Finance Mini Cases - Eli

Finance Mini Cases

The mini cases are designed specifically to supplement the textbook material. The cases build upon and reinforce the theories and concepts of financial management. Students are required to use financial tools and techniques to solve problems faced by senior management.

Unlike the typical cases provided by textbooks, these mini cases do not provide the reader with direction as to how to proceed. (i.e., a series of questions leading the student to the correct answer.) Students are presented with summary financial data along with a narrative. Based on this, students are required to identify the problem and/or problems indicated in the cases and develop a solution.

The cases are:

Case #1: Mystery Firms

Case #2: Financial Statement Analysis

Case #3: Ratio analysis

Case #4: Retirement Choice

Case #5: Capital Raise

Case #6: Funding Alternatives

Case #7: Capital Budgeting

Case #8: Leveraged ESOP (Comprehensive)

Paper requirements: After reading the case, students are to: (a) identify the main problem ( a one sentence statement), (b) brief statement of facts (one-half page), (c) analysis of the main problem (this section is the largest and may require several pages. (Lengthy tables, exhibits, and charts should be placed at the end of the paper,) and (d) conclusions drawn from the analysis and your recommendations.

We welcome your comments and suggestions.

Dr. G. Timothy Haight, Chapman University

Dr. Timothy D. Haight, Loyola Marymount University

Case #1: Mystery Firms

Ratios are often useful in evaluating the financial aspects of a business. Analysts typically use ratios to study a given firm over time or to compare that firm to peers in its industry (over time or at a given point in time). Ratio values sometimes vary within industries based on variation in firms’ strategies or competitive advantages. Furthermore, ratio values will vary across industries based on variation in operating cost structures, financial structures and other unique aspects of industries’ operating environments.

Seven Mystery Firms are shown in below.

1.  Electric utility                                

2.  Commercial Bank                                

3.  Large Discount Retailer                        

4.  Insurance Company                                

5.  Aero-space manufacturer                        

6.  Oil and Gas Refinery                        

7.  Real Estate Investment Trust (REIT)        

Common size balance sheets and key financial ratios are provided below to provide hints as to their identities. Using this information, try to match the financials to the 7 companies listed above.