The Burkenroad Reports for Latin America

(Report of Progress)

 

 

 

Achievement of Goals

 

The Burkenroad Reports for Latin America project, funded by IDB/MIF, began with the organizational meeting in May of 2001 and has now completed two years of the project to train faculty, train students, and produce financial research reports on small and medium-size enterprises (SME’s) in Latin America.  The tables below summarize the progress to date in terms of the quantitative goals for the overall program and for each of the participating institutions: ITESM, Monterrey Mexico; IESA, Caracas, Venezuela; and Universidad de los Andes, Bogotá, Colombia.

 

Faculty Training Goals Completed

 

 

Total Faculty Training Goals

 

.

Total faculty trained

 

 % Completed

 

Year 1

Year 2

Year 3

 

 

Year 1

Year 2

Year 3

 

 

Faculty

11

11

10

 32

 

11

9

-

20

63%

% of total

34%

34%

31%

 

 

34%

28%

0%

 

 

 

Faculty Training Goals for ITESM 

 

Faculty trained: ITESM

 

 

 

Year 1

Year 2

Year 3

 

 

 Year 1

 Year 2

Year 3

 

 

Faculty

4

4

4

12

 

4

4

 

8

67%

% of total

33%

33%

33%

 

 

33%

33%

0%

 

 

 

Faculty Training Goals for U. Andes

 

Faculty trained: U. Andes 

 

 

Year 1

Year 2

Year 3

 

 

 Year 1

 Year 2

Year 3

 

 

Faculty

4

4

4

12

 

4

3

 

7

58%

% of total

33%

33%

33%

 

 

33%

25%

0%

 

 

 

Faculty Training Goals for IESA

 

Faculty trained: IESA 

 

 

Year 1

Year 2

Year 3

 

 

 Year 1

 Year 2

Year 3

 

 

Faculty

3

3

2

8

 

3

2

 

5

63%

% of total

38%

38%

25%

 

 

38%

25%

0%

 

 

 

The data above show that the faculty training goals are 63% completed for the program overall with approximately 66% of the project time having elapsed.  It is important to note that this faculty training has been achieved at an expenditure level less than 66% of that budgeted.  ITESM has achieved the highest percentage with 67% and U. de los Andes the lowest with 58%.  Overall, we feel this is an excellent result given the difficulties that have developed in the economies of Colombia and Venezuela.  The individual faculty names are provided in the attachments by country:  Mexico, Venezuela, and Colombia. 

 

Student Participation Goals Completed

 

 

Total Student
Participation Goals

 

Total student participation

 

 

2002

2003

2004

 

 

2002

2003

2004

 

 

1st & second courses

147

240

333

720

 

225

150

0

375

 

1st course only

0

0

0

-

 

92

58

0

150

 

Totals

147

240

333

720

 

317

208

-

525

72.95%

% of total

20%

33%

46%

 

 

44%

29%

0%

 

 

 

Student Goals:  ITESM 

 

 

Actual student participation: ITESM  

 

2002

2003

2004

 

 

2002

2003

2004

 

 

1st & second courses

54

90

126

270

 

160

104

 

264

 

1st course only

 

 

 

-

 

 

 

 

-

 

Totals

54

90

126

270

 

160

104

-

264

 97.78%

% of total

20%

33%

47%

 

 

59%

39%

0%

 

 

 

Student Goals:  U. Andes 

 

Actual student participation: U. Andes  

 

2002

2003

2004

 

 

2002

2003

2004

 

 

1st & second courses

54

90

126

270

 

36

26

 

62

 

1st course only

 

 

 

-

 

 

 

 

-

 

Totals

54

90

126

270

 

36

26

-

62

22.96%

% of total

20%

33%

47%

 

 

13%

10%

0%

 

 

 

Student Goals:  IESA

 

 

Actual student participation: IESA 

 

 

2002

2003

2004

 

 

2002

2003

2004

 

 

1st & second courses

39

60

81

180

 

29

20

 

49

27.22%

1st course only

 

 

 

-

 

92

58

 

150

 

Totals

39

60

81

180

 

121

78

-

199

110.56%

% Of total

22%

33%

45%

 

 

67%

43%

0%

 

 

 

The data above show that the program goals for training students have been exceeded overall with 72.9% of the target met after 66% of the program completed.  ITESM and IESA have exceeded their goals while U. de los Andes is at 22.9% of their goal.  The reason U. de los Andes is behind is due to their calendar of classes, which required that they start the student training at a later date than the other schools.  They are, however, programmed to complete the student training goals of the project. 

