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