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An investment advisor in an RBC Dominion Securities Inc. branch office, was considering whether or not to implement a price momentum strategy for his clients. Trend and Cycle, Dominion Securities' technical research department, had recently circulated a copy of a study which described a simple price momentum model and referred to its startling results based on back-testing the strategy over a fifteen-year period. The Trend and Cycle group had long promoted the importance of price momentum and relative strength to potential clients. The investment advisor needed to determine whether the proposed model was too good to be true or, if it did look promising, how he would go about implementing such a strategy for his clients.

James and Serena Udderlie were preparing a loan application to the Confederation Bank of Canada. They were requesting a $160,000 term loan, in addition to an operating loan, for the potential opening of a Cow's ice cream and clothing franchise. They needed to develop proforma income statements and balance sheets for the store's first two years of operation. They also wondered what collateral, if any, they would be able to provide the bank to secure against a loan, and what other terms the bank might deem necessary.

The manager of equity derivatives at ScotiaMcLeod is deciding whether to replace a software system that enables investment dealers to trade electronically on Canada's major stock exchanges. The new system allows access to institutional clients, which presents opportunities as well as threats to the traditional role of investment dealers. The case's primary objective is to introduce students to the concepts of financial markets and trading and to show the importance of information technology in the evolution of stock trading.

Scott Hall, vice-president of finance and chief financial officer of Champion Road Machinery Limited, was preparing a presentation on the company's proposed dividend policy for a board of directors' meeting scheduled for the middle of August. It had been only three months since the company completed its initial public offering, at which time the prospectus stated that: The company does not anticipate paying cash dividends on the common shares in the foreseeable future, but intends to retain future earnings for reinvestment in the business. However, earnings were well ahead of those projected in the prospectus and the company had succeeded in managing cash better than anticipated.

The vice-president of operations must submit a valuation and recommendation to expand his plant to handle a doubling of sales over the next three years. Students will have to understand the process review for capital allocation in this large corporation in order to make their recommendation, as well as complete a discounted cash flow.

The objective of this note is to define what is meant by mergers and acquisitions and to understand why they happen. The impact of these deals on shareholders of both the acquiring and acquired companies is investigated, and the reasons why some mergers succeed while others fail are examined. Finally, in order to determine the value of a firm, some valuation frameworks are provided.

Peter Munk, Chairman and Chief Executive Officer of American Barrick Resources Corporation, had to decide whether or not to make a bid for Lac Minerals. Lac Minerals was recently put into play when Royal Oak Mines made an unsolicited bid.

The manager of equity derivatives at ScotiaMcLeod is deciding whether to replace a software system that enables investment dealers to trade electronically on Canada's major stock exchanges. The new system allows access to institutional clients, which presents opportunities as well as threats to the traditional role of investment dealers. The case's primary objective is to introduce students to the concepts of financial markets and trading and to show the importance of information technology in the evolution of stock trading.

The object is to define what is meant by mergers and acquisitions and to understand why they happen. The impact of these deals on shareholders of both the acquiring and acquired companies is investigated, and the reasons why some mergers succeed while other fail are examined. Finally, in order to determine the value of a firm, some valuation frameworks are provided.

Michael Stevens was examining his blue chip stock portfolio and the market outlook for the next six months. He was wondering if he could use some options strategies - buying individual stock puts, writing individual stock calls, writing index calls, or buying index puts - to protect his paper profits and perhaps even improve his return.

Mr. Stuart Foreman, assistant manager of the London, Ontario branch of the Central Canadian Bank, was reviewing information he had received from Maple Leaf Hardware Limited. Mr. Robert Patrick, president and manager of Maple Leaf Hardware Limited had requested an increase in his line of credit with the bank to cover seasonal working capital needs. Mr. Foreman, who had just received a transfer and promotion to the London branch, realized he would have to evaluate the request carefully.

Mr. Stuart Foreman, assistant manager of the London, Ontario branch of the Central Canadian Bank, was reviewing information he had received from Maple Leaf Hardware Limited. Mr. Robert Patrick, president and manager of Maple Leaf Hardware Limited had requested an increase in his line of credit with the bank to cover seasonal working capital needs. Mr. Foreman, who had just received a transfer and promotion to the London branch, realized he would have to evaluate the request carefully.