FIN 4414 Financial Management Tentative Course Syllabus Spring 2012 Term

INSTRUCTOR: Dr. T. Craig Tapley, DBA Graham-Buffett Master Lecturer of Finance Section: Section: Room: 2109 Monday and Wednesday, Periods 3-4 ( 9:35 a.m. 11:30 a.m.) 2111 Monday and Wednesday, Periods 5-6 (11:45 a.m. 1:40 p.m.) 120 Matherly Hall

Office Hours: Tuesday (11:00 a.m. - 12:00 p.m.) and Wednesdays (2:00 p.m. - 3:00 p.m.) CONTACT INFORMATION: Office: Phone: Fax: E-Mail: 329 David Stuzin Hall (352) 392-6654 (352) 392-5237 ctapley@ufl.edu http://lss.at.ufl.edu/

Class Webpage (Sakai):

COURSE MATERIALS: TEXTBOOK 1. Financial Management: Theory and Practice (13th Edition), Eugene F. Brigham and Michael C. Ehrhardt, Thompson/South-Western, 2011, ISBN-13: 978-1-4390-7809-9. You may rent an electronic copy of the textbook through CourseSmart (www.coursesmart.com) or rent an electronic or physical textbook through the UF bookstore. The official textbook for the class, in print, would 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, you must purchase the case packet for the course and, because of royalties that must be paid, it is somewhat expensive. Therefore, in order to save money on your textbook, you may, instead, purchase the 10th, 11th, or 12th Edition of the book, typically at a cheaper price, through various online booksellers. However, there are minor differences between the 10th, 11th, 12th, and 13th 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
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map the chapters in the other editions to those assigned in the 13th 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, you may also purchase the 10th or 11th 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 #9-402-032, 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. Clarkson Lumber Company, Harvard Business School Case 9-297-028, Harvard College, Revised 10/96, 6 Pages. Panera Bread Company, Marc Lipson, Darden Graduate School of Business Administration Case #UVA-F-1575, University of Virginia, 2009, 8 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. "The O.M. Scott & Sons Company", Harvard Business School Case #9-209-102, Harvard College, Revised 02/84, 11 Pages. Grand Metropolitan PLC, Michael Levy, Robert F. Bruner, Philippe Demigne, JeanChristophe Donek, Bertrand George, Darden Graduate School of Business Administration Case #UVA-F-1019, University of Virginia, Revised 03/98, 17 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. 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.

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Kota Fibres, Ltd., Robert F. Bruner and Thien T. Pham, Darden Graduate School of Business Administration Case #UVA-F-1359, University of Virginia, 2001, 18 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. The Acquisition of Consolidated Rail Corporation (A), Matthew Mateo Millett and Benjamin C. Esty, Harvard Business School Case # 9-298-006, Harvard College, Revised 05/01, 17 Pages. The Acquisition of Consolidated Rail Corporation (B), Matthew Mateo Millett and Benjamin C. Esty, Harvard Business School Case 9-298-095, Harvard College, Revised 05/01, 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.
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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 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 (you will be a member of 2 Team Groups: 1-8 and 9-16): Each case team must present a case in class (see Page 21 for details). These presentations will be videotaped and all members of the team must take part in the presentation. Case Evaluation Teams: 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: 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 23 for format). Case Evaluation Teams: Each case team must provide the instructor with written case summaries for all cases so marked (see Page 26 for format). Company Analysis Team (you will be a member of 1 Team Group: 17-24): Each company analysis team must perform a strategic corporate analysis of an S&P 500 company, create a Pitch Book, and then pitch their buy/sell recommendation (see Page 21 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. Please note that Section 2109 starts at 9:35 a.m., while Section 2111 starts at 11:45 a.m. You are expected to be in class, seated, prepared, and ready to start at these times. If you can not get to class at these times, please drop the class and select another section for the spring term: would you waltz into a
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FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

meeting with your boss 5, 10, or 15 minutes late? 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. 2. 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 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. Each student will be required to complete two midterm exams to be held, in class, on March 14th and April 18th. 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.

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For extra credit, students may read and review the following book: The Black Swan (Second Edition): The Impact of the Highly Improbable with a New Section On Robustness and Fragility, by Nassim Nicholas Taleb, May 11, 2010, Random House, New York. The book can be purchased through Amazon.com in paperback for $10.41 (or less) or on Kindle for $12.99. It may also be available through the UF or one of the local libraries. Book reviews (both a hard copy and an electronic copy posted to Sakai) will be due at the start of class on Monday, April 9th. Bonus points (up to 3 points) will be awarded based on the quality of the write-up. Late reviews will not be accepted.

