Clark University
Department of Finance
Graduate School of Management
Spring 2009
FIN 5201
Case Studies in Corporate Finance
Wednesday: 6:00pm – 9:00pm
Location: Carlson Hall 128
Wendy M. Jeffus
Office Hours: after class and
by appointment
Phone: 214-934-1277
Email: jeffus@bc.edu
GSOM Mission:1
Clark University's Graduate School of Management (GSOM) is a diverse
community of learners, researchers, and business professionals that prepares future
leaders to think critically, manage collaboratively and contribute to their
organizations and society.
Guiding principles support our mission:
 We provide students with a high quality education by 1) building a solid
foundation of theoretical knowledge and contemporary management
practices 2) encouraging critical thinking, creativity, collaboration and
communication and 3) featuring a faculty that is academically and
professionally qualified, actively involved in research in their fields, and
engaged in service to their communities and profession.
 We acknowledge the complex nature of organizations and their
environments by 1) reflecting on the larger societal context in which
businesses function 2) instilling social awareness and valuing skills and 3)
keeping abreast of emerging management issues and maintaining
collaborative links to the business community.
We support management practice through basic research, pedagogical research and
contributions to practice. Primary emphasis is placed on scholarly contributions in
journals or books that contribute new knowledge.
 We are committed to continuous improvement by 1) establishing learning
goals and monitoring learning outcomes across the curriculum 2) assessing
intellectual contributions of faculty 3) seeking input from stakeholders,
including students, faculty, alumni and the community at large and 4)
monitoring the direction of the school, periodically reviewing its
performance, and actively engaging in strategic planning.
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Source : http://www.clarku.edu/gsom/about/missionstatement08.cfm
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Course Description:2
This course extends the discussion from FIN4200 of the theoretical financial issues
facing the corporation. The student is exposed to a more in-depth presentation of
the underlying financial theories and gains practice applying these theories to
actual problems either through case analyses or additional readings.
Course Objectives:
This course links managerial decisions to capital markets and the expectations of
investors. The focus is on current corporate finance theory and some of the
problems associated with implementation of this theory. At the core of almost all
of the cases is a valuation task that requires students to look to financial markets
for guidance in resolving the case problem. The focus on value helps managers
understand the impact of the firm on the world around it.
The course will be conducted through lectures, discussion, and case analysis.
Solutions to selected cases/problems will be discussed in class.
Textbooks & Recommended Reading:
1. Case Studies in Finance (5th edition) by Robert F. Bruner
2. Jeffus Course Packet available at: www.wendyjeffus.com
3. Regular reading of the Wall Street Journal, and the Financial Times.
4. Strongly Recommended: Corporate Finance (8th edition) by
Ross/Westerfield/Jaffe (or another corporate finance text)
5. Recommended: Buffett: The Making of an American Capitalist by Roger
Lowenstein
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Session
1
Date
1/14
2
1/21
3
1/28
Topics, Readings, & Assignments
Introduction, Overview of Corporate Finance & the
Financial Environment
“How to Study and Discuss a Case”
Assessment Example
Warren Buffett: To Think Like an Investor
Value Creation & Governance
Jeffus: “Free Cash Flow Calculation”
Case: Ben & Jerry’s Homemade
Time Value of Money & Capital Asset Pricing Model
Chapter 12
Jeffus: “Time Value of Money”
Case: Nike, Inc.
