The case notes that in early 2001, despite growth in accounts and assets, the online brokerage industry suffers from the stock market decline. Snapshots of financial situation of Merrill Lynch, Charles Schwab, and E*Trade are compared to give students a clear picture of the situation at that time

These cost-of-capital exercises stress the weighted-average cost of capital, beginning with a simple capital structure and extending to a company with a complete balance sheet, including four separate debt issues. The problems demand that several different estimates of cost of equity be computed...

A division of a corporation considers investing in a new, technologically superior process. The case gives the usual data for historical analysis, financial-statement forecasting, and capital budgeting, plus a PIMS review. In addition, uncertainty in the forecasts can be used to introduce...

We investigate the incentives for leasing by constructing samples of the 100 largest lessees and 100 largest lessors in the U.S. Our lessee sample accounts for more than 60 percent of the leasing dollars of Compustat firms, and our lessor sample captures approximately 80 percent of the equipment...

This case evaluates the opportunities and challenges the Internet presents for such full-service brokerage firms as Merrill Lynch. By including information about E*Trade and Charles Schwab, the case allows students to examine and evaluate the competitive forces at work in the emerging on-line...

Mrs. Ito is approached by a neighbor who asks her advice on investing in a stock-market certificate of deposit (CD) offered by NationsBank.The CD pays interest that is pegged to the Samp;amp;P 500 and yet guarantees 100% return of principal upon maturity, in five years.This case provides an...

Using weekly price data, the student is asked to price a series of amp;quot;put and callamp;quot; stock options. The question of whether past volatility is a good predictor of future expected volatility reinforces the issues in the A case (UVA-F-0936). A student Lotus worksheet file is available...

Mrs. Ito decides to use $100,000 of her retirement funds to play the stock-options market. To understand option pricing better, she asks a seminar instructor qualitative questions about why certain option prices have changed since the first of the year. This case highlights the determinants of...

Mrs. Ito is approached by a neighbor who asks her advice on investing in a stock-market certificate of deposit (CD) offered by NationsBank.The CD pays interest that is pegged to the Samp;amp;P 500 and yet guarantees 100% return of principal upon maturity, in five years.This case provides an...