604 answer Key

Multiple choice-2 points each			True False 2 points each
1. A	26.c	51.a	1.f
2. C	27.c	52.c	2.t
3 D.	28.b(any)	53.b	3.t
4.D	29.c	54.b	4.f
5. B	30.c	55.2.78	5.t
6.A	31.b	56.a	6.t
7.C	32.a	57.b	7.f
8.D	33.any	58.any	8.f
9.A	34.d	59.a	9.f
10.A	35.b	60.d	10t.
11.B	36.b	61.a
12.C	37.b	62.b
13.E	38.c	63.c
14.ANY	39.a	64.b
15.C	40.c	65.b
16.E	41.any	66.a
17.B	42.b/c	67.b
18.D	43.a	68.any
19.D	44.e	69.any
20.D	45.c	70.e
21.A	46.d
22.B	47.d
23.B	48.d
24.D	49.a
25.C	50.b

TODAY! Buffalo Job fair

from career services:

STUDENTS... it's not too late!

You can still sign up to attend JobQuest '06, a regional career fair taking place this Wednesday. Employers from a wide variety of career fields will be seeking intern, summer, full- and part-time candidates.

JOBQUEST '06

Wednesday, November 1

3:00 -- 6:00 p.m.

HSBC Arena

Buffalo, NY

Please advance register with the Career Center, room 216 RC, and become eligible to win prizes at the event including $100 Visa Cash Card, Buffalo Sabres Tickets, and more! Transportation is available on a limited basis for those who need it. Stop by the Career Center today for more info. and to pick up your free, event parking pass.

Cases for MBA 604 5 week class

The following are the cases that we will be doing in class:

Adelphia--discuss agency costs, role of auditors
Manco-Open Book--A look at the Nexus of Contracts and info asymmetries
Grameen Bank-how the nexus of contracts changes in microfinance.
Barings Bank-the dangerous side of Derivatives

MBA 604-5 week class

Here are some of the links you might want:

Also I am scheduled to land at 4:30. So I SHOULD make it. However, if the plane is delayed, I may be late. Barb Russell will be bringing the test up. IN the event I am NOT there by 6:15, I will try to get in touch with her to allow you to start the test.

Sorry for all the problems. This has been one wacky schedule! I am in NYC right now. As of 4pm today I thought I had to stay an extra night and was trying to get someone to covefr both the test and the exam, but it worked out and I will be back!

Finance 401

CLASS IS CANCELED FOR THURSDAY.

I cannot find anyone to take both classes. We will make it up at a later date.

SOrry for any inconvience.

Flickr: The October 2006 Buffalo Snowstorm Pool

Flickr: The October 2006 Buffalo Snowstorm Pool-
Many pcitures from various photographers on the storm in Buffalo. Once again it shows the need to help out. If you can make it, please come help BonaResponds!! 11-5 iour HQ is in Lancaster Municipal Building. We will be going all over the area. COme on out! (leaving SBU at 9:15 on SUnday).

Director Ties Linked to Options Scandal - - CFO.com

Director Ties Linked to Options Scandal - - CFO.com:

"A company mired in the options backdating scandal is likely to have something in common with other companies caught in the scandal: a director who sits on the board of at least one other implicated company.

That’s the finding of a new study by The Corporate Library, which concludes that “the practice of backdating stock options may have been spread by word of mouth, through the conduit of directors sitting on the boards of more than one company.”"

OE-Study abroad

http://oe-studyabroad.org/

From Today's Notice Board

Sorry that this is cross-listed and has no finance content, but like I said after Katrina, some rules are made to be broken:

BonaResponds to Buffalo

Come help the Buffalo area recover from the worst natural disaster to strike the US mainland since Katrina. BonaResponds will again go to Buffalo this Sunday (10/22) and next Sunday (10/29).

We will be working in several sites. Most work is picking up downed branches, but there will be work at base headquarters (logistical and administrative etc.) Added brownie points to anyone with chain saws and chain saw experience.

Headquarters will be the Town Maintenance Garage in Lancaster (Broadway and Center streets). From there we will spread out across the region until regrouping at 5 p.m. for a short meeting and returning shortly after 7 p.m.

We expect to leave the Murphy and Plassmann parking lots at 9:15 a.m. Please car pool. We hope to have a few vans available as well, but no guarantees.

Dress to work: boots, work gloves, and old clothes. And you will want to bring dry clothes and a change of shoes for after (trust us on that ;))

Like all BonaRespond events, this is open to everyone! Help spread the word. Have your friends from other schools meet us.

Having seen it first hand, we can say it is really bad up there and many people have no way to move the downed trees that are on their properties. Additionally, community groups, parks, and schools are in desperate need of help.

As an additional incentive (if more is still needed), BonaResponds will knock $10 off the price of the spring break trips to anyone who works at least 5 hours in Buffalo (and if any donors want to match or add to that please e-mail us!)

While reservations are not required, they will make our planning much easier. Please e-mail BonaResponds@sbu.edu.
For more information check out BonaResponds.org

ALSO IF YOUR FAMILY WAS AFFECTED BY THE STORM, PLEASE E-MAIL US AND WE WILL TRY TO SEND A TEAM THERE AS WELL.

If you can't go but would like to help, we will accept both money or food donations. (Home-made cookies? Brownies? Or even just a loaf of bread for sandwiches would help!)

MBA 604 5week class IMPORTANT update

We will NOT be having the test this week!! It will be Friday of next week.

Also since so many of you work until 5:00 I think I will go with what some other classes have decided and go 5:30 to 10:00. And then 8:30 to 3:30 and we will not take lunch (or will work through it...maybe we can get pizza or something? (we'll talk). And it goes without saying we can be flexible so if you can not make it until 6:00, well, we will just figure out a way around that problem.

...plus of course there will be some online material to make up for any missed time. AND of course (and this is really an important aspect that is often overlooked, the way I look at class is that it never ends. So no matter when you finish this class or the MBA program itself, you can still obviously ask me questions and get the blog info to stay up to date in finance, so the artificial 5 week period really does not bother me much.

What do you think?

MBA 604 5 WEEK

Well I guess I didn’t miss a class afterall.

