New Economic School
Cases in Financial Management
Spring 2007
Maxim Mironov
mmironov@ChicagoGSB.edu
Syllabus
1.
Required texts:
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A package of cases
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Any good corporate finance book (e.g., Berk and DeMarzo)
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Any good financial accounting textbook (e.g. Stickney and Weil)
2.
Course objectives
The goal of this course is to teach participants how to apply concepts and methods
learned in “Corporate Finance” to real life situations. The course will introduce students to
financial analysis, project evaluation and other conceptual frameworks used in finance.
I expect that after taking this course, students will understand the role of different factors
in evaluating the company’s financial strategy, determining optimal capital structure and relating
them to the company’s business strategy.
3.
Prerequisites
Microeconomics, basic Game Theory, Corporate Finance, basic Financial Accounting
(you should understand how to read and construct balance sheet, income statement and cash flow
statement)
4.
Course procedures
I will expect students to work 15-20 hours outside the class. If you cannot afford to spend
this amount of time I will strongly recommend not taking this course. For each class (including
the first one!), I will assign study questions concerning a case study. Students should submit 1-2
page memorandum 24 hours before the class. I am going to select one-two memoranda and ask
students to present in front of the class. Detailed case solution (maximum 3 pages, not including
exhibits and appendices) should be handed in before beginning of the class. I will not accept late
submissions. I allow students to submit one assignment per group (maximum 3 people).
1
5.
Final project
Starting from the 3rd week, each group should start preparing a final project. The groups
for this assignment may be different from case-study groups. The final project should include
application of tools and concepts learned in the class. Projects should be submitted one week
before the last class meets. I will select 2-3 projects for presentation during the last class.
Possible final projects might be
6.
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Business plan for a potential business
-
Valuation of privately held firm
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Valuation of an IPO
-
Valuation of LBO, MBO, Merger or Acquisition
Grading
Option 1 (maximum grade 5-)
20% - class participation
20% - case submissions
60% - project
Option 2 (maximum grade 5-)
20% - class participation
20% - case submissions
60% - final in-class individual exam
Option 3 (maximum grade 5+)
15% - class participation
15% - case submissions
40% - project
30% - final in-class individual exam
2
Course Calendar
Week 1.
Submit and discuss case: Judson Green, DCF
Course description and logistic
Lecture: Cost of Capital and Review of DCF framework (NPV, APV, WACC)
Forecasting free cash flow and financial statements, multiple valuations
Week 2.
Submit and discuss case: Judson Green, multiples evaluation
Lecture: Choosing Among Financial Alternatives
Read the case Sistema - Hals
Week 3
Submit and discuss case: Sistema Hals
Guest speaker: Michael Golomb
Week 4.
Submit and discuss case: Clarkson Lumber
Lecture: Corporate restructuring. Mergers and Acquisitions.
Week 5
Submit and discuss case: Paramount 1993 (Mergers and synergies)
Lecture: International evaluation. Estimating of political risks, strategic use of leverage.
Hedging of currency exchange risk.
Week 6
Submit and discuss case: South Port minerals (1983)
Presentations of projects
Week 7
Submit and discuss case: Jaguar Plc. (1989)
Presentations of projects
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