Here are the study questions for the remaining cases. All write-ups should follow the guidelines in the pre-materials (2 pages, double-spaced, no microscopic font, reasonable margins, etc., etc.) and do include electronic copies of any spreadsheets you utilize to support your work. We're on the home stretch!
Metapath Software
1. How has Metapath's ownership structure changed with each round of financing? How has Metapath's financing history affected the offer from Roberston & Stephens (RSC)?
Straight-redeemable, cheap common structure in first two rounds by STI and Bessemer
Third and fourth rounds were standard convertible preferred stock instruments
2. What is your estimate of a fair valuation of Metapath?
3. What are the
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Metapath Software
1. How has Metapath's ownership structure changed with each round of financing? How has Metapath's financing history affected the offer from Roberston & Stephens (RSC)?
Straight-redeemable, cheap common structure in first two rounds by STI and Bessemer
Third and fourth rounds were standard convertible preferred stock instruments
2. What is your estimate of a fair valuation of Metapath?
3. What are the immediate and future costs and benefits to the Metapath shareholders if the board accepts the RSC offer?
Terms of RSC could make a sale of the company extremely dilutive to the founders in the event of a sale further down the road.
4. What are the immediate and future costs and benefits to the Metapath shareholders if the board accepts the Celltech offer?
Near-term liquidity at an attractive price, without the dilution of further financings and an IPO
5. Which offer should Hansen pursue? Here are the study questions for the remaining cases. All write-ups should follow the guidelines in the pre-materials (2 pages, double-spaced, no microscopic font, reasonable margins, etc., etc.) and do include electronic copies of any spreadsheets you utilize to support your work. We're on the home stretch!
Metapath Software
1. How has Metapath's ownership structure changed with each round of financing? How has Metapath's financing history affected the offer from Roberston & Stephens (RSC)?
Straight-redeemable, cheap common
This assessment will evaluate different views of capital structure using Home Depot financial information from March 10, 2014. The evaluation will compare Home Depot to its largest competitor (Lowes) discussing similarities and differences. It will then provide examples supporting Modigliniani and Miller’s (MM) findings around the impact financing decisions have on a firms value.
1. How has the Investment Office selected, compensated, and controlled private equity fund managers? What explains the differences between their strategy in private equity with that in other asset classes (e.g., real estate)?
Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow.
What is your overall assessment of Harley’s approach to enterprise software selection? What (if anything) would you have done differently?
HOW HAS MR. WILSON MET THE FINANCING NEEDS OF THE COMPANY DURING THE PERIOD 2003 THROUGH 2005? HAS THE FINANCIAL STRENGTH OF WILSON LUMBER IMPROVED OR DETERIORATED? EVALUATE WILSON LUMBER FINANCIAL HEALTH.
Why did Hampton repurchase a substantial fraction of its outstanding common stock? What is the impact of this repurchase on Hampton's financial performance? Critically assess Hampton's dividend policy. Do you agree with Mr. Cowin's proposal to pay a substantial dividend in December?
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.
Hearts ‘R Us (the Company) is an early stage, non-public research and development medical device company. They are in the final stages of going to market with the Heart Valve System. Bionic Body (Bionic), a SEC registrant, could benefit from the approval of the Hear Valve System and will help finance. Hearts sold Bionic $3.5 million of Series A Preferred Shares (Shares) of the Company with a par value of $1 per Share. The transaction was completed on November 30, 2011. As part of the stock purchase agreement, Bionic has the following rights:
3. What is your evaluation of the company’s internationalization strategy under Tony Massaro’s leadership? Is it likely to be more successful that the previous offshore initiatives? If so, why?
According to my analysis of the Accessline’s proposed term sheet, I do not believe that Apex would serve its own interests, or those of its investing partners, by investing in Accessline according to the terms proposed. By investing at the proposed valuation, according to the proposed control and incentive structure, Apex would be shouldering a disproportionate share of the risk should Accessline fail to meet its performance targets, or require fresh inflows of capital from future investment rounds. Nor can Accessline take the sort of steps necessary to protect its investment in the case of management failure.
Art Marks should vote to make an investment in Telco Exchange because the company possesses many of the components which could make it a potential 67 million dollar company (from our valuation by DCF method using WACC -Appendix A). Telco has a product that solves large company high cost issues revolving around telecom equipment and telecom services (makes around $250,000 per software licensing deal). They have been profitable in 2002 and the potential to have a revenue of a 50 million annual revenue in four years time. They have
1. How would you classify Forest Hill Paper Company in terms of size and ownership?
Because of the fact that BHC is a new venture ; the risk is actually high. Mortgage rate appears to compensate for the risk.When BHC had acquired $2,275,000 with a mortgage.
B) How well has Berkshire Hathaway performed? In the aggregate? In its investment in Scott & Fetzer? In its investments in earlier purchases of GEICO stock? In its investments in convertible preferred securities?
1. How would you classify Forest Hill Paper Company in terms of size and ownership?