Homework: Finance Simulation- M&A in Wine Country
Background
To solve quantitative and qualitative research in business finance. In this multi-player simulation, students each play the role of a CEO at 1 of 3 publicly traded wine producers: Bel Vino, Starshine, or International Beverage. Bel Vino and Starshine consider a merger-of-equals transaction while International Beverage considers acquiring either Bel Vino or Starshine. Students review confidential information to determine the value and set reservation prices before negotiating deal terms. Stock prices rise and fall in reaction to the formal bidding process and help create a dynamic and competitive negotiation environment. The simulation is entirely web-based and a built-in chat feature allows students to negotiate privately online.
Your homework should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to this topic.
Questions to be answered in your report:
Write a research report that outlines the topics
1) Describe and Critique simulation. Give specific consideration to the different outcomes.
2) Explain how each of your considerations influenced your decisions and what impact it had on the share price.
3) What process would you use to estimate these discount rates to see if they are reasonable?
4) As the CEO, how would you approve the share price? Do you believe it is ethical? How would you request external funds, either debt or equity if the company was not selling?
5) Identify and integrate Peter Drucker principles into the decision-making process that is appropriate and insightful.
Format your homework 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 homework, 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.