In this short expository note I provide an overview of leveraged buy-out transactions (“LBOs”). I show in detail how an LBO transaction is structured and financed, as well as the typical return profile. I also provide a sample transaction accompanied by financial projections, debt repayment...

This study sought to examine students' perceptions of their learning experience in the introductory accounting courses at three colleges and universities in the United States. Questionnaire responses were collected from 375 students at the end of the second introductory course. The student...

This paper argues that the various theories of economics can all add value, yet educational institutions each seem overly committed to only one theory. The intense debates between economists are destructive and should be replaced with attempts to combine and use each of the theories in...

This paper discusses using a particular Excel assignment in a Corporate Finance course at the undergraduate and graduate level. Excel worksheets allow students to more readily see interactions between concepts, and a finance major who is sufficiently skilled in Excel has an advantage entering...

We develop a mathematical proof demonstrating that only financially-strong firms will sell put options on their own stock, but financially-weak firms will not. The sale of options on a company's own stock exposes the buyer to default risk of the issuer, which additionally complicates the payoff...

The trading of permits has been a significant innovation in controlling pollution in the past two decades. Ando and Ramirez Harrington (2006) developed an informative classroom exercise demonstrating the effectiveness of a tradable permits market. We provide three additional pedagogical tools...

The paper shows how a dynamic neoclassical AS-AD can be derived and used to describe business cycles and growth trends to undergraduates. Derived within the Ramsey-Cass-Koopmans (RCK) model, the AS-AD is the stationary equilibrium of the deterministic dynamic general equilibrium framework. The...

The Cobb Douglas production function is a central element in economic growth theory and Microeconomics. Its popularity in economics stems from certain convenient mathematical properties. Some of these properties describe a set of (partial) differential equations. Although the Cobb Douglas...

Hidden type contracts are examined in their simplest formulation in order to fully prove the role of the single crossing property to eliminate rendundant constraints and to show how this necessary condition constrains the parameters in the case of linear functions. Mechanism design examples are...