Metapath Case Report Essay

Compare the three methods of repurchases: open market repurchase, fixed-price tender offer, and Dutch auction.

(a) Why did CSX make a two-tiered offer? What effect does this structure have on the transaction?

As for the combination of cash and new shares, shareholders can take part of their money

The final option was raising capital in debt markets. Because of its current leverage KTM would only receive short term financing from banks and the management was thus rather considering the bond market opportunity.

A couple that met at a Cystic Fibrosis Society support group is contemplating having children. They both had brothers who developed cystic fibrosis and they are concerned about the likelihood of having sons who have the disease. As a counselor, you are to answer the following two genetic counseling consult questions in addition to the five critical thinking questions that are listed below.

b) What will be the total equity value and equity price per share after the issuance is completed?

The first proposal was from Electra Networks. They aim to deliver phone services through the internet or VOIP. The company has projected a large market segment but the market is now saturated. They were able to raise capital through three rounds of financial funding. The company’s previous valuation was $125 Million but the current valuation was not presented. Also they have power house management team which has strategic alliances with other companies on the industry. Currently, they are anticipating for IPO.

The redemption available after the third anniversary of the original issue date is weighted towards equity. This option guarantees that the investors will receive at least the principal back. The mandatory redemption behaves like debt because there is a definite maturity date. The protective covenants are also weighted toward debt because the risk is limited and gives priority to the Series B Preferred Stockholders. Dividends are usually associated with equity; however, in this case the dividends are behaving more like debt interest payments. The dividends are paid at a fixed 8%

Explain what shareholders would receive in exchange for (a) old common shares, (b) old class B shares, and (c) old shares held in the employee saving plan.

Endeca Technologies is a software company that established by Steve Papa on September 4th 2001. In the case, the company is currently looking for a Series C round funding to reduce the expected pre-money valuation multiple times because of the NASDAQ had fallen. In the end, the company got a rough pre-money valuation of $25M. At this time, there are two different term sheets that each of them contains some pros and cons putting in front of Papa to let him choose. Overall, Papa should choose the first term sheet because the benefits in that term sheet are more than the second term sheet, and at the same time it has less cons.

The Venrock/BVP offer an inside round at 98.5¢ per share. The pre-money was roughly $25 million. They would share the $10 million, with Venrock taking more to increase its ownership, and leave the round open for another $5 million, getting the deal done at $15 million with an option to close as high as $18 million.

Giving pro forma effect to the transactions described above and the October 2008 redemption and subsequent conversion as if each occurred promptly following the closing of this offering, the number of shares outstanding and the number of shares of class A common

They will end up with 6.3 billion external funding needed. While in the long-term, the operating cash flow increased but the capital expenditure increased also. They actually will end up with 6.6 billion dollar needed to finance.

Summit Partners proposes to FleetCor Technologies (later preferred as “FleetCor” or the “Company”) an investment into FleetCor for the total amount of $44.9 million in return for a post transaction ownership of 54.2% in the “Company” and coming down to 46% ownership in the company after newly created stock options for management equivalent to 15% ownership in the company has been completely executed and fully diluted. This investment is in the form of convertible preferred stock with an 8% accrued interest, compounding annually. As the transaction come through, Summit’s prefer stock will be treated equal-footing in

Answer: Both Companies are acting on a high-tech market. The development and progress in this market is really fast.