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): Company Analysis & Pitch Book 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
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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 relative class rank.

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

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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 and will be checked for all assignments.

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TENTATIVE SCHEDULE AND READING / CASE / ASSIGNMENT LIST WEEK 1 Monday January 9 Topics: __________ Video: __________ Note: Introduction and Overview of Course

Warren Buffet Talks Business

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 16th, meet with your Case Teams (1-8 and 9-16) and Company Analysis Teams (17-24). Each team should then write up (collectively) a 1-page summary of how the team hopes to structure itself, interact, complete assignments, and the teams goals for the semester. Write-ups are due at the start of class on Wednesday, January 25th.

Assignment:

Wednesday January 11 Textbook: Chapter 12 - Financial Planning and Forecasting Financial Statements Web Extension: Financing Feedbacks Web Extension: Advanced Techniques for Forecasting Statements Accounts Read the chapter and web extensions, and review the lecture slides (see Sakai, Week 1) before coming to class, so that you will be prepared for in-class exercises.

Assignment: __________ Case:

Body Shop International Plc 2001: An Introduction to Financial Modeling, Robert M. Conroy and Robert F. Bruner, Darden Graduate School of Business
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FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

Administration Case #UVA-F-1349, University of Virginia, Revised 10/8/2001, 18 Pages. Case File: Assignment: Case - New Body Shop.xls 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.

__________ Video: Warren Buffett and Bill Gates WEEK 2 Monday January 16 No Class: Martin Luther King Holiday

Wednesday January 18 Pictures: __________ Case: Starter Questions: Team Pictures at Start of Class

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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Assignment:

Individuals should prepare the Clarkson Lumber Company case for in-class discussion. No formal write-up is required.

Thursday January 19 Reception: Craig and Trish Tapleys home from 7:00 9:00 p.m. See Page 31 for a map to the house. WEEK 3 Monday January 23 Case: Panera Bread Company, Marc Lipson, Darden Graduate School of Business Administration Case #UVA-F-1575, University of Virginia, 2008, 8 Pages. Case - Panera Bread.xls Complete the financing portion of Panera Bread Companys 2007 forecast financial statements, and provide a forecast for the next five years (note in Exhibit 3 that the amount of debt, equity, and interest expense is missing; you may assume that taxes will remain at 31,500 for 2007). As an initial (base case) analysis, assume all borrowings are some form of debt. You may also assume the share repurchase occurs in 2008 and that interest expense is equal to 6% of outstanding debt. Assume sales growth of 25% for the first two years after 2007 and 5% thereafter. Note that you need not provide a detailed forecast of the current asset and current liability accounts. Given the need for external sources of capital, please contrast the desirability of external equity, a long-term note payable, and a short-term revolving line of credit. Assignment: Teams 1-8 should prepare the Panera Bread Company case for in-class discussion. Bring an electronic copy of your model (disk, zip, memory stick, etc.) to class and be prepared to present it to the class. No formal write-up is required.

Case File: Starter Questions:

Wednesday January 25 Textbook: Chapter 9 - The Cost of Capital Web Extension: Estimating Growth Rates Web Extension: The Cost of Equity in the Nonconstant Dividend Growth Model Read the chapter and web extensions, and review the lecture slides (see Sakai, Week 3) before coming to class, so that you will be prepared for in-class exercises.

Assignment: __________ Case:

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.
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FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

Starter Questions:

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.) 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:

Teams 1-8 should prepare the Warren E. Buffett, 1995 case for in-class discussion. No formal write-up is required. WEEK 4

Monday January 30 Textbook: Chapter 2 - Financial Statements, Cash Flows, and Taxes Chapter 3 - Analysis of Financial Statements Briefly review the chapters (especially free cash flow and economic value added), and review the lecture slides (see Sakai, Week 4) before coming to class.

Assignment: __________ Note:

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.

__________ 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

Case File:

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Starter 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? Can 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. No formal write-up is required.

Wednesday February 1 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. Nor formal write-up is required.

Starter Questions:

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WEEK 5 Monday February 6 Textbook: Chapter 10 - 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 Chapter 11 - Cash Flow Estimation and Risk Analysis Web Extension: Replacement Project Analysis Web Extension: Certainty Equivalents and Risk-Adjusted Discount Rates Chapter 13 - Corporate Valuation, Value-Based Management, and Corporate Governance Read the chapter and web extensions, and review the lecture slides (see Sakai, Week 5) before coming to class, so that you will be prepared for in-class exercises.

