Case Questions Essay

3. How do the various features of the BW/IP buyout affect the company’s decisions about long-horizon opportunities such as the UCP acquisition?

7. Based on the data in case Exhibits 1, 5, and 6, is Costco’s financial performance superior to that at Sam’s Club and BJ’s Wholesale?

Three interrogations were thus to answer. Should the company provide investors with classic bonds or give them the opportunity to convert them into equity? Should they structure the offer with a fixed or a floating coupon rate? And last but not least, where should they locate the operation?

For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.

Assume that you are a CEO of a medium-sized company that needs a significant influx of cash for several expansion projects. As the CEO, you must determine whether your company should remain private or go public. Some companies postpone going public due to the unpredictability of economic and market conditions. Consider the ramifications of both alternatives. Construct an argument for and against going public. Before providing your response, review the guidelines and regulations associated with going public by visiting Small Business and the SEC located at http://www.sec.gov/info/smallbus/qasbsec.htm.

4. Should Lincoln go ahead with its investment in Indonesia? If so, what should be its entry strategy with respect to partnerships? Which compensation option would you recommend to Mike Gillespie as he considers the advisability of implementing the company’s incentive management system?

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

· * From the scenario, take a position for or against TFC’s decision to expand to the West Coast. Provide a rationale for your response in which you cite at least two (2) capital budgeting techniques (e.g., NPV, IRR, Payback Period, etc.) that you used to arrive at your decision.

3) Can you identify the major sources of funding used by the company from the information presented in the company's annual report? If not, how could you get this information?

1. Why is Auhll (CEO of Circon) resisting to the takeover? How do incentives of Auhll conflict with those of other (minority) shareholders?

1). The corporation is in the process of developing a new flu vaccine which is nearing the final development stage.to complete this project, the corporation need $25,000,000 of additional fund. The local banks are reluctant of giving loan to the corporation because of the lack of sufficient collateral and the riskiness of the business. The sole stockholders of the corporation Bard Abrams and Dr. Amber Epstein who are organizing the corporation, had a discussion between them. They had a proposal of issue of additional stock. They would like to promise the new investors to pay 5% of sales until they have received an amount equal to what they paid for the stock. They are also obliged to pay an amount of $120 per share.

* Using the same scenario, determine how you would finance a five-fold expansion of your company. Explain your rationale.

1. (From Final Exam Summer 2009) ABC Company Ltd., is considering a possible business investment that requires a $350,000 expenditure today. Immediately after the $350,000 expenditure, the new venture’s market to book ratio (value to expenditure) is 1.6.

Use the following information on a company’s investments in equity securities to answer questions 1- 4 below.

9. How should Redstone proceed? What price should he offer? Should the offer be a cash offer, a stock offer, or