Cooper Case

Cooper Case - Cooper Case ASICS 401 Ben Alexander Natalia...

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Cooper Case ASICS 401 Ben Alexander Terra Collette Natalia Martinez Eric Schneck 12/6/2010
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1. Nicholson is in a vulnerable situation with weak sales and profit performances, and they have a low P/E ratio due to a lack of investor interest. The reasons why Nicholson is a target is the same reason why Cooper wants to acquire them. These reasons are as follows: Distribution Channel Largest domestic manufacturers High quality line with a strong brand name Leader in files and saw blades. Increase of sales for Cooper from industrial market 2. The stock price for Nicholson is ($45.06) (See Exhibit 1). The stock price is negative because in our model we do not expect any positive future cash flows. 3. In the 3% scenario our stock price is ($9.55) and the 0 growth scenario it is $26.76. The main reasons that the values are different are that Nicholson has high variable costs. When they grow, they have more costs, which lead to a negative cash flow. 4. The stock price for Nicholson using liquidation value for our terminal value
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This note was uploaded on 03/23/2011 for the course BUS M 401 taught by Professor Toddmitton during the Fall '10 term at BYU.

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Cooper Case - Cooper Case ASICS 401 Ben Alexander Natalia...

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