PAGE UPDATED THURSDAY , 5/9/99, 2:00pm
HI! Welcome to the Finance 3000 Homepage by Prof. R. Schatz
This is a relatively simple homepage. It is merely a way of getting information to you in a timely fashion. YOU ARE RESPONSIBLE FOR ANY AND ALL ANNOUNCEMENTS OR HW ASSIGNMENTS ON THIS PAGE. ABSOLUTELY NO EXCUSES!!!!
The Page is designed as follows: There are 3 sections
Section 1: Here you will find MAJOR stuff. HW assignments, announcements, things you should check out in the WSJ, etc.
Section 2: Contact information - Phone, fax, office hours etc.
Section 3: A small list of links including a clink to send me email. One of the links will be titled "COOL SITE" and will vary from time to time. So be sure to check it out
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SECTION 1: MAJOR ANNOUNCEMENTS:
UPDATED: THURSDAY, 5/6/99 at 2:00pm
Dont u feel better after yesterday's class as compared to be4 class?
Come on - I know u do. Keep your chins up and focus on what u have
control over.
1) Agenda for next week and beyond:
Monday, 5/10 and Wed 5/12: I will lecture to u about Ch7, bond valuation and Ch8, stock valuation over these 2 days. Bring your text to class as I will do some problems from the text each day. I only need about 45 minutes to lecture on the material and the rest ofthe time we can do problems. Bring your text.
Monday, 5/17: We will tie up loose ends from the previous week having
had the weekend to work on problems from ch7 and ch 8. I will also have
a handout for uon ch10 - capital budgeting. We will also DISCUSS the questions
for your xtra credit asst which is due monday 5/17.
U should all do the extra credit. Just do it. It appears below.
WED, 5/19: Groups 5 and 6 will present problems from ch 7 and 8.
The assts for those groups are:
Group 5: CH 7: Problems: 7-1, 2, 7, 13ab only, 15a-d, 17 plus chapter 8: problems 8-9, 8-16.
Group 6: Ch8: Questions: 8-2. 8-4. PROBLEMS: 1, 2, 3, 4, 6, 11
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Groups 7, 8, 9: Yesterday, i spoke with 1 person in each group about
what i want u to do. If those people could contact the rest of their group,
much obliged. Again, your assts will be due on Wed 5/19
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2) Dates to remember: Fri 5/14, last day of stock trak trading. Make sure there is some activity since diary 1 which tracked trading activity thru 3/12. In diary 2, i want to see trading activity from 3/15 thru 5/14. Your final diary is due the day of the final which is Wednesday, 5/26, same place but from 1-3pm.
3) Did i mention thatu should bring your text to class next week? And show up on time?
4) The xtra credit asst is below. You should rent the video "Other Peoples
Money" with Danny DeVito and answer the following questions. If u dont
have a VCR, make a friend fast. The millennium is near
Here are the questions, due Monday, 5/17, MUST be typed up:
"Other People's Money" The Movie
Please view this video and answer the following questions.
1)Why was the New England Wire and Cable Company (NEWC) a good candidate for a takoever?
2)What is the primary motivation behind Garfield's desire to take over NEWC?
3)There are a variety of takeover defenses that a company may employ to thwart the takeover attempt. One is greenmail. What is greenmail? Is it illegal? Unethical? Another is a white knight. What is a white knight? And a third is the use of golden parachutes. What are they?
4)Are takeover defenses consistent with the goal of maximizing shareholder wealth? If not, why are they so commonly used?
Questions on social responsibility vs. shareholder wealth maximization
5)Before the shareholder's meeting, the President says, "Everybody is looking out for themselves." What parties is he talking about? Is this type of activity consistent with the goal of shareholder wealth maximization?
6)How realistic are Jorgy's expectations for the company? Does he need to rethink his goals for the company?
7)Are Jorgy's concerns about his employees and his family traditions consistent with shareholder wealth maximization?
8)Is it possible to pursue goals of social responsibility and shareholder wealth maximization at the same time?
9)Jorgy says, ". . a business is worth more than the price of its stock." Is there any validity to this statement?
10)To what extent does an agency conflict (ever hear of that before?) exist between Jorgy and the shareholders?
11)Explain the change in the shareholder's attitude after Garfield's speech. Are his arguments valid? Were the shareholders too easily swayed by his arguments?
12)How do the shareholders know if they are receiving accurate information from either Garfield or Jorgy?
13)Regarding the speeches made by Jorgy and Garfield, which points do you agree with? Disagree with?
14)If you were a shareholder in NEWC with no other interest in the company, how would you vote and why? Would you answer differently if you were an employee who owned a couple of thousand dollars worth of stock?
15)What else did you learn about mergers (or corporate restructurings
in general) from watching this movie?
**NUMBER OF HITS**
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SECTION 2: CONTACT INFORMATION
Prof R. Schatz
Baruch College
Zicklin School of Business
ECO/FIN Dept., Box E-0621
17 Lexington Ave
NY, NY 10010
E-mail: derivatives@writeme.com
Office Phone/Voicemail: 212/802-6379
Office Fax: 212/802-6353
Office: 26th St Bldg, Rm 651
Office Hours: TBA
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SECTION 3: LINKS WHICH APPEAR BELOW
Comments and suggestions are welcome but remember this is a finance
course - NOT a course in web site design or HTML. Please do not hesitate
to ask questions if something is bothering you.
