Friday, December 14, 2007
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 :)
Tuesday, December 11, 2007
Monday, December 03, 2007
" 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"
Thursday, November 29, 2007
Multiple Choice 2 points each (60 questions=120 points)
23. THROW OUT (on key fill in all bubbles)
Tuesday, November 27, 2007
Monday, November 19, 2007
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
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.
Friday, November 16, 2007
Wednesday, November 14, 2007
A couple of questions have arisen on the test, so here goes.
- Yes I had uploaded the wrong file after updating the website. Here is correct link for class page.
- The test is in Murphy Aud at 6:30pm on Thursday
- It is cumulative, but obviously more on new stuff.
- Main Chapters from book: 9, 13
- (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)...
- Other material: stuff on portfolio diversification, background on CAPM, current state of CAPM, Behavorial finance
- 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.
- Yes the movie (Other People's Money) will be tested.
Tuesday, November 13, 2007
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,
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.
Friday, November 09, 2007
"INFORMATION SESSIONIBM Integrated OperationsThursday, November 155:00 - 6:00 p.m.Room 211/213 RCDuring 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."
Thursday, November 08, 2007
Tuesday, November 06, 2007
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, November 01, 2007
Wednesday, October 31, 2007
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."
Here is more from Time.
Saturday, October 27, 2007
"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
Wednesday, October 24, 2007
Tuesday, October 23, 2007
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.
Raw Percentage of
score 250 200
I will post the key later today
Monday, October 01, 2007
"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."
Saturday, September 29, 2007
"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.
Thursday, September 27, 2007
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.
Tuesday, September 18, 2007
"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"
"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 categoryWe will be discussing the valuation of stocks and bonds in class. Figured you might like another view (instead of just the class discussion).
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"
Monday, September 17, 2007
"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!
Saturday, September 15, 2007
Thursday, September 13, 2007
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."
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.)
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.I then thanked him/her and asked what exactly work involved etc. The reply contained the following:Hope all is well."
"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...
Tuesday, September 11, 2007
Friday, September 07, 2007
Tuesday, September 04, 2007
Friday, August 31, 2007
Wednesday, August 29, 2007
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.
Tuesday, August 28, 2007
Wednesday, July 18, 2007
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."
Tuesday, June 26, 2007
"New York City tops our list as the No. 1 city for young professionals.Surprisingly Olean was not in the top 10. Probably 11th!
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."
Monday, May 14, 2007
Wednesday, May 09, 2007
Saturday, May 05, 2007
...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
"New research suggests that people who drink a lot of alcohol over a long period of time tend to have smaller brains.Need another reason to avoid excessive drinking?
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."
Thursday, April 26, 2007
Wednesday, April 18, 2007
Wednesday, April 11, 2007
Wednesday, April 04, 2007
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
Campbell Harvey's Class' Emerging Market cases
two I either wrote, or helped write
Springfield Power Case
REMEMBER, you can also choose others. However, all cases (even those here) must be approved by me.
Monday, April 02, 2007
Sunday, April 01, 2007
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.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!
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."
Thursday, March 29, 2007
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:
"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
Tuesday, March 27, 2007
Monday, March 26, 2007
Wednesday, March 21, 2007
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!
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
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!
Tuesday, March 13, 2007
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).
- 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).
- Danny Devito's character is the stereotypical corporate raider. He is loved by shareholders but hated (and often bad mouthed) by managers.
- The takeover market is an external control mechanism. Note that it disciplines management.
- 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.
- Stand-still agreements are agreements to not purchase any more shares until some future date.
- Poison pills are an example of shareholder right's plans.
- A 13D filing is required when you buy more than 5% of the firm.
- 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).
- How would a super majority amendment change this case?
- 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.
"• 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."
"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."
Monday, March 12, 2007
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."
Thursday, March 01, 2007
"...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"
Wednesday, February 28, 2007
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.
Thursday, February 22, 2007
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!!)
Tuesday, February 20, 2007
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!
I will be back in time for MBA 610
Thursday, February 15, 2007
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."
Wednesday, February 14, 2007
Sunday, February 11, 2007
Finance 402 Cases
The following cases will be covered in Finance 402
Read and be prepared to discuss in class
- Intro to Financial Analysis
- Butler Lumber Company
- Dell's Working Capital
- Fixed Income Valuation
- Dividend Policy at FPL Group (A)
- The Pension Plan at Bethlehem Steel (2001)
- A-Rod: Signing the best player in baseball
- Cost of Capital at Ameritrade
- Arley Merchandise Corp
- Tiffany and Company (1993)
Presentations-These will br presented, BUT all must be prepared to discuss
- E.I. Du Pont De Nemours and Company
- Loewen Group
- Hospital Corporation of America (A)
- Stone Container
- MCI Communications (1983)
- Compania De Telefonos de Chile
- Marriott Corporation (A)
- Salley Jameson: Valuing Stock Options in a Compensation Package
- Whirlpool Europe
- Health Development Corporation
- Cooper Industries
- Netscape's IPO
- RJR Nabisco
- Philp Morris and Kraft
- Capital Projects as Real Options: an Introduction
- Friendly Cards
NOTE ALL OF THE ABOVE CASES WILL BE TESTABLE WHETHER WE GET TO COVER THEM IN CLASS OR NOT!
Friday, February 02, 2007
"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."
Thursday, February 01, 2007
| || || |
Implied Cash Flow Change
| || || |
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
Debt for debt exchange
Bond Sale to retire debt
Common repurchase financed with debt
Bond for Common Exchange
Bond for Pfd exchange
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
Wednesday, January 31, 2007
- 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!