MBA 1 FINANCE FINAL REVIEW

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MBA 1 - FINANCEFINAL REVIEW

• ZEIGHAM KHOKHER
• http//www.ivey.uwo.ca/faculty/zkhokher/
• COURSE PAGE
• http//www.ivey.uwo.ca/faculty/zkhokher/MBA1_Finan
  ce.html

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The Final Exam

• Integrative, valuation-oriented case
• No curve balls
• Classroom cases stretch you
• Evaluation cases test the effects of the
  stretching
• Consistent effort all year gt no worry

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Recall

• Class contribution (25)
• Mid-term exam (25)
• Quiz (10)
• Final exam (40)

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Final Exam Helpful Hints

• Plan ahead
• TIMING!!!
• Large picture gt details not vice versa
• Stages
• Read twice
• Pull apart
• Put together
• Write
• Re-read/review

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INTERCO - Grading Scheme

• Statement of Issue and Alternatives 14
• Size-up of Interco
• Qualitative 18
• Financial 18 36
• Valuation of Interco
• Non-DCF methods 24
• DCF Analysis 46 70
• Analysis of alternatives 46
• Recommendations 20
• TOTAL 186

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Pinkerton - Grading Scheme

• Statement of Issue 1
• Size-up of Pinkerton
• Qualitative
• Financial 14
• Valuation of Pinkerton 53
• Non-DCF methods 6
• DCF Analysis 40
• Sensitivity 7
• Financing Choice 10
• Bid Decision 7
• Conclusions Bonus 10
• TOTAL 100

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Grading Weights for Final Exam...

• Will be between these two historical examples
• NOTE
• Obviously weights will vary somewhat from case
  to case

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Final Reflections / Deep thoughts

• ? Make EVERYONE comfortable with finance

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MBA1 Finance

• Learning Objectives
• Key Ideas
• Course Overview

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Learning Objectives

• Provides insights into the activities of the firm
  as they affect cash flows. You will be able to
  identify the cash needs of a firm, which will in
  turn enrich your understanding of VALUE
• Second, the course develops the analytical skills
  to MEASURE the value of business opportunities
  and hence to evaluate them.
• Third, the course develops a logical framework to
  understand how we as general managers can MANAGE
  FOR VALUE CREATION

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Key Ideas
Dominant Theme

• MANAGING FOR VALUE CREATION
• KEY INPUT Future cash flows
• Expected Value
• Risk

Subsidiary Ideas

• Financing Gap
• Time Value of Money
• Market Efficiency
• Risk and Return

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The Course
VALUE DRIVERS CASH FLOWS
1. Evaluating a business and its financing
needs, modeling
. . Contd. COST OF CAPITAL
2. Finl markets Cost of Capital
. . Contd. FINANCIAL POLICY
3. Financing Choices 4. Managing financial
Risks
MANAGING FOR VALUE CREATION
5. Valuation
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Second year Electives

• Investment Management
• Managing Financial Assets
• Financial Markets
• Derivatives
• International Finance

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MBA1 Finance

• Integrated part of the MBA program
• MBA program is an integrated part of your
  personal and professional growth
• MY VERY BEST WISHES FOR YOUR FUTURE!