BA142 SecondSemesterAY20102011 WFR28:3010/WFU21011:30Room305 Consultationhours:812M,T,Th

B.M.Aragon bjmaragon@yahoo.com Room215

Coursedescription/objectives:Thiscoursedealswiththelongterminvestment, financingandpayoutdecisionsafirmmustmake.Itwillpresentconcepts, principlesandtechniquesofanalysisthatmaybeappliedtothesedecisions.Atthe endofthecoursethestudentshouldbeabletoapplythesameinrelativelysimple settings. Courserequirements:Threeexams,casepresentation/reports,classparticipation includingproblemsolving,and,ifnecessary,quizzes.Attendancewillbecheckedand Universityrulesonabsenceswillbefollowed.Thegradingplanispresentedbelow. Textbook:McGuigan,KretlowandMoyer.ContemporaryCorporateFinance ,11/e. Reference:IlanoandYbanez(eds).PhilippineCorporateFinance,Vol.2(1998). Session Topic 1 Introduction/overview/classrules,etc Valuation Timevalueofmoney Riskandreturn Reading Exercises/Assignments

23 45

Ch.5 Ch.6

4,5,6,11,19,21,26,27,30,33,35, 39,40,41,42 1,5,6,7,10,13,14,16,17,19,21,2 4,25 1,3,4,8,11,12,15,16,17,18,22,2 4 1,2,7,8,15,17,20,22

67

Asset/bondvaluation Preferredstockvaluation Commonstockvaluation Case:PanamaPrintingCo.(reportsonly) 8 Firstexam

Ch.7:239249 252 Ch.8:271280

912

Investmentdecisions:capitalbudgeting Cashflowanalysis NPV,IRR,etc. 13 Case:FiltronCorporation Riskanalysis 14 Case:VesuvioFonderiaS.p.A.

Ch.9 Ch.10(including appendix) Ch.11

7,8,9,15,16,17,22 3,8,10,11,12,13,14,15,19,20, Appendix:2 7,9,18,19

1516

Costofcapital Weightedcostofcapital RADR:Betaandleverage 17 Case:AxleElmondInc. 18 Secondexam

Ch.12 Ch.11:370375

3,6,7,8,9,11,14,15,17 Ch.11:5,8,17,22,25,Ch. 12:16,18

1921

Capitalstructure:theoryandpractice

Ch.1314

Ch.13:3,4,5Ch.14: 5,6,9,13,15,18,20,22,27,30

22 Case:AmericanHomeProductsInc. 23 Payout:dividendsandbuybacks 24 Case:NapcoIndustriesInc. 2526 Fundraising Fixedincomesecurities Commonstockfinancing 27 Case:ContinentalCarriersInc. 2829 Leasing/intermediatetermfinancing 30 Integration/Wrapup Sustainablegrowthmodel 31 Integratingcase:DynatronicsInc. 32 Thirdexam Gradingplan Requirement Exams(scaledto125ptseach) Casepresentation(50ptsforpresentinggroup) Casereports(20ptsx7) Quizzes Total Examsarescaledto125pointstoachieve66/34 ratioonindividual/groupeffort. Equivalents: 95100 9094 8589 8084 7579 7074 6569 6064 5560 below55 Ch.15 7,8,9,11,12

Ch.7 Ch.8 Ch.19

CebuPacificprospectus 7,8,10,11,16,20

Points 375 50 140 565

Weight 66% 9% 25% 0% 100%

1 1.25 1.5 1.75 2 2.25 2.5 2.75 3 5

Gradesmaybesteppeduponelevelhigherforoutstandingclass participation.Thisisdiscretionary. Casepresentation/reportsguidelines: 1.Editablefilesofthepresentation/reportsmustbesubmittedby5pm,twodays beforethecasewillbepresentedtobjmaragon@yahoo.Pointswillbedeductedfor latesubmissions.Thefilenamemustincludecasetitle,yourclassandgroupnumber,e.g., Group1.2for8:30amclass,secondgroup.Papercopiesarenotrequired. Fortablesandspreadsheetstheformulasmustbeaccessible. 2.Presentationsshouldnotlastexceed25minutes.Youshoulddisplayconfidenceandpoise. Thereisnoneedforcostumes,excessivevisual/soundeffects,orothergimmicks.

3.Reportsshouldbe4pagesmaxincludingexhibitsandtypesizeofatleast12. Nospecificformatisrequiredbutitissuggestedthatthereportbewrittenasabusinessmemo, andnotaschoolreport.Usetopics/headingstoorganizeyourreport. 4.Ataminimum,youneedtoidentifydecisionsthatneedtomadeandyourdecision/recommendation andjustification/analysis.Thisappliestobothpresentationsandreports. 5.Insomecases,thereisnorightorwronganswerorevenapreferredanswer.Whatisimportantisthe clarityofthinkingthatunderliesyouranswer:Doyouknowwhatyouaretalkingabout?Areyou thinkingclearly?Doesthesequenceofyourideasmakesense?Areyoucommunicatingitclearly? 6.DoNOTrepeatcasefacts.Ifthecasehasquestions,usethemasguidesbutdoNOTsimplyanswerthem. 7.Items4,5and6applytopresentationsandreports. 8.Thepresentinggroupwillbeevaluatdpartlyonthereponsetheirpresentationgenerates. Thenonreportinggroupwillbeevaluatedpartlyontheirparticipationinthediscussion. Groupsseattogetherduringcasepresentations.

BA142(WFR2&WFU2ARAGON) BA 142 (WFR2 & WFU2 ARAGON)

FirstmeetingwillbeonFriday, November12. November 12 Pleasegetthecourseoutlinefrom Please get the course outline from myboxatRoom207. StartsolvingtheproblemsinChapter 5.