In this class, we consider the challenges that financial managers face in making investment decisions in emerging markets: How do you identify, assess and mitigate risks in emerging markets?  How do you value risky assets in emerging markets?  These are the two central themes of this course.

 

Course introduction and Gerber presentation: intro.ppt

 

 

 

 

 

Assignment Sheet
Emerging Market Finance
Darden Graduate School of Business
Spring First Half 2002

Class #1, Thursday, January 17, 2002

Topic: Course introduction—Emerging markets and finance

Case: Gerber Products Company: Investing in the New Poland, HBS #793-069

File: gerber.xls

Assignment Questions:

1.      How attractive is the Alima deal?  What aspects of it concern you?

2.      Review Gerber's capital budgeting model.  Are its assumptions and predictions reasonable?

3.      How much is Alima worth to Gerber?

4.      Using Gerber's capital budgeting model, determine the sensitivity of Gerber's NPV to business risks (sales levels, SG&A exposures, days receivables), political risks (EC access, and tax rates), and macroeconomic risks (inflation and changes in the real FX rates).