We evaluate the impact of Financial Accounting Standard 132 by measuring how well its required asset allocation information predicts next year's pension returns. We compare the predictive capability of several different models, including Sharpe's style model and survey data by Pensions &...

The purpose of this cas eis to describe the entry of a company into an existing value cahin and how the Internet enabled the copmany to create value for its users. The case explores the reinusrance industry, the hcanges to the industry and the effect CATEX has had on the industry

The case notes that in early 2001, despite growth in accounts and assets, the online brokerage industry suffers from the stock market decline. Snapshots of financial situation of Merrill Lynch, Charles Schwab, and E*Trade are compared to give students a clear picture of the situation at that time

These cost-of-capital exercises stress the weighted-average cost of capital, beginning with a simple capital structure and extending to a company with a complete balance sheet, including four separate debt issues. The problems demand that several different estimates of cost of equity be computed...

A division of a corporation considers investing in a new, technologically superior process. The case gives the usual data for historical analysis, financial-statement forecasting, and capital budgeting, plus a PIMS review. In addition, uncertainty in the forecasts can be used to introduce...

This case series simulates the decision of choosing and financing a car. Reggie Fuller is a fry cook on the verge of losing his job if he keeps arriving late to work due to inconsistent public buses. Fuller's dream car, the Lincoln MKS, is priced far beyond his budget ($50,000), but Fuller...

This case evaluates the opportunities and challenges the Internet presents for such full-service brokerage firms as Merrill Lynch. By including information about E*Trade and Charles Schwab, the case allows students to examine and evaluate the competitive forces at work in the emerging on-line...

Mrs. Ito is approached by a neighbor who asks her advice on investing in a stock-market certificate of deposit (CD) offered by NationsBank.The CD pays interest that is pegged to the Samp;amp;P 500 and yet guarantees 100% return of principal upon maturity, in five years.This case provides an...

Using weekly price data, the student is asked to price a series of amp;quot;put and callamp;quot; stock options. The question of whether past volatility is a good predictor of future expected volatility reinforces the issues in the A case (UVA-F-0936). A student Lotus worksheet file is available...