Financial Management FINA 5170
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This 8 page Class Notes was uploaded by Miss Rhianna Pouros on Sunday October 25, 2015. The Class Notes belongs to FINA 5170 at University of North Texas taught by Tomas Mantecon in Fall. Since its upload, it has received 110 views. For similar materials see /class/229110/fina-5170-university-of-north-texas in Finance at University of North Texas.
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Date Created: 10/25/15
Seagate Technology Buyout Each group should write down the answers to the rst 2 questions and hand them in at the beginning of the class on December 1 1 Why is Seagate undertaking this transaction It is necessary to divest the Veritas shares in a separate transaction Who are the winners and losers resulting from the transaction 2 What are the bene ts of leveraged buyouts 3 Luczo and the buyout team plan to nance their acquisition of Seagate s operating assets using a combination of debt and equity How much debt would you recommend that they use Why Hint Use the rating criteria presented in exhibit 10 and 11 4 Based on the scenarios presented in Exhibit 8 and on your assessment of the optimal amount of debt to be used in Seagate s capital structure how much are Seagate s operating asset worth For both of the assumptions listed below estimate the value of Seagate s operating assets Assume that of the 800 million in cash that the buyout team will acquire as part to the transaction 500 million is required for the working capital and 300 million in excess cash a Assume that the buyout team plans to maintain its debt at a constant percentage of the rm s market value b Assume that the buyout team plans to pay down its debt and cash ows permit until a terminal debt level of 700 million is reached Course Syllabus Course Information Course Number Section FINA 5170 001 Course Title Financial Management Term Fall 2010 Days amp Times Wed 630 7 920 Classroom CURY 103 Professor Contact Information Professor Tomas Mantecon Prieto O ice 168 E O ice Phone 9408916905 O ice Hours 445pm 7 615 pm Tuesdays and Wednesdays and by appointment email Address tomasmanteconunt edu Prerequisites Students must complete ACCT 5020 FINA 5040 ECON 5000 BCIS 5090 DSCI 5010 before enrolling in this course Students who are non degree or degree seeking undecided may not register for certain courses without departmental approval Course Description The course objectives are to develop the knowledge and understanding of a broad set of corporate nancial principals and fundamentals This course will teach you the tools and techniques us ed and proposed in corporate nancial management Analysis of the investment and nancing decisions and the environment in which such decisions are made are covered in readings case problems and class discussion Course Objectives The tools you will acquire in this course will be the foundation for other business courses you take as well as the knowledge you acquire as a professional Up on successful completion of this course you will have developed an understanding of the following business finance concepts 31 Agency problems Valuation Using Multiples 4amp Bond and Stock Valuation it Risk Return Portfolio Diversification and CAPM 4L Capital Budgeting Decisions 1 Valuation using Discounted Cash Flows Required Text Corporate Finance Core Applications and Principles by Stephen A Ross Randolph W Wester eld Bradford D Jordan Jeffrey Jaffe Pub Date September 2008 Publisher McGrawHill Companies The following Harvard Business Cases ii The State of South Carolina 4 Seagate Technology Buyout 1 Spyder Active Sports 7 2004 You need to buy these cases at httpcbhbspharvardeducbaccess6724992 Suggested Reading The Wall Street Journal and the Financial Times Class Format The first part of each class will consist of a lecture on the assigned topic Students are expected to have read the assigned material prior to class Student participation and questions are strongly encouraged During the second part of the class student participation is fundamental For 1520 minutes students will discuss a previously assigned video interview or presentation by a business leader Then students will work in groups on an assignment I will collect and grade the assignments at the end of the class Performance Evaluation Examinations 700 goini sz There will be two exams during the semester You may use your calculator on the exam A financial calculator such as The Texas Instruments BA II Plus is highly recommended but any similar calculator will do However programmable calculators will not be allowed The best advice I can give you is to dedicate some study time everyday and work through the problems in the book until you feel comfortable with the material Homework 120 goini sz There will be 8 homework assignments during the semester The goal of these assignments is to apply the theoretical concepts