Wednesday, February 28, 2007

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.

Thursday, February 22, 2007

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 ;)

Tuesday, February 20, 2007

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!



I will be back in time for MBA 610

Thursday, February 15, 2007

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."

Wednesday, February 14, 2007

Office hours canceled today

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

Sunday, February 11, 2007

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


Friday, February 02, 2007

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."

Thursday, February 01, 2007

SMith-masulis table for fin 402

Implied Cash Flow Change




Leverage Change


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


Convertible sale

Investment decrease


Debt for debt exchange

Bond Sale to retire debt

Investment increase



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