Ivey Business School (Canada)
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The $85.4 Billion Merger of AT&T and Time Warner: Valuation Analysis
Xiaokang Zhao; Zhichuan (Frank) LiCase IVEY-9B19N022-EFinanceOn October 22, 2016, U.S. telecom operator AT&T Inc. and television media giant Time Warner Group announced that AT&T Inc. would acquire Time Warner Group for $107.50 per share, using half cash and half stock, to a total equity value of $85.4 billion. Although the chief executive officers from both companies were very confident about the future prospects for their shareholders once the transaction was approved and completed, there was much contro...Starting at €8.20
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Identifying Industries through Financial Statement Analysis: Pakistan 2017
Imran Yousaf; Zhichuan (Frank) Li; Aaqib NawazCase IVEY-9B21B012-EAccounting and Control, FinanceThis exercise provides the financial data of eight major companies operating in Pakistan in 2019 and listed on the Pakistan Stock Exchange. It also provides a list of eight of the country’s main industries. Identify which company operated within which industry to test your understanding of how a company’s financial data can be specific to a particular industry. Using only financial figures, can you identify within which industry each company oper...Starting at €8.20
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Identifying Industries: Financial Statement Analysis and Financial Ratio Analysis
Zhichuan (Frank) Li; Imran Yousaf; Aaqib NawazCase IVEY-W25421-EAccounting and Control, FinanceStudents were provided with the financial data for 10 major companies listed on the New York Stock Exchange in 2019. They were also given a list of 10 major industries. As an exercise, students were then asked to identify which company operated within which industry. The exercise would test the students' understanding of how a company’s financial data can be specific to a particular industry. Using only financial figures, could the student identi...Starting at €8.20
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Ford Motor Company: Basic Financial Ratios
Zhichuan (Frank) Li; Xiaojun Zhu; Daniela Zapata; Tabish MunirCase IVEY-9B18N027-EFinanceIn January 2018, an investment portfolio manager learned of a safety recall for Ford Motor Company (Ford) involving faulty airbags that failed to deploy upon collision. An investigation by U.S. regulators found that the company had been aware of these faulty airbags but had not taken proactive measures to mitigate the potential damage. As a result, in just one day, the share price for Ford dropped from $13.10 to $12.18 per share. The portfolio ma...Starting at €8.20
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Tesla: The Solarcity Acquisition
Zhichuan (Frank) Li; Tomiwa AdemidunCase IVEY-9B17N011-EFinanceIn mid-2016, the chief executive officer of Tesla, a U.S. manufacturer of electric cars, was interested in acquiring SolarCity, a U.S. solar power manufacturer and distributor. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Both companies had similar products and could be a strong strategic fit. The chief executive officer needed to co...Starting at €8.20
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Imaam Spinning Mills: Cost of Capital of a Private Company
Aaqib Nawaz; Imran Yousaf; Zhichuan (Frank) LiCase IVEY-W34046-EAccounting and Control, FinanceOn January 2, 2018, the chief executive officer of a private company in Karachi, Pakistan, Imaam Spinning Mills (Imaam), was planning to expand the company’s product line and enter the weaving business by setting up a new weaving plant. He asked his chief financial officer to conduct a financial evaluation financial evaluation of the project. To do so, she needed to calculate the weighted average cost of capital, using the comparative method to c...Starting at €8.20
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FinSAS Financial Research: Financial Data and SAS Programming
Zhichuan (Frank) LiCase IVEY-9B16N005-EFinanceIn early January 2016, FinSAS Financial Research Inc. needed to recruit more programmers because of its rapid growth. However, the average annual salary for financial programmers had been increasing significantly. The financial research company decided that it needed advice from a “programming strategist” from the software engineering industry. The company contacted such a strategist to build a reusable module for use by all company programmers, ...Starting at €8.20
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5 Fortune: One of Many Chinese Restaurants
Zhichuan (Frank) LiCase IVEY-9B16N002-EEntrepreneurship, FinanceIn 2014, a newcomer to Canada has the opportunity to start a Chinese restaurant in a small Canadian city. The entrepreneur needs to decide whether to invest in the project, and if so, how to finance it: using debt or equity financing. She has to evaluate the impact of the financing options on the viability of the business, her investment returns, and the financial and business risks. The case provides an opportunity for a comprehensive FRICTO ana...Starting at €8.20
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Liz Motor Corp: Capital Budgeting for an ESG Project
Zhichuan (Frank) Li; Bob CahillCase IVEY-W32397-EAccounting and Control, FinanceAnnie Anthony, the chief financial officer of Liz Motor Corp. (Liz), was attempting to use capital budgeting to evaluate an environmental, social, and governance (ESG) project using all the available quantitative and qualitative information. Anthony had planned an ESG project, which would help the company adopt solid-state battery technology for most Liz electric vehicles and reduce the carbon footprint of electric vehicle batteries by 39 per cen...Starting at €8.20
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Herbo Drugs & Pharmaceuticals: Cost of Capital and Capital Budgeting
Wajahat Azmi; Zhichuan (Frank) Li; Kowsalya V.; Omair HaroonCase IVEY-W34060-EAccounting and Control, FinanceFaraaz Usmani, heir to the family-owned Herbo Drugs & Pharmaceuticals, a small private Unani pharmaceutical company in Prayagraj, India, planned to expand the company’s business to other states to cover most parts of India. Before implementing this ambitious plan, Faraaz needed to conduct a feasibility study by applying some popular capital budgeting tools such as net present value, internal rate of return, and profitability index. He first proje...Starting at €8.20