Course Syllabus

 

	FIN 5642-Equity & Space Invest Syllabus-Megginson-14Mar24.docx
Bill Megginson Price Chair in Finance George Lynn Cross Research Professor Director, Finance PhD Program

For a list of course activities, scroll to the bottom of this page.

Course Materials

Most can be downloaded as Coursepack Megginson Space Finance EMAD 5642 from Harvard Business Publishing Education (https://hbsp.harvard.edu/coursepacks/1153719). . Other readings can be downloaded from the source (just Google article name) or from OU Libraries using your 4X4.

For more details, please refer to the Course Resources page.

Course Grades

Breakdown

Graded Activities & Assignments	Percentage
Live Sessions (Participation)	30%
Reading Summaries	30%
Project	40%
Total	100%

Scale

A = 90-100%; B = 80-89%; C = 70-79%; D = 60-69%; F = < 50%

Course Components

Live Sessions

Each week, our class will meet in real time. During our time together, I will provide a live lecture using PowerPoint and answer any questions you have. If your schedule prevents you from joining us, you can watch the recording of the session later. Students who cannot attend live will earn participation points by reviewing the recording and submitting a brief summary.

Module Summaries

The required readings describe the institutional detail of various components of the space economy. Students should write and post a one-page (3-5 paragraph) summary of each article, describing the key points presented therein and discussing what they learned.

Project

Each student will write a detailed analysis of a segment of the space economy of their choice. Various possibilities will be offered, but the student should select the topic they find most interesting. The report should be at least 15 pages long (double-spaced type) and should have at least a dozen references.

Course Policies

Communication Plan

• If you have general questions about the class (assignments, class logistics, due dates, etc.), post a question in the HELP BOARD in the “Start Here” module. You can post questions about the course here throughout the semester.
• If you have a question about the learning material, post your questions in the Pre-Class Question Board.
• If you have a personal question(grades, feedback, requests for special accommodation, etc.) please send me an email (wmegginson@ou.edu). During the work week (Monday-Friday), you can expect a response from me within 24 hours. During weekends (Saturday-Sunday), you can expect a response from me within 48 hours.

Late Policy

As a general rule, I do not accept late work. You may work ahead but avoid falling behind.

University of Oklahoma Academic Policies and Student Support

Catalog

Please familiarize yourself with the student catalog: http://catalog.ou.edu/courses/courses.htm

Online Library

Students can use the University of Oklahoma library by visiting http://libraries.ou.edu and signing in with your 4X4 university ID number.

Academic Misconduct

In addition to the course conduct policies outlined by your professor in the Course Syllabus in the online classroom, please review the Graduate Student Handbook.

It is the responsibility of each student to be familiar with the definitions, policies, and procedures concerning academic misconduct. The Student Code is available from the Office of the Vice President for Student Affairs, and is contained in the Student's Guide to Academic Integrity, available at: http://integrity.ou.edu/students_guide.html

This site also defines misconduct, provides examples of prohibited conduct, and explains the sanctions available for those found guilty of misconduct.

Plagiarism

Plagiarism is the most common form of academic misconduct at OU. There is basically no college-level assignment that can be satisfactorily completed by copying. OU's basic assumption about writing is that all written assignments show the student's own understanding in the student's own words. That means all writing assignments, in class or out, are assumed to be composed entirely of words generated (not simply found) by the student, except where words written by someone else are specifically marked as such with proper citation. Including other people's words in your paper is helpful when you do it honestly and correctly. When you don't, it's plagiarism.

Go to http://integrity.ou.edu/students_guide.html to learn more about the rules for avoiding plagiarism. Watch this video and then test your skills in avoiding plagiarism by taking this plagiarism tutorial and quiz.

Reasonable Accommodation for Disabilities

The University of Oklahoma is committed to providing reasonable accommodation for all students with disabilities. Students with disabilities who require accommodation in this course should contact their professor as early in the semester as possible.

Students with disabilities must be registered with the Disability Resource Center prior to receiving accommodation in this course.

If you have a disability and you would like to make a request for reasonable accommodation, please see the Graduate Student Handbook or visit the Disability Resource Center and other disability services at OU at: http://drc.ou.edu/

Adjustments for Pregnancy/Childbirth Related Issues

Should you need modifications or adjustments to your course requirements because of documented pregnancy-related or childbirth-related issues, please contact me as soon as possible to discuss your options. Generally, modifications will be made where medically necessary and similar in scope to accommodations based on temporary disability. Please see http://www.ou.edu/content/eoo/faqs/pregnancy-faqs.html for commonly asked questions.

