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The vice president of finance at Rocky Mountain High Ski Resort Inc. (RMH) was examining the alternatives for financing a proposed $25 million expansion. The well-known Western Canadian all-season resort planned to add several new runs, additional snowmaking capacity, another high-speed quad chair lift, a 700-seat restaurant, a new retail ski equipment store, and upgrades to the existing infrastructure. The directors of RMH were scheduled to meet in two weeks to approve both the proposed expansion and financing plans.

An entrepreneur who is anxious to start a business manufacturing a pasta server requires funds to finance the acquisition of equipment and working capital. A venture capital investor demands a cash budget for the first year of business as well as projected financial statements.

Second Cup, the largest chain of specialty coffee stores in Canada, wants to raise money through an initial public offering in order to pay off the company's long-term debt and take advantage of growth opportunities. Nesbitt Thomson, the investment dealer working on the initial public offering, must decide what the company is worth and how many shares to issue in order to raise $14 million.

The owner of a lumber and building supply business is interested in finding out how much the business is worth and how to go about selling it. The business is currently enjoying considerable success and earnings are at record levels. She must decide which valuation method to choose.

A manufacturer is considering mechanizing a highly labour-intensive system. He has received proposals with the related cost savings from two different manufacturers for different parts of the process. The president must analyze the information and determine whether the various proposals are financially feasible.

The case describes the problem facing the president and credit manager of Warner-Lambert with respect to financial position of a major distributor. The distributor's financial statements have just been received by the company and the situation is much worse than anticipated. The survival of the distributor is clearly threatened and Warner-Lambert must consider a new distribution network for the territory.

A minority shareholder in a new operation has been offered a sum of money by the majority shareholder to buy up his shares. The question is whether or not the price offered is fair, in light of the fact that the market for these new golf clubs is highly unpredictable and the production costs are not truly representative of the actual amounts that will be required.

President and CEO of Finning Tractor, has seen the earnings of the company drop below profitable levels because of a deep recession. Several restraint measures were instigated with little apparent impact. The case takes place at the point where a decision is impending on dividend policy with issues ranging from effect on stock price to the fact that the two majority shareholders may be adverse to taking a cut in the over $1.5 million in dividend income they were receiving annually.