1. J. K. Dietrich - FBE 532 – Spring 2006 Course Summary Week 15 – April 27, 2006

2. J. K. Dietrich - FBE 532 – Spring 2006 FBE 532: Case Course u Goal: Understand implications of financial theory in real situations u Objectives: Students take a position on a financial policy or strategy and defend their decision using financial theory u By-product: Gain exposure to a wide variety of financial issues in a broad range of market contexts (e.g. domestic and international) and many “war stories”

3. J. K. Dietrich - FBE 532 – Spring 2006 Review Cases: Investment Banking u Eskimo Pie u Continental Carriers u Hostile Bid for Red October

4. J. K. Dietrich - FBE 532 – Spring 2006 Review Cases: Venture Capital u The John Case Co. u Trendsetters

5. J. K. Dietrich - FBE 532 – Spring 2006 Review Cases: Risk Management u For risk management, we had more lecture coverage of technical background: –Measuring risk exposure –Techniques for risk management –Derivative securities: futures and forward contracts, options, and swaps u Liabilities Management at Union Carbide

6. J. K. Dietrich - FBE 532 – Spring 2006 Review Cases: Financial Strategy u PPL u Clarkson Lumber u Avon Products

7. J. K. Dietrich - FBE 532 – Spring 2006 Review Cases: u International Capital Markets –Huaneng Power International u Corporate Governance –Circon (A) u Value-Based Management –Vyaderm

8. J. K. Dietrich - FBE 532 – Spring 2006 Summary u Value and valuation is the key in finance u Cash flows, discount rates, and present values are the critical tools and assumptions for each are the main points of debate u Accounting concepts (like income) and numbers are important inputs but finance is forward- looking and requires assumptions u Finance theory is essential in framing a convincing argument, either as benchmarks for analysis or in assessing real-world departures from assumptions underlying finance theories

9. J. K. Dietrich - FBE 532 – Spring 2006 Advice from Professor u Common sense precedes careful analysis and analysis must be measured against plausibility and reasonableness u It is important to enjoy what you are doing, more important than anything, do not adopt other people’s concept of success u Balance is essential: finance is a partial view of the world, your job is in many ways the least important part of your life

10. J. K. Dietrich - FBE 532 – Spring 2006 Examination – May 4, 2006 u Coverage is 2/3 on material since midterm and 1/3 before midterm u Two-hour examination: final counts twice and midterm once, drop lowest of three u Review cases to identify key issues u Review weekly objectives and vocabulary u Review syllabus to focus attention on important finance theories used in cases