format. The great strength of the case method is that it confronts you with a realistic problem that may be ill-structured, important data may be missing and/or unobtainable, and you may not even be able to see what the problem is without extensive analysis. Imparting structure to the problem and learning how to get around missing data are important things to know, so this course should be a learning, although at times a frustrating, experience for you. Equally important though, I intend for you to go beyond finding "the answer" to the case problem: I expect you to analyze the implications of "the solution" for the long-run health of the company, determine what could happen if your analysis is wrong and how to position the company to minimize possible disruptions if this occurs. This is STRATEGIC FINANCIAL MANAGEMENT, and I will expect you to spend considerable time looking at this dimension: you will find very early on that without using a spreadsheet program, like Excel, it will not be possible to do a thorough analysis in a reasonable amount of time. Because the primary focus of the case analyses will not be on getting "the answer," per se, there will be less emphasis on what you say in your case presentations, analyses, and during-class write-ups and more on how you say it. It is possible that several cases to be analyzed in this course have been used by other instructors, so "answers" may be available from informal sources. I ask you not to utilize these shortcuts because (a) knowing "the answer" will not increase your grade on the case, and (b) taking shortcuts could hurt you significantly in terms of what you obtain from this course. That is, if you have not agonized through the case and used all of your mental reasoning to try to come to grips with the situation, you will not discover
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all of the traps and blind alleys that can lead you astray. It would be a very expensive lesson if you were forced to learn these in the "real world," where "the answer" is a bit more important and where you will not be able to find it through someone else's prior work.

TEAM ASSIGNMENTS: In an attempt to ease the workload, to create synergy through small group interactions, and to create a multi-tasking environment, each student will be randomly assigned to three separate team groups: (1) Case Evaluation Teams 1-8, (2) Case Evaluation Teams 9-16, and (3) Company Analysis Teams 17-24. Therefore, each class will have three groups of eight teams, with 3-5 students on each team. Responsibilities of the teams include: 1. Case Evaluation Teams (2 Team Groups: 1-8 and 9-16): Each case team must present a case in class (see Page 19 for details). These presentations will be videotaped and all members of the team must take part in the presentation. Case Evaluation Teams (2 Team Groups: 1-8 and 9-16): Each case team must review the videotapes of the team's presentations and provide written critiques within 1 week of the presentations. Case Evaluation Teams (2 Team Groups: 1-8 and 9-16): Each case team must provide the instructor with a written full case analysis, at the start of class, of the cases the team is to present (see Page 21 for format). Case Evaluation Teams (2 Team Groups: 1-8 and 9-16): Each case team must provide the instructor with written case summaries for all cases so marked (see Page 25 for format). Company Analysis Team (1 Team Group: 17-24): At the start of class on March 15th (preliminary analysis) and on April 19th (complete analysis), each company analysis team must provide a strategic corporate analysis of an S&P 500 company (see Page 20 for details of this assignment).

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INDIVIDUAL ASSIGNMENTS: Three things will also be required individually of each student: 1. Each student will be required to attend all classes and actively participate in case discussions (regardless of whether your team is presenting that day), lectures, and other activities that may be assigned by the instructor. There will be a seating chart and attendance will be taken. Please note, however, that, in terms of participation, I prefer quality to quantity. In fact, high quantity without corresponding quality will lead to a negative response on my part when it comes time to assign grades. Also note that I realize that, as graduating seniors, many of you will have other commitments that may arise during the term (job interviews, etc.) --- I will allow students to miss 1 or 2 classes as long as they can provide me with documentation of a valid reason for missing. In addition to regular class participation, students may be required, on a random basis, to complete short, in-class write-ups or presentations of the chapters, cases, or readings assigned for the day (grading weights, see below, will be changed to accommodate this if it occurs). Although I do not
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FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

intend at this time to set a page limit on the write-ups, they should be concise. Again, please note that I prefer quality to quantity. 3. Each student will be required to complete two midterm exams to be held, in class, on March 3rd and April 14th. There will be no excused absences from these exams. Your best exam will count for 25 percent of your grade, while your worst exam will count for 15 percent of your grade.

For extra credit, students may read and review one of the books listed at the end of this syllabus (see Page 26 for a partial list), or get my approval for an alternative selection. Book reviews will be due at the start of class on Monday, April 12th. Bonus points (up to 3 points) will be awarded based on the quality of the writeup.

GRADING: Course grades will be calculated using the following weights: Case Teams (1-8): Case Presentations/Written Analyses/Critiques Case Teams (9-16): Case Presentations/Written Analyses/Critiques Case Teams (1-16): Case Summaries Company Teams (17-24): S&P 500 Company Analysis Individual: Class Participation Individual: Midterm Exams (25% and 15%) 10% 10% 15% 15% 10% 40% 100% 3%

Individual: Extra Credit Book Review

You should note that a large portion of your course grade (50%) will be a function of the performance of your team. It may bother you that you will not have direct control over this portion of your grade, but it may also induce you to see that the team performs well. At the least, it is realistic, as you are usually faced with this problem in business: your performance is in part a function of other people. As a check, and to discourage a person from letting the other members of the team do all of the work, there will be a confidential peer evaluation at the end of the course (see Page 30 for evaluation). I assure you that if you do not contribute your fair share your fellow team members will let it be known. Please note, I reserve the right to lower (or raise) an individual's course grade (by any amount) based on these evaluations. This is only fair: if you do not work as hard as other members of the team, then you should not expect to share fully in the team's grade. You should also note that the Finance department has specified a grading range for all upper-level finance courses. The range for FIN 4414 is 3.1 to 3.5, with an expected grade point average for the class of 3.30. Final course grades will be adjusted at the end of the term so that the average grade point average for the class falls within this range and the grade assigned will be based on your class rank.

