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Case Studies in Finance links managerial decisions to capital markets and the expectations of investors. At the core of almost all of the cases is a valuation task that requires students to look to financial markets for guidance in resolving the case problem. These cases also invite students to apply modern information technology to the analysis of managerial decisions. In the Seventh Edition, 25% of the cases are new with many dating from 2011–2012, ensuring that your students are learning from the most relevant and current sources.

Visit the Online Learning Center at www.mhhe.com/bruner7e to see a complete list of changes to the Seventh Edition and to access study and teaching tools.

Bruner Eades S chi l l

Case Studies in Finance

managing for corporate value creation

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Bruner Eades Schil l

Case Studies in Finance managing for corporate value creation

seventh edition

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Case Studies in Finance

Managing for Corporate Value Creation

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Case Studies in Finance

Managing for Corporate Value Creation

Seventh Edition

Robert F. Bruner Kenneth M. Eades Michael J. Schill

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CASE STUDIES IN FINANCE: MANAGING FOR CORPORATE VALUE CREATION, SEVENTH EDITION

Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2002, 1989, and 1975. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broad- cast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

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ISBN 978-0-07-786171-1 MHID 0-07-786171-X

Senior Vice President, Products & Markets: Kurt L. Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: Douglas Reiner Executive Brand Manager: Charles Synovec Developmental Editor II: Jennifer Lohn Executive Marketing Manager: Melissa Caughlin Editorial Coordinator: Casey Rasch Director, Content Production: Terri Schiesl Senior Project Manager: Lisa A. Bruflodt Buyer: Nichole Birkenholz Media Project Manager: Prashanthi Nadipalli Cover Design: Studio Montage, St. Louis, MO Cover Image: Alija/Getty Images Typeface: 10/12 Times Compositor: Cenveo Publisher Services Printer: R. R. Donnelley

Library of Congress Cataloging-in-Publication Data

Bruner, Robert F., 1949- Case studies in finance : managing for corporate value creation / Robert F. Bruner, Kenneth M. Eades,

Michael J. Scholl.––Seventh Edition. pages cm

Includes index. ISBN-13: 978-0-07-786171-1 (alk. paper) ISBN-10: 0-07-786171-X (alk. paper) 1. Corporations––Finance––Case studies. 2. International business enterprises––Finance––Case studies.

I. Eades, Ken M. II. Schill, Michael J. III. Title. HG4015.5.B78 2013 658.15––dc23 2012046392

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill, and McGraw-Hill does not guarantee the accuracy of the information presented at these sites.

www.mhhe.com

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The McGraw-Hill/Irwin Series in Finance, Insurance and Real Estate

Stephen A. Ross Franco Modigliani Professor of Finance and Economics Sloan School of Management Massachusetts Institute of Technology Consulting Editor

FINANCIAL MANAGEMENT