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Spreadsheet supplement for case W21270.

This case describes the aggressive growth of Luckin Coffee since its inception in 2017. In merely two years, Luckin established a coffee network in China, surpassing Starbucks despite the US giant's 20 years of experience in the country. The case concludes with Luckin's announcement of accounting fraud in April 2020, followed by the immediate stock market and investor reaction. The case's epilogue also enables students to consider the spillover implications of accounting scandals for other stakeholders. This case exposes students to several business-related, accounting, and finance issues that lay the foundation for further examination in specific accounting and finance topics.

FinVolution Group, previously known as PPDAI (PaiPaiDai), was the first P2P (peer-to-peer) lending company in China. With more than a decade's experience in the online consumer financial industry, the group has developed its core capabilities and a business model that is working well in China. It has gained extensive knowledge and experience in credit risk assessment, fraud detection, big data and artificial intelligence. Its online platform links underserved individual borrowers with financial institutions. By showing how FinVolution has developed its competitive advantages and built a successful online lending business model in China, this case provides an opportunity for students to discuss what factors have led to the success of a fintech company. It raises the question of whether a successful fintech business model developed in one country can be ported to another country. It also highlights the regulatory change challenges facing fintech companies, especially P2P lending companies.

The case is about Krishna, who has just started his professional career and is wondering what strategy to follow to maximize his after-tax wealth. He did not have any experience in managing his finances and wanted to plan for his taxes and increase his after-tax wealth. The case includes Krishna's income statement, balance sheet, profile, goals, assumptions, and tax rules. The tax rates are standard in structure but differ in important ways such as age and income and thus require careful analysis and scenario analysis of the proposed calculations.

This case examines the 2018 decision by the Shanghai International Energy Exchange (INE) to introduce a futures contract on a type of crude oil widely used in Asia, in the hope that it would not only facilitate price discovery but also become an Asian benchmark for crude oil prices and encourage the use of the renminbi or Chinese yuan in international commerce. Accordingly, the futures contract was denominated in renminbi; specified market participants could make or take delivery of crude oil in various ports in mainland China; and the INE crude oil futures market was open to foreign traders from the outset. The almost-immediate success of the INE crude oil futures contract was the first significant challenge to the dominance of Brent North Sea Crude and West Texas Intermediate crude oil futures contracts as benchmarks. Yet, five years later, the Shanghai crude oil futures contract price was still not the benchmark price for crude oil in Asia. What might be done to help achieve that objective? This case provides a vehicle for discussing spot and derivative energy markets, benchmarks, and government policy objectives. It also highlights the role of market microstructure in creating successful financial innovations. The case is designed for use at McIntire in an upper-level undergraduate course, "Financial Trading." It would also be suitable in an introductory finance course or a specialized financial markets and institutions course.

The Clínica Ricardo Palma is looking for a strategic partner. It has contracted the services of a financial advisor (Apoyo Consultoría) to help with the process. The consultancy firm undertook a valuation of the Clínica Ricardo Palma in July 2013 as part of their responsibilities in the sales mandate process. One month later, in August 2013, when the sale was made public, the Nexus Group investment fund (financial branch of Intercorp)[1] made a USD 70 million offer for 100% of the company's shares. This was the first offer the clinic received. During the same month, a minority group of shareholders in the clinic met to analyze the offer. One faction of this group, led by Dr. Jacobo Blufstein, was not in agreement with the offer or the valuation of the clinic carried out by the financial advisor. However, a second faction, led by Dr. Elio Quirós, was. The economic issue had become this group's main worry as they provided services to the clinic as well as being partners. Therefore, they decided to postpone the analysis of including this type of strategic partner for the second session and spend the first meeting concentrating on the valuation of the clinic. They needed to know how much they could ask for the shares before looking for a partner.

After a period of poor stock-market performance, conglomerate Chestnut Foods (Chestnut) faces the acquisition of its stock by an activist investor. The new investor demands the sale of Chestnut's high-growth division, which contrasts with the CFO's turnaround plan to expand this same division. To disentangle the way forward for Chestnut, students are invited to grapple with the risk-adjusted performance of each division and the estimation of division-specific hurdle rates. Students learn to appreciate the importance of using risk-adjusted hurdle rates in establishing appropriate investment policy. This B case is typically taught after having discussed the A case (UVA-F-1736), but this is not necessary. At the Darden School of Business, they are taught in separate years, as independent cases, and the A case has a separate teaching note (UVA-F-1736TN). The B case is set one month after the A case and focuses on the performance of product groups within Chestnut's poorly performing Instruments division. The case is designed as an opportunity to hone skills in performance evaluation.

Spreadsheet supplement for Case UV8249

On May 12, 2020, Vedanta Resources Limited, representing the London, United Kingdom company Vedanta Group, expressed its intention to buy all public shares of its Indian subsidiary Vedanta Limited and to delist it from all stock exchanges in India and New York. The chair of Vedanta Group explained that the decision to delist was largely driven by a strategy to simplify the group structure. The indicative offer price of ₹87.5 per equity share represented a premium of 9.9 per cent over the closing market price of ₹79.6 on the previous day. However, there was some doubt that minority shareholders would find the offer attractive. The final exit price, which would be determined through the reverse book-building process, was likely to increase. Exactly what amount Vedanta Resources Limited was willing to pay was a key factor in the quest for a successful delisting. Two other important considerations were the additional amount of borrowing required and future debt servicing constraints.