ACADEMIC HONESTY GUIDELINES: The following is from the University of Florida Code of Student Conduct:

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The academic community of students and faculty at the University of Florida strives to develop, sustain and protect an environment of honesty, trust and respect. Students are expected to pursue knowledge with integrity. Exhibiting honesty in academic pursuits and reporting violations of the Academic Honesty Guidelines will encourage others to act with integrity. Violations of the Academic Honesty Guidelines shall result in judicial action and a student being subject to the sanctions in paragraph XI of the Student Conduct Code. The conduct set forth hereinafter constitutes a violation of the Academic Honesty Guidelines (University of Florida Rule 6C1-4.017). Cheating. The improper taking or tendering of any information or material which shall be used to determine academic credit. Taking of information includes, but is not limited to, copying graded homework assignments from another student; working together with another individual(s) on a take-home test or homework when not specifically permitted by the teacher; looking or attempting to look at another student's paper during an examination; looking or attempting to look at text or notes during an examination when not permitted. The tendering of information includes, but is not limited to, giving of your work to another student to be used or copied; giving someone answers to exam questions either when the exam is being given or after taking an exam; giving or selling a term paper or other written materials to another student; sharing information on a graded assignment. Plagiarism. The attempt to represent the work of another as the product of one's own thought, whether the work is published or unpublished, or simply the work of a fellow student. Plagiarism includes, but is not limited to, quoting oral or written materials without citation on an exam, term paper, homework, or other written materials or oral presentations for an academic requirement; submitting a paper which was purchased from a term paper service as your own work; submitting anyone else's paper as your own work. So that there is no confusion, here are my expectations: 1. Students are strongly encouraged to work with their classmates to study, work problems and cases, and prepare for classes and exams. The goal here is to maximize your understanding of the material. Students are expected to include only their own work on the two midterm exams, book reviews, and on any individual, in-class write-ups. Cheating, as defined above, will not be tolerated. Students are expected to contribute fully to each and every team assignment. Plagiarism, as defined above, is not acceptable.

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TENTATIVE SCHEDULE AND READING / CASE / ASSIGNMENT LIST WEEK 1 Wednesday January 6 Topics: __________ Video: Introduction and Overview of Course

Warren Buffet Talks Business

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FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

__________ Note: A Note on Team Process, Maria T. Farkas and Linda A. Hill, Harvard Business School Note #9-402-032, Harvard College, 10/4/01, 17 Pages. Read the note above on Team Process. After teams have been finalized on January 13th, meet with your Case Teams (1-8 and 9-16) and Company Analysis Teams (17-24). Each team should then write up a 1-page summary of how you hope to structure your team, interact, complete assignments, and your goals for the semester. Write-ups are due at the start of class on January 25th. WEEK 2 Monday January 11 Textbook: Chapter 14 - Financial Planning and Forecasting Financial Statements Web Extension: Financing Feedbacks Web Extension: Advanced Techniques for Forecasting Statements Accounts

Assignment:

__________ Case: Body Shop International Plc 2001: An Introduction to Financial Modeling, Robert M. Conroy and Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F1349, University of Virginia, Revised 10/8/2001, 18 Pages. Work through the exercises in this case, first using pencil and paper and then using your personal computer. Then follow the directions on the last page of the case to make the three-year forecast, and think about what your responses to the questions posed on the last page of the case should be. Bring an electronic copy of your model (disk, zip, memory stick, etc.) to class and be prepared to present it to the class.

Assignment:

__________ Video: Warren Buffett and Bill Gates

Wednesday January 13 Pictures: __________ Case: Questions: Team Pictures at Start of Class

Warren E. Buffett, 1995, Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F-1160, University of Virginia, Revised 12/01, 19 Pages. What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement? Specifically, what does the $718 million gain in Berkshires market value of equity imply about the intrinsic value of GEICO? (Note that Berkshire owned 33.25 million shares before the acquisitions was announced.)

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Based on Value Lines forecast information, what is the range of possible intrinsic values for GEICO? What questions might you have about this estimated range? How well has Berkshire Hathaway performed? In the aggregate? In its investment in Scott & Fetzer? In its investments in earlier purchases of GEICO stock? In its investment in convertible preferred securities? What is the intrinsic value in Warren Buffetts perspective, and why is it accorded such importance? How is it estimated? What are the alternatives to intrinsic value, and why does Buffett reject them? Critically assess Buffetts investment philosophy, and prepare to identify points where you agree and disagree with him. Should Berkshire shareholders endorse the acquisition of GEICO? Assignment: Individuals should prepare the Warren E. Buffett, 1995 case for in-class discussion.

Thursday January 14 Reception: Student reception at Craig and Trish Tapleys home (see Page 31 for map) from 7:00 p.m. to 9:00 p.m. Spouses and significant others are welcome. Dress is casual. WEEK 3 Monday January 18 No Class: Martin Luther King, Jr. Holiday

Wednesday January 20 Textbook: __________ Note: __________ Case: Valmont Industries, Inc., Jay Caver, Jennifer Hill, Kenneth Eades, Darden Graduate School of Business Administration Case #UVA-F-1191, Revised 2/2004, 21 Pages. Case - Valmont Industries.xls Value Creation, Net Present Value and Economic Profit, Robert S. Harris, Darden Graduate School of Business Note #UVA-F-1164, University of Virginia, 1997, 16 Pages. Chapter 3 - Financial Statements, Cash Flows, and Taxes Chapter 4 - Analysis of Financial Statements

Case File:

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Questions:

Why do you think Valmonts stock has fallen out of favor with Wall Street analysts? Do you think EVA can solve Valmonts stock price problem? Using the financial data in Exhibit 5 and assuming 10% as the WACC and 35% as the tax rate, compute EVA for Valmonts business segment for years 1990-1993. What conclusions can you draw? For example, should Valmont expand or contract Irrigation? Cab you use EVA to help formulate the strategic direction of Valmont? How do you interpret the EVAs for the Corporate segment of the business? Does it appear that Valmont allocates corporate overhead expenses to its operating units? Should these costs be allocated for purposes of computing EVA? Should Terry McClain recommend that EVA be implemented at Valmont? If so, should he also recommend that managerial compensation be linked to EVA? Which employees in the company should be compensated based on EVA? How would you design the incentive compensation formula for management? For example, would the formula use EVA or change in EVA as the principle variable? How much of total compensation should be subject to EVA performance?

