I like to show the movie Barbarians at the Gate in finance class because it is such a strong illustration of corporation finance: decisions about introducing a new product (the ill-fated Premier cigarette) and reinvesting in the bakery business; dealing with sunk costs (Premier); valuing cash flows; agency problems with management and shareholders; decisions about capital structure; and what happens… [Read More]
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Tag: Barbarians at the Gate
Barbarians at the Gate, workers, and wages
I’ve started showing Barbarians at the Gate in my corporation finance classes because it is a great story that ties together so many items on the syllabus: investment decisions in existing businesses, sunk costs (the Premier cigarette), the differences between cash flow and accounting income, and the use of leverage. Plus, James Garner is so… [Read More]
Five Movies About Money
The blogathon comes with a list of assignments, and today’s is to write about five favorite movies. I decided to twist the topic a little and list five movies about money. All of these are great fun, for different reasons (Bonfire of the Vanities, for example, is a train wreck), and they all talk about… [Read More]