Assignment
Case: Burton Sensors, Inc.
• Should Marshall continue to pursue high-growth strategy? How can she finance it?
• What is the potential effect of growth on Burton's stock price?
• Should Marshall purchase the thermowell machine? In calculating the WACC, use 6% as the equity risk premium.
• Should Marshall accept the offer of the private investor and issue new equity? How does
• the deal affect Burton's existing shareholders? What is the effect of the issuance on Burton's balance sheet?
• Should Marshall acquire Electro-Engineering, Inc. (EE)? What is the most important consideration? Even if the NPV of the acquisition is zero, should she still proceed?
• Does the acquisition allow EE to gain enough funding to invest in the purchase of thermowell machines?
The first page will include the Executive Summary. Which will state the problem faced by the company, and your recommended solution and why? Supported by some numbers that you had calculated in the body of the case
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, 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 course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.