First of all, I hope you are all ok. If there is anything I (we) can do please let me know. On Sunday BonaResponds will be coming to Buffalo to do whatever we can. If you have any ties with church groups (any denomination), community centers, high schools, you name it that could use our help, please email BonaResponds@sbu.edu (not me since I am still in Utah and hope to be back late Saturday.

As for class stuff….well I received the following from SBU:

"Class for the remaining three weeks will need to be adjusted in order for us to make up the contact time required for a three credit course. Please plan for a 5:00-9:00pm meeting for each of the next three class meetings, and please extend the Saturday classes until 4:00 pm. Alternately, adjustments to your teaching plan that involve a significant online component may be an option. Either way, we need to provide adequate instructional time to our students."

Which sounds very unappealing. I know we have to do something, BUT…asking you to be there at 5 on Friday and stay until 5 on Saturday seem a but much. I am open for suggestions. Email me.

One suggestion maybe I could put up audio from past classes and then have an online

St. Bonaventure University:

St. Bonaventure University:

: "REQUIREMENTS FOR PARTICIPATION IN ON-CAMPUS RECRUITING
All students interested in participating in on-campus interviewing must:

** Register with The Career Center by opening a free, SBU College Central Network account and post a current résumé to it. The site is located at: www.collegecentral.com/sbu. For information on how to navigate College Central Network, click HERE.

** Submit a separate, hard copy résumé in person to The Career Center, room 216 Reilly Center and sign a 'Statement of Intent to Interview' form for each company with which you are interested in interviewing.

** Attend an 'On-Campus Recruiting Orientation' in to be eligible, if selected, to particiapte in an interview. You must attend an orientation before you sign up for an interview.
(Fall '05/Spring '06 recruiting-orientation participants do NOT need to attend again. All"

CareerJournal | Job Interviewing Tips - Job Interview Tips - Job Interview Techniques

Looking for a job? The Wall Street Journal's Career Journal is a definite site you ust check out!

The Job Interviewing Tips are especially good!!

It is full of great advice as to how to answer interview questions, what to expect, and even how to follow-up afterwards. A MUST read!!

MBA 604 questions

Questions from a couple of MBA students (I renumbered them for ease of use)

1). Will we know what the format is like for the test (Ex: Multiple Choice, Short Answer, True False)?

Uh, yes...all of the above...and probably throw in an or two essay too.

2) Will there be some type of review sheet posted because there has been some major confusion on what things might be on there and what will be tested (More specific than “up to this chapter”).

No. A good portion of learning (rather than memorizing) is to determine what is important. Sorry, I realize it is not as easy, but in the long run it will make you learn more and that is the goal.

3) Especially if there are three ways to do the same thing like three formulas or extra formulas you might have used in class but are not in the book. If the extra formulas or information is to be on the test will you let us know ....

Without knowing exactly what examples you are speaking of, I am confident that any "extra" formulae will get the same answer as those in the book. In that light, I do not care how you get the answer (short of cheating ;) ).

As for information that is not in the book, if we covered it, it will be tested. Indeed, if I were to say only things from the book, I would be embarassed by my lack of effort!!!!! A text is one portion of a class. If I were to merely follow the text, my EVA (Economic Value Added) would be close to zero.

4. Also if we get to make cheat sheet for the test can we use both sides and what are the other limitations for it?

Front of page (8 inches by 11 inches). It will be turned in with the test and you will get it back for final.

5. I have been practicing with the quizs that are online for the book but have noticed that they are for the 6^th edition not the latest edition (7^th which we have) but have no quizs online for it. In the 6^th edition they emphasize different things and the chapters aren’t in the same order.

Sorry I missed that! I just changed it, but rest assured there is not much damage. Chapters 1-5 are very similar. In fact if you could do the 6th edition, you are in good shape as it was a tad more difficult.

Overall the coverage is pretty close and the math etc are the same.

As for whether you should be submitting the quizzes...nah. If you want, but by grad school that sounds too much like busy work. I would however so them.

and then a question from another student:

What chapters are on the test?

Chapters 1-8, 12.

BTW as a bonus to those who have read this far:

You can submit multiple choice questions and if it is accepted, then you will get an extra 1% on the test. Of course you SHOULD also get it right, so that is a double bonus :) and yes you have to submit an answer, and knowing me, I would give the added hint that the more challenging of question, the higher the probability of inclusion.

U.S. homework outsourced as "e-tutoring" grows - Yahoo! News

U.S. homework outsourced as "e-tutoring" grows - Yahoo! News:

"Private tutors are a luxury many American families cannot afford, costing anywhere between $25 to $100 an hour. But California mother Denise Robison found one online for $2.50 an hour -- in India"

I signed up with something like this (for free) for the class. Let's see what happens. Stay tuned!

Quiz and Project for MBA 604

I will hand back the quiz but the project is not done yet...

Also be SURE to bring calculators tonight...

From Career services

Please remind your students of the following résumé-submission opportunities taking place now. Students need to drop off the necessary materials to the Career Center by the due date, in order to apply:

Wednesday, Sept. 27 -- THE BONADIO GROUP -- Accounting majors

Wednesday, Sept. 27 -- ASSOCIATED HEALTH CARE -- ALL majors

Thursday, Sept. 28 -- BUFFAMANTE, WHIPPLE, BUTTAFARO -- Accounting majors

Monday, Oct. 2 -- M&T BANK -- Accounting, Finance (with significant accounting coursework) majors

Tuesday, Oct. 3 -- MANNING & NAPIER -- Finance, Accounting, Economics majors

Wednesday, Oct. 4 -- CHILTON INVESTMENT -- Finance, Accounting, MBA majors

Additional details about these recruiting opportunities is available online at: http://www.sbu.edu/go/student-services/career-center/students/on-and-off-campus-recruiting/index.htm.

Also, anyone who did not attend an ON-CAMPUS RECRUITING ORIENTATION within the last year (F'05 - present) and is interested in participating in On-campus Recruiting this year, needs to attend one of the following 45-minute sessions taking place in the Career Center, room 216 RC:

WEDNESDAY, Sept. 27 -- 12:30 p.m.

THURSDAY, Sept. 28 -- 3:00 p.m.

