Search results for: 'environment'
QE Liquidity in search of profitability: the dilemma … EC1-135-I
This case seeks two purposes. First, illustrating the relevance of the economic environment for determining business profitability. Second, putting in practice students acquired macroeconomic analytical skills by using them to support a real life financial investment decision. The students are asked to endorse one of two options, US or Brazil, for the launching of a new investment fund by FTInvest, a financial investment company. The recommendation is made by students acting as members of the Economic Research Department of the company. Therefore, it should be based on the country identified by them as providing the most favorable economic environment for the profitability of the investment in the medium/long run. The decision takes place in the second half of 2011, at a time when the US economy showed a hesitant recovery after the Great Global Recession of 2008 and when the Brazilian economy was booming after a very short blip. It was also at a time when, due to ultra-loose US monetary policy, interest rates and yields were at historical lows in the US while they were relatively high in Brazil.Academic Area:Economic Environment & Public Affairs | Finance
Islamic Finance DF2-216-I-M
Islamic finance is a tutorial that shows the main concepts and financial instruments used by Sharia-compliant Financial Institutions. This tutorial focuses on the main operations and contracts in the business environment but also shows through examples the Sukuk or Islamic bonds that continually attract more and more buyers.
The tutorial includes:
- A glossary of Arabic terms commonly used in Islamic finance and Sharia
- Flow diagrams to explain the contracts and flow of funds for the most common Islamic financial instruments
- Flow diagrams to explain the contracts and flow of Sukuk also referred to as Islamic Bonds
- A series of examples based on the application of Islamic financial instruments in different scenarios.Academic Area:Finance
The Battle for Cortefiel DF1-107-I-M
This multimedia case presents the leveraged acquisition of the Spanish textile group Cortefiel. This acquisition is made by a capital risk fund that has developed a business plan that will attempt to create value through Cortefiel’s operations and this fund. At one point the operation is blocked due to other capital risk funds which are also interested in the group. Students have to analyze the business plan and decide whether or not to increase the price offered.
The case presents information about the Group and includes interviews with sector experts that participated in the operation. The last part lets students numerically solve the case carrying out all the sections of the business plan and analyzing if the price that they are paying for the stock should be increased or not.
This case study targets postgraduate students who study the subject of Financial Management II, on the subject of leveraged acquisitions. Likewise, the case can be delivered in corporate finance or valuation seminars.Academic Area:Finance