Assignment:

Teams 1-8 should prepare the Valmont Industries, Inc. case for in-class discussion. WEEK 4

Monday January 25 Textbook: Chapter 10 - The Cost of Capital Web Extension: Estimating Growth Rates Web Extension: The Cost of Equity in the Nonconstant Dividend Growth Model

__________ Case: Clarkson Lumber Company, Harvard Business School Case 9-297-028, Harvard College, Revised 10/96, 6 Pages. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? How has Mr. Clarkson met the financing needs of the company during the period 1993 through 1995? Has the financial strength of Clarkson Lumber improved or deteriorated? How attractive is it to take the trade discount? Do you agree with Mr. Clarksons estimate of the companys loan requirements? How much will he need to finance the expected expansion of sales to $5.5 million in 1996 and to take all trade discounts? As Mr. Clarksons financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Clarksons loan request, and, if so, what conditions would you put on the loan?
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Questions:

Assignment:

Teams 1-8 should prepare the Clarkson Lumber Company case for in-class discussion.

Wednesday January 27 Case: "The O.M. Scott & Sons Company", Harvard Business School Case #9-209-102, Harvard College, Revised 02/84, 11 Pages. How was Scott able to achieve its rapid growth from a local to a national company? What are the key factors in its success. How have the prices of Scott shares moved in the market? Why are they selling so high relative to earnings and dividends? Analyze the company's financial condition at the end of 1961. What are its prospects for future years? Project specific sales and profit figures for Scott for 1962 and 1963. What action, if any, should Scott take in relation to its internal operations? to its creditors? Assignment: Teams 9-16 should prepare the O.M. Scott & Sons Company case for in-class discussion.

Questions:

Case:

Padgett Paper Products Company, William W. Sihler, Darden Graduate School of Business Administration Case #UVA-F-1156, University of Virginia, Revised 09/99, 17 Pages. As a banker, how would you evaluate Padgetts strategy and financial performance to date? Why should Francis Libris, the banker, seek to structure Padgetts loan on a more orderly basis? Why does Padgett need a loan? How fast can Padgett repay the loan? What should Libris propose as terms for the new loan structure?

Questions:

Assignment:

Teams 9-16 should prepare the Padgett Paper Products Company case for in-class discussion. WEEK 5

Monday February 1 Textbook: Chapter 11 - The Basics of Capital Budgeting: Evaluating Cash Flows Web Extension: The Accounting Rate of Return Web Extension: The Marginal Cost of Capital and the Optimal Capital Budget
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FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

Chapter 12 - Cash Flow Estimation and Risk Analysis Web Extension: Replacement Project Analysis Web Extension: Certainty Equivalents and Risk-Adjusted Discount Rates Chapter 15 - Corporate Valuation, Value-Based Management, and Corporate Governance __________ Case: Texaco Aviation Transport Services (A), Susan Bowen and Mark E. Haskins, Darden Graduate School of Business Administration Case #UVA-G-0539, University of Virginia, Revised 11/12/1998, 9 Pages. What makes fractional ownership attractive for Texaco? How will purchasing a new plane impact deadhead time? What about fractional ownership? Charter? Which option provides the best net present value (NPV)? What does a negative NPV signal? What are some reasons for not using NetJets option? In what ways might you lessen or monitor the negatives you just listed? You may use the following base case assumptions when constructing your base case forecast: Hours flown per year 400 (round-trip hours) Flight miles expected yearly 160,000 (round-trip mileage) Fraction that is deadhead 38% Fraction desired 37.5% Monthly fee, FO $28,800 Cost per hour, FO $1,576 Cost premium for over-hours, FO 75% Additional insurance, FO (yearly) $8,000 Cash outlay for plane, FO $4,005,000 Estimated value of plane at end of 5 years, FO $1,201,500 Depreciation, FO $801,000 Chargeback rate per mile $0.59 Cost per hour, corporate $1,100 (variable costs) Pilot and maintenance, Purchase (yearly) $229,900 Hangar Costs, Purchase (yearly) $43,800 Administrative costs, Purchase (yearly) $97,100 Insurance, Purchase (yearly) $42,900 Cash outlay for plane, Purchase $10,680,000 Estimated value of plane an end of 5 years, Purchase $3,204,000 Depreciation $2,136,000 Corporate discount rate 14% Corporate tax rate 40% Sales tax rate 4% Inflation rate 2% Assignment: Teams 9-16 should prepare the Texaco Aviation Transport Services (A) case for in-class discussion.

Questions:

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Wednesday February 3 Case: Boeing 777, Dena Gollish and Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F-1017, University of Virginia, Revised 11/97, 26 Pages. What is the appropriate required rate of return against which to evaluate the prospective IRRs from the Boeing 777? Which beta did you use? Why? When you used the capital-asset pricing model (CAPM), which risk premium and riskfree rate did you use? Why? Which capital-structure weights did you use? Why?

Questions:

Judged against your WACC, how attractive is the Boeing 777 project? Under what circumstances is this project economically attractive? What does a sensitivity analysis (either the analysis presented in the case or another that you have done on your own) reveal about the nature of Boeing's gamble on the 777?

Should Boeing have launched the 777 in October 1990? Assignment: Teams 1-8 should prepare the Boeing 777 case for presentation and in-class discussion. Presentation by Case Teams 1 and 2. Case write-ups are due at the start of class. Full case write-ups by Case Teams 1 and 2. Case summary write-ups by all other teams (1-8). WEEK 6 Monday February 8 Video: The Trillion Dollar Bet

Case:

Euroland Foods S.A., Robert F. Bruner and Casey S. Opitz, Darden Graduate School of Business Administration Case #UVA-F-1356, University of Virginia, 11/27/2001, 12 Pages. Prepare to discuss the strengths and weaknesses of the various measures of investment attractiveness as used by Euroland Foods. Will all of the measures rank the projects identically? Why or why not? Rank the 11 proposals on the basis of purely economic considerations. Then rank them a second time based on any considerations you believe to be important. Are the rankings identical? Why or why not? Which set of projects should Wilhelmina Verdin recommend to the board of Euroland as the capital budget for 2001?

Questions:

Assignment:

Role-play discussion of case given position assignments below.

