Spring 2013

Instructors: Carraway, Eades, Simko


Course Description


This two-credit course presents students with a variety of problems that require managers of global organizations to take a quantitative approach to understand and solve. The course is designed as an application and extension of the principles of accounting, finance, and decision analysis. The problems considered are more complex than those introduced in the core of the GEMBA program. Although the course has a quantitative emphasis, the interpretation of the analysis and the implementation of the recommendations in a global setting are critical components of the class discussions. It is taught in 15 two-hour classes (a mix of in-class and distance) is designed to be both cross-disciplinary and comprehensive. The course includes three modules, with each member of the faculty team being responsible for one of the modules. The faculty also will participate in jointly taught classes that will bring different perspectives to each problem posed by the cases. The design of the course and the joint teaching creates opportunities for students to reflect on the many quantitative approaches to problem solving covered during the GEMBA program.


Course Objectives


         Translate complex financial statements into realistic forecasts

         Convert cash flow forecasts into a company valuation estimate

         Understand how to view risk management holistically for the enterprise

         Use financial contracts to hedge commodity and exchange risks for a company

         Develop a deeper understanding of how to model risk and depict the valuation impact of a distribution of potential outcomes for the risk variable

         Extend studentsí ability to apply mathematical programming to complex decisions including markets to be served and location of facilities for a global enterprise and how to optimize the use of financial and human resources

         Understand how discounted cash flow neglects the value of being able to manage upside and downside risk that create real options for a global company

         Learn how to create value by restructuring the balance sheet of company either as a voluntary reorganization or using the bankruptcy courts


Elements of the Course Grade


Class contributions (in-residence and online)†††††††††††† (50%)

Deliverables††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† (50%)