MBA Courses
First Year Finance
Corporate Financial Policies
Executive Education Courses
The Mind of the CFO: Becoming a Strategic Leader
Biography
Professor of Business Administration Kenneth M. Eades teaches First Year and Second Year finance courses. He also teaches in numerous Executive Education programs.
His research focuses on corporate finance issues including dividend policy, mergers and acquisitions, investments, defined benefit pensions and pricing of convertible securities. He is the author of more than 50 Darden cases and three textbooks and has received both research and teaching awards. Eades has served as the faculty representative on Darden's Alumni Board and as chair of the MBA Policy Committee, a key governance committee of the school. He also serves as a member of Darden's Board of Trustees.
Professor Eades joined the Darden faculty in 1988. He previously taught at the University of Michigan and Northwestern University.
Publications
Articles:
“A Test of the Relative Pricing Effects of Dividends and Earnings: Evidence from Simultaneous Announcements in Japan,” with Robert Conroy and Robert Harris, The Journal of Finance, June 2000, 1199-1227. (Nominated for best corporate finance paper).
"Best Practices in Estimating the Cost of Capital: Survey and Synthesis," with Robert Bruner, Robert Higgins, and Robert Harris, Financial Practice and Education, Spring/Summer 1998, 13-27.
"Time-Series Variation in Dividend Pricing," with E. Han Kim and Patrick Hess, The Journal of Finance, December 1994, 1617-1638.
"The Crash of the Revco Leveraged Buyout: The Hypothesis of Inadequate Capital," with Robert Bruner. Financial Management, Spring 1992, 35-49. Reprinted in Management Buy Outs, a volume of the International Library of Management, Keith Bradley general editor, Michael Wright, volume editor, Dartmouth Publishing Company, Aldershot England, 1994.
Editor of "Understanding Securitized Investments and Their Use in Portfolio Management," with Diana Harrington and Robert Harris, Continuing Education Series, The Institute of Chartered Financial Analysts, 1990.
"Using a Moot Court to Teach the Dividend-Relevance Controversy," with Diana Harrington, Journal of Financial Education, Fall 1991, 27-32.
"Voluntary Conversion of Convertible Securities and the Optimal Call Strategy," with Kenneth B. Dunn. Journal of Financial Economics, August 1989, pp 273-301.
Review of Case Studies in Financial Decision Making by Diana Harrington, The Journal of Finance, March 1987.
"Market Rationality and Dividend Announcements," with E. Han Kim and Patrick Hess. Journal of Financial Economics, December 1985, 581-604.
"On Interpreting Security Returns During the Ex-Dividend Period," with E. Han Kim and Patrick Hess. Journal of Financial Economics, March 1984, 3-34.
"Empirical Evidence on Dividends as a Signal of Firm Value." Journal of Financial and Quantitative Analysis, November 1982, 471-500.
Books:
Case Studies in Finance, 6th Edition with Robert Bruner and Michael Schill, McGraw-Hill/Irwin, New York, 2010. [YOUTUBE: Meet the authors]
Case Studies in Financial Decision Making, 3rd Edition with Diana Harrington, Hinsdale, Ill: Dryden Press, 1994.
The Portable MBA, 5th Edition with Timothy Laseter, Ian Skurnik, Peter Rodriguez, Lynn Isabella, and Paul Simko. John Wiley & Sons, New Jersey, 2010.
Computer tutorial:
Finance Interactive, with Robert Bruner and Robert Harris, Graduate Management Admission Council and McGraw Hill/Irwin Publishing, 2001 (Revised 2010 as GMAC product.)
Working paper:
“Predicting Defined Benefit Pension Returns: The Impact of SFAS 132 Required Disclosure of Asset Allocation Information,” co-authored with Joanne Doyle and Brooks Marshall, October 2009.
Expertise
Capital Markets
Capital Structure Management
Corporate Finance
Dividend Policy
Defined Benefit Pensions
Investment Banking
Mergers and Acquisitions
Corporate Financial Policies (FIN 8423)
Corporate Financial Policies (CFP) extends the corporate finance topics that were introduced in First-Year Finance and then enhanced in the Valuation course. The viewpoint of the course is predominantly that of the chief executive office, chief financial officer and treasurer of a corporation. The objective of the course is to become familiar with the various aspects normally attributed to a CFO’s job. Topics include: risk management, resource allocation, dividend policy, raising external funds, determination of the cost of capital, evaluating investment opportunities and the design of management.
