Shahriar Khaksari, Khaled Amira, Lacey Teixeira, Rosa J. Vela and Zhimin Liu
Doug Scovanner, CFO of Target Corporation, was about to present his proposal at the November 2008 Board meeting. He was prepared to discuss immediate strategic actions which would…
Abstract
Doug Scovanner, CFO of Target Corporation, was about to present his proposal at the November 2008 Board meeting. He was prepared to discuss immediate strategic actions which would provide support for working capital for the discount retailer. The retail community was about to suffer their worst fourth quarter in recent memory. Consumer spending had contracted, unemployment was rising and the deflated housing market had driven the economy into a recession. Although discount retailers had fared better than other industries during the second and third quarters, they were not immune to the overall economic downturn which had become a global crisis. To further complicate matters, Target's largest competitor, Wal-Mart, just posted third quarter growth even though Target was bracing for a busy holiday season. Scovanner anticipated further strain on working capital before year-end as cash flow tightened and the capital markets remained at a virtual stand-still.
Khaksari Shahriar and Platikanov Stefan
The case presents a financing dilemma at a fast growing, Brazilian construction company. The growing demand for residential and commercial real estate in Brazil, coupled with the…
Abstract
Case description
The case presents a financing dilemma at a fast growing, Brazilian construction company. The growing demand for residential and commercial real estate in Brazil, coupled with the capital intensive nature of the industry generates the need for a considerable external financing. The students are invited to take the perspective of the financial manager and evaluate three financing alternatives – an issue of debentures, a seasoned equity offering, and a capital-raising ADR offering. In their evaluation and final recommendation students need to consider the implications of each of the financing alternatives on firm value, equity risk, cost of capital, financial leverage, issuance costs, and ownership structure. The case also presents a valuable opportunity to discuss the interdependence between the institutional development of an economy and the development of its capital markets.
Details
Keywords
Kuo-Ting Hung, Neil Hunt, Gina Vega, Laurie Levesque, Hasan Arslan and Christian DeLaunay
Jeff Hotchkiss, President of the Assembly Test Division of Teradyne, Inc., the largest electronics testing company in the world, returned to the corporation where he had built his…
Abstract
Jeff Hotchkiss, President of the Assembly Test Division of Teradyne, Inc., the largest electronics testing company in the world, returned to the corporation where he had built his career after a three-year hiatus as CEO of a VOIP start-up. Teradyne's operation was struggling through the effects of a bad economy coupled with significant downturns in the electronics industry, and Hotchkiss encountered numerous problems specifically in the China operation, including customer dissatisfaction with service, price, and time required to implement changes. He assembled a strategic team to address these issues and to recommend and implement an accelerated turnaround in China. Students are challenged to design the turnaround plan.