This case considers a $10 million investment in an outpatient surgery center by a not-for-profit community hospital in rural South Carolina. A member of the purchasing department, R. D. Scott, is invited to complete a discounted cash flow (DCF) analysis of the investment opportunity to help...

This case examines the financial performance of Bob's Baloney, a leader in the ultrapremium bologna market. While the business appears to be doing well with respect to most of its stakeholders, its largest equity investor has recently expressed strong dissatisfaction with the company's financial...

When businesses deliver a product or service, they often forego receiving immediate cash payment and allow their customers to pay later. Such payment terms are called trade credit. While trade credit fosters sales to existing and new customers, such credit is not free. The cost of trade credit...

Market lore recounts a host of fabled asset price bubbles: the Dutch tulip bubble of the 1630s, the South Sea and Mississippi bubbles of 1720, the dot-com bubble of the late 1990s, and the global real estate bubble of the mid-2000s. One survey reported the occurrence of some 60 bubbles since the...

Capital markets facilitate the appropriate exchange of money. For lenders and borrowers, the interest rate is the primary pricing mechanism that markets use in this exchange. For borrowers deemed to have higher credit risk, lenders add a risk premium to the interest rate to compensate for higher...

Set in the fall of 1998, this case series (see also the A case, UVA-F-1357) examines the decision by eBay management to proceed with the company's initial public offering during the quietest IPO market in 20 years. In the A case, eBay's chief financial officer considers the financial and...

Set in the fall of 1998, this case series (see also the A case, UVA-F-1357) examines the decision by eBay management to proceed with the company's initial public offering during the quietest IPO market in 20 years. In the A case, eBay's chief financial officer considers the financial and...