Comments on MBA 610 Final

Hi Everyone...

Kevin B. will be giving the exam to you...

My thoughts are that since I will not be there, we will make a comments:.

First, as always, there is no collaboration. Cheating will result in an F for the class (and an A for the person who turns the cheater in if it is proven).

That said, I had said you were allowed a single page (front and back) for a "cheat sheet", but I think I will change that.

You can have as much as you want (so open book). However, no internet and no computers.

I will tell Kevin.

However, before you think "oh this will be easy", most of the advantage will be eliminated by time. You will have 2:45. (I am supposing it will take a few minutes to pass out the exams and Kevin said he would be a few minutes late.) I learned my lesson when I was a student and a teacher screwed up and gave us too much time and an open book test. So it is open book, but the test will be long. DO NOT WASTE TIME. You can look things up, but doing so will cost time. I am aiming to make it long enough to do without looking things up.

Do not go past 9:00.

There are 100 Multiple choice questions (although not equally weighted. The higher weighted ones are later in the test), plus 6 short answers (10 points each).

There may be an essay too. Not sure. I will decide in the morning once I get a better look at it all together.


Relax. Just show me what you know. You won't get 100% (well unless you turn someone in for cheating), but who cares? You are all doing pretty well and unless you truly blow it (or cheat), you will probably make it (since I have no idea on cases yet I can not say definitely you will all pass, but right now you are all passing.)


Good luck! See you all Saturday :)

jim

Finance 401 test info

The final for 401 will be held in Murphy Aud C at 1:10 on Tues and then again on 1:10 on Wednesday.

You are allowed a full page front and back as a cheat sheet.

Finals are when scheduled

Just a reminder, all of our finals are when they are scheduled by the University. I received the following today:

" This is a reminder that final examinations are to be scheduled during the regular examination period at the end of the semester except when the instructor’s written request to dispense with one is approved by the appropriate dean. Please adhere to the regular examination schedule.

John G. Watson"

401 Answer key for test 2

Multiple Choice 2 points each (60 questions=120 points)
1. E
2. B
3. C
4. C
5. C
6. A.
7. C
8. B
9.E
10. d
11. D
12. C
13. B
14. C
15. C
16. C
17. B
18. B
19. E
20. D
21. A
22. E
23. THROW OUT (on key fill in all bubbles)
24. A
25. D
26. C
27. D
28. A
29. B
30. A
31. A
32. C
33. B
34. A
35. C
36. D
37. C
38. E
39. D
40. C
41. C
42. C
43. D/E
44. C
45.C
46. C
47. D
48. C
49. D
50. D
51. B
52. E
53.D
54. E
55. B
56. B
57. D
58. C
59. A
60. D

I lost the key

Ok, first let me apologize. I lost the answer key for the 401 test. Have no idea. Have looked through office both at home and in school. No luck. So there is a chance (I would estimate it at 50:50) you will have to wait until Thursday to get test back. I will give the qualitative part back tomorrow.

MBA 610 cases

Some information for the cases (which will be presented the last day of classes)

There will be 6 groups of 4 (well actually 5 of 4, one of 3)

each group will turn in a paper (4-5 pages max) plus any numerical analysis.

you will have 30 minutes for a presentation....so plan on 20 min presentation, 10 minutes for Q&A. I am leaving it up to you, but generally you will want to take one side or the other. For instance, in Adelphia case, you probably would want to take side of either the creditors or the management.

The cases will be largely on a first come first serve basis (as in we will not have repeats)

Everyone has to contribute (and present)..

It is expected that everyone (even those not in the group presenting reads every case). Also the cases provided here are the starting point, it is expected that you will have to supplement the material somewhat from other sources.

cases to choose from:

1. Bankers Trust
2. Bear Stearns _still playing out
3. Fischer-Price (Mattel)-still playing out
4. US Savings and Loan crisis
5. Barings
6. Dalian Water Supply---a spreadsheet is available here for the case
7. Long Term Capital Management--if this one is chosen, there will be a longer discussion period.
8. E-Trade (still playing out)
9. Adelphia (have to admit I am getting sick of it, but if you really want it...)
10. Any other case with my approval.

MBA 610 homework

I will not collect this (provided it is done, I may look at it and grade on completeness only)...

Here is spreadsheet to start with.

