Assess the current financial health and recent financial performance of the company.
What strengths and/or weaknesses would you highlight to Adeline Koh?
Forecast the firms financial statements for 2002 and 2003. What will be the external
1. What changes, if any, should Lucy Morris ask Frank Greystock make in his discounted
cash flow (DCF) analysis? Why? What should Morris be prepared to say to the Transport
Division, the director of sales, her assistant plant manager, and the analyst from
1. What are the advantages and disadvantages of Rosetta Stone going public?
2. What do you think the current market price is for Rosetta Stone shares? Justify your
valuation on a discounted-cash-flow basis and a market multiples basis.
3. At what price wo
In what ways can Susan Collyns facilitate the success of CPK?
Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return
on equity (ROE) for CPK? What about the cost of capital? In assessing the effect of
leverage on t
How profitable is the original sale to Novo once the exchange-rate changes are
acknowledged? How might the exchange-rate risk, which affected the value of the order,
have been managed?
Assuming Baker agrees to the new Novo sale, determine the present
1. What is an appropriate required rate of return against which to evaluate the prospective
IRRs from the Boeing 7E7?
a. Please use the capital asset pricing model to estimate the cost of equity. At the date of
the case, the 74-year equity market risk pre
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?
If you do not agree with Cohens analysis, calculate your own WACC for Nike and be
prepared to justify your
What is an appropriate required rate
of return against which to evaluate
the prospective IRRs from the
a. Please use the capital asset pricing
model to estimate the cost of equity.
At the date of the ca
What do the financial ratios in case
Exhibit 7 tell you about the operating
performance of Home Depot? Wha