Assignment:

Wednesday February 8 Case: Grand Metropolitan PLC, Michael Levy, Robert F. Bruner, Philippe Demigne, Jean-Christophe Donek, Bertrand George, Darden Graduate School of Business Administration Case #UVA-F-1019, University of Virginia, Revised 03/98, 17 Pages. GRANDMET.XLS What is your estimate of the pound-based weighted average cost of capital for Grand Metropolitan PLC? What discount rate(s) should GrandMet use for valuing new investments in its foods, retailing, and drink segments? Assume that the cash flows to be valued are in British pounds. What are the relevant dollar-based WACCs for the three segments and the GrandMet group? This question invites (expects) you to prepare dollar-based discount rates with which to value dollar cash flows for drinks, foods, and retailing, and for a portfolio of businesses like GrandMet. Assignment: Teams 1-8 should prepare the Grand Metropolitan PLC case for presentation and in-class discussion. Presentation by Case Teams 1 and 2. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups and summaries are due at the start of the class. Full case write-ups by Case Teams 1 and 2. Case summary write-ups by all other teams (1-8).

Case File: Starter Questions:

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WEEK 6 Monday February 13 Video: The Warning

Wednesday February 15 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 risk-free rate did you use? Why? Which capital-structure weights did you use? Why?

Starter 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 3 and 4. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups and summaries are due at the start of the 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 20 Textbook: Chapter 8 - Financial Options and Applications in Corporate Finance Web Extension: The Binomial Approach Chapter 25 - Real Options Web Extension: The Abandonment Real Option Web Extension: Risk-Neutral Valuation Read the chapter and web extensions, and review the lecture slides (see Sakai, Week 7) before coming to class.
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Assignment:

FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

Wednesday February 22 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 Case - Glaxo Interest Rate Parity.ppt 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: The Zinnat Marketing Decision case for presentation and in-class discussion. Presentation by Case Teams 5 and 6. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups and summaries are due at the start of the 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 27 Video: Daniel Pink: A Whole New Mind

Case File:

Starter Questions:

Wednesday February 29 Case: Kota Fibres, Ltd., Robert F. Bruner and Thien T. Pham, Darden Graduate School of Business Administration Case #UVA-F-1359, University of Virginia, 2001, 18 Pages.
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FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

Case File:

Case - Kota Fibres.xls Case - Kota Fibres And Changes in Inventory Ordering Pattgerns.xls How did Mehta construct his financial forecast? Using the financial forecast, prepare to show the cash cycle of the firm (i.e., the flow of funds through the working-capital accounts of the firm). Examine the exhibits in the case. On the basis of Mehtas forecast, how much debt will Kota need to arrange for the coming year? Will Kota be able to repay the line of credit this year? Why do Kotas financial requirements vary across the year? What are the key determinants of Kotas borrowing needs? Please exercise the spreadsheet model to identify the critical forecast assumptions. Consider the four memos that Pundit received. Use your intuition to assess the desirability of two of the proposals: Pondicherry Textiles request for credit: What will be this proposals effects on accounts receivable and debt balances across the year? The level-production proposal: If Kota undertakes level production now, at the low point of the annual business cycle, what is the likelihood of inventory stockouts at the peak of the business cycle? If Kota undertakes level production just after the peak, what will happen to inventory and debt balances at the cyclical low? Are these proposals likely to relieve, or worsen, Kotas ability to clean up its bank loan by the end of 2001? What action should Pundit take on these two proposals? Assess the impact of the other two proposals intuitively and then analyze them with the aid of the computer-spreadsheet model. What action should Pundit take on these two proposals (note that the forecasting model incorporates a circular references among the financial statements)? The new inventory policy proposal: (Hint: purchases will be a percentage of next months sales, and wages will be a percentage of this months purchases.) What effect will this scheme have on inventory and debt balances? To see whether the effect will be material, reforecast the financial statements based on an adjustment to the purchases/sales ratio that produces the desired reduction in the final inventory balance (in the model, purchases drive wages and, hence, inventory). Hibachi Chemicals just-in-time (JIT) proposal: (Hint: assume that this proposal will reduce 35% of the firms inventory to about 5% of its former balance.) What will be this proposals effect on inventory and debt balances? To see whether the effect is material, reforecast the financial statements based on an adjustment to the purchases/sales ratio. Why does the bank require a 30-day clean-up of the loan? Should the bank