Semantic networks

We talked of semantic (or associative) networks in class today (you probably do not want to know ;)). But we mentioned the old Chevy "Baseball Hot dogs, Apple Pie and Chevrolet" commercial. Well, lo and behold, the had redone the classic commercial.

Finance 401 test

Hi everyone,

A couple of questions have arisen on the test, so here goes.

1. Yes I had uploaded the wrong file after updating the website. Here is correct link for class page.
2. The test is in Murphy Aud at 6:30pm on Thursday
3. It is cumulative, but obviously more on new stuff.
4. Main Chapters from book: 9, 13
5. (but to understand 9 you have to know others...such as 7 and 8....and probably 5 and 6 too...(but they were on first test too)...
6. Other material: stuff on portfolio diversification, background on CAPM, current state of CAPM, Behavorial finance
7. If I were to guess I would say about 10% of the test will be from blog, 60% from class, and 30% primarily from text.
8. Yes the movie (Other People's Money) will be tested.
   

IBM Reminder

I was asked to announce this again:
nformation Session
IBM Integrated Operations
Thursday, November 15
5 - 6 p.m.
Room 211/213 RC

During this session, insightful information about the potential for careers with IBM involving accounting and finance will be shared by alum Kathy Colucci, Vice President of Finance at IBM. Students of all majors are welcome to attend. Business casual dress is recommended for those seeking full-time or internship opportunities.

Thank you very much,

Renée

Also Matt G. who now works at IBM asked me to tell you that it really is a good job!

Definitely worth going! It will be done before the exam.

Big Blue is coming!

Does anyone still call them Big Blue? Well anyways, IBM is coming...

"INFORMATION SESSION

IBM Integrated Operations

Thursday, November 15

5:00 - 6:00 p.m.

Room 211/213 RC

During this session, insightful information about the potential for careers with IBM involving accounting and finance will be shared by alum Kathy Colucci, Vice President of Finance at IBM. Students of all majors are welcome to attend. Business casual dress is recommended for those seeking full-time or internship opportunities. Please contact the Career Center for additional information, if needed."

Part time in Olean

File Clerk -- Accounting Dept.

Part-time: Approx. 10 hrs./wk.

Relevant Majors: Business

Application Process: Submit résumé via email directly to the company representative -- Susan Blazejewski, HR Manager, sblazejewski@dresser-rand.com, no later than Monday, Nov. 12!

A complete description of the opportunity is available in your SBU College Central account (www.collegecentral.com/sbu) listed as (Job ID #) 1291206. Please contact the Career Center, if you have questions.

Tony Annunziato to speak in class

Three years ago this week my classes had the distinct pleasure of having Anthony Annunziato speak in my classes. Here are some of his comments from that day.

He is on campus again today (Tuesday) and will be speaking in at least some of my classes (1:00 in Murphy 107) and MAYBE 2:30 depending on his schedule.

This opportunity just became available to us over the weekend so I apologize for the short notice.

Thursday's Class

I have to be in Buffalo in the morning for a doctor's appt (not for me). I SHOULD be back in time for the 1:00 class, if not, please stay a few minutes longer than normal. I WILL be there! We will be going over chapter 13 on Market efficiency.

Steven Levitt is coming to Buffalo

How many students would be interested in going up to see him? He is speaking at UB on Wed at 8pm. Tickets are $14. We can check into getting a van if there is interest.

Brief Bio: Steven Levitt - Wikipedia, the free encyclopedia: "He is one of the most well known economists amongst laymen, having co-authored the best-selling book Freakonomics (2005). Levitt was chosen as one of Time Magazine's '100 People Who Shape Our World' in 2006.[1]"

Here is more from Time.

AXA interviews

Resumes Due: Friday, Nov. 2

Employer: AXA Advisors

Position: Financial Services Rep.

Majors: All majors

Additional information is available in your SBU College Central account. Please contact the Career Center, if you have any questions.

Student investors exceed beyond buy low, sell high - Features

Student investors exceed beyond buy low, sell high - Features:

"Bridget Hurley, portfolio manager of the class and club, said the group began
in 2002 with $40,000 in donations which has grown into nearly $48,000. In
addition, the group manages $100,000 of the university's endowment. 'For the
university to let us invest their money the way we do ours shows how successful
we've been in the past,' she said. 'We've had annual positive returns.'"

