This exercise walks students through using conjoint analysis to determine customer preferences and price sensitivity using the example of car sales. It includes steps to determine attribute levels, holdout concepts, training concepts, part-worth utilities, and validating the results. The students are tasked with designing their own conjoint experiment using the associated Excel workbook.
Associate Jack Hereford must analyze the earnings quality of Nuware Imports. His specific task is to assess the accounting policies of Nuware as aggressive or conservative and then recast the current earnings of the company as if it had employed the accounting policies used by its closest peer. A number of adjustments are required, including those related to inventory, receivables, fixed assets, s
This exercise consists of a set of incomplete worksheets with which students must calculate (1) the effect of hypothetical changes in capital structure on firm value, and (2) the effect of a major recapitalization on the share price of Koppers Company. Illustrating in particular Modigliani and Miller's theory about the relationship between debt and firm value in a taxable world, this exercise lays
The owners of a chain of hardware stores are preparing the most recent quarter financial statements. A number of business details are provided, including information to assess accrual accounting net income: sales, cost of sales, operating expenses, interest, depreciation, and taxes. The most recent balance sheet is provided, enabling an assessment of basic accruals (e.g., tax payable).
This case
Making decisions is the most fundamental “thought” activity we engage in every day. The consequences of our choices, at work and in our daily lives, can range from trivial and fleeting to momentous and far-reaching. Increasingly in our fast-moving world, we need to make decisions quickly, even intuitively. The “Tough Choices” exercise is designed to guide readers through the decision-making proces
This exercise and its accompanying handouts, designed to be used in courses for non-MBA audiences that explore aspects of entrepreneurship, guide students through the development of their very own business plan. From researching and deciding on a business concept, to developing prospective customer profiles and understanding target markets, to creating financial and operations projections, this se
This exercise is designed to help students identify patterns of trust within their network of work and/or personal relationships. The exercise examines three types of trust (communication-based, contractual-based, and competence-based) and is intended to help students gain insight into their own propensity to trust others, as well as their perception of the trustworthiness of the important people
This case provides students with the opportunity to analyze the income tax disclosures for Apple Inc. In particular, it provides for discussion about such topics as deferred taxes, valuation allowances, unrecognized tax benefits, and the statutory rate reconciliation. What is most unique about the example is that Apple reports around $200 billion of cash and investments on its balance sheet.
How