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Journal of Finance Case Research JOURNAL OF FINANCE CASE RESEARCH Volume 16 2014 Number 1 HOW SAFE IS DEPOSIT INSURANCE? THE CASE OF CYPRUS Arthur Centonze CS PHARMACEUTICALS COMPANY Thomas Patrick, Christopher Sobotka and Andrew Carver MANAGING SHAREHOLDER VALUE IN POST-CRISIS TIMES Victoria Geyfman and John Walker DOLLAR TREE, INC. AND CALPERS Woody Richardson and Michael Schellenger A LEVERAGED BUYOUT: THE BURGER KING CASE John Lewis and Samuel Jones SAMPSON ENERGY Jim Mahar and Jeremy Tranzillo BAYOU U.: ETHICS AND LEADERSHIP Timothy Michael and Melissa Williams OILFIELD SOLUTIONS CORPORATION Robert Stretcher and Edward Blackburne FIRST WISCONSIN CHURCH David Porter and Curt Weber SHORTER CASES & EXERCISES USING REGRESSION ANALYSIS TO APPRAISE HOMES IN HOT REAL ESTATE MARKETS William Brent, Lynne Kelly, Debbie Lindsay and Russell Price TEACHING ETHICAL DECISION MAKING WITH FAMILIAR SITUATIONS Timothy Michael and Melissa Williams The Journal of the INSTITUTE OF FINANCE CASE RESEARCH Volume 16, Number 1 ISSN 1527-5426 JOURNAL OF FINANCE CASE RESEARCH The Official Journal of the INSTITUTE OF FINANCE CASE RESEARCH Robert Stretcher, Executive Editor Sam Houston State University Timothy B. Michael, Editor University of Houston-Clear Lake 2014 Authors retain copyright for individual manuscripts contained in this journal. All authors have provided the Institute of Finance Case Research (IFCR) with a publication permission agreement. The IFCR is not responsible for the content of the individual manuscripts, and any errors or omissions contained within those manuscripts are the sole responsibility of the individual authors. The Editorial Board is responsible for the selection of manuscripts from among those submitted for consideration. Editors accept final manuscripts electronically and make suitable alterations solely for the purpose of organization, pagination, and aesthetics. Editorial Board: Robert H. Stretcher, Executive Editor Sam Houston State University (Texas) Timothy B. Michael, Editor University of Houston-Clear Lake (Texas) ASSOCIATE EDITORS: James Bexley Timothy B. Michael Sam Houston State University (Texas) University of Houston - Clear Lake (Texas) William Brent Michael McLain Howard University (District of Columbia) Hampton University (Virginia) Timo Korkeamaki Bennie H. Nunnally, Jr. Hanken University (Finland) University of North Carolina - Charlotte Anne Macy David Porter West Texas A&M University University of Wisconsin - Whitewater Journal of Finance Case Research The Journal of the Institute of Finance Case Research Huntsville, Texas Those interested in subscribing to, advertising in, or submitting manuscripts to the Journal, as well as other communication, should contact the editor. Dr. Timothy B. Michael, Editor Journal of Finance Case Research School of Business University of Houston-Clear Lake 2700 Bay Area Blvd, Box 204 Houston, Texas 77058 (281) 283-3193 [email protected] Copyright 2014 by the Institute of Finance Case Research ii JOURNAL OF FINANCE CASE RESEARCH Volume 16 2014 Number 1 CONTENTS HOW SAFE IS DEPOSIT INSURANCE? 1 THE CASE OF CYPRUS Arthur Centonze CS PHARMACEUTICALS COMPANY: 15 NEW THERAPEUTIC COMPOUND VALUATION Thomas Patrick, Christopher Sobotka and Andrew Carver MANAGING SHAREHOLDER VALUE IN POST-CRISIS TIMES: 23 A CASE STUDY OF COMMUNITY BANK Victoria Geyfman and John Walker DOLLAR TREE, INC. AND CALPERS 35 THE PROXY FIGHT THAT NEVER ENDS Woody Richardson and Michael Schellenger A LEVERAGED BUYOUT: THE BURGER KING CASE 43 John Lewis and Samuel Jones SAMPSON ENERGY 53 Jim Mahar and Jeremy Tranzillo BAYOU U.: ETHICS AND LEADERSHIP 63 Timothy Michael and Melissa Williams OILFIELD SOLUTIONS CORPORATION 75 Robert Stretcher and Edward Blackburne FIRST WISCONSIN CHURCH 83 David Porter and Curt Weber SHORTER CASES & EXERCISES USING REGRESSION ANALYSIS 91 TO APPRAISE HOMES IN HOT REAL ESTATE MARKETS William Brent, Lynne Kelly, Debbie Lindsay and Russell Price TEACHING ETHICAL DECISION MAKING WITH FAMILIAR SITUATIONS 97 Timothy Michael and Melissa Williams iii JOURNAL OF FINANCE CASE RESEARCH Volume 16 (2014) Letter from the Editor I am pleased to present the 2014 issue of the Journal of Finance Case Research, the official journal of The Institute of Finance Case Research (IFCR). 