Edward Lundberg and the Rockville Building: Energy Efficiency Finance in Commercial Real Estate

A commercial landlord discusses options for financing and undertaking an energy efficient renovation. The situation is aggravated by the rental conditions and the uncertain effectiveness of the intervention. Students must grapple with hurdles, including changes in energy prices, fluctuations in energy demand under different climate scenarios, problems with gross and net rental obligations, and problems …

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Jerome Powell: Navigating a New Course?

In February 2018, Jerome Powell assumed the chairmanship of the FOMC. At first glance, the macroeconomic conditions Powell inherited seemed conducive to continued stability: Unemployment and inflation were low, and the economy had grown steadily for nearly a decade. However, despite the appearance of stability, the economy faced significant risks that required the attention of …

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Measuring Investment Performance

Examine different approaches to measuring return on investment. Approaches include the use of risk positions and information and Sharpe ratios. Apply the approaches to a variety of mutual funds to demonstrate the effect of using different metrics to measure fund performance.

CityCenter (D): Financial Crisis, Grand Opening, and a New Paradigm

“CityCenter (D)” follows cases (A), (B) and (C) with subsequent chronological events until the opening of CityCenter in December 2009 and financial results until March 2010. The case includes a simple evaluation exercise directed to the CEO. to investigate Jim Murren’s options to avoid the bankruptcy of MGM MIRAGE. Case (D) gives Murren the option …

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Tata Steel Limited: Convertible Alternative Reference Securities

Shortly after acquiring Corus in 2007, Tata Steel Limited entered international markets with an offering of Convertible Bonds with Special Features (CARS). The $ 875 million offer was the first of its kind in India. The success of the issue reflected the confidence of investors in the country and the company. This case includes a …

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A Note on Leases

This technical note explains how leases are accounted for in accordance with Accounting Standards Codification 842. This new addition to generally accepted accounting principles in the United States is effective for fiscal years beginning after December 15, 2019. The note contains a comprehensive treatment of a lessee’s accounting for short-term, operating and finance leases and …

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