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FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

Positions For In-Class Discussion:

Team 1 - Wilhelmina Verdin - President Director-General Team 2 - Trudi Lauf - Finance Director Team 3 - Heinz Klink - Managing Director for Distribution Team 4 - Maarten Leyden - Managing Director for Production and Purchasing Team 5 - Marco Ponti - Managing Director for Sales Team 6 - Fabienne Morin - Managing Director for Marketing Team 7 - Nigel Humbolt - Managing Director for Strategic Planning Team 8 - Independent Consultants

Wednesday February 10 Case: Glaxo Italia S.p.A.: The Zinnat Marketing Decision, Robert F. Bruner, Darden Graduate School of Business Administration Case #UVA-F-1014, University of Virginia, Revised 01/98, 22 Pages. Case - Glaxo Italia.xls What are the relative advantages and disadvantages of co-marketing arrangements versus direct sales? Why is Glaxo considering co-marketing for its new Zinnat antibiotic? Evaluate Glaxo Italias criteria for evaluating decisions about sales strategies (i.e., payback and internal rate of return). What are the strengths and weaknesses of these criteria as opposed to net resent value? On which criteria would you base your recommendation? Evaluate the forecast. Are all relevant cash flows present? Are the assumptions reasonable? Should the cost of new sales recruits be included in the forecast? If, in response to the question above, you believe the analysis should be modified, do so and prepare to discuss the results you obtain. What assumptions are the key drivers of your results? Which marketing strategy should Rottoli recommend? Assignment: Teams 1-8 should prepare the Glaxo Italia S.p.A. case for presentation and in-class discussion. Presentation by Case Teams 3 and 4. Case write-ups are due at the start of class. Full case write-ups by Case Teams 3 and 4. Case summary write-ups by all other teams (1-8). WEEK 7 Monday February 15 Textbook: Chapter 9 - Financial Options and Applications in Corporate Finance Web Extension: The Binomial Approach Chapter 13 - Real Options Web Extension: The Abandonment Real Option
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Case File: Questions:

FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

Web Extension: Risk-Neutral Valuation

Wednesday February 17 Note: Project Financing: An Economic Overview, Robert F. Bruner, Herwig Langohr, and Anne Campbell, Darden Graduate School of Business Administration Note #UVA-F-1035, University of Virginia, Published 2/95, 11 Pages.

__________ Case: Euro Disneyland S.C.A.: The Project Financing, Robert F. Bruner, Herwig Langohr, and Anne Campbell, Darden Graduate School of Business Administration Case #UVA-F-1034, University of Virginia, Revised 4/98, 23 Pages. Case - Euro Disneyland.xls In what way will this complex set of transactions affect the Euro Disneyland project? Give some consideration to these possible areas of change: ownership, financing, managerial flexibility and control, and risk exposure of various participants. What will each of the following stakeholders contribute to, and gain from, the Euro Disneyland project: the government of France, banks, European equity investors, the Walt Disney Company? What would motivate each of these groups to participate? What steps or actions must each group take in order to realize the potential benefits from this project? What might motivate the Walt Disney Company to transform the Euro Disneyland project into a separate company? At an offering price of (French francs) FF72 per share, is the equity in Euro Disneyland fairly valued? Assess the valuation conducted by S.G. Warburg. In the abstract, what kinds of corporate assets might be split off in this fashion (i.e., rather than keeping it as a wholly internal project)? Are there other ways in which a corporate asset like Euro Disneyland might be carved out? Be prepared to sketch these other schemes. Assignment: Teams 1-8 should prepare the Euro Disneyland S.C.A case for presentation and in-class discussion. Presentation by Case Teams 5 and 6. Case write-ups are due at the start of class. Full case write-ups by Case Teams 5 and 6. Case summary write-ups by all other teams (1-8). WEEK 8 Monday February 22 Video: __________ Daniel Pink: A Whole New Mind

Case File: Questions:

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Wednesday February 24 Note: Methods of Valuation for Mergers and Acquisitions, Susan Chaplinsky, Michael J. Schill, and Paul Doherty, Darden Graduate School of Business Note #UVA-F-1274, University of Virginia, Revised 7/04, 19 Pages.

__________ Case: FedEx Corp. versus United Parcel Service if America, Inc.: Who Will Deliver Returns from China?, Robert F. Bruner, Sean Carr, and Marc Lipson, Darden Graduate School of Business Case #UVA-F-1601, University of Virginia, 9/3/2009, 14 Pages. Given the nature of the package delivery industry and the drivers of success outlined in the case, do you think that either firm can attain a sustainable competitive advantage in this business, particularly in the emerging delivery market in China? Familiarize yourself with the financial and operating data in case Exhibits 1 and 2. How had FedEx and UPS performed between 2000 and 2005? Which firm was performing better? Be prepared to discuss the insights you derived from the two firms financial statements and financial ratios. Familiarize yourself with the stock price data in Exhibit 6. How had FedEx and UPS performed between 2000 and April of 2006? Which firm was performing better? Assuming stock prices reflect anticipated future performance, how might one interpret the greater FedEx cumulative return? Assignment: Teams 1-8 should prepare the FedEx Corp. versus United Parcel Service of America, Inc. case for presentation and in-class discussion. Presentation by Case Teams 7 and 8. Case write-ups are due at the start of class. Full case write-ups by Case Teams 7 and 8. Case summary write-ups by all other teams (1-8). WEEK 9 Monday March 1 Assignment: Catch-Up Day, If Needed

Questions:

Wednesday March 3 Midterm: In-Class Exam WEEK 10 Monday March 8 No Class: Spring Break
Page 15 of 31 Pages

FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

Wednesday March 10 No Class: Spring Break WEEK 11 Monday March 15 Textbook: Chapter 16 - Capital Structure Decisions: The Basics Web Extension: Degree of Leverage Chapter 17 - Capital Structure Decisions: Extensions

