Interim Report on Case 3 - Group Project- Home Depot Attached is the syllabus with directions on this project. Please keep in my that the only thing that I'm asking here is just the section below, since this is a group project I was only asked to do the following: "if you want to start to draft the paper by doing the brief company background, the stock exchange on which it trades, and the individual responsibilities and note your sources on a bibliography page." ********The first interim report should start off with an introduction or overview in which you provide a brief background of the company (HomeDepot), the stock exchange on which it trades, and individual responsibilities. (Shoud also include a bibliography page) ******* ------Case 3 Description------(PLEASE NOTE THAT I ONLY NEED THE PART THAT WAS ASSIGNED TO ME) We will have one group written assignment this term: An in-depth company analysis. Interim reports are due Weeks 4 and 6. The final report is due Week 8. Groups will be formed at the beginning of Week 2. Each group will have 2-5 members. Each group needs to select a company that is listed on a stock exchange. You can start thinking now of which company you would like to analyze and what type of format to use. Assume your group has been given the directive to analyze the company you selected for possible acquisition or taking a minority position. Prepare the report for the Board of Directors and upper management. I don't provide an example because coming up with an effective format is part of the challenge of the assignment. Details of the project are included on the syllabus. You may divide the responsibilities for the project any way you want; just be sure all group members take part. You need to develop a spreadsheet template for your report. You have a lot of discretion in how you format your Excel document. You might decide to have separate worksheets for ratios, common size, etc. Or, you might decide to put everything on one worksheet. If you prefer to use Word as the primary document, be sure to double space the report and identify the Excel document as an appendix. Also, refer to the Excel document in the body of the paper when you discuss data from a spreadsheet, e.g., see Appendix A. In other words do not submit multiple documents without organization. One written document with any appendices that you may want to include is the way to go. A lot of the information about your company will be factual; however, it is your analysis of those facts that is the most important part of the project. For example, your analysis of the facts will determine if you think the company is on solid financial footing and if its stock is a good investment. One of the challenges of this project is just how wide open it is despite the specific requirements. Grading will be based on individual contribution, peer evaluation, and group results; 45%, 10%, and 45% respectively. You can discuss everything related to the group project in your private discussion area. This discussion is in addition to the required posts due each week.

11/23/2014 Concourse | Advanced Corporate Finance W EBSTER UNIVERSITY W EBSTER GROVES, MO GEORGE HERBERT W ALKER SCHOOL OF BUSINESS & TECHNOLOGY BUSINESS DEPARTMENT ADVANCED CORPORATE FINANCE FINC-5880 3 Credits 01/05/2015 to 03/06/2015 Section OA S1 2015 Modified 11/23/2014 MEETING TIMES Online throughout each week CONTACT INFORMATION Instructor: Lorraine Gilbertson Email: Use course e-maill Alternate Emal addresss: gilbertl@webster.edu. Telephone: 816-478-6604 DESCRIPTION This advanced study of corporate financial analysis and planning includes capital budgeting, cost of funds, and capital structure and valuation. Selected topics that may be covered are leasing, mergers, takeovers, business failure, reorganization, and liquidation. A combination of problemsolving and case study methodologies is used to illustrate theories and techniques helpful in financial analysis and planning. Requisites FINC 5000 OUTCOMES Outcome Expectation 1. Students can determine the value of fixed income securities Students can calculate the implied value of convertible securities as well as the value of bonds-with-warrants. 2. Students can analyze capital budgeting decisions using standard methodologies Students can make capital budgeting decisions using cash flow estimates and incorporating other sources of cash, such as taxes and depreciation. Students can explain the impact of profit margin and overall firm profitability on capital budgeting decisions, particularly when outside financing may be required to be able to https://webster.campusconcourse.com/view_syllabus?course_id=44409 1/11 11/23/2014 Concourse | Advanced Corporate Finance complete projects. 3. Students can explain the impact of capital structure decisions on financial performance and cost of capital Students can determine the impact of changes in cost of equity, cost of debt, the risk-free rate of interest, the tax rate, and the levels of debt and equity on the firm's balance sheet on the overall cost of capital and the effect on both project and firm profitability. 4. Students can utilize financial analysis to assess an organization's financial condition Students can apply ratio and financial statement analysis skills to solve unstructured problems. 5. Students can construct strategies to reduce risk utilizing derivatives Students can compute payoffs to put and call contracts and value corporate projects using the real option approach. 