Starter Questions:

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continue to waive compliance with this covenant? Identify the three most important actions or policies that Pundit should take. What should she say to the bank? To the customers? Assignment: Teams 1-8 should prepare the Kota Fibres, Ltd. case for presentation and in-class discussion. Presentation by Case Teams 7 and 8. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups and summaries are due at the start of the 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 5 No Class: Spring Break

Wednesday March 7 No Class: Spring Break WEEK 10 Monday March 12 Assignment: Catch-Up Day, If Needed

Wednesday March 14 Midterm: In-Class Exam WEEK 11 Monday March 19 Textbook: Chapter 15 - Capital Structure Decisions Web Extension: Degree of Leverage Chapter 26 - Analysis of Capital Structure Theory Read the chapter and web extensions, and review the lecture slides (see Sakai, Week 11) before coming to class, so that you will be prepared for in-class exercises.

Assignment:

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Wednesday March 21 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: The Acquisition of Consolidated Rail Corporation (A), Matthew Mateo Millett and Benjamin C. Esty, Harvard Business School Case 9-298-006, Harvard College, Revised 05/01, 17 Pages. This case is background for the B case below. Why does CSX want to buy Conrail? How much should CSX be willing to pay for it? Analyze the structure of CSXs offer for Conrail: Why did CSX make a two-tiered offer? What effect does this structure have on the transaction? What are the economic rationales for and the takeover implications of the various provisions in the merger agreement (i.e., no talk clause, lock-up options, break-up fee, and poison pill shareholder rights plan)? As a Conrail shareholder, would you tender your shares to CSX at $92.50 in the first-stage offer? __________ Case: The Acquisition of Consolidated Rail Corporation (B), Matthew Mateo Millett and Benjamin C. Esty, Harvard Business School Case 9-298-095, Harvard College, Revised 05/01, 17 Pages. Why did Norfolk Southern make a hostile bid for Conrail? How much is Conrail worth? In a biding war, who should be willing to pay more, Norfolk Southern or CSX? Why does CSX refer to Norfolk Southerns bid as non-binding? What should Norfolk Southern do as of mid-January 1997? As a shareholder, would you vote to opt-out of the Pennsylvania anti-takeover statute? What do the capital markets expect will happen? What are the costs and benefits of regulating the market for corporate control through statutes such as Pennsylvanias anti-takeover law? Assignment: Teams 9-16 should prepare The Acquisition of Consolidated Rail Corporation (B) case for presentation and in-class discussion. Presentation by Case Teams 9 and 10. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups

Starter Questions:

Starter Questions:

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and summaries are due at the start of the class. Full case write-ups by Case Teams 9 and 10. Case summary write-ups by all other teams (9-16). WEEK 12 Monday March 26 Video: The Meltdown

Wednesday March 28 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. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups and summaries are due at the start of the class. Full case write-ups by Case Teams 11 and 12. Case summary write-ups by all other teams (9-16). WEEK 13 Monday April 2 Textbook: Chapter 16 - 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
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Starter Questions:

FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

Assignment:

Read the chapter and web extensions, and review the lecture slides (see Sakai, Week 13) before coming to class, so that you will be prepared for in-class exercises.

Wednesday April 4 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? 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. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups and summaries are due at the start of the 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 9 Textbook: Assignment: Chapter 23 - Derivatives and Risk Management Read the chapter and web extensions, and review the lecture slides (see Sakai, Week 14) before coming to class, so that you will be prepared for in-class exercises.

Starter Questions:

__________ Assignment: Book Review for Extra Credit. Electronic copies must be posted by 8:00 a.m. on the day of the class. Hardcopies are due at the start of the class.

Wednesday April 11 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. Case - Polaroid Corporation, 1996.xls

Case File:

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Starter Questions:

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?

Assignment:

Teams 9-16 should prepare the Polaroid Corporation, 1996 case for presentation and in-class discussion. Presentation by Case Teams 15 and 16. Electronic copies of the case write-ups and summaries must be posted by 8:00 a.m. on the day of the class. Hardcopies (already stapled) of the case write-ups and summaries are due at the start of the 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 16 Assignment: Catch-up Day, If Needed.

