Assignments+2+April+-+7+April+2015
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2 APRIL 2015 THURSDAY Case: American Chemical-Day 1 Assignment Questions: 1. Estimate the cost of capital appropriate for the evaluation of the incremental cash flows associated with the Collinsville investment. 2. Project the incremental cash flows associated with the acquisition of the Collinsville plant without the laminate technology and estimate the acquisition’s net present value. Project the incremental cash flows associated with the 1980 investment in laminate technology and estimate the investment’s net present value. 3. Is the Collinsville proposal attractive on economic grounds? 4. Assess the strategic issues associated with the proposal. Is Collinsville attractive on strategic grounds? 5. As CEO of Dixon Corporation, would you approve the acquisition of the Collinsville plant at the price and on the terms proposed? Why or why not? What alternatives, if any, would you propose? 7 APRIL 2015 TUESDAY We will continue our discussion of the American Chemical case.
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Additional corporate finance assignments used for multiples analysis
Transcript of Assignments+2+April+-+7+April+2015
2 APRIL 2015THURSDAY
Case: American Chemical-Day 1
Assignment Questions:
1. Estimate the cost of capital appropriate for the evaluation of the incremental cash flows associated with the Collinsville investment.
2. Project the incremental cash flows associated with the acquisition of the Collinsville plant without the laminate technology and estimate the acquisition’s net present value. Project the incremental cash flows associated with the 1980 investment in laminate technology and estimate the investment’s net present value.
3. Is the Collinsville proposal attractive on economic grounds?
4. Assess the strategic issues associated with the proposal. Is Collinsville attractive on strategic grounds?
5. As CEO of Dixon Corporation, would you approve the acquisition of the Collinsville plant at the price and on the terms proposed? Why or why not? What alternatives, if any, would you propose?
7 APRIL 2015TUESDAY
We will continue our discussion of the American Chemical case.