(These are the last sessions being offered this semester!)

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

Quote of the week

"No one keeps up his enthusiasm automatically. Enthusiasm must be nourished with new actions, new aspirations, new efforts, new vision. Compare with yourself; set your teeth and dive into the job of breaking your own record. It is one's own fault if enthusiasm is gone. [S]He has failed to feed it."

Papyrus (as quoted in The Book of Positive Quotations by John Cook)

Some suggested problems for MBA 604

I was asked for some suggested problems.

Here you go:

from Chapter 4:

The Chapter review and self test problems (p 112)

I really like the concept review and critical thinking questions. These would be excellent to do in study groups! They demonstrate, among other things, that growing firms often have cash flow problems.

In Questions and Problems pay particular attention to
3,4,9-13,16,20,21, 22,

Want a real thought provoker? try #31.

hope these help!

reminders

Just some fast reminders

1. No class or office hours today...I am just leaving for a meeting that will take the rest of the afternoon.

2. The Oreck speaker is at 7:00pm today AT JCC in downtown Olean

3. Don't forget the valuation videos

4. Tomorrow is the Deloitte information meeting. DEFINITELY PLAN ON GOING!

5. Need a great line item on your resume? Come to tomorrow's 11:45 BONARESPONDS leader meeting. It really is like running a business and you can make a huge difference.

WSJ.com - In the Lead

Another article that shows it is not the school you go to that matters as much as how hard you are willing to work!

WSJ.com - In the Lead:

"The college diplomas of the nation's top executives tell an intriguing story: Getting to the corner office has more to do with leadership talent and a drive for success than it does with having an undergraduate degree from a prestigious university.

Most CEOs of the biggest corporations didn't attend Ivy League or other highly selective colleges. They went to state universities, big and small, or to less-known private colleges."

And later:

"What counts most, CEOs say, is a person's capacity to seize opportunities. As students, they recall immersing themselves in their interests, becoming campus leaders and forging strong relationships with teachers...."

Thanks to Rich for pointing this article out to me!

Team work from the Buffalo News--Buffalo Bills example!

Yeah I know, this link has very little finance content at first glance, but I think it is relevant and besides, remember everything fits in finance. (And it has nothing to do with the fact that it is about the Buffalo Bills ;) )

Buffalo News - Bills buying family plan from Jauron:

"We were together. We had like a family,' Villarrial said. 'We didn't let anything separate us, we didn't let anything get in our way, and we just stayed focused. And that's what Marv [Levy] and Dick have brought to this team is that family togetherness. With a GM and a coach on the same page, it's nice. We win together, we lose together and no one's better than the other person....'

'It makes a big difference,' Villarrial said. 'If you're a family you don't want to let down your family member. When you mess up a play you get more mad at yourself and you make yourself better because you just felt like you let your whole family down. That's what he brings to it. It's kind of funny in a sense but it's true. '"

It is also my view of most things. Call it family, call it team, call it a class, call it whatever. I am constantly amazed how well it works (see for instance the success of BonaResponds, 2001 Bears, Twins in almost any year, even Handson). When people on a team come together: they try harder, they gain confidence (quit being afraid to speak out or take chances), and they cooperate.

Success then comes to everyone and not just a few select "super stars". These ingredients lead to a successful team or organization.

While it does sound stupid, that is the same attitude that can develop within a class. Think back to your best class (probably just happened, right :)). But seriously, everyone is paying attention, answering questions etc. It is not just a few top students. EVERYONE gets involved. This leads to everyone coming to class prepared (including the teacher) since no one wants to be the reason the class is slowed or held back).

The business world and the job market, like football, are very competitive places, but like in football, being part of a group (be it a study group, a class, or better the whole university) can bring out more from everyone and result in wins (more learning, better job placements, and oh yeah more fun) than if the class is full of students largely in isolation from each other.

So don't be afraid to speak out in class or be a bit creative in your projects. That is how you (and the rest of the team/class) will get better.

And by the end of the semester, you will be totally amazed at how much you learned and how suddenly finance makes more sense than you ever thought possible!

CollegeJournal | Find a Career Path

This is plus for the SBU sports minor if I have ever seen one! ROdney is scheduled to do the sports and Econ class in the spring. Definitely recommended!!

CollegeJournal | Find a Career Path:

"The NFL's finance chief used to work for Goldman Sachs. Its top two marketing executives were at General Motors and IBM. Its lead television negotiator ran sports for ABC and ESPN. The chief operating officer of its cable network handled finance for NBC's West Coast entertainment division. The head of its international division was a marketing executive for the liquor company Diageo....

If you're going to have these franchises that are worth north of a billion dollars, you're looking at it really as the business of entertainment, the business of intellectual property, the business of turnstiles," says Ms. James. "This is a very sophisticated time. It's not a back-slappy time." The booming supply of sports-related jobs extends well beyond the teams and leagues."

Deloitte coming to SBU this FRIDAY!

I know several people who have worked here and all but one loved it. Good opportunity.

INFORMATION SESSION: DELOITTE ERS (McLean, VA)

FRIDAY, SEPT. 22

12:30 - 1:30 P.M.

ROOM 211/213 REILLY CENTER

Alums employed with Deloitte Services LP, McLean, VA, will be on campus to share information about career opportunities with the company. Currently, they are accepting resumes for the following openings:

*INTERNAL AUDIT and ENTERPRISE RISK SERVICES -- Accounting, Finance, BIS, MBA, Math and Computer Science majors.

Internal Audit services include:
• Co-sourcing Specialized Services
• Design Strategic Plan
• Outsourcing
• Reengineering
• Strategic Assessment

ERS Consultant professional responsibilities:
• Establish working relationships with client personnel
• Review client accounting and operating procedures and systems of internal control
• Apply concepts of risk assessment
• Design and perform tests of internal controls
• Provide recommendations for improved controls and enhanced business efficiency

All eligible and interested students are encouraged to attend this presentation. *Please submit your resume to the Career Center, if you'd like to be considered for these positions.

Nike case for 604

I have had several questions regarding the Nike case.