Cross listed on BonaSimm and FinanceClass blogs

Google Docs - Answer key finance 401 test 1

Google Docs - Answer key finance 401 test 1: Ok, so you are supposed to be able to publish via Google Documents...but it did not work very well. Just click on the link and it does work.

Finance 401 test results

First a story...

In one of the first classes I ever taught there was a student who performed very poorly on the first test of the semester. He was the lowest in the class by quite a bit, a real outlier.

He was an athlete and I had to tell his coach. It was not fun.

But the student stopped me and assured me it was just a bad test and he would figure it out and show a big improvement.

Well he did. Reading the book, going over the notes, etc. and by the next test he scored above average. Continuing this progression he had one of the higher grades by the final and ended with an A- for the class. So it can be done! Do not lose hope after one exam. It means very little. It can serve as a wake up call but that is about it.



The breakdown:
Raw Percentage of
score 250 200

mean	141.4681	0.565	0.707
median	143	0.572	0.715
stdev	26.1541
max	199	0.796	0.995
min	87	0.348	0.435

I will post the key later today

Free Money Finance: Get a Job by Volunteering

Free Money Finance: Get a Job by Volunteering:

"One of the tried and true principles of getting a new job is to network with others. I hear this tip all the time. A subset of this suggestion is to volunteer your time and experience for a non-profit/charity event. This way, you'll be able to help out a needy cause and at the same time expose your (great) skills to a ton of new people -- one of which may want to give you a new job.....So if you're in the market for a new job (or even if you aren't), let me suggest that you look for an opportunity to volunteer and showcase your talents."

Free Money Finance: Index Investing Out-Performs Most Actively Managed Funds, Costs Taxes are Why

Free Money Finance: Index Investing Out-Performs Most Actively Managed Funds, Costs Taxes are Why:

"Here's a piece a reader pointed to that details many of the benefits of index investing from the NY Times. I'll highlight a couple of their main points including how indexing out-performs most actively managed funds on a regular basis: This year through September, only 28.5 percent of actively managed large-capitalization funds — which try to beat the market through stock selection — were able to outpace the S.& P. 500 index of large-cap stocks, according to a new study by S.& P. In the third quarter alone, it was even worse, with only one in five actively managed large-capitalization funds beating the index. Over the five years through the end of the third quarter — a span that included both bull and bear markets — only 29.1 percent of large-cap funds managed to beat the S.& P. 500. What’s more, only 16.4 percent of mid-cap funds beat the S.& P. 400 index of mid-cap stocks, and 19.5 percent of small-cap funds outpaced the S.& P. 600 index of small-company shares. “The long term does seem to favor the indexes,"

We will be using this in all classes before the year is out, for right now it might be of most interest to SIMM.

The results are in..

Wow was that close...

22 to 21!

And the winner is...

October 11th...

The SIMM test will be October 18th.

Anyone looking for a job?

Help Wanted:

Work in finance without leaving SBU!

Flexible hours (work mainly on computer from wherever-research, editing website etc.) but some face time (shredding papers, cleaning office, copies from library).

Probably about 10 hours a week.

Looks good on resume, flexible hours. Oh and a great boss!!

While ideally I hire someone NOT in my class (so they can correct tests etc), I have to confess I am pretty desperate so I may end up hiring someone from class.

Bonds

Week 4 Tues

Accounting and Finance, Ratios

The Living Yield Curve (One Bond Strategy) | SmartMoney.com

The Living Yield Curve (One Bond Strategy) | SmartMoney.com:

"A normal yield curve, therefore, slopes gently upward as maturities lengthen and yields rise. From time to time, however, the curve twists itself into a few recognizable shapes, each of which signals a crucial, but different, turning point in the economy. When those shapes appear, it's often time to alter your assumptions about economic growth. To help you learn to predict economic activity by using the yield curve, we've isolated four of these shapes — normal, steep, inverted and flat (or humped) — so that we can demonstrate what each shape says about economic growth and stock market performance"

Types Of Bonds

Types Of Bonds:

"Bonds have many characteristics such as the way they pay their interest, the market they are issued in, the currency they are payable in, protective features and their legal status. Bond issuers may be governments, corporations, special purpose trusts or even non-profit organizations. Usually it is the type of issuer or the particular nature of a bond that sets it apart in its own category

We will be discussing the valuation of stocks and bonds in class. Figured you might like another view (instead of just the class discussion).

