MAFF case studies

MAFF · Put your knowledge to work in context.

MAFF is a professional certification in financial analysis. Candidates typically pursue it to demonstrate applied competence across financial analysis fundamentals, financial statement analysis, corporate finance and valuation, equity and fixed income investments, portfolio management and risk, and ethics and professional standards. The MAFF case studies are 5 cases and about 4,140 words.

Revenue Growth Without Cash: A Distributor's Quality of Earnings

Northline Industrial Supply reports FY revenue of 480 million, up 18% from 407 million. Gross margin fell to 31.2% from 32.8%.

804 words, about 4 min 2

A Levered Expansion: WACC, Sunk Costs, and the Lease Option

Ardent Foods is evaluating a new production line with a five-year life. The line costs 60 million, depreciated straight-line to zero, and is expected to generate incremental revenue of 85 million per year with cash operating costs of 62 million.

794 words, about 4 min 3

Callable vs. Straight Bond in an Inverted Curve

A regional insurer must invest $25 million for a five-year horizon. Two bonds are available.

852 words, about 4 min 4

VaR Breaches, Duration Mismatch, and a 60/40 Pension

A defined-benefit pension has 1.8 billion in assets, liabilities with a 14-year duration, and a funded ratio of 92%. The current allocation is 60% global equity and 40% aggregate bonds; the bond portfolio has a duration of 6.5, and equity duration is assumed to be zero.

804 words, about 4 min 5

Sell-Side Rating Pressure and a Flawed Performance Composite

An analyst at a boutique broker covers MedTech Devices. MedTech is also an investment-banking client, and the IB managing director tells the analyst that “the client is furious about your hold rating; a 40 million follow-on mandate is at stake, and your bonus is tied to firm revenue.” The analyst's DCF values MedTech at 28 per share versus a 34 market price, but a new product could add 3 per share if approved.

886 words, about 4 min