... leverage decision analysis uncertainty statistics exam case NPV. probability regression modeling Banking/Finance/Insurance This case discusses the real estate financing decision in the early months of the 2007–08 financial crisis. Peter Kloeckner, loan manager at Southeast Bank...

...Robert F. Bruner; Casey S. Opitz Acting as management, students determine the effects of different degrees of leverage and review this company's current leverage in light of inherent industry risks and company goals. A useful supplementary reading for this case is “How Much Debt Is Right for Your...

... percent. Moreover, the housing boom was only one part of a broader increase in leverage across the economy that had been ongoing for thirty years. Beyond pure interest rate effects, however, lending practices became extremely loose. Lenders granted loans with no money down and no proof of income...

... board, Parr allowed himself a moment of reflection. How had it all happened? An analysis of the fall of Bear Stearns facilitates an understanding of the difficulties affecting the entire investment banking industry: high leverage, overreliance on short-term financing, excessive risk taking...

... with having enough cash on hand to cover daily operating needs. Students are asked to calculate a time series of quarterly liquidity and leverage ratios to illustrate the declining financial condition of the company. They are further challenged to weigh the benefits and drawbacks of raising equity versus...

... significantly increased its leverage over the same timeframe, going from a debt-to-equity ratio of 23.7x in 2003 to 35.2x in 2007. As leverage increased, the ongoing erosion of the mortgage-backed industry began to impact Lehman significantly and its stock price plummeted. Unfortunately, public outcry over...

...@emeraldinsight.com to request teaching notes. Monica Singhania can be contacted at: monica@fms.edu © Emerald Group Publishing Limited 2014 Emerald Group Publishing Limited Licensed reuse rights only Growth Financial model Infrastructure Leverage Social welfare Public-private partnership...