__________ Assignment: Preliminary S&P 500 Company Report due at the start of class.

Wednesday March 17 Case: Crocs, Inc. Marc Lipson and Gaurav Gupta, Darden Graduate School of Business Case #UVA-F-1589, University of Virginia, 8/20/2009, 17 Pages. Which of the comparable companies appear to be a good match to Crocs at the time of the case? Which would be a good match in five years? Use these multiples to provide additional estimates of the value of Crocs (in other words, calculate a value for Crocs using a current multiple, and calculate a value for Crocs using Yeungs cash flow model but a terminal value based on the multiple). What would you consider reasonable, high, and low growth estimates (median, 25th and 75th percentile growth estimates) for 2008 and for the long run? Value the company under your best estimate of future growth rates and at a high and low estimate from the prior question. What changes in the growth assumptions would rationalize the new Crocs stock price? What is your opinion of the assumed profit margins? What alternative assumptions would you consider reasonable? Assignment: Teams 9-16 should prepare the Crocs, Inc. case for presentation and in-class discussion. Presentation by Case Teams 9 and 10. Case write-ups are due at the start of class. Full case write-ups by Case Teams 9 and 10. Case summary write-ups by all other teams (916). WEEK 12

Questions:

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Monday March 22 Textbook: Chapter 18 - Distribution to Shareholders: Dividends and Repurchases

Wednesday March 24 Case: General Mills Acquisition of Pillsbury from Diageo PLC, Robert F. Bruner, Darden Graduate School of Business Administration Case # UVA-F-1326, University of Virginia, 2001, 14 Pages. What are General Mills motives for this deal? Estimate the present value of the expected cost savings. Why was the contingent payment included in this transaction? How does the clawback affect the attractiveness of the deal from the standpoints of General Mills and Diageo? How does the contingent payment work? Prepare a payoff diagram (i.e., hockey stick diagram) of the clawback feature. What is the contingent payment worth in early December 2000? Be prepared to outline your assumptions and specific findings. Is this deal economically attractive to General Mills shareholders? Would you recommend that shareholders approve or reject this deal? Assignment: Teams 9-16 should prepare the General Mills Acquisition of Pillsbury from Diageo PLC case for presentation and in-class discussion. Presentation by Case Teams 11 and 12. Case write-ups are due at the start of class. Full case write-ups by Case Teams 11 and 12. Case summary write-ups by all other teams (9-16). WEEK 13 Monday March 29 Textbook: Chapter 22 - Working Capital Management Web Extension: Secured Short-term Financing Web Chapter 27 - Providing and Obtaining Credit Web Chapter 28 - Advanced Issues in Cash Management and Inventory Control

Questions:

Wednesday March 31 Case: JetBlue Airways IPO Valuation, Michael Schill, Darden Graduate School of Business Administration Case #UVA-F-1415, University of Virginia, 8/04, 20 Pages. What are the advantages and disadvantages of going public?
Page 17 of 31 Pages

Questions:

FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

How can comparable multiples be used to estimate terminal value? Which multiples and comparable companies are most appropriate for JetBlues valuation? Do you believe the offer price range of $22 to $24 per share is too low? Assignment: Teams 9-16 should prepare the JetBlue Airways IPO Valuation case for presentation and in-class discussion. Presentation by Case Teams 13 and 14. Case write-ups are due at the start of class. Full case write-ups by Case Teams 13 and 14. Case summary write-ups by all other teams (9-16). WEEK 14 Monday April 5 Textbook: Chapter 23 - Derivatives and Risk Management

Wednesday April 7 Case: Polaroid Corporation, 1996, Robert F. Bruner and Susan Chaplinsky, Darden Graduate School of Business Administration Case #UVA-F-1181, University of Virginia, Revised 06/98, 20 Pages. What are the main objectives of the debt policy that Ralph Norwood must recommend to Polaroids board of directors? What financing requirements do you foresee for the firm in the coming years? What are the risks associated with Polaroids business and strategy? In your view, what firms are Polaroids peer firms? Drawing on the financial ratios in case Exhibit 9, how much debt could Polaroid borrow at each rating level? What EBIT coverage ratios would result from the borrowings implied by each rating category? Using Hudson Guarantys estimates of the costs of debt and equity in case Exhibit 11, which rating category has the lowest overall cost of funds? Do you agree with Hudson Guarantys view that equity investors are indifferent to increases in financial risk across investment grade debt categories? Is Polaroids current maturity structure of debt appropriate? Why or why not? What should Ralph Norwood recommend regarding: the target bond rating; the level of flexibility or reserves; the mix of debt and equity; the maturity structure of debt; and any other issues you believe should be brought to the attention of the CEO and the board?
FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term Page 18 of 31 Pages

Suggested Questions:

Assignment:

Teams 9-16 should prepare the Polaroid Corporation, 1996 case for presentation and inclass discussion. Presentation by Case Teams 15 and 16. Case write-ups are due at the start of class. Full case write-ups by Case Teams 15 and 16. Case summary write-ups by all other teams (9-16). WEEK 15

Monday April 12 Assignment: __________ Assignment: Catch-up Day, If Needed.

Book Review for Extra Credit (Due at the Start of Class).

Wednesday April 14 Midterm: In-Class Exam WEEK 16 Monday April 19 Assignment: Company Analysis Presentations (Company Analysis Teams 17-20). Full written reports due from all teams (Company Analysis Teams 17-24) at the start of class.

Wednesday April 21 Assignment: Company Analysis Presentations (Company Analysis Teams 21-24)

TEAM CASE PRESENTATIONS: For each of the 8 formal case presentations, two case teams will make formal, professional presentations side-by-side. The basic format is as follows. Each of the two teams will play the role of competing consulting companies brought in to analyze the situation for the firm. The audience will play the role of the firms senior managers or investors. The audience is expected to ask questions and interject their own opinions (and I will feel free to do the same as the firms CEO). If it becomes necessary to spur discussion, I reserve the right to randomly select four or five students to play the role of informed managers/investors who are there to ask the consultants pointed questions about the case. At the end of the presentations, the class will also be asked to evaluate the student presentations both for content and style (see Page 28 for the written evaluation). The written feedback will be anonymously shared with the presenting groups.