Interviewing for Finance and Accounting

Getting a job is too frequently overlooked at SBU. Maybe less so for accountants who seem to "get it" when it comes to job searches, but many other majors (and alas I must confess finance often falls into this category), seem to think the job will come to them.

I am not sure why that is (distance, the Bona Bubble, other?). It seems WAY too many put off search until spring or even AFTER graduation. Which is WAY too late. Start now.

"Interviewing for Accounting & Finance Majors - A Demonstration & Discussion

Wednesday, September 19
4 - 5:15 p.m.
Room 211/213 Reilly Center

All students are invited to attend this program which will simulate a typical interview experience. Find out what to expect in an interview by watching an employer/student role-play of the situation. Ask questions and get advice from alum (Andy Neyman, Ernst & Young) who's a professional in the field. Please sign up in advance with the Career Center, if you plan to attend this program.

Please contact the Career Center, room 216 RC, x2384, if you have any questions.

Rene e Caya-Bizzaro, Assistant Director, The Career Center"

20 Essentials for Achieving Financial Literacy - TheStreet.com University -

20 Essentials for Achieving Financial Literacy - TheStreet.com University:

"There is a tendency to select courses on the basis of the ease of the curriculum or grade-friendliness of the instructor. As a student, this type of strategy tends to benefit you in the short term, but later in life you will regret not having taken certain courses with more valuable, practical content."

His list includes Economics, math, and even finance!

Tues of week 3

Predominantly TVM

Thursday of week 3

Thursday of week 3--covered future values, problems with relying on historical returns, importance of expenses in Mutual funds.

Note this is out of order. Somehow forgot to upload Tues of week 3.

Thursday of the second week of class

The first part of this (75 minutes) is class, the last part is that I left the recorder on by mistake, but had not realized it until I uploaded it. Sorry...

Finance 401 Advance Corp Finance class 1

A look at the Financial System, Nexus of Contracts, and REMM model of Human Behavior

BonaSIMM

Just an FYI...if you want to follow the goings on in SIMM, here is your chance! a new Blog.

BonaSIMM: "Blog will be for Students in Money Management at St. Bonaventure University. We will use it to keep up to date on changes in our portfolio as well as to communicate with various stakeholders (donors, investors, as well as each other). The students in the class will be writing [much of] the material."

'Different World' Video - Bucky Covington - AOL Music

'Different World' Video - Bucky Covington - AOL Music: "'Different World' Video | Bucky Covington"

We will be talking about expected future returns and that has to bring up survivorship bias problems. Think about how this song is a great example of the survivorship bias. (Or if you have read Black Swan, you can also think of Casanova.)

Two emails from a past student

I won't say who (unless I get permission), but I got two emails from a former student today...

in first email:

"I wanted to drop you a note to say hello and share with you that your class has helped me tremendously at my job. I randomly have memories of your class lectures pop into my head....from Ratios to Backdating Stock Options (weird huh). Also, being able to speak in meetings and discuss the Nexus of Contracts to summarize the 'entire picture' has earned me brownie points.

Hope all is well."

I then thanked him/her and asked what exactly work involved etc. The reply contained the following:

"I work for [large investment bank who I will delete] doing Corp. Fin. Started in Jan. in Core Deposits Finance....but through successful networking got on their Finance Mergers & Acquisition team...so now I am working on the LaSalle Bank merger in Chicago.

It's a pretty sweet gig because they got me a corporate apartment in downtown Chicago, let me fly anywhere I want on the weekends (within reason..), and I still have my apt in Charlotte.

It's interesting how in school I heard people say "We don't need to know this stuff now, because we'll be trained on the job".... well that is completely false... You should share it with your kids.

The competition is so intense in the workplace (from my observation) that there really isn't formal on the job training. You're given some guidance, but it's up to you to understand how things work. That is why I find myself going back to your website and re-reading Nexus of contracts and other notes (NPV, Cap Budgeting etc)...starting at the very high level to see the entire picture...not just the task that is asked of me. Now I see more and more of how you emphasized it every single day...

Financial Rounds: Advice For New College Freshmen

Financial Rounds: Advice For New College Freshmen

Freshmen or grad student, much good advice from the Unknown Professor and Ben Stein.

Chapter 12 readings for 401

It was pointed out to me that I failed to mention what parts of chapter 12 you are to read. So for now, let's just read section 12.3. It is on some examples of agency cost problems.

