FBE 532 Week 1 Objectives: Course Goals, Contents, and Key Concepts - Prof. John Dietrich, Study notes of Finance

Download FBE 532 Week 1 Objectives: Course Goals, Contents, and Key Concepts - Prof. John Dietrich and more Study notes Finance in PDF only on Docsity! 532 Week 1 Objectives FBE 532 - Class Objectives and Problem Assignments J. K. Dietrich Week 1 – January 12, 2006 Goals and Objectives (1) Understand FBE 532 course goals, contents, requirements, and grading; (2) Identify key theoretical issues raised in basic corporate finance course and be familiar with the fourteen points (3) Define and describe the importance of value in financial analysis and corporate management; (3) Describe the functions and careers in investment and commercial banking, asset management, securities trading; (4) Compare and contrast various definitions of corporate income, cash flows, and earnings Suggested Review Reading for this Week RWJ, Chapters 5 and 17 Suggested Review Reading for next Week RWJ, Chapters 15 and 16 Case Questions for Next Week (1) What is the growth rate in Eskimo Pie’s earnings and cash flows? Is this likely to continue in the future? What are the key components of cash flows for Eskimo Pie? (2) How does Eskimo Pie compare to its main competitors in terms of sales, assets, and growth? Are these firms comparable? (3) Using both DCF and comparables analysis, what is your estimate of the value of Eskimo Pie as a stand-alone firm? (4) Why would Nestle want to acquire Eskimo Pie? Are there potential synergies? (5) As an advisor to Reynolds, would you recommend the sale to Nestle or the proposed initial public offering? Important Vocabulary List from Class MERGERS AND ACQUISITIONS, INITIAL PUBLIC OFFERING, SECURITIES ISSUES INVESTMENT BANKING VERSUS COMMERCIAL BANKING FULL LINE, REGIONAL, BOUTIQUE, AND ‘BULGE BRACKET’ INVESTMENT BANKS RETAIL VERSUS INSTITUTIONAL OR WHOLESALE MARKET SELL SIDE VERSUS BUY SIDE BROKERS, MARKET MAKERS, ASSET MANAGERS, RESEARCH ANALYSTS VENTURE CAPITAL, HEDGE FUNDS PRESENT VALUE, DISCOUNTED CASH FLOW FORECAST PERIOD, CONTINUING VALUE CORPORATE CASH FLOWS EBIT, EBITD(A) PRE-TAX INCOME, TAX, NET INCOME, EARNINGS AVAILABLE FOR COMMON LEVERED CASH FLOW, CASH FLOW TO EQUITY, UNLEVERED CASH FLOW