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S&P 500 COMPANY ANALYSIS: One of the abilities that any graduate of a business program should have is to be able to evaluate and fully understand the current status and financial health of a company in comparison to other firms within its industry. The graduate should also have a clear understanding of the international/national economic climate, how it has changed over the last several years, what expected changes are in store for the future, and how all of this can impact on an industry and the firms within the industry. Finally, all graduates should be familiar with those resources that are available to help them understand the relative position and financial condition of firms in today's world. To help you develop this ability, each Company Analysis Team will be responsible for performing a financial analysis and evaluation of a company that is part of the S&P 500 (the choice of the company is up to the team). However, since a company cannot be fully understood in a vacuum, each analysis should include the following sections: 1. 2. 3. The economic climate: past, present, and future. Industry analysis: past, present, and future. Firm analysis: a. Overview Brief profile of the company --- description of its major businesses, size, where it is located, etc. Quick summary of recent earnings and stock price performance over time, relative to peers and the market. Profile the companys management team and corporate governance: Background of management Assessment of performance Board of Directors --- profile Ownership profile Compensation policies Other Issues --- e.g. takeover defenses, dissident shareholders etc. Detailed financial analysis --- tear the numbers apart: income statement, balance sheet, capital structure, dividend policy, capital budgeting expenditures, R&D expenditures, pension liabilities, impact of union contracts, credit rating, funding requirements, ROE, ROA, stock price, growth, legal problems, etc. Whats good? Whats bad? Financial comparison to the industry. Potential consequences of future economic conditions. Strengths, weaknesses, opportunities, and threats (SWOT) analysis. Overall summary of the firm's financial condition, your outlook for the future, and what the major issues are going forward that an investor and/or the company should consider. Estimate of the intrinsic value of the companys stock and your teams view as to the correctness of the firms current stock price --- discuss assumptions, the pricing models you used, and conclusions.

b.

c. d.

e. f. g. h. i.

Items 1, 2, and 3a-3c are due in hard-copy form at the start of class on Monday, March 15th. Your analysis should be typed and double-spaced using at least a font size of 12. The completed analysis (Items 1, 2, and 3a-3i) must be submitted in electronic form (a Word attachment to an e-mail to me), along with 2 hard
FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term Page 20 of 31 Pages

copies, no later than the start of class on April 19th. There is no page limit to the analysis, but I would expect most to be 10-20 pages, not including exhibits. However, even though I expect a thorough analysis, I will penalize a team severely for a lack of conciseness --- that is, the report should be written in a compendious style. At least half of the grade for the analysis will be based on how well it is written: grammar, spelling, logic, layout, etc. I expect the paper to be fully documented with footnotes (or endnotes) where needed and to have a complete bibliography. Exhibits made with Excel, PowerPoint, etc., should be cut and pasted into the electronic Word document --- you may see me if you do not know how to do this. Each team will be required to present a summary of their research and results to the class on April 19th (Company Analysis Teams 17-20) and April 21st (Company Analysis Teams 21-24). Every member should be involved in preparing the report and the presentation, but not every member has to participate in the presentation of the company report. There is a wealth of data available on-line that may be helpful when doing research for the assigned cases and the S&P 500 company report. Probably the best site to begin with is: http://web.uflib.ufl.edu/cm/business/ Other possible sources include: Yahoo Finance Quicken Value Line Microsoft Investor Thomson Analytics Analysts Reports Company Annual Reports Motley Fool Fortune Business Week Company website Trade publications PREPARING A WRITTEN FULL CASE ANALYSIS:1 Your team may wish to approach the case write-ups as if you are a consulting team (either internal or external) that has been hired by the company, and that the report that you submit will determine your career/salary future. A major portion of the grade will be based on how well the report is written. Your report is limited to a maximum of six pages (main body) plus a cover page, cover letter, and no more than four pages of attachments. You should attempt to write it in a compendious style (i.e., comprehensive, yet concise). It should have appropriate margins (1 all around), use at last an 11-point font (12 is better), and include appropriate footnotes or endnotes where required. A hard copy of the report should be stapled once in the upper, left-hand corner (do not bind or put into a cover). In addition, a complete electronic copy (including cover page, cover letter, exhibits, appendices, tables, etc.) is to be sent to the instructor as an electronic Word document by the day of the class in which it is due. Note: Attachments, such as Excel and PowerPoint, may be inserted directly into a Word document. Other attachments may need to be scanned before you can insert them. You may see me if you do not know how to do this.
FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term Page 21 of 31 Pages

I.

The objective of a case analysis is to reach a decision about the problem(s) in light of all pertinent case information and principles available from previous coursework, required readings, other reference materials, and personal knowledge. Several important steps precede the writing of a case analysis: A. The first reading of the case should be for recognition. Obtain a general idea of the type of business, the time period, and the situation that appears to exist. Subsequent readings should be for content. 1. 2. 3. 4. 5. C. Study exhibits carefully. Note the attitudes and interrelationships of the people. What does the case reveal about the industry and the economy? What events have created the need to study the situation? Become comfortable with the facts, situations, and attitudes presented.

II.

B.

Determine the principal problem(s) for analysis. Real (often unstated) problems may differ from apparent problems. Gather resources for solving the problem(s). 1. Identify the important facts that must be considered and determine how they bear upon the problem(s). Learn about the industry and the economy at the time of the case by consulting such references as periodicals. Review the principles of finance applicable to the case by studying required readings, textbooks, and other sources. Recast and interrelate existing exhibits and create meaningful new exhibits for the analysis of the problem(s).

D.

2.

3.

4.

E.

Analyze the problem. 1. Adopt a role that makes you an important participant in the case internal or external consultant, etc. Develop relevant and feasible alternative solutions and compare, contrast, and compromise among them by considering both their strengths and weaknesses.

2.

FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

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3.

Evaluate the strength of your analytical position and improve and tighten it where necessary. a. b. c. d. Have you supported your ideas and conclusions quantitatively? Are your arguments consistent with sound financial principles? Is your analysis within the constraints of the case? Have you made unnecessary assumptions or assumptions that are contrary to the facts given in the case? Have you treated all viewpoints presented in the case fairly and fully? Would you be willing to put your job and/or your money on the line based on your analysis?

e. f.

F.

Decide upon and defend the solution you will recommend based on your analysis. 1. Keep in mind that a decision must be made even though more information would appear to be desirable. A sound decision will demonstrate logical analysis, consistency between analysis and recommendations, and careful use of facts and background knowledge.

2.

III.

