What base-case cash flows do you forecast


Assignment

Read Case: Sun Microsystems (HBR) and will create a 10 minute presentation video response with their Pitchbook Presentation group.

The Case Study method is somewhat subjective and open to interpretation. Here are a few questions you should consider:

I. Is Sun Microsystems a good strategic fit for Oracle?

II. What approaches would you use to place a value on Sun Microsystems?

III. Assuming a discounted cash flow valuation:

i. What rate of return should Oracle require on the acquisition?

ii. What base-case cash flows do you forecast?

iii. What is your estimate of terminal value?

iv. What is the enterprise value of Sun Microsystems? What is the equity value?

IV. Conduct a multiples analysis to value Sun. What economic fundamentals are reflected in the multiples?

V. Identify the synergies and conduct a sensitivity analysis to estimate the effect of synergies on enterprise value.

VI. If a competing bidder appears, how high a price should Oracle be willing to offer?

Format your assignment according to the following formatting requirements:

o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.

o 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.

o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.

Attachment:- Case-Sun-Microsystems.rar

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