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Ivey Business School (Canada)
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Why Canada Should Adopt Mandatory Say-On-Pay
David Fraser; Darren HendersonArticle IVEY-9B14TA05-EStrategySay-on-pay votes give shareholders a valuable opportunity to express their views on executive compensation. The goal of say-on-pay is to increase the accountability, transparency and performance linkage of executive pay and improve communication between shareholders and boards of directors. Among major Western nations, Canada is an outlier in not having adopted mandatory say-on-pay. About 60 per cent of Canada’s 100 largest companies have adopted...Starting at €8.20
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A Student's Dilemma: Rent or Buy
Mehmet A. Begen; Caitlin Neal; Sabriya KarimCase IVEY-9B14E013-EInformation TechnologiesWhenever an investment is made, there are always costs and benefits. This case set in 2013 explores, based on quantitative and qualitative factors, a decision that a typical student at university might face. The decision to rent a house or purchase one in order to rent out the additional rooms is a difficult one. All of the pros and cons of each option need to be carefully considered. An Excel spreadsheet is available for students (see 7B14E013).Starting at €8.20
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Air Canada: Defined Benefit Pension Plans
Darren Henderson; Christine I. Wiedman; Pricilla CheungCase IVEY-9B11B016-EAccounting and ControlAn investor was reviewing his investment in Air Canada to decide whether or not to sell his shares in the company. Recent weakness in the airline industry and a three-day strike by service staff had caused the investor to reevaluate Air Canada’s long-term prospects. In particular, the investor wanted to consider the company’s pension plans in his analysis. A proposal to move new hires to defined contribution from defined benefit pension plans was...Starting at €8.20
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Ford Motor Company: Accounting for Deferred Taxes
Darren Henderson; Christine LiuCase IVEY-9B11B023-EAccounting and ControlFord Motor Company is considering whether to reverse the valuation allowance it has recorded over its deferred tax assets. Due to substantial losses from 2006 to 2008, Ford has $10.3 billion of tax loss carryforwards in addition to other deferred tax assets; however, due to uncertainty, Ford has not recorded the value of those deferred tax assets on its balance sheet. To improve business conditions over 2009 and 2010, Ford must now decide whether...Starting at €8.20
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Accounting for Faulty Ignition Switches at General Motors Company
Darren Henderson; Julia CuttCase IVEY-9B14B014-EAccounting and ControlOn January 31, 2014, the chief executive officer (CEO) of General Motors (GM), a major automaker located in Detroit, Michigan, must decide whether to issue a recall based on a defect that had been found through an internal safety committee investigation. The ignition switch of certain GM small car models manufactured between 2005 and 2007 was prone to being nudged out of the run position, causing the driver to lose control as the engine would swi...Starting at €8.20
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Seoul National Bank: The Chief Credit Officer’s Dilemma
Mehmet A. Begen; Jon JhunCase IVEY-9B11E013-ECorporate Governance, StrategyThe chief credit officer (CCO) at Seoul National Bank has recently faced numerous defaults on its corporate loans. To address this problem, the CCO must re-evaluate how the bank responds to defaults and determine a default strategy. The CCO must evaluate the payouts and risk profiles of 1) collecting on collateral, 2) partially settling, and 3) waiting and seeing. Further, the CCO must determine a systematic way to approve loans from companies. A...Starting at €8.20
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Deloitte Recommends Client Selection to Regency Bank
Mehmet A. Begen; Stacey YueCase IVEY-9B11E005-ECorporate GovernanceA large financial institution has acquired a sizable portfolio of new clients of travel (corporate expense) cards. The bank must decide on the optimal mix of clients to retain in order to achieve the goals of maximizing profitability, entering a new product market successfully, and maintaining reputation. The optimal mix depends on a number of different factors, including annual account spending level, complexity of serving the account, the numbe...Starting at €8.20
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Mistral Energy: A Tale of Two Power Markets
Mehmet A. Begen; Andrew CornhillCase IVEY-9B14E011-ECorporate GovernanceMistral Energy is looking to build a $40 million power plant in close proximity to both the Alberta and Saskatchewan power markets. The Alberta market is deregulated and the price fluctuates hourly with supply and demand. The Saskatchewan market, on the other hand, is a regulated monopoly. Mistral Energy needs to understand into which market they should sell their power. Because the prices available in Saskatchewan are unknown, Mistral is particu...Starting at €8.20
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SIGA Technologies: Profiting From Uncertainty
Mehmet A. Begen; Can CuiCase IVEY-9B11E014-ECorporate GovernanceAn equity analyst at Nova Funds, an investment firm, is in the process of analyzing an investment in SIGA Technologies (SIGA), and potentially its competitor, PharmAthene Inc. (PIP). SIGA is currently the only company in the world that has developed a treatment for smallpox, with its ST-246. In late 2010, the U.S. Department of Health and Human Services (HHS) announced the intention to award SIGA a contract valued at up to $2.8 billion, which sig...Starting at €8.20
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Capitalization of Costs at Salesforce.com
Darren Henderson; Chris Sturby; Jessica KellyCase IVEY-9B12B021-EAccounting and ControlAn investor wishes to make an investment in a software/information technology company. The investor is intrigued by the growth prospects of firms in the cloud computing industry and is deciding on whether to make an investment in the common shares of Salesforce.com. While the industry appears to be very attractive, concerns have been raised in the financial media over the company's accounting policy decisions, particularly the decision to capital...Starting at €8.20