6. Students demonstrate integration of more than one area of finance when using case studies. Students can solve cases requiring integration across various finance areas. 7. Students will demonstrate knowledge of lease analysis. Students can compare the value of leasing to that of purchasing. REQUIRED TEXTBOOK Financial Management, Theory And Practice Author: Brigham, Eugene F. And Michael C. Ehrhardt Publisher: South-Western Edition: Please Use Most Recent Edition DELIVERABLES General Activities The field of finance requires students to have both practical 'how-to' numerical analytical skills and a solid theoretical foundation. The course requires problem solving, analysis, and discussion. Assignments will be required weekly. Students should develop an awareness and appreciation for current issues and the financial news plus knowledge of how financial data is reported. Each week throughout the course the types of activities shown below may be required. Readings Readings are from the textbook, Financial Management, Theory and Practice, by Brigham/Ehrhardt. PowerPoint presentations are based on the same textbook. https://webster.campusconcourse.com/view_syllabus?course_id=44409 2/11 11/23/2014 Concourse | Advanced Corporate Finance Written Assignments Students will be required to complete questions/problems and cases. The questions/problems are from the textbook. The cases are for real companies. Cases may be individual or group assignments. Answer all questions in your own words. If you cite or paraphrase someone else's work, be sure to give that source appropriate credit. Complete problems and other quantitative work in Excel. Show how you derive each answer. If you use a formula, I can place the cursor over your answer and see how you derived the answer. If you do not use a formula, enter each input and result in a separate cell. Alternatively, you may use a financial calculator, but must show the keystrokes on your Excel worksheet and enter each input and result in a separate cell. Narrative may be completed in Excel (use textboxes or merge cells) or Word. You may discuss or ask questions about assignments in the discussion forum. However, you need to do your own work and may not share files in any way. It is not acceptable to submit quantitative work in Word, nor is it acceptable to copy/paste from another source into Excel. Assignments are available on Sunday of each week and due the following Sunday by midnight. Late submissions will be penalized unless advance approval is obtained. The instructor will grade assignments within 1 week of the due date and provide detailed feedback on your assignment submission. Discussions Participation is a part of your grade. Each student is required to participate in the regular discussion forum every week. Start a discussion thread or respond to an existing thread every week. Meaningful contributions to the discussion are required. It is not enough to simply say: I agree, good post, cite just a URL, etc. If you refer to an article, be sure to summarize important points and include the URL. Feel free to help each other with homework problems, but limit help to discussion in the forum. Do not include attachments, such as Excel worksheets or share files in any other way. I monitor the discussion forum and will respond to most questions within 24 hours, occasionally longer if research is needed. You may be assigned to a group project and expected to participate in the group's private discussion forum. Practice Quizzes Practice quizzes are optional and I do not see the results. You may take practice quizzes as many times as you want. Required Quizzes You will be required to take a quiz certain weeks of the course. Quizzes will be graded automatically. You may take a quiz only one time, so be sure of your answer https://webster.campusconcourse.com/view_syllabus?course_id=44409 3/11 11/23/2014 Concourse | Advanced Corporate Finance before submitting it. Students must complete the quizzes on their own with no help of any kind from anyone else. Quizzes will be available on Sunday and are due the following Sunday by midnight. Exams There will be a mid-term and a final exam. Students must complete the exams on their own with no help of any kind from anyone else. Show how you derive all quantitative answers. You may use a calculator, but need to show a step-by-step breakdown of how solution derived. Enter each input and result in a separate cell. Excel is easier and usually more accurate. If Excel does the work, I can put my cursor over the answer and see how it was derived. EVALUATION Criteria Type Weight Topic Notes Exam 20% Mid-term Covers Chapters 8, 11, 14, 17, 18, 19, 26 Exam 20% Final Covers Chapters 13, 20, 22, 23, 24, 25 Assignments 34% Cases and chapter assignments Quizzes 16% Several quizzes throughout course Discussion 10% Discussion required every week Breakdown Grade Range Notes A range 90% up to 100% 450 to 500 points B range 80% up to 90% 400 up to 450 points https://webster.campusconcourse.com/view_syllabus?course_id=44409 4/11 11/23/2014 Concourse | Advanced Corporate Finance C 70% up to 80% 350 up to 400 points F Below 70% Below 350 points COURSE POLICIES Time Commitment Sign on early in the week. Expect to spend substantial amounts of time, online and offline, to keep up with readings and assignments. Students