ASSIGNMENT 2: PRADA Refer to the HBS case "Prada: To IPO or Not to IPO" and answer the questions below. Note: Complete the related textbook chapters (RWJJ Chapters 14‚ 15 & 19) before attempting this case. WHAT IS THE PROBLEM SAID TO BE FACING PRADA? Prada got some financial trouble. First‚ Prada failed for several times to IPO due to various reasons like SARS‚ financial crisis‚ etc. Second‚ because of the long-term debt maturing in one year‚ Prada needed to raise more than 1 billion euros
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1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal‚ a project finance framework was employed.” Usually‚ project finance framework is used when the project has predictable cash flows‚ which can easily represent operating targets through explicit contract. When cash flows are certainty‚ the company can have
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Quiz1 1. Packaging systems for frozen foods generally are designed to provide sufficient protection against changes in temperature that might result in melting of the product. B) False 2. Getting the potential customer to buy the product is an important function of modern retail packaging. [A) True 3. Many package features serve multiple functions at the same time. A) True 4. A package must be made of a single type of material. B) False Feedback: Many packages are made of multiple materials
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F523 - SPRING 2013 BOEING CASE 1. What is the appropriate required rate of return against which to evaluate the prospective IRR ’s from the B ANSWER:The appropriate rate of return against which to evaluate the IRR is the risk-free rate‚ plus the market risk 1a. Please use the capital asset pricing model to estimate the cost of equity. At the date of the case‚ the 74 over T-bonds. Which beta‚ risk-free rate‚ and risk premium did you use? Why? Financing Components Debt Equity Market Values Weight
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expectations throughout those countries. In Hong Kong‚ children’s birthdays had traditionally gone unrecognized‚ but McDonald’s introduced the practice of birthday parties in its restaurants‚ and now such parties have become popular among the public. Case 2: 1.
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An expense is normally incurred by a firm to generate sales‚ e.g. promotional expenses which are selling expenses which are directly related to the generation of sales. Most of the expenses normally form a part of operating expenses and are included in ‘cost of sales’. It may either be raw materials‚ labor‚ etc.‚ or capitalized assets which are either depreciated or amortized over a period of time. These are known as matching costs. The other types of costs are ‘period costs’ which are mostly mentioned
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REPORT ON PACKAGING INDUSTRY IN INDIA Introduction: All major industries create wealth but if there is one industry that plays a unique role by way of both creation of wealth through a wide range of manufacturing activities and also by way of preserving the wealth or value created by many‚ many other industries‚ it is packaging. Apart from the huge value addition and employment involved in these activities‚ packaging has served the Indian economy by helping preservation of the quality and lengthening
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MARKETING STRATEGY Ryanair case What is your assessment of Ryanair launch strategy? From my point of view‚ the strategy implemented by Ryanair was perfect because it is focused on capturing those passengers who have the price as the main criterion in choosing the mean of transport. There is a wide difference between the fare of the air companies with the ferry or rail giving rise to another variables‚ as comfort or no time‚ do not influence by the time of the decision-making. However‚ Ryanair
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• If Franchisees buy things from informal sources or the above confinement on wellsprings of supply is unenforceable‚ sovereignties are forced or (if eminences are as of now part of the framework) balanced upward significantly to compensate for lost income at the Franchisor/partner level. • If Franchisees don’t get deals/item buy shares‚ they can lose their regional rights‚ be ended and/or ineligible for reestablishment. • If you are uncomfortable with the working association with a Franchisee
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Goodwill for Impairment CLAUDIA Inc. has an internally generated goodwill and did not amortize or tested for impairment. They cannot amortize because measuring the components are complex and associating the costs incurred with future benefits are too difficult. Goodwill cannot generate cash flows independently and is made as a combination with other assets making up a business; it needs to be assigned to a reporting unit or cash-generating unit in order to test for impairment. Under ASPE‚ the impairment
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