2014 was a rebuilding year for the journal, and we have come a long way in a very short period of time. I wish to express my sincere thanks to the associate editors and reviewers for their diligence over the past year. I must also thank the authors for this issue, who have displayed the patience of Job. The IFCR provides an avenue for the writing of cases and their submission for peer review. Cases accepted for publication in the Journal have met the quality requirements of a double-blind review process, and they are available for use through Journal subscriptions or by contacting the Institute for multiple copies (for a small fee per copy of the case). Teaching notes are available to instructors desiring to use each case by contacting either the Institute or the authors. The Institute continues to promote the interaction of casewriters in conference settings. I would like to personally invite casewriters and case users to participate in the activities of the Institute. Our case sessions are held at a variety of finance conferences and provide the opportunity for interaction with others with a similar interest. Our recent conference activities have taken place in Jacksonville, Denver, Savannah, Maui, Biloxi, Nashville, Las Vegas, Chicago, Pensacola Beach, and other great destinations. Cases submitted for conference presentation are eligible for the review process for the Journal. Our overall objective is to create an outlet for casewriters, and a source of quality cases for case users. Cases presented at our conferences, having had the advantage of being exposed to the scrutiny of experienced casewriters, have a better chance of final acceptance for journal publication. Our acceptance rate is no more than 25%. The Journal is listed in Cabell's Directory of Publishing Opportunities in Economics and Finance, and is listed in other quality informational references as well. This issue of the Journal of Finance Case Research contains several cases that we hope you will find useful in your courses and consulting work. Please visit our website often for updates and conference information. We encourage all parties interested in the production, promotion, and use of cases in finance to become active participants in the IFCR. Timothy B. Michael, Editor Journal of Finance Case Research www.jfcr.org iv JOURNAL OF FINANCE CASE RESEARCH Volume 16 (2014) Journal of Instructional Techniques in Finance CALL FOR PAPERS The JITF invites authors to submit manuscripts for publication consideration. The JITF is a periodical double-blind refereed journal which began in the Fall of 2008. The JITF seeks articles concerning innovative and effective teaching techniques, tools for educators, and especially techniques designed to enhance the student experience in finance courses at the college level. The JITF is designed to be useful to finance professors wanting to create better understanding of financial methodologies and analyses among their students. If you have used techniques that have helped you achieve this, please consider formally sharing it through our JITF venue. We recommend formatting submissions according to the required Guidelines for Authors on our website. Although submissions in any format are considered for conferences, the presumption is that journal publication is the ultimate objective of a submission. If formatted correctly, one less editorial requirement stands in the way of effective revisions. A publication fee of $57.00 per paper is required upon final acceptance of cases for publication in the JITF. If a manuscript is accepted for publication, all listed authors must either be IFCR members, or must submit the subscription fee prior to publication. Our operations are supported wholly by membership, subscription, and publication fees. We receive no support from universities or conferences. We sincerely hope the JITF can serve your academic publishing needs. Our contact information: Dr. Steve Johnson, Editor, Journal of Instructional Techniques in Finance Department of General Business and Finance Sam Houston State University Box 2056, Huntsville, TX 77341 (936) 294-1283 [email protected] v JOURNAL OF FINANCE CASE RESEARCH Volume 16 (2014) vi JOURNAL OF FINANCE CASE RESEARCH Volume 16 (2014) HOW SAFE IS DEPOSIT INSURANCE? THE CASE OF CYPRUS Arthur L. Centonze, Pace University Cyprus is a small player in a global network of low-tax, low regulatory banking havens. An outsized and aggressive banking sector dominates its economy. The failure of any large Cypriot banks given their sizable domestic intermediary role would have undermined the country’s financial system and economy and, given their strong linkages to foreign banking systems, made them vulnerable to a failure of one or more of these international banks. The Cypriot banking crisis in 2012 and the international community’s attempts to resolve it through an unprecedented “bail-in”, in which investors and depositors in Cypriot banks would share the cost of the rescue, created serious doubts about the safety of bank deposits throughout Europe, the viability of the European Monetary Union (EMU), and its ability to resolve its financial problems. The newly elected president of Cyprus, Nicos Anastasiades, needed to decide quickly whether to support the bail-in plan or pursue another course of action
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