7-11 Case Study
Assignment #1 – MBA Choices in Finance
Assigned Class 2 – Due 11:55pm on Sunday Week 4
75 Points – two page paper
David Jetter graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an
MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Prentice University or Mount Alliance College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program.
David currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $60,000 per year, and his salary expected to increase at 3 % per year until retirement.
He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 %. David has savings account with enough money to cover the entire cost of his MBA program.
The Ritt College of Business at Prentice University is one of the top MBA programs in the country.
The MBA degree requires two years of full time enrollment at the university. The annual tuition is
$65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $3000 per year. David expects that after graduation from Prentice, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4
% per year. Because of the higher salary, his average income tax rate will increase to 31 %.
The Bradel School of Business at Mount Alliance College began its MBA program 16 years ago.
The Bradel School is smaller and less well known than the Ritt College. Bradel offers an accelerated, one – year program, with a tuition cost of $80,000
Assigned Class 2 – Due 11:55pm on Sunday Week 4
75 Points – two page paper
David Jetter graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an
MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Prentice University or Mount Alliance College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program.
David currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $60,000 per year, and his salary expected to increase at 3 % per year until retirement.
He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 %. David has savings account with enough money to cover the entire cost of his MBA program.
The Ritt College of Business at Prentice University is one of the top MBA programs in the country.
The MBA degree requires two years of full time enrollment at the university. The annual tuition is
$65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $3000 per year. David expects that after graduation from Prentice, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4
% per year. Because of the higher salary, his average income tax rate will increase to 31 %.
The Bradel School of Business at Mount Alliance College began its MBA program 16 years ago.
The Bradel School is smaller and less well known than the Ritt College. Bradel offers an accelerated, one – year program, with a tuition cost of $80,000