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    Questions For Case Analysis

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    Dwinanda Septiadhi
    The document contains summaries of 10 case studies related to finance and business topics. The cases cover ratio analysis, financial performance evaluation, net present value, weighted average cost of capital calculation, capital budgeting, debt policy, working capital management, valuation, leasing, and foreign exchange hedging strategies. Students are asked to analyze the cases, perform necessary calculations, evaluate alternatives, and make recommendations.

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    Questions For Case Analysis

    Uploaded by

    Dwinanda Septiadhi
    1K views3 pages
    The document contains summaries of 10 case studies related to finance and business topics. The cases cover ratio analysis, financial performance evaluation, net present value, weighted average cost of capital calculation, capital budgeting, debt policy, working capital management, valuation, leasing, and foreign exchange hedging strategies. Students are asked to analyze the cases, perform necessary calculations, evaluate alternatives, and make recommendations.

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    Questions for Case Analysis

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    The document contains summaries of 10 case studies related to finance and business topics. The cases cover ratio analysis, financial performance evaluation, net present value, weighted average cost of capital calculation, capital budgeting, debt policy, working capital management, valuation, leasing, and foreign exchange hedging strategies. Students are asked to analyze the cases, perform necessary calculations, evaluate alternatives, and make recommendations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views3 pages

    Questions For Case Analysis

    Uploaded by

    Dwinanda Septiadhi
    The document contains summaries of 10 case studies related to finance and business topics. The cases cover ratio analysis, financial performance evaluation, net present value, weighted average cost of capital calculation, capital budgeting, debt policy, working capital management, valuation, leasing, and foreign exchange hedging strategies. Students are asked to analyze the cases, perform necessary calculations, evaluate alternatives, and make recommendations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    CASE 1 FINANCIAL RATIO ANALYSIS

    Using the financial ratio analysis technique, please calculate the key financial ratio and evaluate the performance of Novella LTD and discuss. The financial statements are on pages-23-27.

    CASE 2 Financial Performance of Dell Computer:


    Discuss the calculated Financial ratio on page 10- Exhibit 6, and make recommendation for your CEO. Ratio definition are given on exhibit 11

    CASE 3 DEVELOPING FINANCIAL INSIGHTS: USING FV AND PV APPROACH:


    Discuss what is FV, how do we use FV, what is PV, when is PV applicable, and why

    CASE 4: NIKE, INC.: COST OF CAPITAL


    1. What is the WACC and why is it important to estimate a firms cost of capital? Do you agree with Joanna Cohens WACC calculation? Why or why not? 2. If you do not agree with Cohens analysis, calculate your own WACC for Nike and be prepared to justify your assumptions. 3. Calculate the costs of equity using CAPM, the dividend discount model, and the earnings capitalization ratio. What are the advantages and disadvantages of each method? 4. What should Kimi Ford recommend regarding an investment in Nike?

    CASE 5 Euroland Food SA


    The case is about strategic resource allocation, 1. Prepare to discuss the strengths and weaknesses of the various measures of investment attractiveness as used by Euroland Foods. Will all of the measures rank the projects identically? Why or why not? 2. Please rank the 11 proposals on the basis of purely economic considerations. Then rank them a second time based on any other considerations that you believe are important. Are the rankings identical? Why or why not? 3. Which set of projects should Wilhelmina Verdin recommend to the board of Euroland Foods for the capital budget for 2001?

    CASE 6

    AN INTRODUCTION TO DEBT POLICY AND VALUE


    1. The first aim of this exercise is to illustrate Modigliani and Millers (M&M) theory about the relationship between debt and firm value in a taxable world 2. Assignment: 3. PLEASE COMPLETE THE EXERCISE QUESTION1 THROUGH 7, PREPARE IN SPREADSHEET, 4. Do the exhibit 1 after recapitalization to gain understanding

    CASE7 DELLS WORKING CAPITAL:


    READING ASE: UNDERSTRAND HOW WORKING CAPITAL MANAGE WITH JUST IN TIME INVENTORY CONTROL. USING THE SAME METHODOLOGY, PLEASE FORECAST FOR DELL WORKING CAPITAL IN 1997 USING LAST THREE YEAR AVERAGE GROWTH RATE.

    CASE 8 ARCADIAN MICROARRAY TECHNOLOGIES, INC.


    Study Questions for Advance Assignment . Prepare to explain the implications of case Exhibit 1 (Paige Simons first task). Based on that exhibit, is terminal value a material component of firm values? 2. Drawing on case Exhibit 4 and your own general knowledge, where would the various estimators be appropriate? Where would they be inappropriate? (Simons second task) 3. Regarding the cash flow forecasts in case Exhibit 5, at what point in the future would you set the forecast horizon for the three investments? Why? More generally, what should determine when you stop forecasting annual cash flows and estimate a terminal value? 4. Estimate other terminal values based on alternate estimation approaches. From these various estimates, please triangulate toward a single composite estimate of terminal value for each of Sierra Capital and Arcadians forecasts. What is the resulting present value (PV) of cash flows under Sierra Capital and Arcadians outlook? How significant was TV in creating the difference between the two present value estimates? 5. As a general matter in valuation work, how much attention should terminal value garner? What short list of questions about TV could you keep on hand in case a client asked you to opine on a valuation of that company? Methods of Valuation for Mergers and Acquisitions Read the case, Understand the method of valuation using DCF What is: DCF? FCF? Illustrate the M&A Questions & Answers on Page 575-577 of cases

    CASE 9

    PRIMUS AUTOMATION DIVISION, 2002


    Questions for Advance Assignment to Students 1. Why is Primus Automation considering the lease of its factory-automation system to Avantjet? 2. How did Tom Baumann analyze the problem of setting the lease-financing terms? How does he calculate NPV and internal rate of return (IRR) for the lease and borrow-and-buy alternatives? 3. Please complete case Exhibit 6. 4. How are Faulhaber and Honshu Heavy Industries using their leasing plans? 5. How should Baumann choose the set of terms to recommend to Jim Feldman? What impact, if any, should the competing proposals by Faulhaber and Honshu have on Baumanns thinking? 6. What lease terms should Baumann recommend? How should Primuss sales and leasing divisions structure the terms of the deal with Avantjet? How would you approach the negotiations with Avantjet?

    CASE 10 Foreign Exchange Hedging Strategies at General Motors:


    Read this case Probing Questions for Discussions: Should GM hedge or not hedge? Why? What? How? Cost Benefit of hedging Explain the potential country / currency risk,

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