FREEMAN SCHOOL OF BUSINESS
FINE 4600-01
Cases in Valuation & Financing
Fall 2015
Instructor: Professor Kyle Lee
Office Phone: 504-314-7559
Office: GWI, Room 400A
E-mail: klee24@tulane.edu
Office Hours: Mon/Wed 2:00p-3:00p
Blackboard Site: myTulane.blackboard.com
Class Meeting Day & Time:
Tue/Thurs. 2:00p-3:15p
Class Location: GWI, Room 140
Course Description:
An applications-oriented course, FINE 4600 typically deals with cases involving working capital,
mergers, corporate valuation, and capital budgeting analysis and planning. The course reinforces and
applies concepts and techniques from accounting and financial economics in a practical setting. Credit
analysis for bank lending is included.
Course Prerequisites: FINE 4100, FINE 4110, Senior Standing
Course Goals
This course is designed to teach students both quantitative and qualitative company analysis. Class
discussion will revolve around both mechanical calculations and interpretation of such numbers. Without
a large amount of preparation for each class, a student will not be successful in this course. Therefore,
students should plan on spending at least 4 hours in preparation for each case (about 12 cases per
semester).
Student Learning Objectives
As the result of this course, students should be able to review a case, produce a structured analysis of the
main discussion points, create a series of financial spreadsheets that highlight key quantitative findings,
and make recommendations for the companies at the core of the case analysis.
Course Material
1. Harvard Business cases (the link to access the cases will be provided).
2. Lecture notes and homeworks will be available from the blackboard website.
3. Laptops: I strongly encourage students who have laptops to bring them to class. You will gather in
your groups and work with real data to solve a problem that corporations face. You will also be using
them to do the in class assignments. Each group must have at least one person with a laptop that they
bring to class.
4. Berk and DeMarzo “Corporate Finance” (Optional)
1
Grading
Mid-term = 25%, Final Exam = 25%, 4 cases = 40% (each worth 10%), and class participation =
10%.
This course follows the faculty approved grading guidelines of a maximum class average GPA in
the range of 2.700 to 3.000 for core classes and a maximum class average GPA in the range of
3.000-3.333 for business elective classes. Please note the stated average class GPA range is a
maximum average range and the class average GPA range could be lower.
Class Attendance
Students are expected to attend and actively participate in class. Class participation constitutes 10% of the
final grade. If you don’t participate in class, I have a very hard time awarding credit for participation.
More participation (particularly insightful participation) traditionally yields higher scores for this grade
component.
After the class starts, please DO NOT enter or exit the classroom without permission.
Statement about Academic Integrity
This class will be conducted in full accordance with Tulane’s policies about academic integrity including,
but not limited to, the Code of Academic Integrity and the Code of Student Conduct. These can be found
at: http://tulane.edu/college/code.cfm and http://tulane.edu/studentaffairs/conduct/code.cfm
Freeman Educational Norms and Expectations
This class will be conducted in full accordance with Freeman’s Educational Norms and Expectations.
Please reread the Norms and Expectations, which can be found at
http://www.freeman.tulane.edu/students/bsm/pdf/Expected%20Behavioral%20Norms.pdf
Learning Disabilities
Under the Americans with Disability Act and the Section 504 of the Rehabilitation Act, if you have a
disability, you may have the right to an accommodation; however, the right is contingent upon you taking
certain steps. You should review the steps that you need to take, as well as Tulane’s policy concerning
accommodations at http://tulane.edu/studentaffairs/disability/accommodations.cfm
Any student with a disability, in need of course or examination accommodation, should request an
accommodation through the University’s Office of Disability Services (ODS) located in the Mechanical
Engineering Building. At the beginning of the semester, please provide me with a copy of your approved
ODS accommodation form. I am committed to working with ODS to ensure that I provide you with all
approved accommodations. If you do not deliver the approved accommodation form to me, I will not
know that ODS approved your accommodation and I will have no basis to provide those
accommodations.
