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BBC Pvt. Ltd. (BBC), a chemical manufacturing company, was in urgent need of funds in order to secure an important contract. BBC was able to manufacture a product that involved low investment in the form of fixed assets. Although the product was of an inferior quality due to its cost-effective production, the company was able to pass on that cost advantage to its end customers, enabling BBC to maintain its position in the market. In addition, the company sold the product primarily on credit and was therefore a preferable option for buyers. BBC followed a traditional approach to working capital management. Its assets were much greater than its liabilities. The company repaid its creditors promptly before the credit period. However, in terms of credit management, the company followed a casual approach. It extended credit sales for large periods and its large inventory in the form of raw material and finished goods resulted in excessive blockage of working capital. In this case, BBC had the opportunity to pursue a promising contract that would require significant investment immediately. The company's managing director needed to make a decision about how to obtain and manage adequate funds for the upgrade that BBC needed in order to secure its contract.

The case deals with U.S. Financial Service Company (USFSC) and its CEO, John P. Lewis, and their consideration whether or not the company should open operations in India. USFSC would either partner with a local financial service company or invest in a new start-up bank branch or representative office in India. Although Lewis is conducting this analysis in 2012, the case covers the time period from 2005 to 2012 to provide background and to review the economic developments and political policies undertaken by the Indian government to recover from the global financial crisis of 2007-2009. The case requires a performance analysis of the financial ability of USFSC to undertake expansion into India and/or the case also requires an assessment of the economic and political risks of investing in India and how to mitigate those risks

BBC Pvt. Ltd. (BBC), a chemical manufacturing company, was in urgent need of funds in order to secure an important contract. BBC was able to manufacture a product that involved low investment in the form of fixed assets. Although the product was of an inferior quality due to its cost-effective production, the company was able to pass on that cost advantage to its end customers, enabling BBC to maintain its position in the market. In addition, the company sold the product primarily on credit and was therefore a preferable option for buyers.<br><br>BBC followed a traditional approach to working capital management. Its assets were much greater than its liabilities. The company repaid its creditors promptly before the credit period. However, in terms of credit management, the company followed a casual approach. It extended credit sales for large periods and its large inventory in the form of raw material and finished goods resulted in excessive blockage of working capital.<br><br>In this case, BBC had the opportunity to pursue a promising contract that would require significant investment immediately. The company’s managing director needed to make a decision about how to obtain and manage adequate funds for the upgrade that BBC needed in order to secure its contract.

Spreadsheet supplement for case 211072.

In September 2010, Dürr AG issued a corporate bond without the use of underwriters or rating agencies via a new bond issuance platform developed by Boerse Stuttgart. This reflected a growing trend among European corporations to tap capital markets instead of bank debt to secure debt financing.

Spreadsheet Supplement for INS224

Spreadsheet Supplement for INS224

Spreadsheet Supplement for INS224

Spreadsheet Supplement for INS224

The chief financial officer of Acer Incorporated has to decide how to manage the higher level of complexity of the company's exchange risk after their restructuring. This must be done in a way which is consistent with Acer's core principles, one of which is to find simple effective solutions to unavoidable business risks. The case addresses the technical issues of exposure measurement and hedging, the challenge of hedging expected, but not contracted, future foreign currency revenues, and IFRS hedge accounting requirements.

Maria D’souza planned to expand her business by introducing a new product line of frozen foods. She wanted to estimate the attractiveness of the new expansion by estimating net present value (NPV) of the expected cash flows. Her main concern was to find a suitable discount rate to be applied to cash flows to ascertain the NPV of the project.<br><br>D’souza’s consultant friend asked her to analyze cost of capital of similar companies operating in the same industry. The basic principle in this case is that firms in the same industry often have similar customers, operations and assets; therefore they have similar business risks and should have similar costs of capital.

Maria D'souza planned to expand her business by introducing a new product line of frozen foods. She wanted to estimate the attractiveness of the new expansion by estimating net present value (NPV) of the expected cash flows. Her main concern was to find a suitable discount rate to be applied to cash flows to ascertain the NPV of the project. D'souza's consultant friend asked her to analyze cost of capital of similar companies operating in the same industry. The basic principle in this case is that firms in the same industry often have similar customers, operations and assets; therefore they have similar business risks and should have similar costs of capital.

This case is a supplement to Maxim Off Highway Axle Business: An Acquisition Opportunity (A).

It is undeniable that the global financial crisis (GFC) has been a catalyst for regulatory change. Whether these policies and regulatory changes are good or bad, whether they will help or hinder growth, and whether they can effect proper balance between growth and effective risk management, the reality is that significant regulatory changes have been proposed and many have already been adopted and implemented. Business leaders may argue that the proposed policy and regulatory choices are both bad policy and bad economics, but the conclusions reached from the GFC is that the status quo was unworkable, and is certainly now politically unpalatable. Corporate governance reforms have arisen as a result of the global financial crisis. This article examines a slew of trends and changes in the wake of the GFC.

Spreadsheet supplement for case 210020.

On January 6, 2010, Stanko Grmovsek was sentenced to three years and three months in prison for making profits of an estimated US$9 million over 14 years based on insider tips from his best friend from law school, Gil Cornblum. Grmovsek and Cornblum had operated an illegal insider trading scheme from 1994 until 2008. Using his role as a corporate lawyer at various law firms, Cornblum had passed material non-public information related to 46 takeovers to Grmovsek, who then traded illegally using brokerage accounts located in the Bahamas and Ontario. On October 27, 2009, Grmovsek pleaded guilty to all charges against him in both Canada and the United States following a joint investigation by the U.S. Securities and Exchange Commission (SEC) and the Ontario Securities Commission (OSC).

On January 31, 2008, Microsoft CEO Steve Balmer wrote a letter to YAHOO seeking to acquire the company at a 62% premium above that day's closing stock price. Yahoo's board, led by CEO Jerry Yang, unanimously declined this first offer-prompting Microsoft to make several subsequent attempts to close a deal. This case outlines the negotiating process over a three-year period between Microsoft and Yahoo, asking student to analyze whether Microsoft's offering prices were in line with Yahoo's value.

Spreadsheet Supplement for UV0849

Defense is big business, especially for companies like Lockheed Martin. Lockheed Martin, formed in 1995 through the merger of Lockheed Corp. and Martin Marietta, was one of the largest defense contractors in the world, employing about 140,000 worldwide. Lockheed Martin was considering the acquisition of NationScape, Inc., a firm that supports U.S. military readiness, diplomatic and development efforts, and peacekeeping, stabilization and nation building activities in more than 65 countries around the world. The acquisition could increase Lockheed Martin's overseas defense support operations and expand its capabilities to provide diplomatic and development services to complement its existing defense business. The corporation needed to determine an appropriate price for the acquisition and evaluate whether the acquisition would be a good strategic and cultural fit for the corporation as well.