Course Syllabus
First Year Finance (FMP)
FMP Syllabus Q2 2009
FMP Syllabus Q3 2010
Teaching Materials
Cases:Astral Records (capital invest) (UVA-F-1065) (with Conroy and Bruner)
Avnet Computer (equipment leasing) (UVA-F-1125) (with Marston)
Aurora Textiles (capital investment) (UVA-F-1536)
Athens Ring Road (project financing) (UVA-F-1576) (with Allayannis)
Beasley Broadcasting, Inc (UVA-F-1065)
Briggs & Stratton, Inc (economic value added) (UVA-F-1203)
Burlington Northern Railroad Company: Equipment Leasing (UVA-F-0969)
CATEX (e-business) (UVA-F-1289) (with Clyman)
Centennial Pharmaceutical Corp (compensation valuation) (UVA-F-1446)
Chausson Body and Assembly (UVA-F-0961)
Chocolate Confections Corp. (capital investment) (UVA-F-1371) (with Weaver)
Compass Records (capital investment) UVA-F-1488 (with Bruner and Carr)
Delphi Corporation (bankruptcy) (UVA-F-1617)
Delta Beverage Group, Inc. (risk management) (UVA-F-1188)
DSC Communications, Inc (credit assessment) (UVA-F-1071)
DSC Communications Corporation: 1993 (UVA-F-1072)
Eli Lilly and Co.: Foreign Tax Credits & Leasing (UVA-F-1008)
First Internet Bank of Indiana (e-business) (UVA-F-1286) (with Clyman)
Flagstar Companies, Inc. (acquisition) (UVA-F-1186)
Freeserve (e-business) (UVA-F-1296) (with Clyman)
General Motors Class E Contingent Notes (UVA-F-0930)
General Motors 1991 Equity Financing (PERCS) (UVA-F-1109)
Hershey Corporation (governance/merger) (UVA-F-1409)
Insweb (e-business) (UVA-F-1291) (with Clyman)
International Business Machines Corp.: Issuer Put Options (UVA-F-1009)
International Paper: Woodyard Plant (capital investment) (UVA-F-1252)
International Paper: Alternatives to Woodyard Plant (UVA-F-1253)
Island ECN (e-business) (UVA-F-1287) (with Clyman)
Ito's Delight (option pricing concepts) (UVA-F-1333) (with Allayannis)
Ito's Dilemma (A) (option pricing concepts) (UVA-F-0936)
Ito's Dilemma (B) (option pricing estimation) (UVA-F-0937)
Ito's Dilemma (C) (financial engineering) (UVA-F-1066)
J&L Railroad (hedging with derivatives) (UVA-F-1053)
Kingston-Murray Enterprises (equity derivative - LYON) (UVA-F-1108)
Locked Tight Storage Facilities (leasing) (UVA-F-1120) (with Marshall)
Loewen Corporation (market efficiency) (UVA-F-1448)
Marina Electronics Corporation (UVA-F-1513)
Mead Corporation: Cost of Capital (UVA-F-0982)
Mead Corporation: Corrugated Cleaning System (UVA-F-0983)
Merrill Lynch (e-business) (UVA-F-1284) (with Clyman)
Mogen, Inc. (convertible bond) (UVA-F-1559)
Österreichische Kablewerke GmbH (Hungarian privatization) (UVA-F-1197)
Pepsico, Inc.: Cost of Capital (UVA-F-0981)
Procter & Gamble: Cost of Capital (UVA-F-0931)
Procter & Gamble: Cost of Capital (Abridged) (UVA-F-1183)
Procter & Gamble: Mexico 1991 (UVA-F-1060) (with Eaker)
Rhodes, Inc. (IPO) (UVA-F-1074)
Structured Notes (derivative security) (UVA-F-1618)
Target Corporation (capital budgeting) (UVA-F-1563)
The Timken Company (corporate acquisition) (UVA-F-1472)
USEC (capital investment analysis) (UVA-F-1546)
Valmont Industries, Inc (economic value added) (UVA-F-1191)
Virginia Public School Authority (municipal bonds) (UVA-F-1184)
Worldwide Paper Company (capital investment) (UVA-F-1372)
WLR Foods and Tyson Foods (UVA-F-1465)
WLR Foods and Pilgrims Pride (UVA-F-1466)
W.R. Hambrecht (e-business) (UVA-F-1288) (with Clyman)
Zoltek Industries (Hungarian privatization) (UVA-F-1163)
Technical Notes:
Cost of Capital Exercises (UVA-F-0909)
Introduction to the Cost of Equity (UVA-F-0911)
The Corporation's Cost of Capital and the Weighted-Average Cost of
Capital (UVA-F-0910)
The Corporation's Cost of Capital (Abridged) (UVA-F-1218)
Overview of Credit Ratings (UVA-F-1413)
Featured Video
Darden faculty and administration highlight some of the ways they incorporate business ethics into their specialty areas across the Darden enterprise and not just in the core ethics classes. In this video, we hear from Professor Kenneth Eades of Darden's Finance faculty.