This instance provides a means to exemplify enterprise valuation evaluation questions like: 1) Provided a stock price, what's the tacit value attributable to the running company? 2) Provided a valuation multiple for an operating company, what's the tacit goal stock price? Additionally, the case 1) exemplifies how arbitrage acts to apply the law of one price and keep marketplaces efficient 2) provides a model instance to comprehend why stocks can become mispriced 3) demonstrates use of a "stub" valuation evaluation 4) provides an instance of a common hedge fund strategy (long/short equity) 5) demonstrate the way to compute margin requirements for a portfolio including both long and short positions 6) exemplifies the effects of leverage and capital requirements on investment yields 7) provides an example framework to compute hazard in a sophisticated investment standing.
PUBLICATION DATE: September 15, 2009 PRODUCT #: 909N16-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
Related Case Solutions & Analyses:
Ferro Industries – Exporting Challenge in a Small Firm
Shaping an Industry in Your Favor
Monsanto Co.: The Coming of Age of Biotechnology
Accountants and Business Advisors Inc.: City Office
Destin Brass Products Co.
Financial Impact of U.S. Nuclear Power Plants: Dominion Resources, Inc.
An Overview of Taxation in the United States
Investing in Sponsor-Backed IPOs: The Case of Hertz
NewGrade Energy Inc.
SunTrust Banks, Inc.: Coke Refreshes Tier 1 Capital
