Name: Dr. Amir Tavakkol

Office: Calvin 104

Phone: 532-4375

E-mail: atav@ksu.edu

Office Hours: TU 9:15 - 11:15

Required:

Case Studies in Finance (3^rd edition), Robert Bruner (Irwin/McGraw-Hill, 1999)

Recommended:

1. Principles of Corporate Finance (5^th edition), Brealy, R. & S. Myers ( McGraw Hill, 1996), or any other corporate finance textbook
2. The Wall Street Journal

1. Corporate Finance (FINAN 660)
2. Working knowledge of a spreadsheet

This course is designed as a capstone, case-based course. The main objective is to exercise the application of financial concepts and theories to real-life problems and decisions in corporate finance. Analytical and critical thinking, and creative problem solving will be emphasized.

Since this is a case course, virtually all class time will be devoted to case analyses, presentation, discussion, and critique. Since all assigned cases deal with corporate finance issues, it is imperative that students attempt this course only after successful completion of Corporate Finance (FINAN 660). It is recommended that students utilize their Corporate Finance text as a reference and for making sure that their analysis are well grounded in theory. As an integral component of case analysis, spreadsheets will be utilized extensively. Therefore, it is important that students have acquired a working knowledge of a spreadsheet program.

The semester will be divided in to four sessions.

1. Ground rules and case presentations by the instructor.

Length: Six weeks

Length: Six weeks

4. The final exam case

In Rounds I and II, groups must prepare a case brief for distribution, one class period prior to their scheduled presentation of the case. The only exception is that in Round I, the alternate group's brief is not due until the presentation day. This brief should contain the presenting group's analysis of the case and should be:

• well organized,
• concisely written, and
• free of misspellings, and grammatically correct.

The brief's main body should be limited to four double-spaced pages and should consist of the following:

1. Statement of the problem (up to two paragraphs)
2. Relevant facts and assumptions (up to one page)
3. Analysis (one to three pages)
4. Recommendations (up to one page)

Supporting material, e.g., exhibits, figures, charts, analyst reports (from Bloomburg, Value Line, Moody's, Standard and Poor's, and others), statistical summaries (from Federal Reserve Bulletin, Business Conditions Digest, and others), etc. should be included in the appendix. Care should be taken to assure that such enclosures are properly identified, labeled and documented.

In preparing the brief, the presenting group should utilize all the relevant information contained in the case and may use data external to the case provided that such data does not come after the date stipulated in the case. The presentation itself should last no longer than 40 minutes, should be done professionally, utilizing state of the art presentation tools such as PowerPoint and/or professionally prepared transparencies or slides, and should not contain substantially different analysis than that contained in the brief handed out the session before. That is to say, your brief should be prepared only after the final round of analysis and revision has been performed. Use your creativity to make the brief interesting and informative.

The presenting team will be awarded grades on the basis of:

1. the thoroughness and relevance of their analysis,
2. the quality of the solutions and recommendations,
3. integration of relevant theories into the analysis,
4. the quality of oral and the written presentation of the case, and
5. the degree of preparedness in answering questions.

Individual members of the group will then be graded with adjustments for:

1. the instructor's evaluation of the individual's contribution to the presentation and the discussion of the case, and
2. a peer evaluation of his/her contribution to the analysis.

Make your presentations interesting , effective and useful by:

1. Emphasizing the more important issues.
2. Using the appropriate medium for each presentation.
3. Making each presentation (oral or visual) clear and concise, e.g. avoid displaying large spreadsheets that are hard to follow, instead use simple and clear tables.

All six groups are expected to have analyzed the case and each have prepared a brief in the same manner as discussed above. In the first round, the alternate group's brief will not be due until the day of the case presentation. This "alternate" group will be selected randomly on presentation day. This group is expected:

1. to also present their solution to the class, and
2. to do a critique of the analysis by the "designated" group.

The time allotted to the "alternate" group is 20 minutes and should, thus be allocated efficiently. The group will be awarded a grade on the basis of:

1. the thoroughness and the relevance of their analysis,
2. the quality of the solutions and recommendations,
3. integration of relevant theories into the analysis,
4. the quality of the oral and the written presentation of results, and
5. the degree of preparedness in performing a professional critique of the analysis by the "designated" group.

