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Brief Description of Cases

The following table provides a brief description of all the cases.
Case Name

Topic

Lisa Mathew’s Investment Opportunities
Valuation Problem Set (A)
Reliance Capital
Cost of Capital for Utilities in India
Financial Statements and
Industry Structure, 2007
The Use of Cash Flow Statements
Financial Performance of Major Steel Firms
Value Based Management at Marico Ltd.
Valuation Problem Set (B)
Indian Premier League
Option Pricing Problem Set
Tata Steel: The Bid for Corus
Working Capital Management
at Excel Crop Care Ltd.
Trent Ltd. Rights Issue of
Convertibles and Warrants
Financial Instruments Problem Set
BGR Energy Systems’ Initial
Public Offering
Shree Cement Ltd.

Time value of money, capital budgeting
Risk and return
Risk and return
Estimation of cost of capital
Financial statement analysis

Fujairah Bank

Financial statement analysis
Financial statement analysis
Role of CFO, value, economic profit
Financial forecasting, discounted cash flow valuation
Capital budgeting, discounted cash flow valuation
Options, derivatives, real options
Mergers and acquisitions, valuation
Working capital, short-term financial management
Capital structure, financing, convertibles and
warrants
Financing, financial innovation, financial engineering
Financing, IPOs
Bank loans, short-term financial planning and
management
Bank loans, short-term financial planning and
management, financial forecasting

The objective is to introduce risk and return of investments in stocks and mutual funds. alpha. beta. 2007 The case demonstrates how financial statements reflect industry characteristics. The objective is to introduce time value of money and discounted cash flow analysis. She is required to take a decision on the basis of NPV and DCF analysis. . C5: Financial Statements and Industry Structure. The objective is to introduce the risk and return of investments in stocks. The objective is to introduce issues in the estimation of cost of capital. Students are asked to predict the firm and its industry group using disguised financial statements. She also has to determine the size of the investment.Case Descriptions MODULE 1: BUILDING BLOCKS C1: Lisa Mathew’s Investment Opportunities An individual is appraising a hotel project. standard deviations. The objective is to introduce the use of ratios in predicting firm characteristics. C3: Reliance Capital The case introduces risk and return of investing in stocks in the context of a mutual fund. R2 and standard error for stocks using different return intervals and market proxies as well as construction of two stock portfolios. C4: Cost of Capital for Utilities in India The case presents the cost of capital estimation procedure for utilities in India. C2: Valuation Problem Set (A) The problem set covers estimation of returns.

Case Descriptions xvii C6: The Use of Cash Flow Statements The case presents the cash flow statements of three companies drawn from India and the U. The case asks how attractive the plan is to all the parties involved and requires students to assess the risk and reward of the plan. The learning objective is to help students gain familiarity with performing discounted cash flow analysis. The measures include economic profit (also known as Economic Value Added) and other classic measures. P/B (3) Valuation of a public company’s stock. The case presents measures of financial performance and health for Marico. project finance transaction. . The objective is to introduce analysis of cash flow statements. Students are required to assess the financial performance of these firms. and (4) Evaluation of a proposed high-leverage. the nature of business and the financial condition of the company. and show how to interpret the range of financial criteria presented and reflect on the consistency of those criteria in measuring value creation of firms.S. The learning objective is to help students gain familiarity with practical applications of valuation techniques. (2) Determinants and use of valuation metrics like P/E. the case demonstrates how cash flow statements reflect the life cycle of the firm. MODULE 2: CAPITAL BUDGETING AND DISCOUNTED CASH FLOW VALUATION C9: Valuation Problem Set (B) The valuation problem set covers: (1) Building a simple proforma. income statement and cash flow statements of major steel firms in India are presented. C8: Value Based Management at Marico Ltd. The objective is to introduce financial statement and industry analysis. C7: Financial Performance of Major Steel Firms The balance sheet. Students are asked to evaluate the strategy and estimate the potential value creation ability of Marico. In particular. The case tracks the development of the plan and launch of the first season of play. The objective of the case is to introduce principles of value based management. C10: Indian Premier League The Indian Premier League (IPL) conceived by the Board of Control for Cricket in India (BCCI) is a T20 format cricket competition. such as financial ratios and stock price performance.

is faced with a large need for external financing to support growth. The learning objective is to introduce issues in a cross border. high leverage acquisition. a divisional manager at ECCL commissioned a study to improve the overall working capital management. To explore a range of issues in working capital management with a primary focus on accounts receivable and inventory. The objective of the case is to introduce issues in overall working capital management.xviii Case Descriptions C11: Option Pricing Problem Set This case presents seven exercises designed to introduce students to option pricing using the BlackScholes/Merton’s model and binomial-tree analysis and its application in capital budgeting. C12: Tata Steel: The Bid for Corus The case documents a high profile cross border acquisition by an Indian company. In 2006. MODULE 3: WORKING CAPITAL MANAGEMENT C13: Working Capital Management at Excel Crop Care Ltd. The case illustrates the value of convertible debt and warrant as a financing instrument in these circumstances. Students are required to assess the strategic motives of these firms and perform a valuation analysis. SHORT-TERM AND LONG-TERM FINANCING C14: Trent Ltd. MODULE 4: CAPITAL STRUCTURE. The objective is to introduce valuation of seven innovative financial instruments. The learning objective is to introduce the analysis of plain-vanilla call and put option prices. and examine some of the challenges in financial (and general) management of firms in developing countries. Rights Issue of Convertibles and Warrants Trent Ltd. extend students’ skills in financial statement modeling and analysis. C16: BGR Energy Systems’ Initial Public Offering The case presents the initial public offering of shares by a rapidly growing firm. . The objective of the case is to introduce issues in the design of securities. Students are asked to make inter-firm comparisons and estimate the likely savings from improvements. C15: Financial Instruments Problem Set The problem set covers valuation of some innovative financial instruments. The objective is to introduce issues in going public and IPO valuation.

The case provides an understanding of the commercial banking industry and the role of a loan officer.Case Descriptions xix C17: Shree Cement Ltd. The objective of the case is to introduce issues credit analysis and working capital estimation. The case introduces concepts like maximum permissible finance. The case documents a request from a company to enhance and renew working capital limits from a major bank. C18: Fujairah Bank A credit analyst at a major UAE Bank receives a proposal from an existing customer for the enhancement of working capital limits. and asks the student to assess a proposed loan. The bank has to decide whether to accept the proposal. The case provides an opportunity for financial statement analysis. .

31 Ch 26-28 14 Ch 22 Ch 24. 18 14. 16 Ch 14. 2. I have provided a link to specific chapters in standard text books like Principles of Corporate Finance by Brealey. 8 Ch 9. 14 Ch 17. 4. 6. 23 12 Ch 33. Westerfield.Case Map for the Benefit of Readers In the table given below. Principles of Corporate Finance Fundamentals of Corporate Finance 1 Ch 1. 11 Ch 6. 18 9. 18 Ch 32 Ch 26-28 . 6 2. 4. 3 Ch 7. 10 Ch 10. 21 Ch 22. 15 Ch 19. Case No. 3. 15. 5. 5. 34 Ch 29 13 Ch 30. 14. 3 8. Myers and Allen and Fundamentals of Corporate Finance by Stephen Ross. 13 Ch 1. 10 4 Ch 9 Ch 12 5. 7 11 Ch 20. and Jaffe. 13. 7 Ch 28 Ch 2. Readers may use the cases along with these or other standard text books. 20 17.