| Syllabus in PDF |
| Course Outline |
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| Module 1. Risk identification, assessment and management |
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Module 2. Incorporating Country risk in valuation |
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| Module 3. Downside Risk Approach in Valuation |
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| Module 4. Real Options |
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Emerging Markets Finance Spring First Half 2002 Course Outline Session 1, January 17 Topic: Emerging markets and finance Case: Gerber Products Company: Investing in the New Poland, HBS #793-069
Module 1. Risk identification, assessment and mitigation Session 2, January 18 Topic: Political risks Case: Busang (A): The River of Gold, HBS #798-002 Recommended (optional) reading: Permissible Country Equity Investment Analysis and Recommendations. Wilshire Associates, 1997. Session 3, January 24 Topic: Project vs corporate finance Case: The Chad-Cameroon Petroleum Development and Pipeline Project (A), HBS #202-032. Project Financing: An Economic Overview, UVA-F-1035. Session 4, January 25 Topic: Project finance and the process of risk management. Case: Poland’s A2 Motorway, HBS #202-030.
Module 2. Incorporating country risk in valuation Session 5, January 30 Topic: Valuation challenge in emerging markets Case: Hostile Bid for Red October, HBS #296-084. Session 6, January 31 Topic: Incorporating country risk in valuation Read: Lessard, Donald R., 1996, “Incorporating Country Risk in the Valuation of Offshore Projects,” Journal of Applied Corporate Finance, 9 (Fall), pp. 52-63. Godfrey, Stephen and Ramon Espinosa, 1996, “A Practical Approach to Calculating Costs of Equity for Investments in Emerging Markets,” Journal of Applied Corporate Finance, 9 (Fall), pp. 80-89. Session 7, February 6 Topic: Joint venture and cross-border valuation Case: Continental Cablevision/Fintelco Joint Venture, UVA-F-1149 Session 8, February 7 Topic: Estimating the cost of capital Case: Paginas Amarelas, UVA-F-1210
Session 9, February 13 Distinguished Speaker, Jack Perkowski, CEO and President, Asian Strategic Investment Corporation (ASIMCO). Session 10, February 14 Guest Speaker, Jack Perkowski Case: ASIMCO/Nanyue Joint Venture, New Darden Case (to be distributed)
Module 3. Downside risk approach in valuation Session 11, February 20 Topic: Emerging financial markets Case: Chinese Financial Markets, New Darden Case (to be distributed) Session 12, February 21 Topic: Downside risk framework in valuation Read: Javier Estrada, 2000, “The Cost of Equity in Emerging Markets: A Downside Risk Approach,” Emerging Markets Quarterly Javier Estrada, 2001, “The Cost of Equity in Emerging Markets: A Downside Risk Approach (II),” Emerging Markets Quarterly Session 13, February 22 Topic: M&A and privatization Case: Structuring Repsol’s Acquisition of YPF S.A., UVA-F-1282
Module 4. Real options Session 14, February 27 Topic: Capital projects as real options Capital Projects as Real Options: An Introduction, HBS #295-074. Brealey and Myers, Principles of Corporate Finance, Chapter 21, Real Options. Session 15, February 28 Topic: Identifying and valuing real options in emerging markets Case: Dragon Beer, New Darden Case (to be distributed). |