Individual members of the critiquing group will be graded based on the critiques' grade, adjusted by the same criteria used for the presenting group.

The rest of the class is expected to be prepared as well, and to critically question the designated or the discussing group's approach, analysis and solution and/or offer alternative solutions. This is an excellent opportunity to show your preparedness. Occasionally I will call upon individuals to respond to questions. Those who are called and found not prepared to participate will earn negative credits towards their class participation grades. (Maximum negative credit will be given to those who get called but are absent.) On the other hand, voluntary contributions to case discussions will earn the student positive credits.

In Round II of presentations, any of the six groups will have a chance to be selected as the presenting group or the alternate group.

The course grade is determined by student performance in case analyses, presentations, and class participation, and a take-home final exam case, with the following allocation of points:

Presentation as a part of the designated group 200 points

Presentation as a part of the critiquing group 200 points

Final exam case 100 points

Question/answer and attendance 100 points

Total 600 points

The final exam will consist of one case on which every individual will work and prepare a brief for. I will use the same criteria for evaluating this case that I used for other briefs.

1. Students are required to submit their e-mail address to the instructor in one week and to check their e-mail on a regular basis for messages about the course and its schedule. Also be familiar with the structure of the "S" drive, as assignments and other pertinent information will be regularly posted on this drive.
2. Plagiarism and cheating are serious offenses and may be punished by failure on the exam, paper or project; failure in the course; and/or expulsion from the university. For more information refer to Appendix F in the Faculty Handbook.
3. If you have any condition, such as a physical or learning disability, which will make it difficult for you to carry out the work as I have outlined it or which will require academic accommodations, please notify me in the first two weeks of the course.
4. The last day to drop a course with out a "w" is 18 February, and the last day to drop a course is 19 March.

Thursday, Jan. 14 Review of Syllabus

Thursday, Jan. 21 Oracle Systems Corporation (PP 74-85)

Thursday, Jan. 28 Burlington Northern Railroad Co. (PP 445-454)

Tuesday, Feb. 2 Team 1: The Battle for Value: Federal….. (PP 44-66)

Thursday, Feb. 4 Instructor Discussion

Tuesday, Feb. 9 Team 2: Padgett Paper Product, Co. (PP 102-117)

Thursday, Feb. 11 Instructor Discussion

Tuesday, Feb. 16 Team 3: The Boeing 777 (PP 198-215)

Thursday, Feb. 18 Instructor Discussion

Tuesday, Feb. 23 Team 4: Empirical Chemicals, Ltd. (PP 237-245)

Thursday, Feb. 25 Instructor Discussion

Tuesday, Mar. 2 Team 5: Glaxo Italia S.P.A. (PP 252-273)

Thursday, Mar 4 Instructor Discussion

Tuesday, Mar. 9 Team 6: Donaldson, Lufkin & Jenerette 1995 (PP 308-338)

Thursday, Mar. 11 Instructor Discussion

Tuesday, Mar. 16 Team 1: MCI Communications Corp. (PP 353-363)

Thursday, Mar. 18 Instructor Discussion

Tuesday, Mar. 29 Team 2: Planet Copias & Imagem (PP 402-432)

Thursday, Mar. 31 Instructor Discussion

Tuesday, Apr. 6 Team 3: Boston Chicken, Inc. (PP 455-471)

Thursday, Apr. 8 Instructor Discussion

Tuesday, Apr. 13 Team 4: McCaw Cellular Communications (PP 523-561)

Thursday, Apr. 15 Instructor Discussion

Tuesday, Apr. 20 Team 5: Mirth Press (PP 602-621)

Thursday, Apr. 22 Instructor Discussion

Tuesday, Apr. 27 Team 6: The Proctor & Gamble Company (PP 708-723)

Thursday, April 29 Instructor Discussion

Thursday, May 6 Final Exam Case "The Home Depot Inc." (PP 850-871)

Due