REQUIRMENT
Please do not use external references.
Each question 1-1.5 pages.
Case 1: The Walt Disney Company’s Stock: Buy, Hold, or Sell?
1. Read Exhibits 1-5, 7 and 8:
1. Discuss the strengths and weaknesses of Disney’s financials compared to Netflix, Comcast, and Viacom.
1. Discuss Disney’s valuation compared to Netflix, Comcast, and Viacom.
(note: you do not need to worry about the Treasury Bill yield)
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1. In the place of Crowley in December 2019 (the time of the case), based on the investment strategy of GARP, would you buy, hold, or sell Disney? Explain your answers.
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Case 2: Tesla’s Bid for SolarCity
0. Financial analysis using Exhibits 8 and 11
0. Based on Exhibit 8: what are the key weaknesses of Tesla’s financials?
0. Based on Exhibit 11: what are the key weaknesses of SolarCity’s financials?
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0. If you were a shareholder of Tesla, would you vote yes or no for the merger at the time of the case? Why?
Note: you should consider the synergies, strategies and visions, financials, and market and industry conditions.
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Case 3: Call of Fiduciary Duty: Microsoft Acquires Activision Blizzard
0. Based on the financials on Exhibit 6a & 6b, what are some key weaknesses and key strengths of Activition’s financials?
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0. If you were a shareholder of Microsoft, would you vote yes or no for Activision acquisition at the time of the case? Why?
Note: you should consider synergies, financials, industry and market conditions, and Activition’s current challenges.
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Case 4: Toys “R” Us: Come Buy More Toys
0. Based on the case, what caused Toys R Us to fail? What could be done differently to possibly create a different outcome?
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0. Who bears the risks in a private equity transaction? Should or will the government take a more active role in overseeing private equity activity as a result of bankruptcies like Toys R Us?
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