So I will attempt to answer them:

Yes- the entire project is due.
Yes-you can work together in groups.
No-you do not need to forecast every line item. Use large groupings (ex. CA, TA, CL, TD, E)
Yes you very well may have different numbers than other groups.
One-every group only needs to turn in one case.
Industry analysis can be found from Yahoo or MSN or anywhere else. Just be sure to cite it.

Only other thing I remember answering is that you do not need to do every ratio but you should have AT LEAST ONE from each catergory...

hope this helps!

Axiom Valuation Solutions - Business Valuation Services for Owners & Advisors

Axiom Valuation Solutions - Business Valuation Services for Owners & Advisors

It looks VERY likely that I will have to miss class on Thursday. In lieu of class, I would like you to either

A. go to teh Oreck presentation at JCC at 7:00 PM
B. Watch this series of videos from Axiom Valuation

They will be testable.

Interviewing tips

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

WEDNESDAY, SEPT. 20

5:00 - 6:00 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 an alum 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.

two updates on things

1. The BonaResponds local service day went very very well! If you missed it, you really lost out! Stay tuned for next one! Here are some pictures.

2. I can not log on to my notebook computer so I can not upload the class audio. If anyone has any idea how I can unlock a locked computer, let me know :) thanks!

IT's TODAY!!!!

Hope you can make it out! Even if it is late...we'll be working until 2:00 and then having a picnic. Come on out to Walsh High School!

St. Bonaventure University: BonaResponds plans countywide service day

St. Bonaventure University: BonaResponds plans countywide service day:

"ST. BONAVENTURE, N.Y., Sept. 11, 2006 — The BonaResponds team has scheduled an Allegany-Olean service day for Saturday, Sept. 16. This will be the group’s second local workday this month.

BonaResponds volunteers will be broken into small groups, along with other local service groups, and assigned throughout Cattaraugus County. Some sites include the village of Allegany, Allegheny River Valley Trail, the Cattaraugus County SPCA, St. Elizabeth Motherhouse, Olean Historical Society, Olean General Hospital, the St. Bonaventure University (SBU) campus and Mt. Irenaeus."

If you can come out to help or if you want to donate, just let me know! :)

Need a laugh?

FRom the Onion

LeBron James Amazed At 21-Year-Old's Ability To Stay Up All Night Studying For Physics Exam | The Onion - America's Finest News Source:

"CLEVELAND—21-year-old LeBron James, who skipped college to make millions of dollars in the National Basketball Association, was amazed to find out that someone his very own age, Case Western Reserve University junior Michael Washington, had the ability to stay up all night studying"

Click though for more of story.

Clarification on Assignment for MBA 604

A few students have asked so...

since we did not get as far as I had hoped, only sections 1A and 1C will be due tonight.

The rest will be discussed and collected next week.

HOWEVER, I do want you to think about how to do the forecasting. There will be a discussion of it tonight.

Hope this helps!

What are you doing Saturday?

Build your resume, network, meet new friends, have fun, get in line for a scholarship for our future trips to the Gulf, oh and you will also be doing great work that will help the local community and make you feel much better!

Sounds like too much? Well, come out and find out!

THIS SATURDAY (SEPT 16, 2006) BonaResponds will be meeting at 8:00 AM at
Archbishop Walsh (Behind Subway--turn at AJs/Friendly's).

Sign-in will be in the entrance area. Volunteers will then be directed into the gym where there will be tables set up for volunteers to "pack a lunch".

At about 8:15 we will have a brief "meeting" where we will explain the day. We are asking for people from each site to be at this meeting. We will then break into groups and go to the various work sites.

(Note if people show up late, we will still find places for them, but they will likely have no/little choice as to where they go).

Some of the sites include: St. Bonaventure University, Allegany River Trail, St. Elizabeth Motherhouse, the Village of Allegany, SBU, Trail creation on State Forest land, Olean Historical Society, Olean General Hospital, Allegany State Park, SPCA, and Mt. Ireanous.

Hopefully people will begin "rolling out" at about 8:30.

We want to have everyone back by 2:45 for a BBQ and "wrap-up"/reflection period--this will be very similar to Handson with each group reporting in on the work they did.

Great Quote!

"We should be taught not to wait for inspiration to start a thing. Action always generates inspiration. Inspiration seldom generates action---Frank Tibolt"

Answers left unaswered in class

Having listened to last week's classes (both 401 and 604) a few comments and answers:

The Dow Jones Industrial Average's divisior is .12

A list of NYSE specialist firms can be found here, the price of a NYSE seat can be found here.

Hope these help!

jim

Office hours on Monday

Office hours will be canceled this Monday (September 11th) because of the Finance Club trip to Rochester.

Sorry for any inconvience. Please email me any questions.

From Career Services

From Career Services:

Attention Accounting & Finance Majors

Deadlines for resumé submissions for on-campus interview opportunities are quickly approaching. The following are some of the recruiters who will be coming, and the dates that resumes are due for internship and full-time positions :

PricewaterhouseCoopers : Friday, Sept. 8

Insero & Co. CPA's : Wednesday, Sept. 13

Ernst & Young : Thursday, Sept. 14

Deloitte & Touche : Friday, Sept. 15

Freed, Maxick & Battaglia : Tuesday, Sept. 19

DeJoy, Knauf & Blood : Wednesday, Sept. 20

Information about these companies and their application requirements are available on the Career Center's On-Campus Recruiting Page at: http://www.sbu.edu/go/student-services/career-center/students/on-and-off-campus-recruiting/index.htm

Also, the deadline for sign-ups to attend the Mengel, Metzger, Barr & Co.'s Open House has been extended to Monday, Sept. 11. Accounting juniors and seniors are encouraged to RSVP in the Career Center, room 216 Reilly Center, or to career@sbu.edu .

Does Ivy League Matter?

From the WSJ's College Journal:

Question: Does going to a very prestigious college really make a difference in landing a good first job, for example, on Wall Street?

Answer: You don't necessarily need a Rolls Royce to get you where you need to go.

There's nothing wrong with attending a prestigious school. But don't despair if you don't have a super-pricey diploma.

It's possible to get to Wall Street without an Ivy League degree. "More important than the school you attend are your grade-point average, extracurricular activities, as well as your interest in and knowledge about business," says Rachel Radway, managing editor of WetFeet.com, a San Francisco-based research and publishing company focused on careers and management.