For students with extended time accommodation, they are to take exams at the Freeman School. Please
take your exam request form directly, at least four business days in advance, to Phylicia Richardson in
Suite 200. Once Ms. Richardson receives your request form she will schedule your exam. You must begin
your exam when the class normally would begin. For all other accommodations, please take your form to
ODS and they will schedule your exam.
Specific Course Policies
Case Groups:
You are to form your own groups on the first day of class. Cases are to be done as a group with one copy
turned in per group. Hard copies of the write-up and spreadsheet should be turned in (if you present that
day, you also need to turn in slides). Moreover, you must email your spreadsheet to me PRIOR TO THE
BEGINNING OF CLASS on case (presentation) days.
Note that no late cases will be accepted! They must be turned in at the beginning of class on the due
date. In general, no make-up exams will be given without a valid documented excuse such as a
physician’s note.
Case Presentations:
For the cases that require a full write-up, you should also be prepared to give a 10-minute presentation. I
will randomly choose groups to present. Because the groups are chosen randomly, some groups may
present more than others (and perhaps some not at all). Presentations should be done using PowerPoint.
The maximum time for a presentation is 15 minutes (i.e., you may go over the 10-minute allotment by 5
minutes). This is to help you prepare for presentations in the business world. Company officers/board
members typically do not have a lot of time and you must get your point across as efficiently as possible.
Focus the presentation on the big picture. What is your recommendation and what is the logical argument
that brings you to this conclusion? How strongly do you feel about your position? What are the “gray”
areas?
For the cases that do not require a write-up (and therefore no formal presentation), you should still be
prepared to discuss the case during class time. I will go over the case and my thoughts on the material, but
your thoughts are equally valuable. BE A CONTRIBUTOR. This is one of the better opportunities to
make a contribution to the discussion, and thus enhance your participation grade.
Case write-ups:
The report should be professional and easy to follow. While your technical analysis must be sound, you
should put equal emphasis on how your write-up communicates your opinion. Do not expect people to
follow your advice blindly. Learn to be persuasive and convincing both in your oral presentations as well
as in your writing.
Email me a copy of the spreadsheet containing your analysis so I can trace your work.
Class Schedule (Tentative)
A.B. Freeman School of Business - Fall 2015
Tues/Thurs Classes
Tuesday, August 25
Introduction, Cost of capital (MRK)
Thursday, August 27
Cost of capital (GE)
Tuesday, September 1
Cost of capital (Sundoes)
Thursday, September 3
Cost of capital (Apple iCAR)
Monday, September 7
Labor Day
CLASS CASE DAY
Tuesday, September 8
Thursday, September 10
Firm valuation
Tuesday, September 15
Firm valuation
Thursday, September 17
Firm valuation
Tuesday, September 22
CLASS CASE DAY
Thursday, September 24
Yom Kippur
Capital structure
Tuesday,September 29
Capital structure
Wednesday, September 23
Thursday, October 1
CLASS CASE DAY
Saturday, October 3
Tuesday, October 6
Thursday, October 8
CF estimation
CF estimation
Tuesday, October 13
CLASS CASE DAY
Thursday, October 15 - Sunday, October 18
Fall Break
Tuesday, October 20
Advanced capital budgeting
Thursday, October 22
Advanced capital budgeting
Saturday, October 24
Tuesday, October 27
Options
Thursday, October 29
Tuesday, November 3
Options
Options
Thursday, November 5
Options
Tuesday, November 10
Thursday, November 12
Real options
Real options
Tuesday,November 17
Real options
Thursday, November 19
Capital raising
Tuesday, November 24
Capital raising
Wednesday, November 25 - Sunday, November 29
Tuesday, December 1
Thanksgiving Holiday
Capital raising
Thursday, December 3
Capital raising
Friday, December 4
Saturday, December 5 - Sunday, December 6
Monday, December 7 - Tuesday, December 15
Last Day of Class
Study Period
Final Exam Period
IMPORTANT NOTE:
Hurricane Evacuation Make-Up Date(s) *
Saturday, October 3
Saturday, October 24