Wednesday April 18 Midterm: In-Class Exam

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Friday April 20 Assignment: Electronic copies of the Pitch Books must be submitted to Sakai by 12:00 noon. WEEK 16 Monday April 23 Assignment: Hard copies of the Pitch Books are due from all teams (Company Analysis Teams 17-24) at the start of class. Peer team evaluations (all teams, 1-24) are due at the start of class (see Page 30). Pitch Book Presentations (Company Analysis Teams 17-20).

Assignment: Assignment:

Wednesday April 25 Assignment: Pitch Book 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 (see the class webpage Lessons > Class handouts, Files, and Zip Folders for an example of a full case write-up and PowerPoint presentation). 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.

COMPANY ANALYSIS & PITCH BOOKS: One of the abilities that any graduate of a business program should have is to be able to evaluate, fully understand the current status and financial health of a company in comparison to other firms within its industry, and value the company. 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 the value of 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.

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To help you develop this ability, Teams 17-24 will each 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), preparing pitch books, and presenting the results of their analysis; sample pitch books are on the class webpage. Note: you may not use any company that any member of the group (or friend, roommate, etc.) has analyzed in any prior class. Since a company cannot be fully understood in a vacuum, you may wish to consider some of the following factors when creating your pitch book; that is, although you do not have to explicitly discuss some of these topics within the pitch book, they may have an impact on your valuation of the company and your eventual buy/sell/hold recommendation. 1. 2. 3. The economic climate. Industry analysis. Firm analysis: a. Overview: The company: description of its major businesses, size, where it is located, etc. Recent earnings and stock price performance over time, relative to peers and the market. b. Companys management team and corporate governance: Background of management. Assessment of performance. Board of Directors. Ownership profile. Compensation policies. c. Other Issues --- e.g. takeover defenses, dissident shareholders etc. d. Detailed financial analysis --- tear the numbers apart: income statement, balance sheet, capital structure, dividend policy, capital budgeting expenditures, R&D, pension liabilities, impact of union contracts, credit rating, funding requirements, ROE, ROA, stock price, growth, legal problems, etc. Whats good? Whats bad? e. Financial comparison to the industry. f. Potential consequences of future economic conditions. g. Strengths, weaknesses, opportunities, and threats (SWOT) analysis. h. 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. i. 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 (DCF, multiples, etc.), and conclusions.

The completed analysis (i.e., the pitch books) must be posted in electronic form (a PDF file) to Sakai by noon on Friday, April 20th, so that the class can review them before pitches are actually made. A hard copy should also be submitted to me no later than the start of class on Monday, April 23rd. There is no page limit to the analysis. At least half of the grade for the analysis will be based on the overall style of the pitch book and how well it is written: including grammar, spelling, logic, layout, etc. Please note that your Pitch Book is not simply a print-out of the PowerPoint slides you will use for your presentation. These are two, totally different, items. Teams 17-20 will be required to present their pitch to the class on Monday, April 23rd, while Teams 21-24 will be required to present their pitch to the class on Wednesday, April 25th. Every member should be involved in preparing the report and the presentation, but not every member has to participate in the actual presentation of the pitch book; there will probably not be sufficient
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time for everyone on the team to present. Presentations will be held to a strict time limit of 20 minutes; time will be called and you will be required to stop, whether you have finished your presentation or not. I will then ask students to rank the presenting teams (rank from 1 (best) to 4 (worst)) that have presented that day. Again, please note that your Pitch Book is not simply a printout of the PowerPoint slides you will use for your presentation. These are two, totally different, items. There is a wealth of data available on-line that may be helpful when doing research for the company analysis. 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 should 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). Standard business writing format is expected: section headers, no indentation of paragraphs, single-spaced paragraphs, double space between paragraphs, page numbers, 1 inch margins (all sides), left justified, include appropriate footnotes or endnotes where required, and please use at least an11-point font. A hard copy of the report should be stapled once in the upper, left-hand corner (do not bind or put into a cover). The hard copy is due at the start of the class. In addition, a complete electronic copy (including cover page, cover letter, exhibits, appendices, tables, etc.) is to be posted to Sakai as an Adobe Acrobat (PDF) document by 8:00 a.m. on the day of the class. Note: Attachments, such as Excel and PowerPoint, may be inserted directly into a Word document. You may see me if you do not know how to do this. 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.
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FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

II.