Deutsche Bank recruiters, for example, visit more than 40 university campuses in the U.S., less than half considered "Ivy League," in search of candidates for its analyst program.

These universities are chosen based on academic reputation, their historic hiring relationship with the school, and degree disciplines, says Kris Peters, head of university recruiting at Deutsche Bank.

She adds that the bank's hiring criteria "is based entirely on the skills that we think lead to success in our businesses," among them educational background, as well as experiences that demonstrate leadership, work ethic and teamwork.

"As long as you've done well at a school with a decent reputation, you will be a good candidate," says Ms. Radway. She emphasizes the importance of references, summer internships and relevant coursework to gaining a foothold as an entry-level job candidate."

P/T Real Estate Opportunity

We do not have a real estate class at SBU, but here is an opportunity to work part time and get some real estate experience and to work flexible hours.

Oversee 4 apartments (2 duplexes). Rent, record rents, make sure rents are paid, clean up as necessary, etc.

Pay is 10% of collected rents.

Resume to jim

Class Codes for Clickers

PLEASE BE CAREFUL when adding yourself to the class. If you are wrong (i.e. you enter yourself in the wrong class) it is very difficult for you to change and you will have to do this through the kind people at einstruction.com.

So after being sure what class you are in, you go to einstuction.com and enter the following code (you go to St. Bonaventure University ;) )

• Finance 401-01: Class Key: G23207B621
• Finance 401-02: Class Key: H23208B338
• MBA 604: Class Key: I23206B812

We will be having first quizzes this week, so please register as soon as possible. :)

Thanks!

jim

Welcome back!

Hi everyone (both old and new)...

Today begins a new school year at SBU.

New School years are always both exciting and frightening. Think back and remember your first day of school. Or first day at a new school. Or to your feelings waking up today getting ready for today. The excitement tempered with inner butterflies of nervous anticipation.

To keep those "inner butterflies" in perspective consider:

The year ahead will be full of new learning, new opportunities, fun, and friends. It will also have its share of hard work, long hours, sadness, uncertainty, and needless worrying.

Let us work to ensure that the good trumps the bad. That we take advantage of our learning opportunities while not letting our fears get in the way. That we remain upbeat and positive in the face of uncertainty and challenge. That we are caring with others and that we treat others as we would like to be treated.

If we do these things, then assuredly this will be a great school year!

Quotes etc

As this blog is more informal and mainly for students, I think I will go back to the newsletter tradition of including quotes on a regular basis...

* Adapt or perish, now as ever, is Nature's inexorable imperative"---H.G. Wells

* The greatest obstacle to happiness is to expect too much happiness---Bernard de Fontenelle

* If you want to do something, do it!---Platus

As quoted in The Book of Positive Quotations by John Cook

sleep and memory

Science & Technology at Scientific American.com: Snooze or Lose: Memory Retention Enhanced by Sleep

"Sleep aids memory. Whether tested in animals or humans, studies have shown that sense memories--such as learning a certain sequence of dance steps--take root more solidly when paired with adequate rest. Now new research shows that so-called declarative memories--such as a sequence of facts--also benefit from slumber, especially when subjects are challenged with subsequent, competing information."

Looking for a one credit course?

From the Chautauqua Institute:

A dynamic new partnership has created an exciting new opportunity for you and your St. Bonaventure colleagues and students this summer. Jamestown Community College and Chautauqua Institution are collaborating to offer “College Credit at Chautauqua,” a series of one-credit courses based on lecture themes at historic Chautauqua’s Institution Amphitheatre.

Each of the courses will include an introductory class, five Amphitheater lectures, five post-lecture classes of approximately one hour, and a wrap-up class. Students completing the course(s) for credit will be required to complete a writing assignment in addition to class and lecture attendance. Each course is offered at a special tuition rate of $44 for New York state residents and $80 for non-residents. Each student will also be assessed a $75 fee for Chautauqua Institution gate and parking passes for each course.

Please note that Week Eight (August 14 -18) focuses on “Business and Finance: America and the Fiscal Future,” and whether the American economy will boom or bust. Does America lead the world with innovation and a resilient and productive economy or is America ‘running on empty’ as the world’s leading debtor nation? What are the effects, if any, of the aging baby boomers, the development of alternative energy sources and the birthrate? What are the likely effects of tax policy, state and federal spending and the strength of the dollar? The week will also explore the financial health of major markets and developing economies around the world and their relationship to the United States economy. Scheduled guest speakers include Paul Solman, Phillip Marineau, Richard Bernstein, and US Rep. Michael Oxley.

To register for this unique educational experience, call 716/376-7500, ext. 2332.

Spreadsheet errors

The Unknown Professor over at FinancialRounds has an interesting article on spreadsheet errors. We can all benefit from looking over our spreadsheets!!

There are no magic bullets, but much good advice!

Lack of jobs lead to people leaving

From NY Times:

"In 13 counties that include cities like Buffalo, Syracuse and Binghamton, the population of young adults fell by more than 30 percent. In Tioga County, part of Appalachia in New York's Southern Tier, 42 percent fewer young adults were counted in 2004 than in 1990.

"Make no mistake: this is not business as usual," Robert G. Wilmers, the chairman of M & T Bank in Buffalo, told his shareholders this spring. "The magnitude and duration of population loss among the young is unprecedented in our history. There has never been a previous 10-year period in the history of the upstate region when there has been any decline in this most vital portion of our population.""

BE CAREFUL WHAT YOU PUT ON FACEBOOK!!!

Yes, I was screaming in the headline. How can people be so stupid? and yet I see many of my own students doing the same thing.

From the NY Times:

"At Facebook, a popular social networking site, the executive found the candidate's Web page with this description of his interests: "smokin' blunts" (cigars hollowed out and stuffed with marijuana), shooting people and obsessive sex, all described in vivid slang.

It did not matter that the student was clearly posturing. He was done.

"A lot of it makes me think, what kind of judgment does this person have?" said the company's president, Brad Karsh. "Why are you allowing this to be viewed publicly, effectively, or semipublicly?""

