The chief financial officer of Granite Apparel is trying to determine which of the three fundraising options is optimal for Granite Apparel to finance a projected rapid growth strategy. The three options are an initial public offering of equity, a privately placed debt issue and a private placement of preferred shares.

Instructor spreadsheet for 8B15N006.

Teaching note for product 9B15N006.

The equity analyst for a large investment bank is in the process of evaluating a potential takeover of Shoppers Drug Mart, Canada’s largest drugstore retailer, by Loblaw Companies Limited, Canada’s largest grocery retailer. Rumours of the takeover have been circulating for some time, and the analyst wants to provide her buy-side clients with both her comments on the proposed transaction and her assessment of a reasonable offering price.

Teaching note for product 9B13N010.

Garry Halper Menswear Limited (GHM) is a medium-sized manufacturer of superior-quality men’s suits and jackets that up to now have largely been distributed in Canada. The firm has landed a very large order for men’s suits with Sutton’s in the United States. To meet the order, the firm has decided to import partly completed suits from China. The treasurer of GHM must assess the financing needs and related risks that result from this large increase .....more

The president of SinYi Group (SinYi) was contemplating various ways of growing his highly successful Taiwanese real estate company in the mainland China market. SinYi had initially opened up company- operated branches but in an effort to expand more quickly, in 1999, he had obtained a Coldwell Banker master franchise under a joint SinYi/Coldwell brand. But SinYi's growth in company-operated and franchised branches in China was still slow. He was .....more

In April 2009, Perdigao was contemplating the acquisition of Sadia and a merger of the two companies. The intended share-swap transaction between two of Brazil's biggest food companies would allow Perdigao to dramatically grow its domestic and international market share, and become one of the world's largest players in the food production industry, while driving up profit margins by benefiting from synergies. However, Sadia had a huge short .....more

A Taiwanese entrepreneur plans to set up an insurance scheme for low income earners. A financial model for the operation has been created and students must assess the viability of the business and the risks that it entails.

The managing director at a major investment bank is preparing his team for a visit to Lululemon Athletica. The investment bank has been following Lululemon's development over the past few years and has dealt with the company. It believes that there is a window of opportunity for Lululemon's founder and private equity investors to either undertake an IPO or raise debt to fund Lululemon's U.S. expansion.