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Note: INSEAD used to offer free evaluation copies of their cases. They no longer do...

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In this case study, Professors Pierre Hillion and Theo Vermaelen use Log On America's decision to issue a floating-price convertible preferred stock to discuss optimal capital structure. You are asked to compare this financial innovation with alternatives such as equity financing, debt financing and convertibles with a fixed conversion price. Then you're asked to support (or undermine) the legal case of LOA against the banks and the preferred shareholders. Finally, you have the opportunity to use option-pricing techniques to value the convertible and experiment with alternative security designs.

Note: INSEAD used to offer free evaluation copies of their cases. They no longer do...

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Great Eastern Toys dolled up its management plan in 1996, to focus on expanding sales. Its plan, however, didn't face up to the potential problem of working with other currencies, which is was forced to do in 1998. Its banker pointed out that the depreciation of the European currencies during the previous two years had resulted in substantial lost income. Although this is a ficticious company, this toy story has real relevance to globalisation issues. In this case study, INSEAD Professors Gabriel Hawawini and Lee Remmers discuss the toy company's policy options in the international trade playground.

Note: INSEAD used to offer free evaluation copies of their cases. They no longer do...

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How do you value an Internet company? With stormy weather now rocking the Internet world, dot-com investments are no longer the watertight bets they used to be. It now makes sense to forecast the value of the company you are thinking of investing in. Jean Dermine, INSEAD Professor of Banking and Finance and INSEAD MBA alumni K. Wildberger and H. Georgeson use this case study to compare two methods, Discounted Cash Flow and Real Option Valuation, that can help you make sunnier investment decisions. The methodology is applied to the valuation of the British Internet bank Egg.

Note: INSEAD used to offer free evaluation copies of their cases. They no longer do...

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In 1995, Lernout & Hauspie Speech Products (L&H) was poised for an Initial Public Offering (IPO) on the NASDAQ, home to industry heavyweights like Microsoft and Intel. If the IPO were to be successful, L&H would be the first Belgian company ever to list on the venerable stock exchange. For L&H, the IPO was a key milestone in its remarkable history. Since its founding in 1987, the company had several times teetered on the verge of bankruptcy, rescued only by the financial acumen of its energetic young founders who demonstrated the ability to tap a wide range of financing sources. In this case, Professors Herwig Langohr and Benoit Leleux, along with INSEAD MBA graduate Danny Lein ('96), introduce us to this feisty company and trace its rocky financial history, from its use of "guerilla financing" strategies to the moment Lernout and Hauspie must give the thumbs up or thumbs down to a tempting IPO offer.

Note: INSEAD used to offer free evaluation copies of their cases. They no longer do...

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Value Based Management is often thought of from strictly a financial perspective. In this Case Study series about a VBM initiative at Cadbury Schweppes, the authors show that managing for value is 80% about people and only 20% about numbers.

The series traces the origins of the initiative starting in 1996 and follows its progression through to 2002, showing the benefits, limitations, time frames, and basic elements of VBM at this multinational food and beverage company.

Note: INSEAD used to offer free evaluation copies of their cases. They no longer do...

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In January 2001 the CEO of Interbrew received what was likely the worst news of his career. With the ink on the company's Initial Public Offering still wet, the British Government announced it was rescinding Interbrew's €3.68 billion takeover of Bass Brewers, a deal it had affected just four months prior and which served as a selling point in its recent IPO. François de Breteuil and Professor Herwig Langohr pick up the story in this new Case Study.

Note: Older EBF articles are not currently online. I'm not sure if this is temporary or permanent. If you click you will be taken to the Archive.org site to find an archived copy.

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This is an edited version of a new case study written primarily for classroom discussion. In this shortened form, supplemented by a commentary on the corporate governance implications by Matthew Allen, it provides insights for EBF readers into - among other things - financial engineering as a means of supporting the share price, the reporting of financial exposure, and the need for independent audit oversight to protect shareholders. The case won the European Case Clearing House/ Business WeekEuropean Case Award 2004 in the Finance, Accounting and Control category.

Note: Older EBF articles are not currently online. I'm not sure if this is temporary or permanent. If you click you will be taken to the Archive.org site to find an archived copy.

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The Italian giant Parmalat imploded during a financial crisis, resulting in a police investigation, a suicide, a series of arrests and shockwaves throughout the international financial community. The role of corporate governance, auditors and the regulators all came under scrutiny. This is an excerpt from a full case study on the company available from the European Case Clearing House.

How five CFOs cooked the books at HealthSouth.

The rise and fall of Krispy Kreme is a cautionary tale of ambition, greed, and inexperience.

You think you've got problems? Amtrak's got an overpaid workforce. Its trains and tracks are falling apart. Worse, the carrier's balance sheet is a flat-out mess.