You work so hard to get an interview and then blow it. Stupid.

College Debt

Does this sound like you?

From USAToday:

"After years of rising college costs and shrinking financial aid, it's come to this: Some graduates are now leaving college with student-loan debt in the six figures.

Graduates with more than $100,000 in debt still account for a small subset of borrowers. But their numbers are rising. And the proportion who are leaving college with some level of unmanageable debt — debt they can't repay without significant hardship — is swelling."

but on the good side if it does:

"Still, students remain willing to load up on loans in large part because studies have long shown that an investment in college pays off. The Census Bureau has estimated that college graduates will earn about $1 million more over their lifetimes than individuals with only a high school diploma."

Mental outlook impacts learning

From ScienceDaily.com

"Those who consider intelligence a natural gift—or the lack thereof the
fault of bad genes—may have trouble recalling a fact they have just learned. On
the other hand, those who believe that intelligence is something that can be
acquired through dedication and hard work demonstrate more vibrant memories of
things past. Jennifer Mangels, PhD, assistant professor of psychology at
Columbia University in New York, says that such flexible thinkers have better
memories because they are less concerned about forgetting. "They look at a
mistake at a more meaning based level, rather than superficially." she says.
As a result, explains Mangels, the brains of flexible thinkers process
information in greater depth, increasing the likelihood of memorization."

If around Olean

from the SBU Notice Board

Sr. Margaret on WHDL/WPIG radio this Sunday

On Sunday, June 11, WPIG 95.7 FM and WHDL 1450 AM will air an interview with Sr. Margaret talking about the exciting St. Bonaventure campus construction, the Capital Campaign, the University’s commitment to the Atlantic 10 Conference and a number of other University-related topics. Tune in at 6:45 a.m. on WPIG and at 10:05 a.m. on WHDL.

Online spreadsheet from Google

From the Mercury News:

"Jonathan Rochelle, product manager for the Google Spreadsheet, said the service is targeted at individuals who want to do things like plan a reunion or track baseball scores for a little league team or small businesses.

It allows up to ten users to collaborate together, and reflects their changes in real time. It also offers a number of standard features, like frozen column headings and sorting, but does not have charting, autofilter or drag-and-drop capabilities. Rochelle said Google plans on adding new features based on feedback from users."

Great advice from an econ teacher

I had to put in text book orders for the fall semester today. I always feel bad because books are so expensive, but I feel even worse that they are not used. Thus, when I stumbled upon the following from John Whitehead's site I felt obliged to mention it. Short version: text books are to be read!

"Student (sincerely): What can I do to get a better grade on the next exam?
Professor: Well, how did you study for the first exam?
Student: I went over the notes and thought that I understood them.
Professor: Did you read the textbook?
Student: No.
Professor (shouting): Read the #@$%& textbook!
Student (giving me the look like I'm crazy): I tried to read it but I didn't understand it.
Professor (calmly now, regaining his/her composure): Right on, that's why it's called "study."
Student (excitedly): Oh. I get it! I can't wait to get started!

An econ class blog

You have to check this one out! I just got reading it for 20 minutes....very interesting!

"Welcome to Aplia's economic news blog, a place to explore current events that relate to your econ classes"

Thanks to FinancialRounds (the Unknown Professor) for pointing it out!

The importance of internships

Free Money Finance has a nice look at the importance of internships.
One brief look-in:

"While a student, you'll learn all the theories and study great people in your field. It's all great and wonderful to do nothing but dream and do mock projects. An internship in the 'real world' will allow you to put the theories to the test and to do real work. Also, you'll learn about office politics, how people make money in your profession and hopefully pick up a mentor. Things that the university can't/won't teach you."

So get out there and get one! ;) Seriously, I have seen many students turn around their college career for the better on the strength of a single intership. I can not stress enough their importance.

Competition AND cooperation

Sure there are teams that do not work out and the classroom is somewhat competitive (although personally I think I would like to see a bit more, not less competition ;) ). That said, it is always popular to stereotype MBAs as ultra-competitive, win at no cost people. I hear this argument regularly, but personally have never seen it. Either as a student (I got my MBA from the Simon School at Univ of Rochester) or teaching at St. Bonaventure or tutoring while getting my PHD at PSU. In all three cases I found MANY more cases of cooperation than competition.

From BusinessWeek (Kerry Patterson):

"All MBA classrooms are built as coliseums. They follow case methods almost universally across the country. Students come to class, where they get cold-called, and they're graded as much as half by how they respond. Teams of students meet -- and I've watched them for over 30 years now -- and they're brutal to each other. The professor plays the role of referee. "

After blaming professors and adminstrators, the article gets around to a very useful perscription:

" Become a student of human interaction. In the classroom, students should be paying attention to interactions that do two things -- get the problem solved or make the point in the classroom in a way that doesn't cause harm in a relationship. "

When people are in their working world and attending meetings, most people don't know that there are two things happening -- the argument itself and the process of how that argument's unfolding. The capacity to constantly be observing the argument at hand as well as the process people are using to make their points makes you doubly empowered. "

Which is a case of agreeing with the prescription but not the diagnosis!

An interesting piece from Harvard's Working Knowledge:

"The actual statistical calculations represent only 5 percent of the manager's work," says Frances Frei, an assistant professor at Harvard Business School who teaches two-day statistics seminars to corporate managers. "The other 95 percent should be spent determining the right calculations and interpreting the results."

Here are some guidelines for using statistics effectively:

College Central for jobs

You may have seen this, I had not. It should be much easier to search for jobs etc. College Central is a job site (career center) for small and medium sized colleges. SBU has joined. You should look it over.

Welcome to the CCN Services for St. Bonaventure University

These services are available to students, alumni and employers.

Approved employers may post jobs and search résumés.

Available services, help guides and announcements of interest can be accessed through the icons below. All services are available 24 hours a day, seven days a week.

KKR goes public

PRIVATE equity became a little less private yesterday.

A unit of Kohlberg Kravis Roberts & Company, the private equity giant that came to fame with the $25 billion buyout of RJR Nabisco in 1989, went public in a $5 billion offering in Amsterdam.