 

Report Preparation Goals Completed

 

 

Total Report Goals

 

 

 

Total reports completed

 

 

 

2002

2003

2004

 

 

 

2002

2003

2004

 

 

Public equity reports

11

14

17

42

18%

 

13

25

-

38

39%

Private equity/
debt reports

38

66

94

198

83%

 

42

17

-

59

61%

Totals

49

80

111

240

 

 

55

42

-

97

40.42%

% Of total

20%

33%

46%

 

 

 

23%

18%

0%

 

 

 

Report Goals:ITESM

 

 

Reports completed: ITESM

 

 

2002

2003

2004

 

 

 

2002

2003

2004

 

 

Public equity reports

4

5

6

15

17%

 

4

1

 

5

12%

Private equity/
debt reports

14

25

36

75

83%

 

24

14

 

38

88%

Totals

18

30

42

90

 

 

28

15

-

43

47.78%

% Of total

20%

33%

47%

 

 

 

31%

17%

0%

 

 

 

Report Goals: U. Andes

 

 

Reports completed: U. Andes

 

 

2002

2003

2004

 

 

 

2002

2003

2004

 

 

Public equity reports

4

5

6

15

17%

 

8

18

 

26

68%

Private equity/
debt reports

14

25

36

75

83%

 

11

1

 

12

32%

Totals

18

30

42

90

 

 

19

19

-

38

42.22%

% Of total

20%

33%

47%

 

 

 

21%

21%

0%

 

 

 

Report Goals:IESA

 

 

Reports completed: IESA

 

2002

2003

2004

 

 

 

2002

2003

2004

 

 

Public equity reports

3

4

5

12

20.00%

 

1

6

 

7

43.75%

Private equity/
debt reports

10

16

22

48

80.00%

 

7

2

 

9

56.25%

Totals

13

20

27

60

 

 

8

8

-

16

26.67%

% Of total

22%

33%

45%

 

 

 

13%

13%

0%

 

 

 

The data above show that, overall, 40.42% of the goals for financial report preparation have been met.  This report output rate is on target given that the report preparation process is cumulative for some firms (the same firms will be reviewed each year) and given the lag in producing reports until the first year of training is completed.  We believe this accomplishment for reports prepared will allow the program to meet the project goals at the end of the contract period. The individual company names are provided in the attachments and organized by country: Mexico, Venezuela, and Colombia. 


 

Program Activities

 

The activities required to implement the Burkenroad Reports for Latin America project included planning sessions for the project, faculty training workshops, curriculum development and classroom instruction for students, on-site visits by consultants, recruiting and meeting with participating companies, the preparation and dissemination of public and private equity reports, and the conduct of annual conferences to bring the lenders and borrowers together.  Below we describe the activities undertaken by Tulane University, ITESM, IESA, and U. de los Andes since May 2001 to accomplish the goals of this project.

 

 

Planning Meeting May 23-24, 2001

ITESM Campus Monterrey

Monterrey, Mexico

 

The first formal meeting for the IDB/MIF Burkenroad Reports for Latin America was a planning session attended by the deans and project directors from each of the participating institutions.  The meeting was held in Monterrey, Mexico.  The following participants attended this meeting:

 

Dr. John M. Trapani III                                    Mr. Daniel Moska

BRLA Project Director                         BRLA Project Director

Tulane University                                              ITESM

 

Dr. German Creamer                                        Dean Gerardo Lujan

BRLA Project Coordinator                               DACS

Tulane University                                              ITESM

 

Dr. Pamela Shaw                                              Moises Benavides

BRUS Project Coordinator                               BRLA Project Manager

Tulane University                                              ITESM

 

Dean Jorge Hernan Cardenas                           Jonathan Cole                                      

Faculty of Business Administration                    Rector, IESA  

Universidad de los Andes                                 Caracas, Venezuela

 

