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Case study
Publication date: 20 January 2017

Marc L. Lipson and Richard B. Evans

The owner of a small financial services firm is evaluating the performance of four funds to determine whether to offer them to his clients. The funds span a variety of…

Abstract

The owner of a small financial services firm is evaluating the performance of four funds to determine whether to offer them to his clients. The funds span a variety of objectives and include a recently initiated fund. The case explores issues related to the evaluation of mutual fund performance, including the selection of benchmarks and the effect of fees. The case provides a natural and compelling context in which to discuss market efficiency.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

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Case study
Publication date: 20 January 2017

Marc L. Lipson

While preparing a financial forecast, the newly promoted CFO of a small and profitable but financially constrained ready-mix concrete company must choose between…

Abstract

While preparing a financial forecast, the newly promoted CFO of a small and profitable but financially constrained ready-mix concrete company must choose between renegotiating debt obligations, postponing long overdue capital improvements that will prevent more costly future repairs, or reducing the dividend payment to a parent company that just recently purchased the firm.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

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Case study
Publication date: 20 January 2017

Marc L. Lipson

A small adhesives company faces exchange rate risks as it makes its first foray into international sales. The receipt of payment from an unhedged…

Abstract

A small adhesives company faces exchange rate risks as it makes its first foray into international sales. The receipt of payment from an unhedged foreign-currency-denominated past sale illustrates potential currency risks while a potential follow-on order provides a context to discuss potential hedges. Sufficient detailed information is provided for the students to construct and analyze both a forward and money market hedge. A teaching note and instructor and student Excel spreadsheets are available.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

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Case study
Publication date: 20 January 2017

Marc L. Lipson

After having negotiated major financial and operating decisions with its parent company, the CFO of this small ready-mix concrete subsidiary is asked to provide a…

Abstract

After having negotiated major financial and operating decisions with its parent company, the CFO of this small ready-mix concrete subsidiary is asked to provide a valuation of the subsidiary. A one-year forecast of financial statements is provided along with information on long-term operating expectations and capital costs. This otherwise straightforward valuation exercise is enhanced by (1) the need to select between the parent- or comparable-firm costs of capital, (2) sufficient guidance to perform an illuminating sensitivity analysis, and (3) a sufficiently clear and rich context in which to illustrate the linkages between operating and financing choices. A teaching note and instructor and student Excel spreadsheets are available.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

To view the access options for this content please click here
Case study
Publication date: 20 January 2017

Marc L. Lipson

A privately held U.S. plumbing parts manufacturer is negotiating the purchase of a Brazilian plumbing manufacturer specializing in water conservation. The case provides…

Abstract

A privately held U.S. plumbing parts manufacturer is negotiating the purchase of a Brazilian plumbing manufacturer specializing in water conservation. The case provides sufficient information to value this cross-border acquisition and includes a brief summary of valuation techniques in this context. A particularly rich discussion arises from two points: A forecast of exchange rates from a forecasting company differs from forecasts based on inflation, and two methods are suggested for dealing with country risk (sovereign spread and scenario analysis). A teaching note and instructor and student spreadsheets are available to accompany this case.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

To view the access options for this content please click here
Case study
Publication date: 20 January 2017

Marc L. Lipson and Irene Mastelli

A growing folding carton company is contemplating the replacement of an old machine with a new one. The case challenge is to develop a cash flow forecast and determine the…

Abstract

A growing folding carton company is contemplating the replacement of an old machine with a new one. The case challenge is to develop a cash flow forecast and determine the proper discount rate for the machine replacement. In addition to increased capacity and reduced waste, the new machine offers strategic advantages to the firm in its chosen market niche. Issues related to operations are central to appreciating the importance and implications of this capital investment: Operating excellence is a key competitive advantage for this firm. A teaching note and student and instructor Excel spreadsheets are available to accompany the case for instructors.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

To view the access options for this content please click here
Case study
Publication date: 20 January 2017

Marc L. Lipson and Rick Green

Monsanto is facing an uncertain near-term financial outlook, and this case challenges students to generate an operating forecast (income statement and balance sheet…

Abstract

Monsanto is facing an uncertain near-term financial outlook, and this case challenges students to generate an operating forecast (income statement and balance sheet operating accounts). The case naturally lends itself to sensitivity analysis related to sales growth assumptions. Suitable for MBA and undergraduate learners, it covers the basics of forecasting without introducing the complexities associated with financing. A teaching note is available.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

To view the access options for this content please click here
Case study
Publication date: 20 January 2017

Samuel E. Bodily, Marc L. Lipson and Kenneth C. Lichtendahl

A small start-up company must make additional investments to maximize its firm value. But the company owner will not make this investment unless she can renegotiate…

Abstract

A small start-up company must make additional investments to maximize its firm value. But the company owner will not make this investment unless she can renegotiate outstanding debt claims. Solving this “debt overhang” problem through negotiation is the focus of the case. In this context, students are exposed to a variety of issues: the nature of financial claims, bargaining and negotiation fundamentals, and agency costs of debt.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

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Case study
Publication date: 20 January 2017

Robert F. Bruner, Marc L. Lipson and Sean Carr

In early 2006, the anticipated expansion of package delivery services in China provided a great opportunity for the two package delivery giants FedEx and UPS. It was…

Abstract

In early 2006, the anticipated expansion of package delivery services in China provided a great opportunity for the two package delivery giants FedEx and UPS. It was unclear which of these firms would make the most of this opportunity. An analysis of financial performance suggests that UPS is the better performer. On the other hand, the FedEx stock price performance has been far stronger. This apparent conflict highlights the fact that stock prices reflect anticipated future performance and new information. A teaching note and instructor and student spreadsheets are available.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

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Article
Publication date: 10 April 2007

Marc Schober and Manfred Kasper

This paper aims to show that simple geometry‐based hp‐algorithms using an explicit a posteriori error estimator are efficient in wave propagation computation of complex…

Abstract

Purpose

This paper aims to show that simple geometry‐based hp‐algorithms using an explicit a posteriori error estimator are efficient in wave propagation computation of complex structures containing geometric singularities.

Design/methodology/approach

Four different hp‐algorithms are compared with common h‐ and p‐adaptation in electrostatic and time‐harmonic problems regarding efficiency in number of degrees of freedom and runtime. An explicit a posteriori error estimator in energy norm is used for adaptive algorithms.

Findings

Residual‐based error estimation is sufficient to control the adaptation process. A geometry‐based hp‐algorithm produces the smallest number of degrees of freedom and results in shortest runtime. Predicted error algorithms may choose inappropriate kind of refinement method depending on p‐enrichment threshold value. Achieving exponential error convergence is sensitive to the element‐wise decision on h‐refinement or p‐enrichment.

Research limitations/implications

Initial mesh size must be sufficiently small to confine influence of phase lag error.

Practical implications

Information on implementation of hp‐algorithm and use of explicit error estimator in electromagnetic wave propagation is provided.

Originality/value

The paper is a resource for developing efficient finite element software for high‐frequency electromagnetic field computation providing guaranteed error bound.

Details

COMPEL - The international journal for computation and mathematics in electrical and electronic engineering, vol. 26 no. 2
Type: Research Article
ISSN: 0332-1649

Keywords

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