http://www.clarku.edu/academiccatalog/course.cfm?id=1373&lc=FIN5201&mode=GraduateProgram&pprog=32
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4
2/4
5
2/11
6
2/18
7
2/25
8
9
10
3/4
3/11
3/18
11
3/25
13
4/1
14
4/8
15
4/15
16
4/22
Cost of Capital & Economic Value Added (EVATM)
Jeffus: “WACC Calculation”
Case: Coke versus Pepsi
Financial Statements, Cash Flows, and Taxes &
Analysis of Financial Statements
Jeffus: “Financial Statements and Ratios”
Case: Krispy Kreme Doughnuts
Financial Planning & Managing Growth
Jeffus: “Financial Forecasting & Managing Growth”
Case: Body Shop International: An Introduction to
Financial Modeling
Case Assessment Presentations
Midterm Review
Spring Break
MIDTERM EXAM (in class)
Capital Budgeting & Resource Allocation
Jeffus: “Capital Budgeting” & “Working Capital
Management – Cash Conversion Cycle”
Case: Chrysler Corporation: Negotiations Between
Daimler & Chrysler (All Teams Stage I)
IPO Valuation & Financing the Early-Stage Firm
Case: JetBlue Airways
Capital Structure Decisions & Evaluating a Lease
Financing Proposal
Jeffus: “Lease vs. Buy”
Chapter 28
Case: Rosario Acero S.A.
Case: National Railroad Passenger Corporation
(“Amtrak”)
Cross-Border Mergers & Acquisitions
Case: Chrysler Corporation: Negotiations Between
Daimler & Chrysler (All Teams Stage II)
Case Assessment Presentations
“The Bottom Line”
Final Exam Review
FINAL EXAM
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Examinations, Papers, & Grading:
There will be two exams, and four case assignments. Some of your assignments
will be assessed by both the professor and your classmates. Occasional
participation assignments are optional and will count towards your class
discussion/participation grade. Homework problems will also count toward your
participation grade and will help you prepare for the in-class exams.
Case Assignments (Category A - C)
Team Case Assignment (Chrysler)
Team Assessments (2)
Mid-term Exam
Final Exam
Class Discussion / Participation
30%
20%
10%
15%
15%
10%
Papers and Grading Policy:
Every student is expected to come prepared for discussion of the reading material
and cases for all classes. Every student is expected to provide a write up of four
cases—one from each category. Each write up is due the day we discuss the case.
Your write up should be analytical rather than descriptive of contents of the case.
Late submission of any assignment or assessment will result in a grade reduction.
Category A, B, & C cases are to be submitted individually, you have the option of
submitting Category D in teams of 3-4 students.
Category A Category B
Ben & Jerry’s Coke vs. Pepsi
Nike, Inc.
Krispy Kreme
Body Shop Intl.
Category C
JetBlue
Rosario Acero S.A.
(“Amtrak”)
Category D
Chrysler Corp.
Exams
The midterm and final exams will be "closed-book." There are NO makeup exams.
Those students who will be out of town or who are unable to take the final exam on
the date specified, must discuss this matter with me well in advance of the
examination date. Students will be permitted to use a “study sheet” for their inclass examinations. The “study sheet” will be 1 page and may be written on
BOTH sides.
Assessments
Teams of two-four students will be selected to analyze two assigned cases.
Students will be expected to apply the theories discussed in class to the assigned
companies dealing with similar issues. Each team will be expected to present each
case report. In addition to your case assignments, your team will be critiquing
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other case presentations. In the “assessment,” you have the opportunity to
challenge the conclusions of your classmates, while seeking to apply new course
material to the analysis.
Participation
Students are expected to earn participation points through class attendance, class
discussion, in class quizzes, optional homework assignments and/or participation
opportunities.
Spring 2009 Academic Calendar
January 12 – April 25
Dec. 29 – Jan. 2
Web registration for all current students
Jan. 7 – 9
Orientation for new full-time students
Jan. 6 - 9
Web registration for new full-time and part-time students
Jan. 12
First day of classes (Full Semester and Module A)
Feb. 13
Last day to withdraw from class with a grade of W (Module A)
Feb. 26
Last day of classes (Module A)
March 5
Final grades due from faculty for Module A
March 2-6
Spring break
March 9
First day of classes (Module B)
March 27
Last day to withdraw with a grade of W (Full Semester)
April 10
Last day to withdraw with a grade of W (Module B)
April 23
Last day of classes (Full Semester and Module B)
April 24
Make-up day for missed classes
April 30
Final grades due from faculty for Module B and Full Semester
May 17
Commencement
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