should ask questions in the discussion forum on any unclear concepts or problems. The instructor will respond to most questions within 24 hours; occasionally longer if research is required. Discussion Participate in the discussion forum every week. It is the best way to communicate with other students and the instructor. Explaining the how and why to someone else is perhaps the most important learning role one can take Excel and Other Files All quantitative work must be completed in Excel. It is not acceptable to submit quantitative work in Word, nor is it acceptable to copy/paste from another source into Excel. If you use a calculator for any calculation, you must show each step in deriving answer. Enter each input and result in a separate cell. This will take a lot more time than using Excel formulas and is often less accurate. You can submit an entire assignment in one Excel workbook, using a separate worksheet for each chapter and text boxes or merge cells for qualitative work. It is also acceptable to submit qualitative work in a separate Word file. Do not share files in any way (except for a group project). Academic Honesty This course may utilize electronic databases, such as Turnitin.com, to assist faculty and students with their academic work Revisions to Syllabus The instructor reserves the right to change the syllabus at any time. Changes will be announced. https://webster.campusconcourse.com/view_syllabus?course_id=44409 5/11 11/23/2014 Concourse | Advanced Corporate Finance INSTITUTIONAL POLICIES University policies are provided in the current course catalog and course schedules. They are also available on the university website. This class is governed by the university's published policies. The following policies are of particular interest: Academic Honesty The university is committed to high standards of academic honesty. Students will be held responsible for violations of these standards. Please refer to the university's academic honesty policies for a definition of academic dishonesty and potential disciplinary actions associated with it. Drops and Withdrawals Please be aware that, should you choose to drop or withdraw from this course, the date on which you notify the university of your decision will determine the amount of tuition refund you receive. Please refer to the Add/Drop/Withdraw section of the academic catalog for further information and to find the deadlines for dropping a course with a full refund and for withdrawing from a course with a partial refund. Special Services If you have registered as a student with a documented disability and are entitled to classroom or testing accommodations, please inform the instructor at the beginning of the course of the accommodations you will require in this class so that these can be provided. Disturbances Since every student is entitled to full participation in class without interruption, disruption of class by inconsiderate behavior is not acceptable. Students are expected to treat the instructor and other students with dignity and respect, especially in cases where a diversity of opinion arises. Students who engage in disruptive behavior are subject to disciplinary action, including removal from the course. Grading Please refer to the most recent academic catalog for information on the Webster University grading policy. Student Assignments Retained From time to time, student assignments or projects will be retained by The Department for the purpose of academic assessment. In every case, should the assignment or project be shared outside the academic Department, the student's name and all identifying information about that student will be redacted from the assignment or project. https://webster.campusconcourse.com/view_syllabus?course_id=44409 6/11 11/23/2014 Concourse | Advanced Corporate Finance Contact Hours for this Course It is essential that all classes meet for the full instructional time as scheduled. A class cannot be shortened in length. If a class session is cancelled for any reason, the content must be covered at another time. SCHEDULE When Topic Notes Week 1 Online Chapters 3 and 11 Assignments: C11: Problems 1, 3, 6 *Case 1: Brinker International Week 2 Online Chapters 8 and 26 Assignments: C8: Problems 1, 3, 4, 6 C26: Problem 1 Week 3 Online Chapters 14 and 18 Assignments: C14: Problems 1, 4, 5, 6, 10 C18: Problems 1, 2 **Case 2: IPO Week 4 Online Chapters 17 and 19 Assignments: C17: Problems 1, 2, 3, 6, 10 C19: Problems 1, 2, 4 ***First Interim Report on Case 3 Week 5 Online Mid-Term Examination, Chapter 13 Assignments: C13: Question 1 The mid-term exam will cover Chapters 8, 11, 14, 17, 18, 19, and 26 Week 6 Online Chapters 20 Assignments: C20: Problems 1, 2, 3, 6 ***Second Interim Report on Case 3 https://webster.campusconcourse.com/view_syllabus?course_id=44409 7/11 11/23/2014 Concourse | Advanced Corporate Finance Week 7 Online Chapters 22 and 23 Assignments: C22: Problems 1, 2, 3 C23: Problems 3, 4, 5 Week 8 Online Chapter 24 Assignments: C24: Problems 2, 3 ***Final Report on Case 3 Week 9 Online Chapter 25, Final Exam Assignments: C25: Problem 1, 2 The final exam will cover Chapters 13, 20, 22, 23, 24, and 25 *Case 1 (Individual Project) *Brinker International. Download financial statements (income statement and balance sheet) from the Internet (w ww.brinker.com). Refer to the minicase at the end of Chapter 3 and do Parts b, c, d, e, f, g, h, i, j for Brinker (not for the minicase) for the most recent year. Show how you derive all answers. **Case 2 (Individual Project) Initial Public Offering. Select a company that has gone public in the last few years and listed on an organized exchange anywhere in the world. Prepare a typewritten paper, double spaced, no longer than 3 pages plus bibliography listing sources of information. Include as many exhibits as you wish. Issues you should include in the case are: 1. Introduction of company. What business is the company in? When was the company established? When did the company go public? Why did the company decide to go public? 