Class #05:  Thursday 29-Nov-2012 and Saturday 01-Dec-2012


We are doing "Valuation of AirThread Connections" case
  • Valuation questions (posted 20121122)
  • Posted numbers (posted 24-Nov-2012, 9:00pm)
  • Rules for font colors
  • Template workbook for FINA 5840
  • Please send files to TA by:
Thu Class:  Send by Thursday at 12:00 noon
Sat Class:  Send by Friday at 9:00pm

In the second part of class, we will be talking about interest rate models
  • Please bring this BDT template to class
  • Please bring the Black, Derman, Toy (BDT) paper with you
  • Please bring these BDT instructions with you
  • And the Screenshot #01
  • And the Screenshot #02
  • And the Screenshot #03

Ongoing list of help and hints for the case:
  • Charles noticed the numbers in Ex.7 are different between the paper version of
    the case and the data provided by the publisher.  We have re-posted the file with
    both sets of numbers.  For now, you decide which set makes more sense.

  • Note that EBIAT and NOPAT are sometimes used interchangeably.  From this
    website, notice they have the same definition:
    Investopedia on NOPAT

Articles and postings that may be helpful
  • Seasholes and Stanton 2005
    (Math behind WACC and APV;  Only for interested students)
  • Bloomberg on HP accounting woes (20121122)

Class notes from the 1st half of class
  • Printed 1 slide per page
  • Printed 6 slides per page

Class notes from the 2nd half of class
  • Printed 1 slide per page
  • Printed 6 slides per page


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Modeling: Class 05