Dr. Maria Lorena Gutierrez                               Nelly Letjer

Associate Dean/BRLA Project Director            Dean, IESA

Faculty of Business Administration                    Caracas, Venezuela

Universidad de los Andes

                                                                       

Jose Maria del Castillo                          Dr. Eduardo Pablo

Professor of Finance/Marketing                        Professor of Finance

Faculty of Business Administration                    IESA               

Universidad de los Andes                                 Caracas, Venezuela

 

At this meeting each participating institution presented their plans for implementing the BRLA project at their own institution.  The major conclusions of May planning meeting in Monterrey and the related recommendations are given below.

 

Course content of Burkenroad report prerequisites and the first Burkenroad report 

 

Based on our review of the curriculum of each university, we include recommendations for the two-course Burkenroad Report sequence (hereafter referred to as Course I and Course II) for each school.  The sequence for each school is scheduled to start in fall 2001.   Recommendations for each school are shown below.  Our recommendations are designed to assure that Course I prerequisites and the content of Course I prepare students for meeting with companies and preparing the Burkenroad Report in Course II.

 

Course I and/or the courses that are prerequisites to Course I will include the following topics:

 

  • Introduction to the Burkenroad Report methodology
  • Preparation of financial statements including income statement, balance sheet and cash flow statement
  • Analysis of profitability, liquidity, risk and return ratios
  • Accounting process including journalizing and summarizing reportable economic events
  • Study of the accounting standards and required disclosures in financial statements prepared in accordance with country-specific generally accepted accounting standards.
  • Quantitative methods for financial forecasting
  • Taxation
  • Long-term financial planning and growth
  • The time value of money
  • Discounted cash flow valuation
  • Interest rates and bond valuation
  • Stock valuation
  • Capital investment decisions
  • Project analysis and evaluation
  • Investment theory
  • Financial leverage and capital structure policy
  • Dividends and dividend policy
  • Cash and liquidity management
  • Credit and inventory management
  • International corporate finance
  • Corporate securities
  • Introduction to mergers and acquisitions
  • Techniques of financial research and the use of financial databases
  • Selected advanced financial topics appropriate for the local capital market

 

Course recommendations: Tec de Monterrey

 

Our recommendation for the first Burkenroad report course at Tec de Monterrey is to use the three "Money and Capital Markets" courses offered in the fall semester with appropriate course changes to introduce the Burkenroad Report methodology.   A portion of the students from these three sections will be selected to participate in Course II in the spring.   

 

Course recommendations: Universidad de los Andes

 

Our recommendation for the first Burkenroad report course at Universidad de los Andes is to use their "Corporate Finance" course with appropriate course changes to introduce the Burkenroad Report methodology.  This course is offered to undergraduates in the fall and to MBAs and professional MBAs in the spring.  Undergraduates and MBAs will take Course II in the spring and summer, respectively.  An alternative to the Corporate Finance course is Universidad de los Andes' entrepreneurship course.  A portion of the students taking Course I will be selected to participate in Course II.   

 

Course recommendations: IESA

 

Our recommendation for the first Burkenroad report course at IESA is to use the "Evaluation of Companies" course offered in the fall with appropriate course changes to introduce the Burkenroad Report methodology.  Students enrolled in Course I will include Masters of Finance students and MBAs.  A portion of these students will be selected to participate in Course II.   

 

 

Report formats

 

Report formats will include the analyst report format currently used by Tulane's Burkenroad Report program and a second business evaluation report format for companies that are either not listed on an exchange or are interested in accessing credit markets.  The format of the business evaluation report will include the following sections and subsections.

 

I. Introduction

II. Company Summary

·     Company ownership

·     Company history (for ongoing companies) or start-up plan (for new companies)

·     Company locations and facilities

III. Products and Services

·     Product and service description

·     Competitive Comparison

·     Technology

·     Future Products and Services

IV. Market Analysis Summary

·     Target market segment strategy

·     Market trends

·     Industry analysis

·     Main competitors

V. Strategy and Implementation Summary

·     Competitive advantage

·     Marketing strategy

·     Pricing strategy

·     Strategic alliances

·     Milestones

VI. Management Summary

·     Organizational Structure

·     Management Team

VII. Risk Assessment

VIII. Financial Plan

·     Important assumptions

·     Key financial indicators

·     Break-even analysis

·     Projected profit and loss

·     Projected cash flow

·     Projected balance sheet

·     Business ratios

 

Each school will determine the appropriate mix of analyst reports and project reports based upon local market conditions.

