Portland State University School of Business Administration FIN 565: Cases in Corporate Finance Case Descriptions and Suggestions Fall 2010

As you review the case descriptions and read the cases, develop a plan for your analysis. The case report and presentation should include, but not be limited to, the suggested questions I have provided. Do not submit or present the case a simply a numbered series of answers to the questions. The case analysis must be a narrative report that includes the information needed to answer the questions.

Financial Statement Analysis Identify the Industry – 2007
Substantive Issues
This case provides financial statement data for 10 companies from 10 different industries from Thomson Banker One – Analytics. Using knowledge of the industries’ financial characteristics and financial rations, you are asked to match each of the 10 financial statement data sets to an appropriate industry. You are provided with common-sized income statements (all items scaled by revenues), common-sized balance sheets (all items scaled by total assets) and selected financial ratios. All data are averaged over three years – 2004 – 2006 – to smooth out one-time items.

Pedagogical Objectives
This case illustrates the difficulty of identifying a company in an industry since do few companies operate in a single homogeneous industry. It also serves to get each class member engaged with team members in an effort to determine the strengths of each member.

Suggested Questions
Identify the companies with an industry.

Marriott Corporation: The Cost of Capital
Substantive Issues
This case provides you with the opportunity to explore how a company uses the capital asset pricing model (CAPM) to compute the cost of capital for the company and for each of its divisions. The weighted average cost of capital (WACC) formula and the mechanics