The format for the presentation and report is as below:

1. Industry overview
2. SWOT analysis of the company
3. Financial statement analysis (ratios, Dupont-type analysis and their trends) over the
past 3-5 years
4. Firm and equity valuation using one or more of the methods discussed in class: DDM,
DCF and Residual Income. You can use analysts' consensus forecasts for coming up
with the value. In case you have used only one valuation method, you have to justify
the choice: in case you have used more than one, suggest which is more appropriate
and justify. Also, show how you arrived at the cost of capital you have used. You may
want to use the Fama French factors on value (HML), size (SMB) as well as
momentum (MOM). The data is available at:
http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html.
5. Sensitivity analysis: provide a range of equity values for the companies based on
variation in one or more of the valuation parameters. Discuss the results.
6. Accounting and governance flags: separately discuss accounting quality and any
concerns about the corporate governance of the company.
7. Based on the analysis above, you should have a buy/hold/sell recommendation.
However, I am also looking for how well you have understood the firm's past
performance and what is expected in the future. So try to have some compelling
arguments to support your conclusion - both when you present it to the class as well
as in your report. Comparing and contrasting the two companies is required.
Other administrative details

Course materials will be posted on moodle. Graded exams will be available at the
PGP office for student review.
Students are expected to come to every class. Proxy attendance will not be
tolerated under any circumstances.
Emails must include a short description of the issue in the subject area.
All students are expected to behave with honesty and integrity. Do not plagiarize
and cheat in either projects or exam.
Class Schedule

Clas
s
1
2
3
4
5
6

Topic
Introduction
Intrinsic Valuation
-1
Intrinsic Valuation
-2
Intrinsic Valuation
-3
Financial
Statements -1
Financial
Statements - 2

Description
Present value
concepts
Dividend discount
model
Free cash flow model
Abnormal earnings
model
Statements and line
items
MD&A, Notes

Companies

Source

Verizon
Anheuser-Busch and
InBev

Self
Sandretto

Borders and B&N

Self

ConEd
Apple

Self
Self/
Sandretto

Roche

Self

Krispy Kreme
Restaurant Industry
Ratios

HBS

Quiz 1
7

Ratio Analysis - 1

Dupont breakdown

Ratio Analysis - 2

Reformulated ratios

Parameters - 1

Cost of capital

Parameters - 2
Relative Valuation 1

Growth

10
11

Definitions

HBS

12

Relative Valuation 2

PE vs PB drivers

Google

Self

Real options

MW Petro

HBS

M&A, LBO

Seagate

Quiz 2

15

Contingent
Valuation - 1
Contingent
Valuation -2
Special situations 1

16

Special situations 2

Negative earnings,
IPO

GM; UPS

HBS
Self/
Sandretto;
HBS

17

Forecasting

18

Quality

Simple vs Detailed
Accounting and
Governance

Barclays

Sandretto

19

Review

For Final Exam

20

Presentation

Project presentation

13
14

Option pricing models

Please note that the cases sourced from Sandretto are still being processed for
procurement. In the event these are not available, I will provide alternative companies
for discussion.

11.

Investment Analysis and Portfolio Management (FI-262)

INDIAN INSTITUTE OF MANAGEMENT CALCUTTA
Investment Analysis and Portfolio Management
Term IV, 2014-2015
Course Outline, Instructor: Prof. Nivedita Sinha

Objective: This course has been designed to introduce students to the area of investment in financial assets. No
other segment of finance has been impacted more by the theories of finance as this one. The course is a
judicious blend of theory and practice. The latter will be brought in through exposure to various institutional
practices and also through discussion of contemporary cases. The students, in this course, will be equipped with
tools for determining investment objectives, combining individual assets into portfolios, managing the portfolio,
mitigating risks through derivatives and finally, measuring the portfolio performance. Students will have an
opportunity to put into practice some of the tools and also exploring original ideas in actually managing a
dummy portfolio.
Those who are interested in fund management in asset management companies or in financial institutions will
find this course useful. Also this will come in handy for those who aim for personal financial advising in an
institution or in individual capacity.
Recommended Textbook: Investments - Bodie, Kane, and Marcus, 9th edition McGraw Hill
Additional Material: Investment Analysis and Portfolio Management Reilly & Brown, 9th edition
(International Student Edition), Thompson South-Western.
Tentative lecture schedule is as follows.
Lecture #
Topics
Introduction to Investment Marketplace
1
Reading: Chapters 1,2,3,4
Portfolio Theory
2
Reading: Chapter 7
3
Portfolio Theory continued

Reading: Chapter 7
Asset Pricing Models
Reading: Chapter 8

Factor Models
Reading: Chapter 8
Case discussion: Dimensional Fund Advisors
Alternative Investments
Reading: Chapter 10
Technical Analysis
Reading: Chapter 27, Technical Analysis in the Indian Capital Market A survey
Sehgal & Gupta, Decision, vol 32, no. 1, 91-122.
International Diversification
Reading: Chapter 25
Tutorials I (On Portfolio Optimization) & Assignment I presentation
Bloomberg Exercises I
Passive Management & Theory of Active Portfolio Management
Readings: Chapter 27
Equity markets
Readings: Chapter 17,18,19
Fixed Income securities
Readings : Chapter 14,15,16
Derivatives in Portfolio Management
Reading: Chapter 20,21,22,23
Investment Management Process, Portfolio Allocation, Market timing and Sector Rotation
Portfolio Performance Measurement
Reading: Chapter 24

5
6
7
8
9
10
11
12
13
14
15
16
17

Portfolio Performance Measurement continued

Case/ Article on Portfolio Performance Measurement
19
Tutorials II (on excel ) & Assignment II presentation by groups
20
Bloomberg Exercises II
Articles, cases and Chapters may be added, rescheduled or substituted as and when it becomes necessary. You
are expected to be familiar with the reading material prior to attending the class. Questions will be provided to
groups as part of Bloomberg exercises.
Evaluation and distribution of weights:
Individual Activity
Quiz (1)
: 20%
Final Examination
: 30%
Group Activity
Bloomberg Exercises (2)
: 20%
Assignments (2)
: 20%
Case & Article Presentation
: 10%
18

12.

Corporate Restructuring (FI-265)

Course Name
Term
Name of Course Coordinator
Name of the Instructor

Corporate Restructuring
PGP II, Term IV
Prof. Ashok Banerjee
Prof. Ashok Banerjee

Objectives
The objective of the course is to aware students about the various strategic ways to achieve
superior corporate performance. Many Indian companies have adopted maximising longterm shareholder value as the central corporate objective. Enhancing long-term shareholder

value involves managing costs, driving margins, managing capital structure, and inorganic
growth through acquisitions and divestiture. The course would start with cost management
issues- making students aware that cost consciousness is vital to sustain profitability. Then it
would discuss several value creating strategies- creating shareholder value to unlocking
shareholder value. Finally, we would study the linkage between employee performance and
corporate objective- how employees can be motivated to act as owners.

Session Plan:
Session

Description

Shareholder Vs. Stakeholder Theory

Agency theory and problem of free cash flows
Excess capacity problems
Essence of Corporate Restructuring
Strategic Control Map
Readings :
a) Agency costs of Free Cash Flows, Corporate Finance and takeovers
b) Value maximizations, Stakeholder Theory & the corporate Objective
c) Petroleum after the mega mergers
d) Bank of America round table on Corporate Finance
e) U.S. Corporate Governance: Accomplishments and Failings