 

Software and Database Recommendations

 

We evaluated the need for purchasing planning and capital budgeting software for use in Course II.  We reviewed several software packages including Comfar (produced by UNIDO) and Business Plan Pro (Palo Alto Software).   Based on our review and research, we suggest the use of Business Plan Pro.  This program is available in both English and Spanish and is cost-effective for students, universities and entrepreneurs. 

 

Tulane University will provide access to participating universities and their students to several financial databases related to emerging markets.  We recommend that each school review its database needs and purchase databases that fulfill the research requirements for Course II according to the conditions of their local markets.

Web Page Preparation and Maintenance

 

Tulane University staff will prepare and maintain a master web page that will link to web pages for each school.  Tulane will prepare a web design template and publication criteria in cooperation with the publication requirements of each school.  The web sites will include a downloadable brochure, a form of interest for companies, biographical information regarding the directors of research, links to financial resources in each country, news items, and downloadable reports.

 

Brochure and Video Preparation

 

Tec de Monterrey agreed to prepare a brochure for distribution to Latin American companies and other interested parties for fall 2001 publication.  Tulane University staff will prepare a video that introduces the Burkenroad Report process and shows the impact of the Burkenroad Report project in the U.S.  Video materials will be recorded in Spanish and will be shown to students and prospective firms. 

 

Training Session I

 

Training session I will be held at Tec de Monterrey from September 10 - September 14.  As a part of the training, faculty will prepare an analyst report and business evaluation report. 

 

Faculty Training Session I

September 11-14 2001

Monterrey, Mexico

 

The first formal BRLA training session for faculty was conducted in Monterrey, Mexico at ITESM during the period September 11-14, 2001.  A list of attendees is attached at the end of this document in the attachment section.

 

The following is a summary of the program and recommendations of the 1st Latin American Burkenroad training session conducted in Monterrey, Mexico in September 2001.

 

BURKENROAD METHODOLOGY TRAINING SESSION: TOPICS AND CASEWORK

 

Training session I was held at Tec de Monterrey from September 10 - September 14.  As a part of the training, faculty completed coverage of the following topics and casework.

 

-       Preparation of major sections of analyst report and major steps for preparing the analyst report as shown on the attached agenda

-       Preparation of major sections of business evaluation report and major steps for preparing the business evaluation report as shown on the attached agenda including

§         Interviewing management

§         Investment style and related financial analysis

§         Strategic view of business evaluation: balanced score card

§         Demonstration of Business Plan Pro software and preparation of selected portions of the business evaluation report.

-       Financial analysis and forecasting methodology used for Burkenroad Reports

§         Case study using financial forecasting models and valuation models covered in class

-       Code of ethics and standard of professional conduct of financial analyst

-       Financial and business research using Internet resources: overview of websites and financial information available for report preparation.

 

IMPLEMENTATION DISCUSSIONS WITH THE DIRECTORS AND PARTICIPANTS FROM EACH UNIVERSITY

 

·      Final discussions of content of Course I offerings in Fall 2001[1]

 

Follow-up on course recommendations:

 

Each university has adopted the recommendations offered in May 2001 regarding Course I with appropriate course changes to introduce the Burkenroad Report Methodology.  Tec de Monterrey will use an altered version of their  "Money and Capital Markets" course, Universidad de los Andes will use an altered version of their "Corporate Finance" course, and IESA will use a modified version of its course,  "Valuation of Companies."

