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an oil company wants to divest its low-growth chemicals division which has an estimated stand-alone value of around 5
an electronics conglomerate intends to divest its high-growth energy division which develops and manufactures solar
1 explain why companies with the same credit rating can have very different coverage ratios2 describe the process a
1 what are the three objectives of investor communications2 how does classifying investors into segments help a
1 what are the key differences between intrinsic investors and traders2 why is it beneficial for a company to provide
1 define purchasing power parity what is the importance of purchasing power parity when you are trying to establish
1 why does high inflation typically destroy value for companies2 which companys roic would you expect to go up more in
1 assume that inflation unexpectedly increases by 10 percent explain why a companys roic then needs to increase by more
the forward-rate and spot-rate methods for discounting foreign-currency cash flows are equivalent if interest rate
1 explain why the value of a business may differ under different owners2 what are the potential sources of value that
1 explain how and why the best owner of a business might change over time2 what are the steps involved in constructing
1 diversco a large us company operates in two areas energy and retail clothing you observe an analyst report that
you have estimated the noplat for each of the divisions in a three-division firm at 40 million 60 million and 100
when a company incorporated in a country with a high tax rate does business in countries with lower tax rates it will
the chief financial officer of partsco has asked you to rerun the forecast of the companys income statement and balance
the chief financial officer of partsco returns and explains that there is a possibility of a huge contract being
a colleague suggests that a 6 percent growth rate is too low for revenue profit and cash flow growth beyond year 5 he
superiorco earns a return on invested capital of 20 percent on its existing stores given intense competition for new
1 why does the return on assets differ between company a and company b why do companies with equity investments tend to
many companies hold significant amounts of excess cash or cash above the amount required for day-to-day operationswhat
1 explain why it is important that the project manager and project staff have detailed information on each work
1 if growth is a significant value driver does getting bigger translate into creating value explain2 what more could
1 what is the conservation of value principle provide some examples of where it might apply2 under what circumstances
1 how do diversifiable and nondiversifiable risks affect a companys cost of capital2 on what basis should a companys
1 how can company a outperform company b on all key value drivers eg growth and roic but still deliver lower trs2 why