Assignment: Cases In Financial Decision-Making
Write up an introduction for ferrari case and complete the Q4 and Q5
Case Study:
Ferrari: Valuing the Prancing Horse
Suggested Assignment Questions
1. What do you believe is the key to Ferrari's brand value? What does Ferrari need to do over time to retain and potentially build that value?
2. What is the primary market for Ferrari sales?
3. What are the major challenges facing Ferrari's continued success as a publicly traded company?
4. How does Ferrari's financial performance compare to other global automakers?
5. How is that Ferrari has been able to achieve such high gross and operating margins compared to its competitors?
6. What are the fundamental principles of the discounted cash flow valuation?
7. What key variable inputs or assumptions are of most critical interest for Ferrari's valuation?
8. What do you think is a relevant range of values for Ferrari's Discount Cash Flow (DCF) valuation?
9. What conclusions can you draw from the comparative analysis? Are these in any significant way different from what the DCF analysis shows? Hint: Considering using Price-to-Earnings or Enterprise-Value-to-EBITDA to calculate Ferrari's value.
10. Final thoughts: What is Ferrari stock worth?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.