Organize your written analysis using the following format. Note: The exact format of the report is up to your team, but should include these basics: A. Cover sheet should include (1 page): 1. 2. 3. 4. 5. B. Name of class and section number. Name of case. Team number. Names of team members. Date

Cover letter (1 page maximum) 1. 2. Standard business format (date, address, salutation, body, ending). This is what you would send to a business along with your consulting report. It should summarize what you did and what you recommend, and inform the firm what to expect when they read your complete report.
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FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

C.

Main body of the case write-up (6 page maximum). It should include: 1. 2. Statement/discussion of the problem. Your analysis of the problem, including a thorough discussion of the results of your analysis. This is the most important part of your paper, but it is also the hardest section of the report to write well. One common problem is for students to simply report, ad infinitum, numbers from their attachments, without explaining what these numbers mean or imply. Discussion of possible solutions. Recommendations. Summary and closing.

3. 4. 5. D.

Attachments, such as exhibits, appendices, tables, graphs, etc. Tables and graphs are a good way of summarizing large amounts of data. There is a 4-page limit to the number of attachments that you may include and attachments should not be included unless they are specifically cited in the body of the report. Each write-up should be concise, demonstrate excellent grammar and composition, and be free of typing and spelling errors. 1. Observe these rules for good writing. a. b. c. d. e. f. g. h. i. j. k. Don't use no double negatives. Make each pronoun agree with their antecedent. Join clauses good, like a conjunctions should. About them sentence fragments. When dangling, watch your participles. Verbs has to agree with their subjects. Just between you and me, case is important, too. Don't write run-on sentences they are hard to read. Don't use commas, which aren't necessary. Try to not ever split infinitives. It's important to use your apostrophe's correctly.

E.

FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

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l. 2.

Proofread your writing to see if you any words out.

Edit ruthlessly. Somebody has said that words are a lot like inflated money the more of them that you use, the less each of them is worth. Right on. Go through your entire written analysis just as many times as it takes. Search out and aAnnihilate all unnecessary words, and sentences even entire paragraphs.

3.
1

Proof your report once again before turning it in!

Some of these suggestions are from a handout prepared by Professor James M. Gahlon at the University of Minnesota (1980).

PREPARING A WRITTEN CASE SUMMARY REPORT: Your team should approach the case summaries as if you are a consulting team (either internal or external) that has been hired by the company, and that the summary that you submit will determine your career/salary future. Each team is responsible for turning in summaries for all cases so marked. A major portion of the grade will be based on how well the summary is written. Your reports are limited to a maximum of three pages (main body) plus a cover page and one page of exhibits. Hard copies of the reports should be stapled once in the upper, left-hand corner (do not bind or put into a cover). In addition, a complete electronic copy (including cover page, cover letter, exhibits, appendices, tables, etc.) is to be sent to the instructor as an electronic Word document by the day of the class in which it is due. The format of the case summary should include the following: 1. Cover sheet should include: a. Name of class and section number. b. Name of case. c. Team number. d. Names of team members. e. Date. Description of the problem. (About 1/2 page) A summary of your analysis of the problem. (About 2 pages) Your recommendations. (About 1/2 page) Attachments. Attachments should not be included unless they are specifically cited in the body of the summary. (Maximum of 1 page)

2. 3. 4. 5.

FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

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SUGGESTED BOOKS FOR BOOK REVIEWS (Others are Acceptable Check with Instructor): 1. A Random Walk Down Wall Street, Burton G. Malkiel, WW Norton & Company, Inc., New York, 1999, ISBN: 0-393-04781-4. Barbarians at the Gate: The Fall of RJR Nabisco, Bryan Burrough and John Helyar, HarperCollins, New York, 1991, ISBN: 0-06-016172-8. Beating the Street, Peter Lynch (with John Rothchild), Simon & Schuster, Inc., New York, 1993, ISBN: 0-671-75915-9. Big Deal: 2000 and Beyond, Bruce Wasserman, Warner Books, New York, 2000, ISBN: 0-44652642-8. Chance, Amir D. Aczel, Thunders Mouth Press, New York, 2004, ISBN: 1-56858-316-8 Den of Thieves, James B. Stewart, Simon & Schuster, New York, 1991, ISBN: 0-671-63802-5. FIASCO: The Inside Story of a Wall Street Trader, Frank Partnoy, Penguin Books, New York, 1999, ISBN: 0-393-04622-2. Iacocca: An Autobiography, Lee Iacocca (with William Novak), Bantam Books, New York, 1984, ISBN: 0-553-05067-2. Liar's Poker : Rising Through the Wreckage on Wall Street, Michael Lewis, WW Norton & Company, Inc., New York, 1989, ISBN: 0-39-302750-3. Megatrends 2000, John Naisbitt & Patricia Aburdene, William Morrow and Company, New York, 1990, ISBN: 0-688-07224-0. Monkey Business: Swinging Through the Wall Street Jungle, John Rolfe and Peter Troob, Warner Books, New York, 2000, ISBN: 0-446-52556-1. Nightmare on Wall Street: Salomon Brothers and the Corruption of the Marketplace, Martin Mayer, Simon & Schuster, Inc., New York, 1993, ISBN: 0-671-78187-1. A Non-Random Walk Down Wall Street, Andrew W. Lo and A. Craig MacKinlay, Princeton University Press, Princeton, New Jersey, 1999, ISBN: 0-691-05774-5. Paradigm Shift: The New Promise of Information Technology, Don Tapscott and Art Caston, McGraw-Hill, Inc., New York, 1993, ISBN: 0-07-062857-2. The Predators Ball, Connie Bruck, Penguin Books, New York, 1989, ISBN: 0-14-012090-4. Soap Opera: The Inside Story of Procter & Gamble, Alecia Swasy, Times Books (Random House, Inc.), New York, 1993, ISBN: 0-8129-2060-0. Talking Straight, Lee Iacocca (with Sonny Kleinfield), Bantam Books, New York, 1988, ISBN: 0-55305270-5.
Page 26 of 31 Pages

2.

3.

4.

5. 6. 7. 8. 9.

10.

11.

12.

13.

14.

15. 16.

17.

FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

18.