 

·      Discussion of Course II implementation in spring 2002

 

o        Each university continues to design their course offerings for spring 2002. 

o        Alternative designs appropriate for business evaluation reports were discussed, e.g., one possible course design would include a workshop attended by entrepreneurs seeking capital opportunities and by Burkenroad report students and faculty.  Entrepreneurs would be given basic training in business plan preparation and students and faculty would have the opportunity to invite them to participate in the Burkenroad program.  This workshop would ideally be scheduled prior to the beginning of Course II.  The Tulane visiting team would participate in the workshops.

o        IESA plans to develop a special course related to valuation and managerial consulting.  IESA expects to include the preparation of the Burkenroad report as part of the requirements for students interested in this area.

    • Pilot reports: October and November 2001
    •  A pilot report will be prepared by a select group of students from each university and will be supervised by Latin American professors teaching the Burkenroad Report courses.  The purpose of this report is to provide additional hands-on experience for Latin American professors and to provide each school a model report for use in Course II (offered in spring 2002).
    • Tec de Monterrey’s pilot report will be an analyst report covering Grupo Imsa, S.A. de C.V. y Subsidiarias.
    • IESA and de Los Andes will each select pilot report companies and will prepare either the analyst report or the business evaluation report depending upon the financial needs of the participating companies. 
    • During the training session of September 2001, the Tulane University team introduced the foundations of a detailed financial forecasting model. Each faculty member will apply this model or adapt this model appropriately.
  • Discussions regarding expected percentages of evaluation reports for each university.
    • Each of the three schools expects that the majority of their reports will be business evaluation reports.  Monterrey TEC will likely have a higher percentage of analyst reports than IESA and de Los Andes as Mexico has a stronger publicly traded company sector.
  • John Trapani, Germán Creamer, Pamela Shaw and Daniel Moska will visit each school in November and December 2001 for follow-up and final implementation prior to Course II report preparation by Latin American Burkenroad students.
  • A faculty web site for file sharing, information sharing and discussion will be available for the Latin American Burkenroad Report professors and the Tulane team as soon as possible.

 

Software and Database Recommendations

 

The training session included an introduction to the software Business Plan Pro (Palo Alto Software). The participants evaluated the usefulness of the software for the preparation of the written part of the business evaluation report. Faculty members will utilize the financial forecasting section of Business Plan Pro on a case-by-case basis.   Faculty can use the forecasting section of the Business Plan Pro software or develop their own Excel models.  Participants agreed that the software helped to homogenize the format.  An additional software package useful for forecasting is Crystal Ball.  This software will be available for use by participants.

 

The software Comfar (produced by UNIDO) for project evaluation was briefly introduced in May 2001.  Schools may opt to use this software for specific business evaluations.

 

Latin American faculty members with Tulane accounts will have access to several financial databases related to emerging markets such as ISI Emerging Markets. 

 

Web Page Preparation and Maintenance

 

The address www.latinburkenroad.org has been reserved for the project, and each university is developing web pages for the project. 

 

The web sites will include a downloadable brochure, a form of interest for companies, biographical information regarding the directors of research, links to financial resources in each country, news items, and downloadable reports.

 

Brochure and Video Preparation

 

The Tulane University team presented an initial draft of the promotional video using images and information related to the Tulane University Burkenroad project.  The video is expected to be useful for presentations to Latin American students and companies in Latin America. 

 

The promotional brochure was discussed during previous sessions with the coordinators of the project.

 

Based on the comments received, Tec de Monterrey will publish the brochure and Tulane University will prepare a revised version of the video.

 

 

Visit to Universidad de Los Andes

 Bogotá, Colombia

December 5, 2001

 

This is a report of the Tulane faculty’s visit to Universidad de Los Andes during the period November 26-28 of 2001.

 

Objectives:

-         Review the structure of the Burkenroad reports for the case of Colombia

-         Review the pilot project and the methodology with professors and consultants

-         Promote the project between undergraduate and MBA students

-         Present the project to government and companies’ authorities.

 

Issues discussed:

At Universidad de Los Andes:

-         Universidad de Los Andes (UDLA) is planning to teach an undergraduate course in the spring semester in Corporate Finance and a MBA level course during the summer where the methodology of Burkenroad reports, including the business evaluation variation, will be included as part of the syllabus of the course.  UDLA expects to develop 10 reports during the spring semester and a similar amount during the summer.

 

-         MBA students can prepare a Burkenroad report, including the business plan variation, to satisfy their graduation requirements. During our visit, 5 MBA students signed into prepare these financial reports.

