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Mini Case 1 The Financial Detective Suggested Answers PDF
Mini Case 1 The Financial Detective Suggested Answers PDF
Mini Case 1 The Financial Detective Suggested Answers PDF
• Industry economics
• Asset intensity asset structure: airline vs. paper
• Rate of technological change reinvestment / dividend yield:
newspaper vs. tech
• Competition (market structure, industry cycle) margin, IS
structure: telecommunication vs. retail
• Managerial strategy
• Operating efficiency
• Financing decision
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• The Case provides
1) 8 Pairs of companies (16 companies) in different industries
• Airlines, Beer, Computer, Paper, etc.
• Description of their industries and managerial strategies
provided as clues to their financial condition and performance
2) Financial Statements (in %) & Ratios
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2. Find similarities between two companies in the same
category based on industry characteristics.
3. Differentiate each company’s managerial choices based on
financial profile and match each financial statement with
the most relevant description.
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1. Airlines
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1. Airlines
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1. Airlines
Other Revenue 3 0
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1. Airlines
Company A Company B
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2. Beer
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2. Beer
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2. Beer
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2. Beer
Company C Company D
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3. Computers
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3. Computers
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3. Computers
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3. Computers
Company F Company E
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4. Hospitality
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4. Hospitality
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4. Hospitality
Gross Profit 37 74
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4. Hospitality
Company H Company G
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5. Newspapers
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5. Newspapers
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5. Newspapers
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5. Newspapers
Company J Company I
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6. Pharmaceuticals
K L
R & D Exp. (3) (24)
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6. Pharmaceuticals
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6. Pharmaceuticals
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6. Pharmaceuticals
Company L Company K
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7. Power
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7. Power
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7. Power
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7. Power
Company N Company M
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8. Retail
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8. Retail
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8. Retail
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8. Retail
Company O Company P
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