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Excel spreadsheet for 9B09N023.

The chief financial officer (CFO) of TELUS Corporation (Telus) has just been informed that Moody's, a bond rating service, has downgraded the firm's credit rating to one notch below investment grade. The CFO's challenge is to determine what specific actions, if any, to recommend to the firm's audit committee. First, this case facilitates a discussion on how changes in capital structure impact a firm's earnings, stock price and flexibility to carry out plan. Second, students learn about how bond ratings are set and how a firm's bond rating affects its bond yield. Last, by focusing on the situation faced by Telus during challenging market conditions in 2002, students learn how to manage relationships with investors while in the midst of change.

Spreadsheet for product 9B11N012.

Spreadsheet for product 9B10N028.

The managing director at a major investment bank is preparing his team for a visit to Lululemon Athletica, a yoga-inspired athletic apparel company. The investment bank has been following Lululemon’s development over the past few years and is impressed by the company’s unique positioning and rapid growth. The bank believes that there is a window of opportunity for Lululemon’s founder and private equity investors to either undertake an initial public offering or raise debt to fund Lululemon’s U.S. expansion.

The managing director at a major investment bank is preparing his team for a visit to Lululemon Athletica. The investment bank has been following Lululemon's development over the past few years and has dealt with the company. It believes that there is a window of opportunity for Lululemon's founder and private equity investors to either undertake an IPO or raise debt to fund Lululemon's U.S. expansion.

Spreadsheet for product 9A89B007.

Spreadsheet for product 9B00N016.

The chief financial officer of Granite Apparel is trying to determine which of the three fundraising options is optimal for Granite Apparel to finance a projected rapid growth strategy. The three options are an initial public offering of equity, a privately placed debt issue and a private placement of preferred shares.

Spreadsheet for product 9B05N019.

Spreadsheet for product 9B06N020.

Spreadsheet for product 9B07N001.

Spreadsheet for product 9B06N006.

Spreadsheet for product 9B07N002.

The chief financial officer of Granite Apparel is trying to determine which of the three fundraising options is optimal for Granite Apparel to finance a projected rapid growth strategy. The three options are an initial public offering of equity, a privately placed debt issue and a private placement of preferred shares.

In August 2009, a portfolio manager for Resolute Funds Inc. is considering adding to his fund's holdings, WestJet Airlines, a fast-growing airline based in Calgary, Alberta. WestJet has grown rapidly from a startup to become the second largest airline in Canada. Despite its recent successes, due to the economic crisis, its share price has halved from its high in December 2007. The portfolio manager is trying to determine whether WestJet's shares are attractive. To support his analysis, the portfolio manager has asked his team to assemble comparative financial data on WestJet and its key competitors. The portfolio manager wants to know if he should buy, hold or sell WestJet's shares.

In August 2009, a portfolio manager for Resolute Funds Inc. is considering adding WestJet Airlines to his fund’s holdings. WestJet, a fast-growing airline based in Calgary, Alberta, has grown rapidly from a start-up to the second-largest airline in Canada. Despite its recent successes, its share price has halved from its high in December 2007, due to the economic crisis. The portfolio manager is trying to determine whether WestJet’s shares are attractive. To support his analysis, he has asked his team to assemble comparative financial data on WestJet and its key competitors. The portfolio manager wants to know if he should buy, hold, or sell WestJet’s shares.

The president of Vancouver-based CFM Attachments Ltd. (CFM) is putting together a management buyout of his company. The president, who has had experience creating and selling a company in a related industry, is trying to determine how to value a potential purchase of CFM from the company's founder. As CFM is a privately-owned company, the president is trying to place a value on the company based on historical financials, a group of comparative firms, and a profit and cash flow forecast by the management team.

At the start of August 2008, Dell Inc. (Dell) seems to be at a critical juncture. Michael Dell's return a year and a half ago has brought significant change to the company, including a focus on growing market segments, a shift in the company's distribution strategy, and an emphasis on design in Dell's product lineup. Despite these changes, Dell's stock price has lost value since Michael's return. A portfolio manager is trying to assess if Michael Dell's return to the helm of Dell Inc. and the company's shift in distribution strategy will turn around the company's stock price. To support his analysis, the portfolio manager has asked his team to assemble comparative financial data on Dell and its key competitors. The portfolio manager wants to know if he should buy, hold or sell Dell's shares. There are three teaching objectives for this case: assess financial performance using financial statements and financial ratios; identify cash flow and profit drivers; and identify the determinants of value and stock price.

The vice-president (VP) and treasurer of TELUS has been asked by the chief financial officer for his opinion on the company's dividend policy and how many recommendations would be conveyed to investors. In developing his response, the VP needs to consider TELUS's future prospects, its leverage policy, the state of the telecommunications industry, and investor expectations. This case facilitates a discussion on dividend policy. Conventional wisdom on dividend policy can be reviewed and then interpreted in the context of the particular circumstances facing TELUS. The case can also facilitate a short discussion on the costs and benefits of share repurchase.