 

-         UDLA will use companies that participate in the Expopyme project (project to promote export activities of small and medium size companies) to develop the financial analyst and investment reports.

 

-         Professor participants in the project indicated their great interest in the project and the need of further local support to implement the project (course release or administrative support).

 

-         Roberto Gutiérrez, professor, showed a great interest in developing the Burkenroad reports for companies with social interest.

 

Superintendency of Societies:

 

-         Sussy Rueda and Roberto Sáenz, officers of the Superintendency of Societies, showed interest in the project and suggested that they could include a link in the webpage of the Superintendencia to the webpage of the project.


 CAF:

-         Luis Galeano, CAF officer, indicated a very strong interest in the project.  CAF has a new venture capital fund that is expected to grow to about US$ 35 million.  Mr. Galeano indicated that this project would be very helpful because it will offer them information about companies in Latin America that is unavailable and will help them in their investment decisions.  We informally invited CAF to participate in our next investment conferences in Latin America and Mr. Galeano mentioned their great interest in this conference.

 

Colombian Stock Exchange:

-         Augusto Acosta, president of the Colombian stock exchange, showed a great interest in the project especially because of the possibility of following listed companies with very limited trading activity.  He was also willing to include information of the project in the stock exchange’s website and to participate in the annual investment conference.

 

 

Activities:

-         Presentation of the project to MBA students

-         Participation in business plan competition (Venture 2001) sponsored by Dinero magazine and McKinsey & Co.


- Meetings with:

Government and public organization officers:

-         Augusto Acosta, president of the Colombian stock exchange

-         Luis Galeano, officer of the Andean Promotion Corporation (CAF)

-         Roberto Sáenz, officer of the Superintendency of Societies

-         Sussy Rueda, officer of the Superintendency of Societies

 

Universidad de Los Andes:

-         Jorge Hernán Cárdenas, dean

-         María Lorena Gutiérrez, vice dean

-         Roberto Gutiérrez, assistant professor

-         Luz Marina Ferro, professor

-         Juan Carlos Montes, consultant UN / Expopyme project

-         José María del Castillo, professor

-         Antonio Romero, professor

-         Luz Elena Orozco, professor

-         Marta Cáceres, professor

-         Javier Serrano, professor               


 

Suggestions/Recommendations:

 

Selection of companies:

 

Opportunities for company participation as described above are plentiful and diverse, ranging from possible coverage of nonprofit entities to ADRs.  We recommend that emphasis be placed on covering as many public companies as possible including companies that are covered solely on the Colombian exchange as well as companies that are listed on both the Colombian exchange and as ADRs on a U.S. exchange.  While we believe that nonpublic companies represent a significant opportunity in Colombia, we believe that the potential benefits of preparing an analyst report for a public company as compared to preparing a business evaluation report is greater for students for the following reasons:

 

  • The report can be published on the Internet and distributed both in Colombia and internationally.
  • Students can utilize the report in their job search.

 

Using students in support roles:

 

At Tulane we have successfully used students who had previously taken the Burkenroad course as investment research managers (IRMs) and as associate directors.  Each IRM is assigned to 3 or 4 companies and works as a consultant with the student groups during the preparation and review stages of the process.  The IRMs attend site visits with the student analysts, grade the deliverables turned in by student analysts and review the reports prior to faculty’s’ reviews of the reports.  Each year two exceptional graduate students are selected to act as associate directors.  The associate directors have overall responsibility for the IRMs.  We have used both course credit and compensation methods for IRMs and associate directors.