Finance 401 Advance Corp Finance class 1

A look at the Financial System, Nexus of Contracts, and REMM model of Human Behavior

No Doubt "Spiderwebs" (1996) - AOL Video

Perfect for the Nexus of Contracts! :)

No Doubt "Spiderwebs" (1996) - AOL Video: "Spiderwebs'"

FT.com / Home UK / UK - Mental building blocks for the next century

We will be discussing this in class briefly. Outside my office door are 5 -6 pages from the book that you can borrow and read.

FT.com / Home UK / UK - Mental building blocks for the next century

"Gardner identifies these five different minds as: disciplined, synthesising, creating, respectful and ethical. The disciplined mind "has mastered at least one way of thinking", Gardner says. "Without at least one discipline . . . the individual is destined to march to someone else's tune."

The synthesising mind "takes information from disparate sources . . . and puts it together in ways that make sense to the synthesiser and also other persons . . . the capacity to synthesise becomes ever more crucial as information continues to mount at dizzying rates".

The creating mind "breaks new ground", the author says. "It puts forth new ideas, poses unfamiliar questions, conjures up fresh ways of thinking, arrives at unexpected answers." In so doing, the creating mind "seeks to remain at least one step ahead" of computers.

The respectful mind "notes and welcomes differences between human individuals and between human groups . . . In a world where we are all interlinked, in-tolerance or disrespect is no longer a viable option."

Last, the ethical mind "conceptualises how workers can serve purposes beyond self-interest". The ethical mind then "acts on the basis of these analyses"."

Gardner has an interesting page with some video and audio of his talks as well as NPR audio.

How is this finance?

About.com: http://streamos.wmg.com/qtime/curb/timmcgraw/tm_lastdollar_vid.mov

Find Your Fit in Nonprofit Finance from Monster Career Advice

Find Your Fit in Nonprofit Finance from Monster Career Advice: "

What the not-for-profits do is very interesting, and it's also a very secure industry, which is why people are focusing on them these days,' says Suzanne Lieb, a recruiter with Howard Michaels Associates in New York City, who places finance professionals at nonprofits."

Cities for jobs

From Forbes

"New York City tops our list as the No. 1 city for young professionals.

That likely comes as a shock to, well, no one. Many of America's best companies, as determined by Forbes rankings of the best 400 big businesses and best 200 small businesses, including financial giant Goldman Sachs and media conglomerate News Corp. are in New York. Throw in New York's bars, clubs and world-class dining, and you get a city teaming with young professionals.

San Francisco clocked in at No. 2 and Atlanta at No. 3. Los Angeles, Washington, D.C., Boston and Seattle filled spots four through seven, and Minneapolis, Philadelphia and Denver closed out the top 10."

Surprisingly Olean was not in the top 10. Probably 11th!

ANNIE GRADY'S TRAVEL BLOG

ANNIE GRADY'S TRAVEL BLOG: "ANNIE GRADY'S TRAVEL BLOG"

Many of you know Anne (an MBA student). Follow her travels on her blog!

Grades

MBA 610 grades are in. 402 will be LATE tonight....I wish they didn't always turn off system at night :(

SIMM esq

www.belleville.com | 05/05/2007 | Finance students cut teeth as portfolio managers: "

...student-run portfolio programs provide in-depth investment nitty-gritty aimed primarily at finance majors and Master of Business Administration students. While students are applying what they've learned from textbook theory, the programs also help them develop presentation and communication skills that could pay off with jobs in the financial industry."

I will be teaching SIMM (the SBU student run fund) this coming year. Here is the new website for it thanks to Wren and Chris (and others?)

Study: Your brain shrinks if you drink too much alcohol for a prolonged period - On Deadline - USATODAY.com

Study: Your brain shrinks if you drink too much alcohol for a prolonged period - On Deadline - USATODAY.com:

"New research suggests that people who drink a lot of alcohol over a long period of time tend to have smaller brains.

Here's how the neurologist who performed the study described her findings: This cross-sectional study found people who had more than 14 drinks per week had an average 1.6 percent reduction in the ratio of brain volume to skull size compared to people who didn't drink."

Need another reason to avoid excessive drinking?

