The president of a new hotel venture faces a financing decision. The choices include: mortgage debt, common stock, or preferred and common stock. The president has to balance the impact of the financing alternatives on the viability of the venture, her investment returns, the investment returns of prospective outside investors and the financial and business risks.

The final meeting to set the size of the issue and the price of the shares for Air Canada's initial public offering of shares is about to begin. Concern has been expressed by the government that unless the offer price is above their minimum level, the issue will be pulled.

The vice-president finance for a Canadian manufacturer has to decide how best to refinance a Swiss franc loan that is about to mature. The case involves consideration of interest rate risk and foreign exchange risk. The case is designed to introduce students to borrowing in international markets. It gives students an idea of the many opportunities to borrow internationally. By examining the cost of the previous loan, students should gain an appreciation .....more

The bank has asked a commercial and industrial mechanical contractor for a forecasted cash budget, income statement and balance sheet. The bank is concerned with whether the company can repay its loan. The case is designed to teach students to incorporate a cash budget into the evaluation of a business that requires bank financing.

A bank branch manager is evaluating an application from Fisher Electric Inc. for a line of credit. The company has a recent record of growth and profitability, and in order to continue to grow it must obtain new financing. The company's fortunes are tied to the cyclical swings in the construction industry. Students are provided the opportunity to evaluate the performance and competitive position of an expanding business and to estimate a firm's .....more

The president of an entrepreneurial company is investigating the feasibility of producing and marketing a new invention -- a pasta server. Projected statements are needed for the development and presentation of a financing proposal to a private investor. Although the financing was needed, he wanted to structure it so he retained as much control over the business as possible.

The proprietor of a small boat building company plans to expand his operations. First he must decide whether a limited company or partnership would be a better form of organization from the standpoint of taxation and personal liability.

This case is designed as an introduction to foreign exchange transaction exposure and what can be done about it using the forward currency and money markets. A small furniture manufacturer has contracted to purchase some specialized machinery with deutschemark payments over the next twelve months. Market spot and forward currency prices are provided, together with Eurocurrency deposit rates for the same maturities. The mechanics of the hedging transactions .....more