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. Study exhibits carefully. 2. Note the attitudes and interrelationships of the people. 3. What does the case reveal about the industry and the economy? 4. What events have created the need to study the situation? 5. Become comfortable with the facts, situations, and attitudes presented. 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). 2. Learn about the industry and the economy at the time of the case by consulting such references as periodicals. 3. Review the principles of finance applicable to the case by studying required readings, textbooks, and other sources. 4. Recast and interrelate existing exhibits and create meaningful new exhibits for the analysis of the problem(s). Analyze the problem. 1. Adopt a role that makes you an important participant in the case internal or external consultant, etc. 2. Develop relevant and feasible alternative solutions and compare, contrast, and compromise among them by considering both their strengths and weaknesses. 3. Evaluate the strength of your analytical position and improve and tighten it where necessary. a. Have you supported your ideas and conclusions quantitatively? b. Are your arguments consistent with sound financial principles? c. Is your analysis within the constraints of the case? d. Have you made unnecessary assumptions or assumptions that are contrary to the facts given in the case? e. Have you treated all viewpoints presented in the case fairly and fully? f. Would you be willing to put your job and/or your money on the line based on your analysis? 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.

B.

C.

D.

E.

F.

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2.

A sound decision will demonstrate logical analysis, consistency between analysis and recommendations, and careful use of facts and background knowledge.

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. Name of class and section number. 2. Name of case. 3. Team number. 4. Names of team members. 5. Date Formal cover letter (1 page maximum) 1. Standard business format (date, address, salutation, body, ending, single spaced, block paragraphs, no indents, double space between paragraphs, left justified, etc.). 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.

B.

2.

C.

Main body of the case write-up (6 page maximum). It should include: 1. Statement/discussion of the problem. 2. 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. 3. Discussion of possible solutions. 4. Recommendations. 5. Summary and closing. 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. Don't use no double negatives. b. Make each pronoun agree with their antecedent. c. Join clauses good, like a conjunctions should. d. About them sentence fragments. e. When dangling, watch your participles.
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D.

E.

FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

f. g. h. i. j. k. l. 2.

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. 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! PROOF!! PROOF!!!2

Some of these suggestions are from a handout prepared by Professor James M. Gahlon at the University of Minnesota (1980). All papers should be proofed by all members of the team. If I encounter more than 2-3 proofing errors, I will stop grading the paper, in which case the maximum grade the paper can receive is 60 points.

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. You should attempt to write it in a compendious style (i.e., comprehensive, yet concise). Standard business writing format is expected: section headers, no indentation of paragraphs, single-spaced paragraphs, double space between paragraphs, page numbers, 1 inch margins (all sides), left justified, include appropriate footnotes or endnotes where required, and please use at least 11-point font. A hard copy of the summary report should be stapled once in the upper, left-hand corner (do not bind or put into a cover). The hard copy is due at the start of the class. In addition, a complete electronic copy (including cover page, exhibits, appendices, tables, etc.) is to be posted to Sakai as an Adobe Acrobat (PDF) document by 8:00 a.m. on the day of the class. The format of the case summary should include the following: 1. Cover sheet should include:

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a. b. c. d. e. 2. 3. 4. 5.

Name of class and section number. Name of case. Team number. Names of team members. 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)

CREATING PDF DOCUMENTS: If you are using a Mac computer, you automatically have the ability to save your document in PDF format through the Macs print function. If you are using a Windows-based computer, and do not have Adobe Acrobat, you may install and use CuteWriter to create PDF documents. There is a file under Class Handouts <Using CuteWriter to Create PDF Documents> that will show you how to install and use this program. You may also download a free Adobe Acrobat Reader by going to: http://www.adobe.com/downloads/ and selecting Get Adobe Reader on the right of the screen.

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PEER EVALUATION FOR CASE PRESENTATIONS FIN 4414 2012 SPRING TERM Team #____________ Section #_____________ 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 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

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.

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 the analysis. analysis, but may lack 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 2012 SPRING TERM

Team ______

Section __________

Evaluator ______________________________________

Please rank every other member of your team (DO NOT include yourself), and provide written comments for superior/inferior rankings. Evaluations must be turned in no later than the start of class on Monday, April 23rd. 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, since you are not including yourself, it is mathematically possible (sort of) for all other members of the team to be evaluated (ranked) as being superior/inferior to the average member of the team. However, this is highly improbable. Team Member Evaluations Name 1. 2. 3. 4. Rank

Comments (Use Additional Paper If Necessary)

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FIN 4414 Syllabus Sections 2109 & 2111 2012 Spring Term

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