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Darden University of Virginia (USA)
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Forwards and Futures
Conroy, Robert M.Technical Note DARDEN-F-1427-EFinanceThis technical note introduces the basics of forward and futures contracts. It covers the very simplest contract on financial assets with no income and expands the discussion to cover contracts on financial assets with dividends, contracts on foreign currency and commodities. There is a discussion on the difference between forward/futures prices and the expected spot rate.Starting at €8.20
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Cypress Semiconductor: 1.25% Convertible Notes
Conroy, Robert M.Case DARDEN-F-1532-EFinanceThe treasury department staff at Cypress Semiconductor Corporation (Cypress) had just received the final draft of the proposal for the pending $600 million convertible bond issue. This would be the latest in a series of convertible bond issuances by Cypress. But this time the situation was quite different. The last offerings were in 2000 when Cypress’s stock price was trading in the $40 to $50 range for the year and had, in fact, hit a high of $5...Starting at €8.20
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Netflix, Inc., 2007
Pfeifer, Phillip E.; Conroy, Robert M.Case DARDEN-F-1592-EFinanceThe protagonist in this case is an analyst attempting to value Netflix, Inc., and check whether her recent buy recommendation at a price of $20.00 per share was still valid. Recent bad news had caused the price to drop and she needed to do her best to figure out what was the future for Netflix, and was it undervalued at $17 per share? Intended for MBA students, this case contains her discounted cash flow valuation and a set of assumptions (revenu...Starting at €8.20
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Target Corporation Rewards Program, June 2010
Conroy, Robert M.Case DARDEN-F-1632-EFinanceIt was May 2010, and the results were in. For Doug Scovanner, CFO of Target Corporation, there was good news, and there was bad news. The recent trials of a new REDcard Rewards Program in Kansas City, Missouri, and San Antonio, Texas, had yielded mixed results. In San Antonio, the new rewards program offered customers a 3% discount on Target purchases when using a REDcard, but it had not produced a meaningful increase in sales in that market. On ...Starting at €8.20
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Single-Stock Futures
Conroy, Robert M.Case DARDEN-F-1640-EFinanceJack Goodwin had recently read an article on using futures contracts on individual stocks for hedging purposes. He held about 500 shares of Abbott Laboratories in his trading portfolio. While he was concerned about the share price falling in the short run, he was bullish over the long run. Of course, he could sell now and buy later, but that would mean he would have a taxable capital gain, which he wanted to avoid. He thought the single-stock-fut...Starting at €8.20
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AES Tietê: Expansion Plant in Brazil
Allayannis, George (Yiorgos); Yemen, Gerry; Oliveira, RobersonCase DARDEN-F-1732-EFinanceThis case allows students to learn the principles of capital budgeting in a global context. It features a power company in Brazil that is a subsidiary of AES Corporation. A new-to-the-firm manager is assigned his first big project: to evaluate and defend the case for investing in a 500 MW thermal power plant. He must present his findings to the Global Valuation Review team, including a recommendation for the project and a bid price for the upcomi...Starting at €8.20
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Norfolk Southern Corporation-Century Bonds
Conroy, Robert M.Case DARDEN-F-1733-EFinanceNorfolk Southern Corporation (NSC), a railway operator, was issuing a $250 million bond with a coupon of 6% and a maturity in 2105. The bonds were added to an existing $300 million 6% debt issue due 2105, which the company first sold in 2005. A bond analyst at Tidal Insurance (Tidal), has heard that the original issue of this century bond was to be $100 million, and it seemed that strong investor demand pushed NSC, to increase the total amount to...Starting at €8.20
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AES Tietê: Expansion Plant in Brazil - Teaching Note
Allayannis, George (Yiorgos); Oliveira, Roberson; Agostini Filho, RafaelTeaching Note DARDEN-F-1732TN-EFinanceTeaching note for product F-1732Starting at €0.00
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Using the Equity Residual Approach to Valuation: An Example (Abridged)
Harris, Robert S.; Conroy, Robert M.Technical Note DARDEN-F-1609-EFinanceThis note provides an example of the equity residual valuation method to a company. The note can be used to accompany cases on private equity acquisitions or other levered transactions. It provides a simple fact set to focus on the essentials of the method.Starting at €8.20
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Valuation of Netflix, Inc.
Pfeifer, Phillip E.; Conroy, Robert M.Case DARDEN-F-1610-EFinanceIntended for MBAs, this case concerns the valuation of Netflix, Inc., which was the largest U.S. online movie rental subscription service in early 2009. After reviewing Netflix's historical financial and customer relationship performance, this case presents three approaches for valuing the firm in early 2009. The first is a company-level discounted cash flow analysis based on pro forma projections of revenues, earnings, and cash flow. The second ...Starting at €8.20