7/29/2019 5033SYLSpr2008-Temporary1

1/4

FINANCE 5033Spring 2008

Instructor: Keith Wm. FairchildOffice: BB 4.02.54

TTh 4:30 - 5:30pm

W 6:00 7:00pmand by appointment

phone: 458-5307e-mail:keith.fairchild@utsa.eduwebsite: faculty.business.utsa.edu/kfairchild

Objectives: The course focuses on a wide variety of corporate activities and the variouscomplex problems that financial decision-makers face. The application oftheoretical as well as practical concepts to problems requiring analyses of astrategic nature, both quantitative and qualitative, is explored, as well as theability to communicate the rationale underlying the ultimate recommendation inboth an oral and written manner. While the class will largely be taught from thevantage point of a financial manager, the broader policy and strategicconsiderations of an entire organization will provide the central theme of thecourse.

Prerequisites: FIN 5023

Text: No text is required for this course. Instead, a selection of cases andreadings will be used, most of which will be available from the Harvard BusinessOnline publications website. In addition, there will be supplemental postings onmy course website(http://faculty.business.utsa.edu/kfairchild/classes/5033/5033.htm). The textbookused in FIN 5023 provides an excellent reference source for students.

The Harvard Business publications are available via the following link:http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?

name=cp&c=c69054The price is $3.95 per item which you can download directly. Do NOT pay

more than this amount.

COURSE STRUCTURE:

Grades for Finance 5033 will be determined on the basis of a maximum 100 point scale.The components and weights of the factors contributing to this total are as follows:

Case Presentation #1 25%Case Presentation #2 25%Final Case Analysis 30%Peer Evaluation 10%Instructor Evaluation 10%

Total 100%

The grading of case presentations will be partly determined by fellow classmates who will rate

mailto:keith.fairchild@utsa.edumailto:keith.fairchild@utsa.eduhttp://faculty.business.utsa.edu/kfairchild/classes/5033/5033.htmhttp://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=cp&c=c69054http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=cp&c=c69054mailto:keith.fairchild@utsa.eduhttp://faculty.business.utsa.edu/kfairchild/classes/5033/5033.htmhttp://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=cp&c=c69054http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=cp&c=c69054

7/29/2019 5033SYLSpr2008-Temporary1

2/4

each group's relative performance of oral presentations in terms of the quality of the presentationand decision, with the other portion of the grade being the instructor's evaluation of each group'saccompanying written report. Finally, because each student will be working in a group whereonly the composite effort is evaluated, each member in each group will rate the other membersand him(her)self as to their relative contribution to the group effort, contribution and participation,quality of work, difficulty of assignments, etc.

FINANCE 5033 (CASES IN FINANCIAL MANAGEMENT)

COURSE SYLLABUSAND

TABLE OF CONTENTS

January

16 Initial Meeting

Readings: The Ralston CompanyThe Balboa Company

23 Real Options

Readings: Copeland and Keenan, How Much is Flexibility Worth?Copeland and Keenan, Making Real Options Real

Mauboussin, Get Real:Using Real Options in Security Analysis

30 Theory versus Practice

Case: The Case of the Unidentified Industries: 2006

Readings: Shulz, Whats Wrong with Modern Capital Budgeting?Copeland, What Do Practitioners Want?

February

6 Theory versus Practice

Readings: Graham and Harvey,The Theory and Practice of Corporate Finance: Evidencefrom the Field

13 Analyzing Businesses

Readings: Hamermesh, Marshall and Pirmohamed, "Note onBusiness Model Analysis for the Entrepreneur (9-802-048)Sahlman, Some Thoughts on Business Plans (9-897-101)

7/29/2019 5033SYLSpr2008-Temporary1

3/4

20 Business Ethics and Objectives

Case: Group 1, Costco WholesaleCorporation Financial Statement Analysis (A) (A-186A)

Readings: Paine, Ethics: A Basic Framework (9-307-059)

27 Cost of Capital

Case: Group 4, Accounting Fraud at Worldcom (9-104-071)

Readings: Bruner, Eades, Harris andHiggins, Best Practices in Estimating Cost of Capital(website - Estimating Cost of Capital)

Asquith and Mullins,

Leveraged Betas and the Cost of Equity (9-288-036)

March

5 Capital Structure

Case: Group 2, Star River Electronics, Ltd. (UV0014)

Readings: Donaldson, New Frameworkfor Corporate Debt Policy (78504)

12 Financing

Case: Group 3, Bed, Bath & Beyond(KEL082)

17 Spring Break

26 Valuation

Readings: Fairchild, Price-EarningsRatios and the Valuation of the Firm

Guest Speaker: Mr. Jim Kahan

April

2 Valuation (continued)

9 Mergers & Acquisitions

7/29/2019 5033SYLSpr2008-Temporary1

4/4

Readings:

16 Harvesting

Readings: Lerner, A Note on the Initial

Public Offering Process (9-200-018)

Cases: Group 1, First Caribbean (906N04)

Group 4, Spyder Active Sports (9-206-027)

23

Cases: Group 2, Linear Technology (9-204-066)

Group 3,Arch Wireless, Inc. (9-205-024)

30 Course Summary

May

7 FINAL CASE DUE Dollar General Going Private (9-108-015)