to a practical setting and to practice the material learned in class Each homework assignment is worth 15 points Inclass assignments 1052 There will be 7 in class group assignments during the semester The goal of these assignments is to foster team work and to further apply the theoretical concepts covered in the lectures Each assignment is worth 15 points and will be answered in groups Cases P 39 and Iquot 39 I 75 points 1 The class will be divided into teams Each team will be assigned one case to present to the class The presentation should be professional When possible we will try to replicate a firm board meeting in the classroom The group presenting the case should defend the position of the firm managers The groups that present will email the presentation before midnight the day before the presentation Failure to do so will result in a 50 point penalty 2 I will provide a list of relevant questions in each case These questions should help you in discussing the case Every group presenting and nonpresenting groups should hand in the answers to the questions the same day of the presentation at the beginning of the class 3 The presenting groups will receive a maximum of 100 points for the presentation I will encourage a constructive QampA following each presentation Every group will receive a maximum of 75 points for the answers to the questions see prior paragraph and for participating in the discussion Business Leaders Video Discussion 100 extra 20ints1 We will dedicate 1520 minutes to discuss prior assigned videos of interviews or presentations of business personalities You can earn 100 extra points by writing a one or two page report containing 2 things you learned and 2 with which you disagree from the video We have 12 class sessions excluding the first day of class exam day and exam preparation so each report is worth 10012 833 extra points You should both write a page report and participate in the class discussion to earn the extra credit Grades will be computed based on the following maximum number of points First Exam October 27 Final Exam December 15 350 Homework 120 Inclass assignments 105 Cases Presentations and Discussions 175 Total 1000 points Business Leaders Video Discussion 100 extra points Class attendance I will not pass a daily class roster However you need to be present in class until the end of the class period to receive points for the inclass assignments and case presentation and discussion All team members will receive the same grade unless I receive complaints from the team regarding a member s lack of commitment Because the majority of you are working professionals three excused absences will be permitted during the semester after 3 absences you will receive 0 in the group work if you are not present in class Students are responsible for taking the scheduled exams except with accepted excuses Viable excuses include documented sickness death in the immediate family or participation in university sanctioned activities Beyond these exemptions no makeup exams will be given Grade Distribution 900 7 1100 A 800 7 899 B 700 7799 C 600 7 699 D Below 600 F 3 Tentative Schedule This is a tentative schedule The student is responsible to attend class and learn about unexpected modi cations in the schedule For instance a class can be cancelled becauseI am sick or the University is closed due to weather conditions Grading sheet with maximum total possible of grades This Class meets BOOK Home In class team Wednesdays TOPIC CHAPTER work assignments cases Mldterm Fmal A Class Meeting 1 Introduction 1 Sep 1 Class Meeting 2 Financial Statement Analysis Sep 8 Valuation using Multiples 2 amp 3 15 15 30 Class Meetmg 3 Discounted Cash Flows 4 15 15 60 Sep 15 Class Meetmg 4 Bond and Stock Valuations 5 amp 6 15 15 90 Sep 22 Class Meeting 5 Sep 29 Risk Return 10 15 15 120 Class Meeting 6 Oct 6 CAPM 11 15 15 150 Class Meeting 7 100 presenting 5833 Oct 13 Case 1 The State of South Carohna 75 no presenting 20833 Class Meeting 8 Summary Session 1 7 7 Preparation Oct 20 for Mi term Class Meeting 9 Oct 27 Mldterm 250 45833 Class Meetmg 10 Investment Decision Rules 7 Nov 3 Class Meeting 11 NOV 10 Making Cap1tal Investment Dec151on 8 15 15 48833 Class Meeting 12 NOV 17 Cost of Cap1tal I 12 15 15 51833 Class Meeting 12 NOV 24 Cost of Cap1tal II 155833 Class Meeting 13 100 presenting 7 Dec 1 Case 2 Seagate Technology Buyout 15 75 no presenting 7 59167 Class Meeting 14 Case 3 Spyder Active Sports 7 2004 100 presenting 5833 Dec 8 Preparation for Final Exam 75 no presenting 6 50 Class Meeting Dec ls s Flnal Exam 350 1000 5833 Assumes 13 of 175 points as there are 3 cases 100 More points can be earned with class participation on the discussion of Business Leaders Videos 4 DISABILITY ACCOMODATION The University of North T exas is on record as being committed to both the spirit and letter of federal equal opportunity legislation reference Public Law 