Hedge fund manager billion just walked syndicate tools to assess their interest in trying to get RamSync Incorporated, Silicon Valley manufacturer of memory chips. Using the traditional discounted cash flow analysis (method of APV), the manager quickly determines that the purchase price of $ 900 million, RamSync has a negative NPV of $ 33 million. However, buying RamSync, which currently produces SDRAM, allows the owner to enter into a long-awaited MRAM market for the next period of time. Managers now have to review how the value RamSync including hidden option it has on the market MRAM. "Hide
by Walid Busaba, Zeigham Khokher, Elliott Weinstein Source: Richard Ivey School of Business Foundation 5 pages. Publication Date: August 12, 2005. Prod. #: 905N12-PDF-ENG
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