Case Name :      Alfin Fragrances, Inc.

Authors :           Casey S. Opitz, Robert F. Bruner

Source :             Darden School of Business

Case ID :           UV0211

Discipline :        Finance

Case Length :    17 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Primarily an exercise in quantitative techniques-financial forecasting and simple equity valuation-this case also presents issues related to decision-making and judgments in forecasting, and handling ethical concerns. In February 1986, Alfin, an importer and marketer of perfumes, introduced a skin cream with certain purported medicinal qualities to reduce wrinkles. The product is considered a major breakthrough as an over-the-counter therapy and offers huge potential sales. Students must estimate Alfin’s funding needs as a result of that growth, decide whether those needs should be financed with debt or equity, and determine the value of its common stock.