BAN-402 Spreadsheet Modeling
By: Dina Xenos
A company has $1,000,000 to invest in new R&D projects. The company wants to determine what set of
projects should be selected.
The following table summarizes the initial cost
Cost Per Ton for supplying the
distributors from the processing
Miami Orlando Tallahassee
Frozen Orange Juice Concentrate shipped from Processing
plants to Distributors
Miami Orlando Tallahassee Total S
1. Identify the decision/s that need to be made (decision variables)
They are the 2 following decisions:
# of Aqua Spas to make
# of Hydro Luxes to make
Objective: How to maximize profits
How do you calculate the profit?
Aqua Spa earns a profi
# to Make
# to Buy
Cost to Make
Cost to Buy
X1= # Electric trimmers to make
X2 = # Gas trimmers to make
Y1= #Electric trimmers to buy
B2= #Gas trimmers to buy
55X1 + 85X2 + 67Y1 + 95Y2
THE CATHOLIC UNIVERSITY OF AMERICA
METROPOLITAN SCHOOL OF PROFESSIONAL STUDIES
MBU 370 Statistics
Credit Hours: 3
Classroom: Gowan 401
Days and hours of class meetings: Mondays, 6:10 8:40 p.m.
August 31 December 14, 2015 (No classes: Sept. 7, Oc
Questions for Prada. To IPO or not IPO that is the question again
1. Why is Prada trying to change its capital structure? How does it expect to benefit from a
lower gearing ratio?
2. Is this the right timing for a Pradas IPO? What are the risks
Questions for J C Penney
1. Analyse J C Penney's recent financial problems. Are they purely financial or are there other
strategic and operational explanations for this?
2. Produce a financial analysis (ratios and sta
1 Explain MoGen's business model and how its financial policy fits with it.
2 Should MoGen raise $5 billion in external finance in 2006? What are the
3 Use Black-Scholes model to estimate the value of the conversion option with a 2
Sealed Air Corp Questions
1. Why did Sealed Air undertake a leveraged recapitalization? Do you think that it was a good
idea? For whom?
2. How much value was created? Where did it come from?
3. Is pursuing a program of manufacturing excellence such as Wor
Procter & Gambles acquisition of Gillette
1 What are the possible synergies and forces propelling the merger between P&G and
Gillette? Why this takeover attempt promise to be different from the previous ones?
2 In light of Gillettes large
Freeport-McMoRan: Financing an Acquisition
1 Why do you think JPMorgan and Merrill Lynch were selected to underwrite and book-run
all $ 23.3 billion in financings (all debt, common stock and convertible), instead of sharing the
Kohler Case Topics
1. Why does Herbert Kohler want to do the proposed recap? What are, from his perspective, the
pros and cons of doing this recapitalization? Does it impact on shareholder value in general? Who
captures the gains (or losses) of the propos
MW Petroleum Corporation
1. Evaluate Amocos and Apaches corporate objectives and strategies. Is it reasonable to
expect that the MW properties are more valuable to Apache than to Amoco? What
sources of value most plausibly account fo
New Heritage Doll Company: Capital Budgeting
1. Set forth and compare the business cases for each of the two projections under
consideration by Emily Harris. Which do you regard as more compelling?
2. Use the operating projections for
Managers must realize the obstacles to be considered when dealing with Value Chain Management (VCM). Although this is most
sought after, there are also risk and rewards that come with it. The obstacles for Value Chain Management are Organization