For this case study, address the following items:
1. Identify one of the top ten investments banks as of 2018.
2. Provide a concise description of the banks core competency with examples of recent activities
or transactions. Be sure to provide specific $ data on the magnitude of the banks recent
3. How has the size of your selected investment bank changed in the last decade? Use $ valuations
to illustrate the change. In which investment bank functions did their overall business increase
4. Prepare a balance sheet analysis of the bank, comparing 2007 B/S $ values to the most recently
published B/S (either 2017 or 2018). Be sure to include the following items, in Excel
a. % change in total assets, liabilities, and equity positions over this period
b. Past and current leverage position of the investment bank, and % change over this
c. Comparison of book to market value of the bank, 2007 to current value
5. Refer to the following short article and address the question in detail:
a. Article: Edelmann, C., & Hunt, P. (2017). How the Great Recession Changed Banking.
Harvard Business Review Digital Articles, 29
b. Question: Compare the financial analysis completed in item #3 above to the main points
in the article, including changes in B/S valuation.
Answer the following questions for a fictitious public offering, and show all calculations:
An investment bank offers underwrites an IPO of up to 18.5m shares for ABC Company at a price of
$12.50 per share. Show the $ return to the investment bank under both scenarios:
1. The 18.5m shares sell at $13.25 per share.
2. What happens if the IPO price is overstated and the shares sell for $12.25 per share?