What Is Open Source

Here is a description of open source that we were talking about in class (401) today:

ONLamp.com -- What Is Open Source

Cases for 610

Here are some of the cases that the MBA 610 students will be expected to know

TIME: Behind the Enron Scandal, More Enron

Adelphia

Shanghai Disney

Southwestern's Hedging Policy

Parmalat

Barings

LTCM and more LTCM

Bankers Trust

Answer key for 402

Finance 402 test 2 Key

1. A
2. E
3. E
4. d
5. b
6. e
7. e
8. a
9. e
10. b
11. c
12. d
13. d
14. c
15. a
16. b
17. b
18. d
19. d
20. b
21. c
22. b
23. a
24. a
25. a
26. a
27. d
28. d
29. c
30. e
31. b
32. c
33. c
34. d
35. c
36. a
37. c
38. c
39. a
40. e

Online NewsHour: Hedge Funds Failure -- October 1, 1998

Online NewsHour: Hedge Funds Failure -- October 1, 1998: "October 01, 1998 "--yeah it is really old, but this is another source for information on Long Term Capital Management.

Some cases

As promised in MBA 610, here are a few places you might want to look for your cases for your presentations and write-ups.

Each group will present one. Plan on abut a 15-20 minute presentation with 10-15 minutes for questions and answers. Also each group will submit a 4-5 page paper.


SSRN – FEN Educator: Courses, Cases & Teaching

Erisk.com's cases


Campbell Harvey's Class' Emerging Market cases


two I either wrote, or helped write

Adelphia:

Springfield Power Case



REMEMBER, you can also choose others. However, all cases (even those here) must be approved by me.

Wednesday's class

We DO have class on Wed! :)

UNCW students to be in control of $1 million | StarNewsOnline.com | Star-News | Wilmington, NC

UNCW students to be in control of $1 million |
StarNewsOnline.com | Star-News | Wilmington, NC:

"BB&T Corp., based in Winston-Salem, recently agreed to donate more than $1 million to the University of North Carolina Wilmington, creating an investment fund that will be managed by some of its top finance and MBA students.

Proceeds will pay for a lecture series on global capitalism as well as research on corporate ethics.

'It's real,' McDonald said. 'That's what's so great about this fund. I'm sure there's going to be no slackers in that program.'

Student-managed investment funds are widespread, but Larry Clark, dean of the Cameron School of Business, said he didn't know of another so large at a public school of UNCW's status. BB&T will submit the gift in five annual installments of $207,500 starting this October.

The amount means students will have the chance to invest in a wide range of stocks, bonds and other markets, UNCW officials said.

'It's an incredible opportunity,' Clark said."

Since I will be teaching SIMM next year I have been paying much more to Student managed funds. SBU's will have about $142,000 so if you are around and want to get some hands on experience, sign up for the class!

Help Wanted

Is anyone looking for a job (10-15 hours a week)? Must be coming back next year. Ideally you qualify for work study, but if needed I will pay out of my own pocket. I just really need someone to relieve some of the paper work that has accumulated (I would say I am like the NYSE in 1968 but it may be too geeky of reference ;) )

What would the work entail? Largely excel and data collection, but sometimes correcting (scantrons), organizing my office (at least a little ;) ) etc.

Need not be a finance major!

Need not be local (i.e. the vast majority of this can be digitized and done remotely).

Newmark's Door: DeVito's speech from Other People's Money

Transcript of Larry the Liquidator's speech

Newmark's Door: DeVito's speech from Other People's Money:

"This company is dead.

I didn't kill it. Don't blame me.

It was dead when I got here."



HT the Unknown Professor and Newmark's Door

Well worth watching!

In the spirit of the World is Flat:

Did you Know?


Carl Case pointed this one out to us.

Managing Expectations

Lest you get hopes up too high for 402, I still have a test to give, so I will not be able to give tests back until Thursday.

So we will be doing the next case: MCI on Tues, Compania De Telefonos de Chile on Thurs

FPL Group is on test

Was just asked what cases are on the test;

Butler Lumber
Dell Working capital
Fixed income valuation
FPL Group

in class:
Dupont
Loewen Group
Hospital Corp of America
Stone Container

402 test "stuff"

Gee, you'd think there was a test on Thursday with all the questions I have, so here so here goes:

1. Yes you need to know material from Cases
2. Yes you need to know the stuff we did before cases
3. Valuation is definitely fair game!
4. The test will be mainly multiple choice but may include other types of questions too. I really do not know yet as I have not finished it.
5. You are not allowed a cheat sheet.
6. It is in class.
7. Bring a pencil and a calculator!


hope this helps!

