Reference no: EM13252296
Case HEALTH CARE MANUFACTURING downloaded from Harvard cousepack
SEE THE IS/BS MODEL & FLOW DIAGRAM TABS -YOU ARE NOW WORKING WITH RATIOS, FORECASTS, VALUATION, POSSIBLY FINANCING
Learning Objectives
At the end of the course, to apply financial analysis
and decision making techniques to size-up a business and make
a recommendation about its value. This is a comprehensive
case in the guise of an acquisition.
Reading Sections of the Cohen finance book as necessary for review, and Guideline Solutions for previous weeks as necessary.
Questions ANSWER IN THE TABS AS LABELLED
1 Size-up HCM using historical ratio analysis and a discussion of its business risk and financial risk.
The Q1 tab reproduces HCM's financial statements and forecasts for your convenience.
2 Value the business from Mr. Thompson's (the owner) viewpoint, explaining fully.
Cost of capital and valuation templates are provided for your convenience.
3 Value the business from the potential buyer's (Great Wall) viewpoint, considering the changes that it will make, explaining fully.
The changes it would make will change the cash flows.
4 Should Mr. Thompson consider liquidating HCM instead of selling it? Defend your position.
5 As Haiping Sun, make a recommendation to the client Great Wall, about how much it should pay for HCM, explaining fully.
6 If HCM is sold at the price you recommend, calculate Mr. Thompson's IRR since buying the business in 1987, or,
explain why it is not possible to do the calculation).
7 As Haiping Sun, explain how Great Wall might structure the transaction, i.e., how can they raise the money to buy HCM?
The Financing template is provided for your convenience.
OPTIONAL 8 Is HCM a target for a leveraged buyout? Explain your position based on calculating HCM's debt capacity?
See further instructions on the Q7-8 tab.
THERE IS NO SINGLE CORRECT ANSWER.
THE PURPOSE OF THE ASSIGNMENT IS TO DEMONSTRATE
WHAT YOU HAVE LEARNED TO DO IN THIS COURSE.
Attachment:- Wk7 Assignment Template HCMBA6234 2014(1).xlsx
|
Find the mechanical energy lost from the rope
: A (smooth) rope of length L and mass m is placed above a hole in a table. One end of the rope falls through the hole, Find the mechanical energy lost from the rope as the end of the rope leaves the table
|
|
Explain the rationale used for selecting the sources
: Explain the rationale used for selecting the sources to analyze and explain the procedures to be used for analyzing the sources
|
|
What the r-square in this regression indicates
: Determine which (if any) of the estimated coefficients are statistically different from zero. c. Explain, in plain words, what the R-square in this regression indicates.
|
|
The lower of cost or market rule
: Discuss whether you feel the lower of cost or market rule (LCM) is a conservative method or not. Support your argument with points incorporating the conceptual framework or your textbook.
|
|
Health care manufacturing downloaded from harvard cousepack
: Case HEALTH CARE MANUFACTURING downloaded from Harvard cousepack, SEE THE IS/BS MODEL & FLOW DIAGRAM TABS -YOU ARE NOW WORKING WITH RATIOS, FORECASTS, VALUATION, POSSIBLY FINANCING
|
|
Both forge greater intimacy and undermine it
: How does electronic media "both forge greater intimacy and undermine it. What is your overall view of social media? Cyber bullying? Share your evaluation of how social media affects our society
|
|
What net work is done on the sled
: A worker pushes a sled with a force of 50 N over a level distance of 7.0 m. what net work is done on the sled
|
|
Determine the drip rate
: The prescribed antibiotic dosage is doubled to 8.0 mg per hour. Using the 0.75 mL/min saline solution drip, solve for the required antibiotic solution drip rate.
|
|
Emery–dreifuss muscular dystrophy
: In humans, one form of muscular dystrophy (Emery–Dreifuss muscular dystrophy) is x-linked. A young man, Joe, has muscular dystrophy but his parents do not.
|