Jimmy Fu and Moog, Inc.: Understanding Shareholder's Equity
Jimmy Fu is interviewing for a job at Moog, Inc., a worldwide designer, manufacturer, and integrator of precision motion and fluid controls and systems. He learns that a job offer from Moog typically includes stock options and restricted stock in the compensation package. The vesting and termination language for the stock plan leads Jimmy to investigate the Shareholders' Equity section of the Moog balance sheet, where he finds more activity than he expected. The case introduces students to the concepts of employee stock options, stock-splits and buybacks, multiple share classes, and the basics of equity investment and diversification. Students must complete a quantitative analysis of the financial transactions related to Shareholders' Equity. Primary Objective is to introduce students to the different components of the Shareholders' Equity section of the Balance Sheet, to understand employee stock options, multiple share classes, and certain basics of equity investment, risk, and diversification.
Chapman, Craig. 2010. Jimmy Fu and Moog, Inc.: Understanding Shareholder's Equity. Boston, MA: Harvard Business Publishing, Case 4203.