Jobs

From Career Services:
HSBC Information Session - MANDATORY for an Interview!
Thursday, March 22 4:00 - 5:00 p.m., RC 211/213
Positions: Accelerated Management Trainee Intern; Sales Account Executive
Majors: Business
On-campus Interview Date: Friday, March 23 (Open Schedule)

*Please bring your resume to the Information Session and be prepared to sign up for an interview taking place the next day!

MBA 610 MAJOR CHANGE

I have to go to Buffalo this evening and can not make the class. Therefore we will be redoing the organization of the material.


Taditionally I show Other People's Money later in the year. However, since I can not be there it will be shown today.

Background and Things to look for in the movie (and yes it is definitely testable).

1. This is an example of a hostile takeover. It was happening to break up the firm (it was worth more apart than it was together. This type of takeover was very common in the late 1980s (and to a lesser degree now when firms go private, sell off assets, and then go public again).
2. Danny Devito's character is the stereotypical corporate raider. He is loved by shareholders but hated (and often bad mouthed) by managers.
3. The takeover market is an external control mechanism. Note that it disciplines management.
4. Greenmail is a targeted share repurchase plan that hurts the majority of shareholders. It is seen as a way of management keeping their jobs at the expense of shareholders.
5. Stand-still agreements are agreements to not purchase any more shares until some future date.
   
6. Poison pills are an example of shareholder right's plans.
   
7. A 13D filing is required when you buy more than 5% of the firm.
8. The Proxy contest that occurs is fairly typical (although outdated in nature). Both sides get to present their case (much like politicians in an election).
9. How would a super majority amendment change this case?
10. Why aren't more firms employee owned?

And finally in an attempt to squeeze even more fun out (and learning) out of the case, please download this mini-case and be able to answer the questions.

Cost of Living - Cost of Living Calculator from CNNMoney

Cost of Living - Cost of Living Calculator from CNNMoney:

"• Using data provided by researchers at ACCRA, Inc., we compare key expenses in dozens of major cities. Costs include housing, utilities, transportation and health care."

Accountemps - Candidate Free Resources

Accountemps - Candidate Free Resources:

"2007 Salary Guide
Advancing in your career requires staying up to date on hiring and compensation trends. The 2007 Salary Guide provides projected average starting salary ranges for more than 100 accounting, finance and banking positions, as well as an overview of the issues currently impacting the industry."

Providence Business News

I thought some of you might be interested in this:
Providence Business News: "

A member of Rhode Island College’s Class of 1989, who wishes to remain anonymous, has donated $100,000 to establish a student-managed investment fund and class, the school said.

The donation, made in December, ultimately will benefit RIC’s School of Management. The money will establish a course in which a team of four to six students will learn short-term and long-term investment strategies, asset allocation and portfolio rebalancing, using U.S. and foreign securities and derivatives. The fund will start at about 65 percent U.S. equities, 20 percent bonds and 15 percent international stocks and derivatives."

A Fighter for Colleges That Have Everything but Status - New York Times

A Fighter for Colleges That Have Everything but Status - New York Times:

"...he argues that colleges with fewer than 3,000 students offer the best educational experience because students will have more opportunities to get to know professors well, both inside and outside the classroom.

“The smaller the school, the more impact it can have on a kid,” he said. He added, “My mission in life is to change the way people think about colleges"

402 assessment test

A few things have changed on the assessment test. I took it this evening and agreed with a student who challenged one of the questions. Additionally one of the other questions was marked correctly on the key (answers B or D) but for some reason the scantron only took D.

This resulted in 4 points being added to all but two of your grades. (I will email the two who did not get the 4 points separately.

Those of you who scored over 65 (including the 4 points just added) do NOT need to take a makeup exam.

A few comments on class participation

This is really just a reminder to everyone in my classes: Class participation matters a great deal in your grade (and can become the difference between passing the class or not if you do not do well on the tests and projects). Thus a few comments may be in order:

As I said on first day, you can if necessary (and on rare occasions) text message during class, BUT for a few of you it has become too common of practice. Moreover, there are also some of you who have been talking too much and have not been paying attention in class.

Please try to correct these problems as your grades do depend on it! (as well as potentially any curve for the entire class!!)

