MinderSoft, Inc.
1) MinderSoft appears to be a company with significant upside potential. MinderSofts
five planned product lines were user specific and tailored to individual customers
needs, making customer attrition less likely. Two of their product lin
1. Provide a brief overview of the proposed venture. Clearly describe the relevant time line.
The proposed business venture is to create an investment company named Arundel Partners that
would invest in the movie business by purchasing the option to right
Diageo plc
A Harvard Business School Case Study
Part I
1) Diageo plc is a conglomerate formed in 1997 through the merger of Grand Metropolitan plc
and Guinness plc, two consumer product companies. Their goal was to become an industry
leader by achieving c
Diageo Case Mini-Report
Question 1
1.1. Firms have two financing options in creating the optimal Capital Structure: Debt, Equity or a
combination of both. Firms have to choose a target capital structure that maximizes firm value.
Unfortunately there is no
February 7, 2016
Diageo plc.
Lakeside Drive
Park Royal, London NW107HQ
United Kingdom
To the Board of Directors:
Enclosed please find for your reference a summary of our facts and findings regarding our
engagement. Diageo plc has contracted our firm to as
IMBA -FIN 6425 Corporate Finance Nimalendran
Quiz: Real Options
This is an individual quiz and you should submit the answers on-line by the scheduled date.
You are allowed to use any resources EXCEPT help from any other person. You are allowed to use
EXCE
IMBA -FIN 6425 Corporate Finance Nimalendran
Quiz: Real Options
This is an individual quiz and you should submit the answers on-line by the scheduled date.
You are allowed to use any resources EXCEPT help from any other person. You are allowed to use
EXCE
FIN 6425 - IMBA - Corporate Finance
Mindersoft Case Full Report Guidelines
Full Report Guidelines (Teams 7, 8, 9, & 10)
Submit only one word document/Excel per group. All summary tables and charts should
be included in the word document.
Case Guidelines
P
FIN 6425 IMBA-Corporate Finance
Nimalendran
Suggested Solutions for the Arundel Partners Case Mini-Report
Questions
Suggested Analysis
1. Why do the proponents of this venture believe that Arundel Partners can make
money buying movie sequel rights?
Why d
IMBA -FIN 6425 Corporate Finance Nimalendran
Quiz: Real Options
This is an individual quiz and you should submit the answers on-line by the scheduled date.
You are allowed to use any resources EXCEPT help from any other person. You are allowed to use
EXCE
IMBA -FIN 6425 Corporate Finance Nimalendran
Quiz: Real Options
This is an individual quiz and you should submit the answers on-line by the scheduled date.
You are allowed to use any resources EXCEPT help from any other person. You are allowed to use
EXCE
expand your companys hospitality business in South America and to enter Argentina. Advisers have suggested a 15% required rate of return based on their evaluation of similar projects. You estimate an
annual end of year cash flow of $1.5M for the first 3 y
BBBY
EBT
Net interest Exp
EBIT
Dep and Amort
EBITDA
2/27/2016 in thousands
1327445
87458
1414903
273947
1688850
shares outstanding
Price per share
Market Value of Equity
156600
50
7830000
Market Value of Debt
1299000
Cash and mkt sec
Enterprise Value
5155
1. Land Deal Analysis
Cap Ex
Dep
Taxes
0
0
0
New Acquisition
Price
100,000,000
EOY Rent
5,200,000
Increase in Rev
3%
Inflation
3%
Financing
Debt
Equity
Ratio
Cost
WACC
50%
4.80% 2.400%
50% 11.20% 5.600%
WACC
8.000%
Hot Dogs of America data
Sales
SG&A
Food
Bank of America (BoA) sets a low annual percentage rate (6%) for all its credit card customers instead of basing the interest rates on the customers credit scores. Consequently BoA is
exposed to Adverse Selection Studies have found that personal investors
On August 25, 1995, Warren Buffett, the CEO of Berkshire Hathaway, announced that his firm would
acquire the 49.6% of GEICO Corporation that it did not already own. The $2.3 billion deal would give
GEICO shareholders $70 per share, up from the $55.75 per
1.1. Describe the financing decisions firms must routinely make (liability
management).
1.2. How has Diageo historically managed its capital structure?
1.2.1. Provide target numbers such as INT coverage debt rating etc.
1.3. How does Diageos capital struc
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