Title IX Resources

For any concerns regarding gender-based discrimination, sexual harassment, sexual misconduct, stalking, or intimate partner violence, the University offers a variety of resources, including advocates on-call 24/7, counseling services, mutual no contact orders, scheduling adjustments, and disciplinary sanctions against the perpetrator. Please contact the Sexual Misconduct Office 405-325-2215 (8-5, M-F) or OU Advocates 405-615-0013 (24/7) to learn more or to report an incident.

Religious Holidays

It is the policy of the University to excuse absences of students that result from religious observances and to provide for the rescheduling of examinations and additional required classwork that may fall on religious holidays without penalty. It is the responsibility of the student to make alternate arrangements with the instructor at least one week prior to the actual date of the religious holiday.

Registration and Withdrawal

If you choose to withdraw from this course, you must complete the appropriate University form and turn the form in before the deadline. If you stop attending the course and doing the coursework without doing the required paperwork, your grade will be calculated with missed homework and examination grades entered as zero. This could result in receiving a grade of F in the course. Deadlines are shown in the Academic Calendar, which is available from the Office of Admissions and Records at: http://www.ou.edu/admissions/home/academic_calendar.html

Student Grievances

Please review the Graduate Student Handbook for more information about the process of submitting a formal grievance.

Detailed Course Outline and Assignments

Week 1 (March 14): Overview of the Global Space Economy

• Course Overview
• Overview of Global Space Economy and Classification of Space Industries
• Privatization of Space Activities Propelled by Declining Launch Costs
• Brief Summaries: Militarization of Space and Legal Environment of Space
• Financing Space Exploration and Commercial Development

Required Reading (complete before synchronous class):

Matthew C. Weinzierl, Brendan Rosseau. The United States National Security Apparatus, Multipolarity, and the Rise of Commercial Space. Publication Date: Mar 2022 (Revised June 26, 2022). Product Number: 722063-PDF-ENG.

Recommended Reading:

Weinzierl, Matthew. Spring 2018. “Space, the Final Economic Frontier.” Journal of Economic Perspectives 32(2): 173-192.  

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Week 2 (March 28): Declining Launch Costs and the Privatization of Space Activities

• Timeline of Development of Space Exploration and Commercialization
• The Rise and Rise of SpaceX and its Fundamental Role Driving Down Launch Costs
• Private Competition and Private Financing: ULA, Blue Origin, and the Rest
• How will 1,000 Starships Impact the Launch Business?

Required Readings (complete before synchronous class):

Matthew C. Weinzierl, Kylie Lucas, Mehak Sarang. SpaceX, Economies of Scale, and a Revolution in Space Access. Publication Date: Apr 2020 (Revised October 04, 2021). Product Number: 720027-PDF-ENG.

Recommended Reading

PWC in association with UK Space Agency, “Expanding Horizons: The Down to Earth Guide to Investing in Space” (May 2023).

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Week 3 (April 4): Classifying and Describing Space Companies

• Space Exploration Companies
• Space Tech Companies
• Space Research Companies
• Space Satellite Companies
• Rocket Launch Companies
• Non-US Space Companies (China, Europe, India, Japan, Others)

Required Reading (complete before synchronous class):

Arpita Agnihotri and Saurabh Bhattacharya. SpaceX: Starlink's Uncertain Demand Trajectory. Publication Date: Feb 2021 (Revised October 06, 2021). Product Number: W21036-PDF-ENG.

Recommended Reading

Seibert, Julia, 2024. “Top 15 Best Space Companies in the World.” Spaceimpulse.com (September 28).

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Week 4 (April 11): The Satellite Economy

• LEO, MEO, and GEO Satellites Classified
• The Evolution of the Commercial Satellite Business
• Communications vs Earth Monitoring Satellites
• Selling Satellite Services and Data
• Pricing Leveraged Buyouts

Required Reading (complete before synchronous class):

Bidushi Bhattacharya, Greg Autry, Veronica Perry. Relativity Space: Rocketing into the Future of Manufacturing. Publication Date: Jul 2020. Product Number: SCG575-PDF-ENG.

Recommended Reading

Space Capital and Silicon Valley Bank. 2022. “The GPS Playbook. How a Space-Based Technology Generated the Largest Venture Outcomes in History.”

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Week 5 (April 18): Financing Space Companies

• The Private Capitalization of Space Companies
• The Enduring Importance of Government funding, Especially Fixed-Price Contracts
• Venture Capital’s Role in Funding Space Startup and Early-Stage Companies
• Private Equity and Debt Financing
• Financial Returns to Space Investments
• Why are So Few Space Companies Publicly Traded?

Required Reading (complete before synchronous class):

Matthew C. Weinzierl, Nicole Tempest Keller, Brendan Rosseau. Space Financing. Publication Date: Mar 2022. Product Number: 722047-PDF-ENG.

