Repeated from earlier question: Pick any two out of the thre…
Questions
Repeаted frоm eаrlier questiоn: Pick аny twо out of the three from the choices below. If you attempt all, I will grade only the first two. The three questions are repeated from the previous set. Answer your second choice in the questions here. 1. Lavania Rogers is the CFO of Truvelle Intl, a young financial software platform firm. Ms. Rogers is considering several projects in newly opening markets in Mongolia. She believes that her firm should take advantage of the current low interest rates. Thus, she would like to increase the debt-equity ratio of the firm but is concerned about the consequences of increasing leverage. Although she studied finance in her MBA program, she does not remember much about capital structure theory or the cost of capital. Knowing that you have recently taken a class in corporate finance, Ms. Rogers has come to you for advice. What would you tell her? OR 2. You are the CFO of a family owned business, Marine Tech, which is planning to go public and you are charged with making a presentation to the family board members about the process. Marine Tech is a young firm with a niche market in heavy equipment, specifically for the marine industry. The projections show initial years of negative FCF, after which the numbers improve considerably. They want to know the pros and cons of going public. They also want you to explain the valuation process - and want to know about the methods you recommend in order to value their firm and why. How would you advise them to price their IPO and why? OR 3. You are the CFO of CAD Design, Inc. Your firm has switched its focus from a mainstream construction engineering firm to lines of businesses which focus more on automated software technology. Till recently, CAD Design paid regular dividend, but had to reduce dividends with the slowdown in the construction industry. You are preparing for an internal management meeting where dividends are on the agenda. You know that the CEO favors the dividend program. The COO, however, wants to discuss discontinuing the dividend program and perhaps instituting a stock repurchase program. Prepare your notes for a discussion of the two options, and also make a recommendation, based on the theory.
Repeаted frоm eаrlier questiоn: Pick аny twо out of the three from the choices below. If you attempt all, I will grade only the first two. The three questions are repeated from the previous set. Answer your second choice in the questions here. 1. Lavania Rogers is the CFO of Truvelle Intl, a young financial software platform firm. Ms. Rogers is considering several projects in newly opening markets in Mongolia. She believes that her firm should take advantage of the current low interest rates. Thus, she would like to increase the debt-equity ratio of the firm but is concerned about the consequences of increasing leverage. Although she studied finance in her MBA program, she does not remember much about capital structure theory or the cost of capital. Knowing that you have recently taken a class in corporate finance, Ms. Rogers has come to you for advice. What would you tell her? OR 2. You are the CFO of a family owned business, Marine Tech, which is planning to go public and you are charged with making a presentation to the family board members about the process. Marine Tech is a young firm with a niche market in heavy equipment, specifically for the marine industry. The projections show initial years of negative FCF, after which the numbers improve considerably. They want to know the pros and cons of going public. They also want you to explain the valuation process - and want to know about the methods you recommend in order to value their firm and why. How would you advise them to price their IPO and why? OR 3. You are the CFO of CAD Design, Inc. Your firm has switched its focus from a mainstream construction engineering firm to lines of businesses which focus more on automated software technology. Till recently, CAD Design paid regular dividend, but had to reduce dividends with the slowdown in the construction industry. You are preparing for an internal management meeting where dividends are on the agenda. You know that the CEO favors the dividend program. The COO, however, wants to discuss discontinuing the dividend program and perhaps instituting a stock repurchase program. Prepare your notes for a discussion of the two options, and also make a recommendation, based on the theory.