 

Accounting requirements and accounting faculty support:

 

The preparation of both analyst and business evaluation reports requires a strong background in accounting.  Since most participants are finance undergraduate or graduate students, it is important to consider the adequacy of students’ accounting courses when selecting students and creating student work groups.  Ideally, each group will have at least one strong “accounting type.”  It is also important to involve an accounting faculty member during both the report preparation stage and the review stages as follows.  The review stage is often as lengthy as the report preparation stage as the report “travels” through the following stages:

  • Report text and financial forecasts deliverables are turned in at various stages during the semester and reviewed by IRMs.  At Tulane, the accounting faculty member is involved with groups and meets with each group on an as-needed basis as the groups prepare the operating, financing, investing and ratio sections of the financial forecasts.
  • The report text and financial forecasts are compiled and reviewed by finance and accounting faculty.
  • Students make changes recommended by faculty and return the report to the faculty.
  • The report is delivered to management for comments.
  • Management delivers comments to the analyst group and may request a conference call.
  • Students make changes as desired based on management comments.
  • The revised report is reviewed again by faculty and IRMs.
  • Students make changes based on the faculty’s’ and IRMs’ final reviews and resubmit the report.
  • Faculty review the before publication.
  • The report is published.

 

During this process, a number of accounting absolutes must be in place.  These safeguards will both increase the accuracy of the forecasts and the quality of the reports.  Some of these safeguards will automatically be handled if students are using a packaged forecasting program such as Business Plan Pro.

 

Choice of students:

 

During our visit to UDLA, one of the concerns that we discussed was the necessity of providing students with adequate report preparation and review support.  During the initial stages of the program, we recommend that you enroll a higher proportion of graduate students than undergraduate students since the support requirements for the two groups differ significantly.  Graduate students tend to require fewer consultations with faculty and their reports tend to require fewer revisions. 

 

Report Design:

 

Below is an outline of the sections that we recommend for the analyst report.

 

  • Price Performance (graph)
  • Company Description
  • Products and Services
  • Company Management
  • Industry Analysis
  • Peer Review
  • Risk Analysis
  • Socio-economic Evaluation
  • Investment Thesis (including forecasting assumptions and valuation)
  • Investment Summary
  • Financials (as described below)

 

The extent of coverage for each text section will, of course, vary with the company characteristics.  We recommend the socio-economic evaluation section because the Latin American Burkenroad program has the stated goal of enhancing economic development in the region.  We believe that a section describing corporate social responsibility issues and describing various socio-economic indicators, e.g. employment, GDP, etc., will be a valuable addition to the report. 

 

While the distribution of the business evaluation report and the analyst report differs significantly, the actual sections prepared for each report will be very similar.  A table of contents that compares the contents of each report is included in the section of this report entitled “Visit to IESA.”

 

The financial portion of the report should always include the following sections for both the analyst and business evaluation reports:

 

Annual and Quarterly Income Statements:

-                     includes a section with selected common size amounts

-                     includes a section with selected year-to-year changes

 

Annual and Quarterly Balance Sheets:

-                     includes a section with selected common size amounts (as a % of revenues)

-                     includes a section with selected common size amounts (as a % of total assets)

 

Annual and Quarterly Balance Cash Flow Statements:

      Includes operating, investing and financing cash flow sections

 

Ratios

      Includes productivity, liquidity, financial risk and valuation sections

 

An example of the format used for the financial sections is attached.  Note that the financial forecast example reports both annual and quarterly estimates.  We recommend forecasting no more than two years of financial statements and recommend reporting a minimum of 3 years of historical annual information.


 









Visit to IESA

Caracas, Venezuela

March 13 - 15, 2002

 

The following is the report of the Tulane University staff visit to IESA between March 13 and 15 of 2002.

 

Objectives:

-         Review the structure of the Burkenroad reports for the case of IESA.

-         Review the pilot project and the methodology with professors and consultants

-         Promote the project between students

-         Present the project to government and companies’ authorities.

 

Issues discussed:

At IESA:

-         IESA is planning to teach a graduate course called Burkenroad Reports in the April-June quarter where the methodology of Burkenroad reports, including the business evaluation variation, will be the main content of the course. 

-         IESA has already taught the course Company Valuation to 84 students.  This course is the prerequisite for the course Burkenroad Report.  In this course, students have prepared company reports that could provide valuable information for the preparation of the Burkenroad reports.

-         IESA has included BANGENTE as one of the companies to be followed thanks to the suggestion of ACCION International (NGO domiciled in Boston). This bank offers loans to micro- and small-producers. Hence, the preparation of a financial report for this bank may have a multiplicative impact on the numerous clients of this bank.

