Financial Case Study
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Treat the case as a business case with a finance emphasis. Write from the perspective of a consultant to the firm’s management, advising how to optimize the owners’ wealth. The marketing, operations and other management aspects are important. About half the grade is on the qualitative analysis. Always approach the case from the perspective of a financial management perspective, despite some cases seeming to
emphasize a financial institution’s perspective.
Write cases in standard English prose (paragraphs and sentences).
Exclude repetition of material from the casebook.
The only limit only the number of tables/graphs is discretion. Give a descriptive label for each table/graph. Put your assumptions in a table rather than in your write up. Write at least one paragraph in your write up on each scenario/table. Describe what the scenario models, how likely it is and which numbers are the most important. Interpret the important numbers. Exclude technical reviews saying how you divided A by B to get C or how you hacked up the “v.”
Single-scenario solutions are penalized by a minimum of one letter grade. You should always test your spreadsheet to see how changes in risky variables change the output data. A good way to beat the plagiarism problem is to develop and discuss the spreadsheet model of a case, and then to go your separate ways and prepare and write up scenarios on your own.
In the last paragraph, unequivocally state and defend your recommendations. Conceptually, a recommendation cannot be a scenario.
Spreadsheet analysis is essential.
Chang Dental Clinic Tips
•Use valuation for equity value [no need for price per share]
•Inflation rate = 0.03
•Assume lease obligations have a PV of about $300,000
•WACC for private transactions is always difficult. Look at “Return on Assets”
•Check to see if Miller can service his financing
Above are the instructor’s guidelines for the case study. The case is on Chang Dental Clinic and will provide the case in a word document. My professor requires the case to be written in “cash flow speak” by using the financial statements that I will provide. There needs to be a base case scenario and a pessimistic and optimistic scenario analysis done and explained in the case. Also he requires a spreadsheet analysis and if I could get that spreadsheet you could write 4 pages and the spreadsheet.
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