Reference no: EM1310371
1) Suppose you are CFO of Phlanders Flange Company and explain in a substantial method issues you might have with Harry's proposal. Keep in mind, Harry is your boss (the CEO), so be professional and tactful in your writing.
At a minimum, your memo to Harry must address following items:
i) Do Harry's computations over- or undervalue Framingham, and write down the potential consequences?
ii) A conversation of value assessments in mergers.
2) Your brother, age forty, is regional manager at the office supply company. He thinks he might wish to leave his job to go back to school for the MBA. He expects that his present job, if he were to stay at it, would pay him the real income stream of= $75,000 per year till retirement at age 65. If he goes back to school, he would forego 2 years of income, but his real income after graduation would be= $110,000 per year till retirement at age sixty five. He has been accepted to the MBA program which costs the real $22,000 per year. If his real opportunity cost is 8%, would leaving his job to get the MBA be smart financial decision?