402 class update

We do have class on Thursday! I was dismissed from the Jury after I failed the IQ test ;) or something like that

402 class update

We do have class on Thursday! I was dismissed from the Jury after I failed the IQ test ;)

Finance 402 Tues 2/20/07

Reminder: class is canceled (will be made up as part of a night exam later in year)...also be woking on your cases!

FInally, I have lost the group lists, so I am asking eash team to email me their tem (and if you have no team please email me as well!

thanks!

jim

I will be back in time for MBA 610

Campbell R. Harvey's Emerging Markets Corporate Finance Cases

For Finance 402, please model your cases after these:

Campbell R. Harvey's Emerging Markets Corporate Finance Cases:

"A collection of 28 cases that deals with important financial issues in the setting of emerging markets. This is the largest repository of emerging markets finance cases in the world. For academic users, there is no fee for using these materials. For corporate and government users as well as multilateratal institutions, please send a donation made out to 'The Fuqua School of Business-BA456 Student Support Fund (Attn: Campbell R. Harvey)'. The address is One Towerview Drive, Duke University, Durham, NC 27708 USA. These funds are used to support student telephone, mail and travel expenses involved in the writing of the cases."

Office hours canceled today

Wed 2/14/07 office hours are canceled...sorry

Cases for Finance 402

Finance 402 Cases
The following cases will be covered in Finance 402

Read and be prepared to discuss in class

1. Intro to Financial Analysis
2. Butler Lumber Company
3. Dell's Working Capital
4. Fixed Income Valuation
5. Dividend Policy at FPL Group (A)
6. The Pension Plan at Bethlehem Steel (2001)
7. A-Rod: Signing the best player in baseball
8. Cost of Capital at Ameritrade
9. Arley Merchandise Corp
10. Tiffany and Company (1993)

Presentations-These will br presented, BUT all must be prepared to discuss

1. E.I. Du Pont De Nemours and Company
2. Loewen Group
3. Hospital Corporation of America (A)
4. Stone Container
5. MCI Communications (1983)
6. Compania De Telefonos de Chile
7. Marriott Corporation (A)
8. Salley Jameson: Valuing Stock Options in a Compensation Package
9. Whirlpool Europe
10. Health Development Corporation
11. Cooper Industries
12. Netscape's IPO
13. RJR Nabisco
14. Philp Morris and Kraft
15. Capital Projects as Real Options: an Introduction
16. Friendly Cards

NOTE ALL OF THE ABOVE CASES WILL BE TESTABLE WHETHER WE GET TO COVER THEM IN CLASS OR NOT!

Monday 4PM

Mandatory for finance 401 students, recommended for all!

"Monday, February 5 at 4:00 Tony Annunziato will give a presentation to finance students. Tony is currently engaged in setting up a new exchange in Dubai. I’m confident students will find this an interesting presentation. The presentation will take place in the Trustee’s room in Doyle and should last about an hour."

SMith-masulis table for fin 402

		Implied Cash Flow Change
		Negative	Zero	Positive
Leverage Change	Negative	Common Sale Dividend Decrease -	Common to retire debt Convertible bond to retire debt Common for pfd exchange Common for debt exchange Call of convertibles -	Calls of non convertible debt
	Zero	Convertible sale Investment decrease -	Debt for debt exchange Bond Sale to retire debt	Investment increase +
	Positive	Preferred sale Debt sale	Common repurchase financed with debt Bond for Common Exchange Bond for Pfd exchange +	Common repurchase Dividend increase Dividend initiations Special dividends +

Red = predicted negative abnormal returns

Black = no prediction or no abnormal returns expected

Yellow = predicted positive abnormal return

If you are viewing on a black and white monitor: the ones with + are positive, - are negative

The Modern Theory Of Corporate Finance by Cliff Smith

From Career services

Please share the following with your students.... Thank you!

All students are invited to join several alumni who are returning for Homecoming Weekend and will be available at an informal networking event to casually discuss career-related issues such as:

• relocating to a new geographic area
• managing on your own the first year after graduation
• identifying what job/internship approaches work best for various career fields... and more!

The event is co-sponsored by the SBU Career Center and Alumni Office. Details about the gathering are as follows:

"Meet & Mingle"

Friday, February 2

3:30 -- 4:30 p.m.

Room 219 Reilly Center

Light refreshments will be provided.

Please sign up in advance, if you plan to attend, by contacting the Career Center, room 216 RC, 375-2355.