 

At CAF:

-         CAF representatives showed a very strong interest in the project because it will offer them information about companies in Latin America that is unavailable and will help them in their investment decisions.  CAF has a new venture capital fund that is expected to grow to about US$ 35 million. 

-         Camilo Arenas, director of financial markets, indicated the great interest in the information that the project will provide for the development of local small and medium size firms. He also indicated interest to the extension of the project to the rest of the Andean countries (Bolivia, Ecuador, and Peru), and a potential contribution of CAF to this expansion stage.

 

At Caracas Stock Exchange:

-         Nelson Ortiz, president of the Venezuelan stock exchange, showed a great interest in the project especially because of the possibility of following listed companies with very limited trading activity.  He was also willing to include information of the project in the stock exchange’s website and to sponsor the annual investment conference.

 

Activities:

-         Presentation of the project to master students

 

- Meetings at:

 

Caracas Stock Exchange:

-         Nelson Ortiz, president of the Caracas stock exchange

-         Nelson Gaivis, manager of marketing of the Caracas stock exchange

 

Corporación Andina de Fomento (CAF):

-         Luis Galeano, officer of the venture capital fund

-         Manuel Malaret, manager venture capital fund

-         Camilo Arenas, director of financial markets

 

      CONAPRI (investment promotion council):

-         Michael Penfold, executive director

-         Mercedes Briceño, promotion and regulatory affairs manager

 

      IESA:

-                     Nelly Lejter, academic dean

-                     Jonathan Cole, president

-                     Jaime Sabal, vicedean

-                     Eduardo Pablo, coordinator of Burkenroad report in Venezuela

-                     Enrique Ghersi, professor and consultant for the Burkenroad project

-                     Gustavo García, professor

-                     Rebecca Tinoco, officer at research department

-                     Laura González, manager, executive development

 

Fitch IBCA, Duff & Phelps (rating agency)

- Carlos Fiorillo, managing director

- Franklin Santarelli, senior analyst

 

            Farmatodo (company to be followed by Burkenroad reports):

            - Guillermo Trigo, CFO

 

 

Suggestions/Recommendations:

 

We discussed a number of recommendations during our visit to IESA.  These recommendations are essentially the same as those included in our summary of the visit to Universidad de Los Andes in December 2001 and are omitted except for the following suggestions/recommendations is not included here.

 

Report Content

The extent of coverage for each text section will, of course, vary with the company characteristics.  We recommend the socio-economic evaluation section because the Latin American Burkenroad program has the stated goal of enhancing economic development in the region.  We believe that a section describing corporate social responsibility issues and describing various socio-economic indicators, e.g. impact on employment, GDP, regional development, etc., will be a valuable addition to the report. 

 

While the distribution of the business evaluation report and the analyst report differs significantly, the actual sections prepared for each report will be very similar.  Below is a report table of contents that compares the contents of each report (we attach an English and a Spanish version).

 

 

 

 

Analysis Report

Business Evaluation

Report

 

 

Price Performance

Yes

 

 

1.0

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bullet points – cover

Yes

 

1.1

Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

1.2

Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

1.3

Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

2.0

Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

2.1

Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

2.2

Start-up/History Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

2.3

Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

3.0

Products & Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

3.1

Products & Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

3.2

Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

3.3

Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

3.4

Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

3.5

Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

3.6

Future Products & Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

4.0

Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

4.1

Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

4.2

Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

4.2.1

Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

4.2.2

Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

4.2.3

Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

4.3

Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

4.3.1

Industry Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

4.3.2

Distribution Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

4.3.3

Competition and Buying  Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

4.3.4

Main Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

5.0

Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.1

Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.2

Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.3

Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.4

Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.4.1

Positioning Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.4.2

Pricing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.4.3

Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.4.4

Distribution Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.4.5

Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.5

Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.5.1

Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.5.2

Sales Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.6

Strategic Alliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

5.7

Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Yes

 

6.0

Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

6.1

Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

6.2

Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

6.3

Management Team Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

6.4

Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

7

Socio-Economic Evaluation

Yes

Yes

 

8

Risk Analysis

Yes

Yes

 

9

Investment Recommendations

Yes

Yes

 

 

9.1

Yes

Yes

Yes

 

 

9.2

Yes

Yes

Yes

 

10.0

Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

10.1

Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

 

10.2