92112 7 The Rehabilitation Act of 973 as amended With the passage of new federal legislation entitled Americans with Disabilities Act ADA pursuant to section 504 of the Rehabilitation Act there is renewed focus on providing this population with the same opportunities enjoyed by all citizens As a faculty member I am required by law to provide quotreasonable accommodationsquot to students with disabilities so as not to discriminate on the basis of that disability Student responsibility primarily rests with informing faculty of their need for accommodation and in providing authorized documentation through designated administrative channels Information regarding specific diagnostic criteria and policies for obtaining academic accommodations can be found at httpwwwunteduodaapplyindexhtml Also you may vis it the Office of Disability Accommodation in the University Union room 321 or call them at 940 5654323 If you need an accommodation please contact me as soon as possible but at the latest by the second week of class ACADEMIC DISHONESTY Academic dishonesty is defined in the UNT Policy on Student Standards for Academic Integrity Any suspected case of Academic Dishonestly will be handled in accordance with the University policy and procedures Possible academic penalties include a grade of F in the course You will nd the policy and procedures at http naa Ilnt 39 academic39 itv htm If I suspect that you have engaged in academic dishonesty I will deal with the situation as outlined in the University Policy shown above You will be allowed to remain in the class during the entire time that the academic misconduct accusation is being investigated adjudicated and appealed As noted above the maximum academic penalty that can be assessed by an instructor is an F in the course However university officials use the academic misconduct information to decide if other misconduct sanctions are then to be applied and the student has separate rights to appeal those decisions remaining in the class until all appeals are exhausted STUDENT EVALUATION OF TEACHING EFFECTIVENESS SETE The Student Evaluation of Teaching Effectiveness SETE is a requirement for all organized classes at UNT This short survey will be made available to you at the end of the semester providing you a chance to comment on how this class is taught I am very interested in the feedback that I get from students as I work to continually improve my teaching I consider participation in the SETE to be an important part of your involvement in this class and in all of your classes so please participate in the SETE process The administration of the SETE will begin a couple of weeks before the end of the semester and remain open through the week of finals to try to maximize student SETE participation You can access the SETE instrument by going to httpwwwmyuntedu EAGLE CONNECT ACCOUNT All students should activate and regularly check their EagleConnect email account EagleConnect is used for official communication from the University to students Many important announcements for the University and College are sent to students via EagleConnect For information about EagleConnect including how to activate an account and how to have EagleConnect forwarded to another e mail address visit https eagleconnectuntedu UNIVERSITY OF NORTH TEXAS Authorization to Release Assignments to Plagiarism Detection Service Written assignments in this course may be provided to an internetbased plagiarism detection service that is not affiliated with the University of North Texas If you sign the form your assignments may be submitted to the service with your name or student identification number If you do not sign the form your material will be assigned a random number and submitted to the service This authorization is only to allow the instructor to more efficiently manage the course and will expire upon the issuance of a final grade You are not required to sign this authorization and you will not be penalized if you do not sign the form Please print sign and date the authorization form Return the form to the instructor upon completion l hereby voluntarily authorize Print Name of Student 1 the instructor in INSERT COURSE NUMBER AND NAME to disclose assignments that contain my name andor student identification number to an internetbased plagiarism detection service This authorization will remain in effect from the date it is signed until a grade is assigned in this course and does not apply to any other course in which I am enrolled at the University of North Texas Student Signature Date Student Grade Sheet This Class meets Missing In class team Wednesdays Class Assignments Mmth Meeting 1 1 Meeting 2 Meeting 3 16 Meeting 4 22 Meeting 5 29 Meeting 6 6 Meeting 7 13 Meeting 8 20 Meeting 9 27 Meeting 10 3 Meeting 11 10 Meeting 12 17 Meeting 12 24 Meeting 13 1 Meeting 14 8 Meeting 1515
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