Caso Cooper

On April 19, 1997, the company was offered for sale to Mr. Warren G. Hamer. Provided with the exhibits that contain the summary of Terms and Conditions of Sale, audited Income Statements and Balance Sheets, and Company History, Mr. Hamer needs to decide whether or not to place a bid, which is due on April 24. However, Mr. Hamer was

a.How much business risk is associated with Sterling’s proposed acquisition of the germicidal, sanitation, and antiseptic products unit of Montagne Medical?

Calculate the incremental NPV from adding the laminate technology to the Collinsville plant. What is the NPV of the Collinsville plant with the laminate technology?

c. How could the transaction be structured a different way to get a better result for

By using the 7.2% after tax rate and assuming the equipment will be sold at the beginning of the 5th year for its book value, if Agro-Chem bought the equipment the company would achieve a project NPV of ($1,043,500.23). In contrast, if Agro-Chem decided to lease the equipment with the same assumptions they would obtain a project NPV of ($1,030,205). Given these assumptions and based off our calculated NPV we recommend that Agro-Chem lease the equipment rather than buy because of the $13,295.23 savings. This $13,295.23 savings is the NAL.

Commercial’s NPV is $.1516 million (see Table 3). This was determined by using the present values of the four year lease agreement between Prudent and Commercial. We concluded that Commercial’s discount rate will be 10% because of their opportunity cost. Commercial needs to have a residual value on the DAS of 6.8 million or greater, which will give them a positive net present value. Therefore, if their net present value shows negative, they would not want to lease to us. Assuming Commercial receives the same 5 year MACRS rate on the equipment purchase, then the system should be worth 7.01 million (book value) at the end of year 4 (see Table 4). This allows Commercial to have a positive NPV of $.1516 million (see Table 4). Therefore, they would be willing to lease the DAS to us.

3. Returning the consulting cost to $15,400 per month, at the original discount rate of .09, what is the impact on NPV if you double the number of employees participating in the

2. The shareholders are one of the

2. Evaluate the two offers in Exhibit 7. What explains the two structures? In each case, what is the value to MCI shareholders?

3. What are the immediate and future costs and benefits to the Metapath shareholders if the board accepts the RSC offer?

The Question here is that whether Mr. Jones should purchase the Stock outright or Mr. Smith, leaving Smithon intact. As per the analysis of the case Smithon is a very profitable company as a whole and would surely provide huge benefits to Mr. Jones if he buys that. But in a reverse manner it would result in a heavy loss to Smithon may be for 2-3 years because of the huge investment of money. But, after some years, i.e. in long run it would provide huge benefits to Mr. Jones, so Mr. Jones should purchase the stock of Smith Outright.

Prepare a brief chronology of the key events that occurred during this takeover offer. Sep 1, 2005 Lion Made offical offer to take offer cooper offering $260/share for cooper shares

1. If you were Mr. Cizik of Cooper Industries, would you try to gain control of Nicholson File Co in May 1972?

Nicholson family117,000They won 't sell stake unless assured of management independence. Are more likely to take the VLN offer than Cooper.

Question 2: In valuing the two offers that TPT received, there are three main components in which the founders’ likely place considerable value