CASE JAGUAR PLC, 1989
CASE ASSIGNMENT QUESTIONS
(Write no more than 3 pages, excluding eventual annexes)
1) Evaluate the strategic merits of combination between Jaguar and either Ford or General Motors. What are the sources of value created, if any, by such a combination? How should it be structured? (e.g., as a merger, as a joint venture, a minority interest, etc.) to capture the value you identified?
As the question is to evaluate strategic merits between Jaguar and its future partner and the value created by any combination the sources of value that will be created will be the following. First of all the so much needed financial aid, Jaguar will be provided by the partner. As a second value that will be created will be a very
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My evaluation is most sensitive with the free cash flow, because they have major change in free cash flow in 1999 to 1990 of minus 190 million pounds. Even after 4 years they have the first positive cash flow. Jaguar real value implies the assumption of Exhibit 7 as 1.7 billion. However the plan they have of tripling their assumption is more than optimistic, because is hard to triple their assumption more than 3 years, because of current situation they are on the market. With the little less optimistic scenario their value will drop on 1.5 billion pounds which will maybe give us the real value of the company, if things turn out as planned. However if their plan really works the real value with the included goodwill be 2 billion pounds. It is just an estimate.
3) Try to generate different evaluation scenarios, at least one less optimistic Here is one optimistic and one pessimistic scenario. With the pessimistic scenario we took WACC with +3, 5 % and it give us a discounted cash flow value of 1,6 billion pounds which indicates a major drop in real value of the company. With the optimistic scenario we took WACC with - 4,5% and it gave us an increase of value to 2.38 billion pounds which indicates that with a little bit better adjusting and a good marketing campaign the optimistic scenario will give us an optimistic scenario of 590 million
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
Question #1: How would Sheryl Sandberg’s leadership style be described based on the four behavioral leadership styles?
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
Suppose you are the network manager for Central University, a medium-size university with 13,000 students. The university has 10 separate colleges (e.g., business, arts, journalism), 3 of which are relatively large (300 faculty and staff members, 2,000 students, and 3 buildings) and 7 of which are relatively small (200 faculty and staff, 1,000 students, and 1 building). In addition, there are another 2,000 staff members who work in various administration departments (e.g., library, maintenance, and finance) spread over another 10 buildings. There are 4 residence halls that house a total of 2,000 students. Suppose the university has the 128.100.xxx.xxx address
Another quantitative method we used to value the possible acquisition of Mercury was estimating Mercury’s horizon value based on its excess free cash flow using the Gordon growth model. A company’s horizon value is its value at the end of a certain period. This value can be used as a present value of a company. The basic assumption of the Gordon growth model is that a company will generate free cash flows at a consistent growth rate for an indefinite amount of time. The model uses the following equation:
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Your work is expected to be analytical and evaluative, consolidate on relevant theory and indicate a good level of application abilities. In order to complete this assignment you are required to select a company of your choice and identify the various stakeholders and their Interests on the company. You need to briefly explain
3. What strengths does AutoVAZ bring to the joint venture and what does GM bring? Are they a good fit? Why or why not?
Figure 2: Graphical Illustration of Share price data for past 12 months (Sep 12-Sep 13).........3
This report will firstly evaluate the usefulness and limitations of the two investment appraisal methods, including the Payback and Net Present Value (NPV). Secondly the report will review historical financial information. Thirdly discuss the financial issues of debt and equity. Finally the report will provide recommendations of how the company’s investment should be finance.