Problem 1: Identify the differences between an internal estimate of company value and an external estimate of corporate value. Does access to managerial accounting data necessarily lead to better corporate value estimates than relying on publicly available information?
Problem 2: Identify the key issues an analyst should consider when valuing start-up companies. How might an analyst resolve these issues?
Problem 3: In terms of research and development, purchasing, and advertising, describe how the product compatibility of a corporation's business units might impact the value of the corporation.
Problem 4: How might lack of product compatibility affect the realignment of a corporation's divisions?
Problem 5: At what point in the incurrence of costs does the allocation of corporate costs lead to misleading results for the firm's business units? Indicate a few such costs.
Problem 6: What are some of the corporate advantages in dealing with customers who shop at dot.coms?
Problem 7: Assume that one of the earlier problems of dot.coms -- heavy startup costs involving substantial discontinuities -- is to some degree over. How should this impact the valuation process?
Problem 8: What do you foresee in the future for dot.coms, and what does that imply for changes that must occur from the present time?