As we begin to emerge from the COVID-19 pandemic, leading global economist argues that seven 'new normal' ideas merit the attention of investors everywhere. They include a growing appetite for alternative investments, including cryptocurrencies; a higher profile for central bank digital currencies; and a demand for redistributive policies. While the bulk of investor focus in 2021 will be on a return to our previous way of life, she argues that it is even more important to probe beneath the surface-and that, in many ways, things will look very different than they did before COVID-19.

Exercise for Revlon: Surviving Covid-19 (221084).

The case focuses on bribery and corruption in wholesale international capital markets with an emphasis on infrastructure finance - notably the theft of $4.5 billion in proceeds from bond issues by the 1 Malasia Development Berhad (IMDB) totalling $6.5 billion. The scandal ensnared the Malaysian Prime Minister, an Abu Dhabi Sovereign Wealth Fund, major institutional investors and the Goldman Sachs Group in one of the largest financial frauds in recent history. The scope of the case spans a host of issues from public finance to due diligence, corporate culture, executive conduct and reputational risk.

applications sanctioned on the same collateral, fake collateral pledged against loan applications, fake receipts circulated in trade deals, etc. These security issues were present globally and were a major source of concern for banks and other players who bore the risk in such transactions. Besides, the transaction processes were manual and characteristically time-consuming, less efficient, non-communicative and non-transparent. In the above context, technological innovations had the potential to create a paradigm shift in the operations of financial markets, with reduced risks and transaction costs. Whrrl's concept was simple - a block-chain platform that solved the problem of security and inefficiency in the asset-backed lending process, particularly in the Warehouse Receipt Financing segment. Whrrl was designed as a combination of two main components: the block-chain platform at the back-end that connected warehouses and banks; and the mobile app for farmers and traders that connected them with warehouses and banks. On June 5, 2020, the Indian government announced a number of regulatory changes to ease farmers' woes. With such major changes taking place in the ecosystem, Ashish Anand and his team at Whrrl were left wondering about their next steps. Anand had never intended Whrrl to be limited by geographical or sector-based boundaries; instead, his vision of Whrrl was to be the solution of choice for any asset-backed lending across the globe; in particular South East Asia, for commodities such as agricultural cash crops, metals and crude oil and Africa for agricultural commodities. The key challenge in India was slower market development compared with its South East Asian peers. Further, Indian agricultural warehouse financing yielded lower margins (net interest margins) compared to other types of financing such as agricultural equipment, unsecured MSME loans and other types of supply chain finance.

If you can understand football scoring or read a recipe, you can understand an income statement, with the help of this note. It is important to understand an income statement because it tells investors or any stakeholder of a company whether or not the company is making money. An income statement also gives information to company managers to make better forecasts and decisions.

This case explores the major considerations involved when choosing the most suitable listing market. In August 2020, Shanghai Lujiazui International Financial Asset Exchange Co Ltd, better known as Lufax, filed a confidential application to the US Securities and Exchange Commission for initial public offering in August 2020. The news stirred up heated discussions in the market, as Lufax was obviously of Chinese background. US-Sino relations had been experiencing more and more tensions. Even the US securities regulations had turned against US-listed Chinese firms. Amid this backdrop, is the US market the right choice for Lufax to go for an IPO? The market wonders if Lufax made a wise choice on the listing venue. The case seeks to highlight the considerations of Lufax in deciding on a jurisdiction to be listed in. Every venue has its own listing requirements and should fit differently for firms with different intentions and characteristics. Through the case, students will grapple with the step-by-step practical questions concerning the comprehensive list of considerations for choosing the suitable listing market and conduct an analysis of the suitability of the US market as Lufax' listing choice, compared to the market in Hong Kong and mainland China.

Student spreadsheet to case W21256

On February 20, 2020, the executive vice-president and chief financial officer of Input Capital Corporation, the first agricultural commodity streaming company in Canada, was reviewing a capital stream contract that one of his associates had prepared for Sustainable Farms Inc. and submitted for his approval. One important consideration was the rate of return expected from the contract and the risks involved. The executive called a co-op student to his office and assigned her the task of calculating the internal rate of return, or effective yield, on this capital stream contract. He also hinted at an alternative way to assess the profitability of the contract, which was to estimate the contract's mark-to-market value.

In April of 2020, an Ivey Business School HBA graduate, and chief executive officer of automobile parts manufacturer MJD Manufacturing (MJD), recognized the potential opportunity to invest in new machinery and retool some of MJD’s operations to produce COVID-19-related supplies. Specifically, she was considering whether or not MJD should produce personal protective equipment. Aside from analyzing the financial viability of the potential investments, she had to consider three factors: First, how long the COVID-19 pandemic might last, as the timeline of the pandemic underpinned the potential investment decision; second, how an investment would be financed; and third, the qualitative aspect of the decision. Specifically, she had to consider how she could help her community at a time when many businesses were shrinking and furloughing employees.

In early 2021, BlackRock-the world's largest asset manager with $9 trillion in assets under management (AUM)-sought to become a leader in promoting environmental and social sustainability. Over the previous ten years, CEO Larry Fink had written an annual open letter to CEOs, pushing them to view sustainability and climate change planning key components of any long-term strategy. He had built an investment stewardship committee to attend portfolio company shareholder meetings and implement these goals. He had also recruited a team of prominent impact investors to BlackRock to lead a new impact investing fund. Now, as the new fund came of age, both the fund's managers and BlackRock's senior leadership faced difficult choices. At the fund level, they needed to define how to implement their two main selection criteria-intentionality and additionality-in choosing the fund's next stocks. At the company level, BlackRock's leaders wrestled with the question of just how much impact BlackRock could have on the companies it invested in, when well above half of BlackRock's AUM were invested passively.