2. What exchange lists the stock? Why did the company decide to list on that exchange. What is stock symbol? 3. Who was the investment banker? Why did the company choose that investment banker? Was IPO done on an underwritten or best efforts basis? How much was paid to the investment banker? https://webster.campusconcourse.com/view_syllabus?course_id=44409 8/11 11/23/2014 Concourse | Advanced Corporate Finance 4. How many shares were issued? What portion of the company did insiders retain? 5. What was the offer price per share? How was the offer price decided? How much money was raised? 6. Has stock price changed since IPO? What was the price at end of first day? Estimate the amount of money left on the table? What is current price? 7. What did the company use the money for? 8. Anything else that you think is interesting about the IPO ***Case 3 (Group Project) Groups of 2-5 members will be established. Each group should choose a company that is listed on a stock exchange, and whose financials can be acquired online. All group members are responsible for the entire project. The case will be completed in 3 phases, and findings will be presented by interim reports Weeks 4 and 6 and a final report Week 8. Inte rim Re port 1: 1. Choose a company whose financials you can acquire online or in print. 2. Spread 3 years of financials for the company using Excel. Do actual fiscal year-ends, not estimated. 3. In all calculations, use real numbers from the company's financials, not reported ratios provided by online and other sources. Do all calculations for the most recent 3 years available. 4. Collect stock dataprice, shares outstanding, insider ownership, insider transactions, stock repurchase program, options, etc. 5. Calculate financial ratios and compare to industry average. Do the same ratios that were required for Case 1. What can you conclude from the ratios? Any warning signs? https://webster.campusconcourse.com/view_syllabus?course_id=44409 9/11 11/23/2014 Concourse | Advanced Corporate Finance Anything that stands out? The first interim report is due Week 4. It should start off with an introduction or overview in which you provide a brief background of the company, the stock exchange on which it trades, and individual responsibilities. It should also include #4 and #5 above. Attach the balance sheet and income statement to the report. Inte rim Re port 2: 6. Perform common size analysis for 3 years. What does this analysis tell you about your company? Are any trends apparent? 7. Use the extended DuPont equation for 3 years to provide a summary and overview of your firm's financial condition 8. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. Do these calculations for 3 years. 9. Estimate the company's WACC for 3 years, as well as the WACC it should use for the future. The second interim report is due Week 6. This report should make any necessary corrections and build on the first interim report. It should include #6, 7, 8, and 9 above. Attach the balance sheet and income statement to the report. Final Re port: 10. What is your summary of this company's financial condition? 11. What major factors should the company be aware of as it evaluates possible investment projects in the future? 12. Would you be interested in investing in this company? Why or why not? Are there additional factors that aren't a https://webster.campusconcourse.com/view_syllabus?course_id=44409 10/11 11/23/2014 Concourse | Advanced Corporate Finance part of this case that you would investigate before making a decision, & if so, what factors? The final report should be comprehensive, include all necessary corrections, build on the interim reports, and include #10, 11, and 12 above. The report should be 8-10 pages, double-spaced, plus a bibliography. Include the balance sheet and income statement as attachments and as many other exhibits/attachments as you wish. Re ports (Summary): 13. First interim report due Week 4 14. Second interim report due Week 6 15. Final report due Week 8 Othe r: 16. As with all assignments, the more closely I can follow your methodology and \"see\" where your numbers come from the better the outcome. 17. Each group member should complete a peer evaluation, ranking each member (including yourself) 1, 2, 3, etc. and include narrative providing rationale. I use the peer evaluation as a factor in assessing individual contributions to the success of the project. In most cases, all group members receive the same grade, but not if a member doesn't contribute a fair share. The peer evaluation is kept confidential and not shared. 18. The project is graded based 45% on individual effort, 45% on group results, and 10% peer evaluation https://webster.campusconcourse.com/view_syllabus?course_id=44409 11/11