This case serves as a means to illustrate the business value analysis questions such as: 1) In view of the shares, which means the cost associated with operating business? 2) Subject to evaluation of several operating businesses, which implies a target price of shares? In addition, in case 1) shows how arbitration works to ensure compliance with the law of one price and keep markets efficient 2) is a model case to understand why stocks can be undervalued 3) shows the use of "stub" value analysis 4) provides illustration of the overall strategy hedge funds (long / short equity) 5) shows how to calculate margin requirements for a portfolio containing both long and short positions 6) shows the effect of leverage and capital requirements on investment income 7) is an example of the basis for the calculated risk in a complex investment position. "Hide
by Martin Dirks Source: Richard Ivey School of Business Foundation 4 pages. Publication Date: September 15, 2009. Prod. #: 909N16-PDF-ENG
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