The Dark Side of Valuation, Aswath Damodaran, Prentice hall, Inc., Upper Saddle River, New Jersey, 2001, ISBN: 0-13-040652-X. The Digital Economy: Promise and Peril in the Age of Networked Intelligence, Don Tapscott, McGraw-Hill, Inc., New York, 1996, ISBN: 0-07-062200-0. The Dilbert Future, Scott Adams, HarperCollins Publishers, New York, 1997, ISBN: 0-88730-866-X. The Dilbert Principle, Scott Adams, HarperCollins Publishers, New York, 1996, ISBN: 0-88730-7876. The Intelligent Investor (4th Edition), Benjamin Graham, HarperCollins, New York, 1973 (Revised 2003), ISBN #0-06-055566-1. The Meaning of the Holy Qur'an, Abdullah Ysuf Al, Amana Publications, Beltsville, Maryland, 2001, ISBN: 0-915957-76-0. The Random Walk Guide to Investing, Burton G. Malkiel, W.W. Norton & Company, Inc., New York, 2003, ISBN: 0-393-05854-9. The Rediscovered Benjamin Graham: Selected Writings of the Wall Street Legend, Janet Lowe, John Wiley & Sons, Inc., New York, 1999, ISBN: 0-471-24472-4. The Tipping Point, Malcolm Gladwell, Little, Brown and Company, New York, 2000, ISBN: 0-31631696-2. Theres no Such Thing as a Free Lunch, Milton Friedman, Open Court, LaSalle, Illinois, 1975, ISBN: 0-87548-310-0. Warren Buffet's Berkshire Hathaway: 101 Reasons to Own the World's Greatest Investment, Robert P. Miles, John Wiley & Sons, Inc., New York, 2001, ISBN: 0-471-41123-X. The Warren Buffett CEO: Secrets from the Berkshire Hathaway Managers, Robert P. Miles, John Wiley & Sons, Inc., New York, 2002, ISBN: 0-471-44259-3. The World is Flat, Thomas L. Friedman, Farrar, Straus and Giroux, New York, 2005, ISBN: 978-0374-29288-1. When Genius Failed, Roger Lowenstein, Random House, New York, 2000, ISBN: 0-375-75825-9.

19.

20. 21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

31.

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PEER EVALUATION FOR CASE PRESENTATIONS FIN 4414 2010 SPRING TERM Team # _____ Grading Rubric: Scoring from 1.0 (Poor) to 15.0 (Excellent) Criteria / Scores Introduction 1.0 (Poor) No real introduction used and/or it is underdeveloped or irrelevant. Audience has little idea of what the presentation is about. No main problem identified, or difficult to understand what the problem is and why there is a need for an analysis Methodology/analysis is not effectively explained and it is unclear what was done or why it was done Quantitative and qualitative analyses are too simplistic or convoluted to adequately analyze the case problems and the results are inadequate to support any conclusions and/or recommendations made. Exhibits are unclear, are not explained/ referenced effectively, and do not help to clarify the analysis or the results of the analysis 8.0 (Good) An adequate introduction that starts with relevant statements or humor, gets the audiences attention, and makes the audience curious to hear more about the topic. Main problem is adequately identified, although questions may remain about its importance or the need for an analysis. 15.0 (Excellent) Introduction is original, intelligent, at a level appropriate to the audience, grabs their attention, and lets them know exactly what the presentation will cover. Score

Statement of Problem

Methodology

Problem(s) clearly identified, the scope of the required analysis needed is fully developed, and leads directly into a discussion of the methodology and actual analysis performed. Methodology/analysis is Methodology/analysis is briefly explained, but need clearly explained and what more clarity as to what was was done and why it was done and why it was done. done is fully understood and makes sense Quantitative and qualitative analyses are adequate to analyze the case problems and the results are, for the most part, adequate to support some of the conclusions and/or recommendations made. Quantitative and qualitative analyses are excellent and extensive in scope and the results are able to persuasively support the conclusions and/or recommendations that may be made.

Overall Analysis: Breadth and Depth

Effectiveness of Exhibits

Exhibits require some work to be understood, clarify some aspects of the analysis and results, but may cause confusion and raise questions concerning other aspects.

Exhibits are easily understood, effectively tied into the presentation, and clearly help in understanding the analysis and the results.

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Conclusions and Recommendations

Conclusions and Conclusions and recommendations are recommendations are wrong, implausible, or do reasonable, are supported not follow logically from by the results of the analysis, but may lack the analysis. breadth and depth in terms of scope and are not persuasive. Needs significant work. Poor communication skills, reads from notes or from slides, or has back to audience. Does not address, interact, or connect with audience. Slides are text heavy, hard to read, have little substance or connection to points trying to be made. If multiple presenters, no sensible division of duties, appear to overlap, interrupt, and correct each other, or are distracting when not speaking. Generally okay, but could use some improvement. Occasional lazy articulation and use of pause words (um, uh, etc.). Tries to interact with audience, but appears somewhat uncomfortable doing so. Slides are visually appealing, but information may be unclear and does not always reinforce the points being made. If multiple presenters, they do not distract from overall presentation, but neither do they add much to it.

Conclusions and recommendations are logical, are supported by the results, have breadth and depth of scope, and are persuasive and convincing.

Good communication skills and effective presentation. Clearly articulates what was done, why, and the results. Excellent interaction with audience and appears to be enjoying the experience. Slides are appealing, well organized, and clarify and support the main points being made in the presentation and help the audience to understand what is being said. If multiple presenters, they add to the effectiveness of the presentation.

Delivery

Total Team Scores (0 - 105):

Comments:

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PEER TEAM EVALUATION FIN 4414 2010 SPRING TERM

Team _________

Evaluator

Please rank each member of your team, including yourself, and provide written comments for superior/inferior rankings. Evaluations must be turned in no later than the start of class on Wednesday, April 21st if you wish to give a pro or con evaluation. Use the following ranking criteria: +1 Contributed more than the average member of the team and should have his/her grade increased accordingly. Contributed the same as the average member of the team. Contributed less than the average member of the team and should have his/her grade decreased accordingly.

0 -1

Please note that it is mathematically impossible for all members of the team to be evaluated (ranked) as being superior to the average member of the team. Team Member Evaluations Name 1. 2. 3. 4. 5. 6. Comments (Use Additional Paper If Necessary) Rank

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FIN 4414 Syllabus Sections 2109 & 7111 2010 Spring Term

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