Recommended Reading

Space Capital. 2022. “The GEOINT Playbook.”

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Week 6 (April 25): Exiting Space Company Investments

• Possible exits: IPOs/SPACs, PE Buyout, Operating-Company Acquisition, Bankruptcy
• Mergers Happen—But Thus Far Less Frequently than In Other Industries
• Buyouts and Acquisition Relatively Common
• Very Few IPOs; Many Bankruptcies

Required Reading (complete before synchronous class):

Joshua Lev Krieger, Abhishek Nagaraj, James Barnett. Tomorrow.io Goes to Space. Publication Date: Jan 2022. Product Number: 822005-PDF-ENG.

Recommended Reading

Space Capital. 2022. “The GEOINT Playbook.”

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Week 7 (April 26!): Financing Future Space Businesses

• Replacing the International Space Station with Private Stations
• Artemis and the Race for the Moon and Mars
• The Potential of Space Mining
• The Potential of Space Tourism
• The Potential of Space Manufacturing
• The Potential of Space Cargo (Starship deliveries on Earth)

Required Reading (complete before synchronous class):

Matthew C. Weinzierl, Angela Acocella. Planetary Resources Inc., Property Rights, and the Regulation of the Space Economy. Publication Date: Apr 2017. Product Number: 717053-PDF-ENG.

Recommended Reading

Hannon, Tom (Producer) and Peggy Hollinger (Presenter). 2023. “Moon Rush: The Launch of a Lunar Economy.” Financial Times (October 18).

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Week 8 (May 2): Summary and Student Presentations

• Student Presentations (10-15 minutes Each)
• Summary and Assessment/Feedback

 Required Reading (complete before synchronous class):

Matthew C. Weinzierl, Mehak Sarang. The International Space Station, Principal-Agent Problems, and NASA's Quest to keep Humans in Space. Publication Date: May 2021. Product Number: 721054-PDF-ENG.

Recommended Reading

Mukherjee, Abhiroop, George Panayotov, and Janghoon Shon, July 2021, Eye in the sky: Private satellites and government macro data. Journal of Financial Economics 141(1),  234-254.

Instructor Bio

Bill Megginson is Professor and Price Chair in Finance at the University of Oklahoma’s Michael F. Price College of Business. He is Finance Area Editor for Journal of International Business Studies, was Editor of the Journal of Corporate Finance from 2018-2020, and from 2014-2019 was the Saudi Aramco Chair Professor in Finance at King Fahd University of Petroleum and Minerals in Dhahran, Saudi Arabia. From 2002 to 2007, he was a voting member of the Italian Ministry of Economics and Finance’s Global Advisory Committee on Privatization. During spring 2008, he was the Fulbright Tocqueville Distinguished Chair in American Studies and Visiting Professor at the Université-Paris Dauphine and received the University of Oklahoma’s top research award, a George Lynn Cross Research Professorship, in April 2010.

Professor Megginson's research interest has focused in recent years on the privatization of state-owned enterprises, sovereign wealth fund investments, venture capital and private equity fund-raising and investments, and investment banking principles and practices. He has published refereed articles in several top academic journals, including the Journal of Economic Literature, the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, the Journal of Financial and Quantitative Analysis, the Journal of International Business Studies, and the Journal of Law and Economics. His co-authored study documenting significant performance improvements in recently privatized companies received one of two Smith Breeden Distinguished Paper Awards for outstanding research published in the Journal of Finance during 1994. He is the author or co-author of nine textbooks.  

Professor Megginson’s research has been frequently cited in academic and professional publications. His articles have been downloaded over 74,000 times from the Social Sciences Research Network, and his books and articles have been cited over 27,000 times (according to Google Scholar). His co-authored privatization survey article, published in the Journal of Economic Literature in 2001, is the eighth most widely cited finance article published since 2000, and the most widely cited article published in 2001.  He has served as a privatization consultant for the New York Stock Exchange, the OECD, the IMF, the World Federation of Exchanges, the European Bank for Reconstruction and Development, and the World Bank. He has visited 85 countries during his lifetime, and has lived in Spain, Pakistan, Switzerland, France, and Saudi Arabia, in addition to the United States.

Dr. Megginson has a B.S. degree in chemistry from Mississippi College, an MBA from Louisiana State University, and a Ph.D. in finance from Florida State University. Prior to entering academia in 1986, he worked for five years as a petroleum chemist at the world's largest styrene monomer plant and at the largest independent petroleum refinery in the United States. He has been a Visiting Professor at Duke University, Vanderbilt University, the University of Zurich, the University of Amsterdam, Bocconi University, Université-Paris Dauphine and at the University of International Business and Economics (Beijing).

March 14, 2024