LESE 306Agribusiness Finance
Fall Semester 2009
Dr. Doo Bong Han (KoreaUniversity)
Dr. John B. Penson, Jr. (TexasA&MUniversity)
Part 5: Team Presentations
Monday, November 9thSummarize key elements from Slide Shows #19 and #20
Review of team presentation process
Review of presentation rules
Demo old borrowing and lending team presentations
In class team meetings
Wednesday, November 11thLast minute presentation questions/answers
Monday, November 16thTeams 1 and 2
Wednesday, November 18thTeams 3 and 4
Monday, November 23rdTeams 5 and 6
Wednesday, November 25th Teams 7 and 8
Monday, November 30th Teams 9 and 10
Wednesday, December 2nd Lessons learned from team presentations
Discussion of required executive summary
Monday, December 7th Review of course
Wednesday, December 9thFinal exam coverage; study guide;
review old final exam
Monday, December 14th Final exam
Wednesday, December 16thFinal class meeting
Monday, August31st Course introduction
Review of course syllabus
Role of presentations
Scope of agribusiness finance
Structure of food and fiber system
Part 1: Managerial Accounting Fundamentals
Wednesday, September 2ndReview structure of the food and fiber system
Discuss pages 3-15 in the course booklet
Slide show #2 (Basic structure of key financial statements)
Slide show #3 (Financial statement linkages)
Monday, September 7thReview Slide Shows #2 and #3
Slide Show #4 (Measurement, interpretation and application of key financial indicators)
Slide show #5 (Financial checkup)
In class problem #1
Part 3: Valuing Investment Opportunities
Wednesday, September 9th Historical and comparative analysis
Slide Show #6 (Enterprise budgets)
Slide Show #7 (Master budget)
Review answer to problem #1
In class problem #2
Discuss results from final exam
Monday, September 14thSlide Show #7 (Cost accounting concepts)
Review of managerial accounting
Wednesday, September 16thSlide Shows #8 - #11 emphasize the following:
Optimal current input combination
Optimal current product combination
Long run expansion path
Long run planning curve and size economies
Monday, September 21st DuPont Model of profit analysis
Part 2: Economic Growth Concepts
Wednesday, September 23rd Economic growth model
Internal and external constraints to growth
Implications for leverage
Cost of capital and optimal capital structure
In class problem #3
Monday, September 28th Time value of money
Present value of future cash flows
Choice of discount rate
Application of loan amortization
In class problem #4
Wednesday, September30th Capital budgeting
Payback period method
Net present value method
Internal rate of return method
Monday, October 5thReview of terminal value concept
Review of annual net cash flow measurement
Increasing uncertainty over time
Purchase of depreciable assets
Purchase of real estate
Maximum bid price for real estate
In class problem #6
Wednesday October 7thEconomic externalities
Business forecasting methods
Pro forma sensitivity analysis
Probability distributions
In class problem #7
Monday, October 12thReview last part of Slide Show #17, including risk-return preferences and assumption of risk premiums in discount rates
Ranking investment opportunities
In class problems #8 and #9
Wednesday, October 14thWrap up of first part of the course dealing with financial management and investment analysis
Capital budgeting under risk
Ranking investment opportunities
Portfolio effect on risk premiums
Discussion of borrower side of team presentations this semester.
In class problem #10
Monday, October 19th Reviewfor mid-term exam
Discuss last year’s mid-term exam
Deadline for submitting presentation team rosters
Wednesday, October 21st Mid-term exam
Monday, October 26th Discuss answers to exam
Discussion of team presentation model
Discussion of borrower and lender team use of model
Part 4: Financial Markets and Sources of Capital
Wednesday, October 28th Individual exposure credit analysis
Lender credit standards
Credit scoring and scorecard lending
Credit analysis case examples
Portfolio credit risk
Allowance for loan losses and capital requirements
Monday, November 2nd Concept of financial intermediation
Sources of financing
Korean financial markets serving agribusiness sector
Wednesday, November 4th Invitation to guest lecture by Korean lender