Finance and Business Economics 432

Corporate Finance

Course Materials Old Examinations

Syllabus/Course Outline Practice Midterm

Data Sources 2001 Midterm (with answers)

Acrobat Reader 2002 Midterm (with answers)

Lecture Schedule and Materials Materials

Class Dates	Topic	Review Readings/Cases	Lecture Slides
OVERVIEW
Week 1: August 26 and 28	Financial Analysis, functions and careers; Introduction to valuation and review	RWJ, Chpt. 17 *Practice Case:* The Union Carbide Deal (Abridged) (HBS 9-897-201)	Week 1 Slides Week 1 Objectives
Module I: INVESTMENT BANKING AND VALUATION
Week2 : September 4	Common valuation techniques;	RWJ, Chpt. 5 *Case I:* Eskimo Pie (HBS 9-293-084) JKDEskimoAnalysis	Week 2 Slides Week 2 Objectives Eskimo Case Data
Week 3: September 9 and 11	Case I: Eskimo Pie (NO WRITE-UP) Capital Structure and Valuation	RWJ, Chpts. 15 and 16 *Case II:* Continental Carriers Inc. (HBS 9-291-080)**	Week 3 Slides Week 3 Objectives Continental Carriers Case Data
Week 4: September 16 and 18	Case II: Continental Carriers** Mergers and Acquisitions	RWJ, Chpt. 30 *Case III:* The Hostile Bid for Red October (HBS 9-291-008)* JKDRedOctAnalysis	Week 4 Slides Week 4 Objectives Red October Case Data
Week 5: September 23	Case III: The Hostile Bid for Red October..*		Week 5 Slides Week 5 Objectives CaseCaseData
Module II: VENTURE CAPITAL FINANCING
September 25	Venture Capital and LBOs	RWJ, Chpt. 19 Case IV: The John Case Co. (HBS 9-291-008)* Case VC Calculation
Week 6: September 30 and October 2	CASE IV: The John Case Co.* Options and Warrants	RWJ, Chpts. 22, 23§1-3 Case V: Term Sheet Negotiations for Trendsetter Inc (HBS 9-801-358)*	Week 6 Slides Week 6 Objectives Option.XLS
Week 7: October 7	Case V: Term Sheet Negotiations for Trendsetter Inc (HBS 9-801-358)*		Week 7 Slides Week 7 Objectives
Module III: RISK MANAGEMENT AND DERIVATIVES
October 9	Techniques for Risk Management	RWJ, Chpts. 25 §1-3
Week 8: October 14 and 16	Asset and Liability Management MIDTERM EXAMINATION	RWJ, Chpts. 25 §4, 6-7 *Case VI:* Union Carbide Corporation Interest Rate Risk Management (HBS 9-294-057)*	Week 8 Slides Week 8 Objectives UCCCaseData
Week 9: October 21 and 23	Practical Use of Derivatives Case VI: Union Carbide Corporation Interest Rate Risk Management (HBS 9-294-057)*	NYTimesLTCM-1 NYTimesLTCM-2 *Case VII:* Financing PPL Corporation’s Growth Strategy (HBS9-202-045)*	Week 9 Slides Week 9 Objectives PPLCaseData PPLCaseQuestions
Module IV: FINANCIAL STRATEGY
Week 10: October 28 and 30	Real Investments and Corporate Strategy Case VII: Financing PPL Corporation’s Growth Strategy (HBS9-202-045)*	RWJ, Chpts. 6 and 7 *Case VIII:* Clarkson Lumber (HBS 9-297-028)** JKDClarksonAnal	Week 10 Slides Week 10 Objectives (w/PPL questions) (rev)
Week 11: November 4 and 6	Business and Financial Strategy Case VIII: Clarkson Lumber**	RWJ, Chpt. 26 SustGrowthModel, *Case IX:* Avon Products (HBS 9-289-049)*	Week 11 Slides Week 11 Objectives Clarkson Case Data
Week 12: November 11 and 13	Dividend Strategy & Special Risk Hedging Review	RWJ, Chpt. 18 *Case X:* Huaneng Power International (Ivey 9A98N001)* Duration Calculator (mortgage error fixed 11/14)	Week 12 Slides Week 12 Objectives Avon Case Data (Exhibit 3 error corrected 11/15)
Module V: INTERNATIONAL CAPITAL MARKETS
Week 13: November 18 and 20	Case IX: Avon Products* International Sources of Capital	RWJ, Chpts. 32 *Case XI:* Circon (A) (HBS 9-801-403)**	Week 13 Slides Week 13 Objectives Huaneng Case Data
Module VI: CORPORATE GOVERNANCE
Week 14: November 25 and 27	Case X: Huaneng Power International* Insider Trading and Corporate Governance	*Case XII:* Vyaderm Pharmaceuticals (HBS 9-101-019)	Week 14 Slides Week 14 Objectives
Module VII: VALUE-BASED MANAGEMENT
Week 15: December 2 and 4	Case XI: Circon (A) (HBS 9-801-403) Case XII:** Vyaderm Pharmaceuticals (HBS 9-101-019)(NO WRITE-UP)	Peer Evaluation	Week 15 Slides Week 15 Objectives
December 7	Course Summary and Review (Optional)
December 13	Final Examination