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Spreadsheet supplement for case 209065.

New Earth Mining is one of the largest producers of precious metals in the U.S. While the firm operates mines primarily in the U.S. and Canada, it has also made substantial investments in gold exploration projects in Australia and Chile. New Earth has been very successful and has a large amount of cash on the balance sheet, a simple debt structure, and a reasonable leverage ratio with liquidity risk. With a strong financial position, the firm considers reducing its dependence on precious metals by diversifying into base metals and other minerals. An investment opportunity for mining iron ore in South Africa looks promising but still carries substantial risk. A high risk of civil war in neighboring countries along with strong fears that the South African government will nationalize mining operations combine to create an unstable political environment. The tentative financing package is complex and creates challenges for determining a value for the project. Students must complete a quantitative analysis of 4 proposals with different valuation methods before making a final recommendation.

Spreadsheet Supplement to Product #913548.

Moe Miller, the new managing director of M&M Pizza, is considering changing the company's capital structure to reduce the cost of capital. With the cost of debt at 4% and the cost of equity at 8%, adding a cheaper cost of funds through debt appears to be obvious. The case provides a simple framework for understanding the powerful intuition behind the foundational capital structure irrelevance propositions of Modigliani and Miller (1958). The case is written as an introductory experience in financial policy. Students are required to generate simple estimates of the cost of capital and estimate the value of debt and equity claims under various recapitalization scenarios. As the business is very simple and operates in a quasi-perfect market, the calculations require only that students are comfortable with the estimation of firm cost of capital.

Spreadsheet Supplement for UV6629

The founder of ServiceForce, a company that provides repair and maintenance for motorized two-wheel vehicles in India, has a dilemma about whether he should sell the rights of his franchisee business, join hands with a venture capitalist, borrow money for capacity building or see the business grow through franchising. The start-up was initiated with his own money and family investment. A mere 18 months has shown great success with two service stations, a mobile workshop to service rural and industrial clients and a system of card packages that allow customers to pre-pay for a range of services. The company is a recognized brand for customer satisfaction and quality workmanship, and the employees are happy and contribute to the company well-being by participating in customer promotion schemes. However, competition from both vehicle manufacturers’ service stations and unorganized garages is growing in tandem with the skyrocketing sales of two-wheel vehicles, especially to the younger demographic. In order to grow, the company is at a crossroads: should it borrow money to ramp up the growth of the business through new capacity building or invest in more franchises? Should the owner accept the offer to buy the franchise rights from him outright or the offer from a venture capitalist, which will result in losing some control?

This note provides an overview of the Indian mutual fund industry and compares it with other financial markets globally. Also considered are the evolution of the mutual fund industry in India and the place of mutual funds in an Indian household's typical investment portfolio. The note covers various other aspects of India's mutual fund industry, such as the size of the industry, its main products, the major players, recent changes to mutual fund regulations and taxation.

Supplement for case 213102

Randall Fojtasek, a partner at Dallas-based Brazos Private Equity Partners, must decide whether now is the time to sell his firm's investment in Tri-Northern Distribution. Brazos, a middle-market leveraged buyout group, created the company two years earlier through the acquisition of two electronic security distribution companies: Tri-Ed Distribution and Northern Video Systems. Twenty-four months after successfully integrating the two companies, Brazos has received two attractive offers for the combined distributor. With the company's management projecting double-digit growth for 2012, however, it is far from clear that now is the optimal time to exit from the firm's third fund.

Spreadsheet supplement to 213100.

Nate Katz at Yokun Ridge Capital Management is evaluating an investment in Assured Guaranty, a municipal bond insurance company that is trading at a discount to book value.

The Carlyle Group IPO case explores the circumstances leading up to the firm's IPO in May 2012. Over the past 25 years, Carlyle had grown from a fledgling private equity firm to one of the world's largest and most diversified investment firms. Carlyle had prepared extensively for the roadshow; management anticipated some tough questions. Students are asked to evaluate the extent to which Carlyle is undervalued relative to its peers. The case provides information on how to evaluate the earnings received by the public shareholders and outlines several alternative approaches to value PPEs.

Spreadsheet Supplement for UV6618

Spreadsheet supplement for case 212038.

Spreadsheet supplement for case 211031.

Spreadsheet supplement to case 212068.

Spreadsheet supplement for case 211025.

Privately held city development promoters decide whether to partner on next phase or go it alone in 20 year, 4000 acre project. Set outside of Ho Chi Minh City, Vietnam, this decades long project led by two Taiwanese families reshaped and built the economic environment of Vietnam's financial capital. The promoters had a long term vision and left very substantial capital invested for a very long time. This allowed them to follow a master plan that was resource efficient, economically attractive, and environmentally friendly (largely due to major up front investments in power and water infrastructure). This project was promoted by industrialists with a system view and patient capital, as compared to governments with limited execution capability or real estate investors with limited capital and a shorter time horizon. The dilemma in the case is about whether or not to partner with an outside retail real estate firm in order to reduce execution and lease-up risk in a proposed new shopping mall; or whether to go it alone with the promoters's own capital doing it the promoter's own way. This expands into a discussion of the same historic choices in the project, and whether the promoters realized a below market return for their methodology. The project is quite successful and transformational today, so the opposite question can also be drawn out: is this the preferred means for promoting multiple new sustainable and competitive cities around the world, with long view private promoters in lieu of government alone and in lieu of real estate developers alone?

Tony Lee is preparing to present a project to the invesment committee of Howard Street Capital. He will be recommending an investment in Project Sun Devil, a high-quality 225-unit student housing rental property near Tempe, Arizona. Tony Lee will compete for capital against the other project on the investment committee's agenda, Project Paris. Project Paris, a very different type of real estate transaction, is a hybrid mezzanine investment in the acquisition of a residential real estate services firm headquartered in France. The case provides overview of the two projects.

At the end of 2001, the senior partners of an investment management firm were concerned. The bear market was going on two years, and, worse, the firm’s performance over that time had been less than that of the index. Clients, more than disappointed, were starting to vote with their feet. The firm, a top-10 player in Canada’s institutional investment business, had claimed client assets under management of more than $15 billion in 1998, but was now under serious threat. Without some change in the fortunes of the business, a continued loss of revenue would endanger its viability.<br><br>In the previous few years, the two senior partners had been working behind the scenes on an idea that they thought could return the business to success. The hitch was that the idea involved a radical transformation of the firm. While the senior partners had seen some success with the small steps they had taken with this new business model, they needed to ask their partners to commit to a still largely unproven strategy — a business model that not only had no known comparable model but that also ran contrary to contemporary views of how an asset management firm should be structured. Would their partners commit to the unproven plan?