Demand for the fund unit was high: the offering raised more than three times what was expected. Nonetheless, its first-day performance was lackluster. Shares of the fund, KKR Private Equity Investors, closed down 1.68 percent on Euronext, the pan-European exchange, at $24.58. About 25 million shares traded hands, an eighth of the total listing

On social security

Given we just talked about it (in Fin 422):

Despite Warnings, Reid Hails 'Sound' Social Security System -- 05/02/2006: "Labor Secretary Elaine Chao warned that as the Baby Boom generation begins to retire, the system faces increasing strain: 'What we continue to see is a looming fiscal crisis facing these two programs,' Chao said in a statement.

It's not just Social Security, she said, adding that defined-benefit

Majority vs Plurality

While this may be useful for all classes, it is EXACTLY what we were talking about when Chris Kinslow was lecturing!

Company News | Reuters.com:

"Bank of America Corp. (BAC.N: Quote, Profile, Research) shareholders, rejecting management's recommendation, on Wednesday voted to urge the No. 2 U.S. bank to require that directors be elected by majority vote.

At the bank's annual meeting near its Charlotte, North Carolina, headquarters, holders of 56 percent of Bank of America shares said the board of directors should begin a process to amend its certificate of incorporation or by-laws to require a majority vote.

and:

"Bank of America had urged that shareholders turn down the proposal. It said the current system, under which directors are elected by plurality"

"cheat sheet"

Just a reminder: for all my classes I have the same policy for finals:

* you are allowed a cheat sheet (front and back 8.5 inch by 11 inch paper)
* you can bring "present value tables" if you so desire, but you have to have created them yourself (excel) and they cannot be copied from a book.

quick comments on the MBA 610 cases for the 5 week course

Since we did not make teams for this week, let;s push it back to next week. We will talk about it in class on Friday.

Thanks!

Financial derivatives

Derivatives lecture from 5 week MBA 610 class

Intro to takeovers and mergers

Takeovers and mergers get much news coverage. In htis class we covered what they are and why firms do them.

Democrat & Chronicle: Essays

Did you see this?

Democrat & Chronicle: Essays: "Fans won't balk if Bills raise admission

Rodney J. Paul
(April 19, 2006) — The Buffalo Bills simply need to raise ticket prices."

Questions on cases

I have been asked several times about what is required for the cases. I am a bit reluctant to say spscifically since it will limit your creativity, but...


What exactly are you looking for for these cases? The one page write up consists of??????

well hard to say since I am not really sure....the one page memo (for when you are not presenting) is easy--must be on one page (single spaced, so maybe 2-3 paragraphs plus some questions--one paragraph summary, one paragrapgh main points of paper...then some questions you might ask the groups...so it all fits on one page....

The papers for the presentation are obviously more challenging...give me a QUICK recap (i would say less than a page), then discuss main point(s) of the case and give recomendation (and show why if possible using financial theory/numbers)...that is the fun part :) It should be less than 10 pages. Ideally 6-8. Be sure to cite things as necessary (I really do not care what format is used to cite things).

Hope this helps!

Audio: Introduction to Corporate Governance

A first look at corporate governance. From MBA 610. A discussion that looks at why shareholders elect Board members, a look at conflicts, and a QUICK look at the 1990s.

Audio: Derivatives Recap

About an hour long recap of financial derivatives.

A spreadsheet to show the importance of saving

As Graduation nears, many people begin to think about their own finances. I hope this spreadsheet serves as a reminder why you should save as soon as possible.


ThinkFree Office requires Java-runtime. Visit trouble shooting page

Teams for 610

The groups by class are as follows:

Monday Class
1 McBride Ian
1 Richardson Sean
1 Gonzalez Jon

2 Haggerty Brian
2 Sluga Dave
2 Oleyourryk Dan

3 Babcock Adam
3 Rizzolo Mark
3 Cronmiller Matt
3 Spagnolo Julie

4 Wright Melissa
4 Pope Kelly
4 Pirdy Cassie
4 Onuffer Jolie

5 DiMario Anthony
5 Kane James
5 Sidney-Simth Brian

6 Post Matthew
6 Lindsay Brian
6 Gallo Jeff


Tuesday Class

1Fisher Lorrie
1Halpany Mike
1Werner Scott

2 Orlando Sam
2 Owens Brad
2 Kuhn John

3 Hallen Kevin
3 Rosati Nick
3 Pilcher Brian

4 Matt Mike
4 Jones Lyndsay
4 Doyle Pat

5 Fuller Karen
5 Soble Corinne
5 Mahler Rebecca

6 Conklin Tim
6 Batesky Adam
6 Eyde Sean

Introduction Comparison

WNY INDEX

Capital structure III

The wrap-up on Capital Structure. What else impacts it, pecking order, tradeoff, hybrid theory, etc. From MBA 610 HIII

Capital Structure II

Second of three parts of MBA 610 Lecture

Capital Structure I

Capital Structure I-audio of MBA 610 HIII

Market Efficiency Audio

Market Efficiency from MBA 610 HIII

Dealbook - Mergers, Acquisitions, Venture Capital, Hedge Funds - New York Times

Want to keep up with the business world for class or to prep prior to an interview? I would highly recommend the NY Times Deal Book. It comes as a once a day newsletter or as a blog. Either way, great coverage!

Dealbook - Mergers, Acquisitions, Venture Capital, Hedge Funds - New York Times: "Top DealBook Headlines"

Audio of Derivatives lecture

Derivatives should not scare people, yet they often do? Why? They are unknown. So listen to the notes on forwards, futures, and options. From MBA 610

How much to take from the blogs?

I was asked again about how much you are responsible for when it comes to the blogs.

The short version, try to get the main point(s) of the articles that are listed. YOU DO NOT NEED to read them all!!! If you get one or two things from each article that is related to your class, then I am happy and in the long run, you will learn much more than if you try to cram all of your learning into just the semester. Remember finance is fun! I expect many of you will be reading the blog long after you left class/school.

Here is a part of my response to the student who emailed me:

"Think of the blog as a course packet of largely optional readings...they are often interesting and can be used to get concrete examples of something we will be talking about in class.

The exception to this is if we actually do talk about a paper etc in class, then you should at least look at it...a test generally has 5% or so from the blog...so not a major concern...

and for all papers, just read to get the top two or three points...you definitely do not need to print everything out!

hope this helps..."

Calculators you should be familiar with

Numa has several calulators that you should be familiar with. We used the option pricing one in 610, but each of these are relevant for both 610 and 422.


NumaWeb : DERIVATIVES : Convertible Bond Calculator
NumaWeb: DERIVATIVES: Option Calculator

For all of their calculators check here.


Note, these not only help build understanding of how derivatives work, but alsomake great test questions! ;)

where is the podcast?

Somehow I deleted the link to the podcast, so here it is again. I will put it back on the 610 pages soon.

CAPM Notes

Notes from MBA 610 on CAPM (Saturday after Lunch)--2+ hours

A first look at returns

A beginning look at Returns..from Just before Lunch on Saturday of Week One in a 5 week version of MBA 610

More On CAPM

Here is the link to the CAPM papers (In particular Fama's) that we spoke of at the end of class on Saturday.
http://financeclass.blogspot.com/2005/01/two-capm-articles-of-interest-for-610.html

Links used for MBA 610 5 week class

Here are some of the links we used for the class on Friday and SAturday that were not on the MBA 610 page.

Types of Bonds--sorry the page looks so bad!

The Bond pricing example (with Duration)
The historical returns for S&P

Discussion of the Dow and its divisor

capital structure class audio

I think this is from the last class prior to the test, BUT I am not positive. Several were updated the same day.

MBA 610 lecture on Dividends and IPOs

I am sure you will find this new site to be much faster and easier to use...I will backfill it with the past recordings as well.

Finance Forum

Bonaventure Finance Forum

The Department of Finance and the Career Center are sponsoring this year's Bonaventure Finance Forum on Wednesday, March 1 and Thursday, March 2 in which a dozen alumni with financial-related business experience come to campus to interact with students via several venues and forums. The event will kick off on Wednesday afternoon at 3:30 p.m. in the Doyle Trustees Room with a panel discussion on Managing Your Career and is open to all students. Immediately following the panel discussion (which will allow opportunities for students to ask questions), we will hold a networking reception so that you might interact with our guests on a more intimate basis and begin building your network.

On Thursday, our guest will visit classes, conduct practice interviews, conduct actual interviews for internship and entry-level positions, and lead small group discussions. Juniors and seniors are particularly encouraged to participate in practice and actual interviews, which will be announced and coordinated through the Career Center this week. Contact Professor Stephen Horan (shoran@sbu.edu ) for a list of topics and times for the small group discussions.

some suggested audio

Here are some audio that should help you:

Short(10-15 min-non class) discussions:

1. On the Nexus of Contracts and REMM behavior
2. On Market Efficiency
3. On Behavorial Finance
4. On allocational Efficiency


Links to classes to follow

More suggested problems

Here are some problems for MBA 610...


Chapter 14 14.1, 14.4, 14.7

Chapter 15 15.1, 15.2, 15.3, 15.9, 15.10,15.14, 15.15, 15.18


Enjoy! :)

TEST DATE FOR MBA 610

WE REALLY need to pick a date...

some want it before break, others after. I am indifferent.

So, I guess we will have a vote on Monday in class...The tuesday vote was a tie.

Suggested homework problems for MBA 610

Here you go:

Chapter 12: Questions and Problems 12.1, 12.2,12.3,12.4,12.6,12.7,12.13,12.16

Chapter 13: Questions and Problems 13.2, 13.3,13.5,13.13,13.14,13.16,13.21,13.22,13.23

have fun!

Bear Stearns Internship

Internship Opportunity with Bear Stearns. This opportunity is available to all Finance and Accounting majors. This internship will provide compensation and academic credit. Please submit Resumes to Professor Premo's office in Room 219 Murphy by noon on Tuesday, February 20, 2006. This is a great opportunity, please take advantage.

fin 422 virtual stock exchange

http://game.marketwatch.com/Competitions/CompetitionRules.asp?ShortName=BonaFinance

MBA 610--CLASS ONE IS ONLINE

HERE YOU GO class one

It will open as an MP3 file.

Microsoft Outlook Web Access

Free practice GRE, GMAT and LSAT exams will be offered in February

A representative from Kaplan will once again be offering FREE practice GRE, GMAT and LSAT exams on the St. Bonaventure campus. When:

Wednesday, Feb. 15
GMAT @ 6 p.m.
LSAT @ 6:15 p.m.
GRE @ 6:30 p.m.

Pre-registration with the Career Center is required. Register in person by visiting the Career Center, Rm 216 RC, by phone at 375-2384 or e-mail at career@sbu.edu At the time of registration, please provide the following information: name, major, year, phone, preferred test. Registration deadline is Monday, Feb. 13.

Connie Whitcomb, Director The Career Center

Finance 422-NEW CLASSROOM

Good news!

Portfolio Management (FIN 411) Class will now meet in RC 101. :)

YEAH!!

Clicker codes for MBA 610 Spring 2006

Class codes for MBA 610 to use clickers (go to Einstruction.com)

Section 1: I16738K863 (Monday class)
Section 2: G16739L785 (Tuesday class)

St. Bonaventure University:

St. Bonaventure University:: "13 Tues..........................Undergraduate Final Examinations
Exam Time Class Meeting Hour
8:00 AM-10:30 AM MWF 10:30 AM
10:35 AM- 1:05 PM MWF 8:30 AM
1:10 PM- 3:40 PM TTH 1:00 PM
3:45 PM- 6:15 PM OPEN

14 Wed............................ Undergraduate Final Examinations
Exam Time Class Meeting Hour
8:00 AM-10:30 AM MWF 9:30 AM
10:35 AM- 1:05 PM OPEN
1:10 PM- 3:40 PM TTH 2:30 PM
3:45 PM- 6:15 PM OPEN

15 Thur............................ Undergraduate Final Examinations
Exam Time Class Meeting Hour
8:00 AM-10:30 AM MWF 3:30 PM
10:35 AM- 1:05 PM MWF 11:30 AM
1:10 PM- 3:40 PM TTH 10:00 AM
3:45 PM- 6:15 PM OPEN"