this form of valuation not capturing all of the potential benefits. It is frequently argued that discounting future cash flows ignores strategic issues‚ etc. The point‚ however‚ is that in order to maximize shareholder wealth any strategic benefit would have to be captured in the cash flows. Future cash flows are the statistical mean of random variables rather than the median or mode. The project is discrete and does not therefore have a terminal value whereas that would not be the case in valuing
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The Medicines Company - Case Analysis The Medicines Company is ready to launch a recent drug acquisition‚ Angiomax‚ into the market‚ however its CEO Clive Meanwell is uncertain as to the appropriate price to charge for the drug. Angiomax serves as an alternative drug to heparin‚ a low-priced anticoagulant commonly used for patients undergoing angioplasty. While Angiomax has proven to be a more effective drug for both high-risk and very high-risk patients‚ the Medicines Company is challenged
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The margin is diminishing and the PE ratio is lower in both industry averages. Spin-off is ideal since the hospital industry is shrinking and Humana’s profit from hospital starting to decline. A decision made early will still allow Humana a higher valuation on hospital business. The separate income statement is listed below. As presented‚ the after-tax net income of Humana Hospital and Health Plan are $314M and $ 41M. After we compare the asset sizes of comparable companies‚ we decided that the PE
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Case 1 Managers are most likely to step across ethical and legal boundaries when the pressure to perform is great. Pressure can be healthy but companies that set high-performance targets and grant large rewards for achieving these must have strong control systems to ensure that people are not tempted to cross boundaries. What are the four important control systems? Please identify each control by name. Strategy WorldCom never really had a strategic plan‚ committee‚ or framework. Their plan
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Case: Microsoft in China Q1: What are the risks that Microsoft has faced in operating in China and dealing with the Chinese government? Do you see these risks as increasing‚ diminishing‚ or changing in the future?Are these risks unique to China or present in other developing countries? There are two major risks that Microsoft has faced in operating in China. Firstly‚ after China joined WTO. Although Chinese government taks some actions for its IPR‚ especailly for foreign compnies‚ the rate
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The Case of Cephalon Based on the contract‚ the strike of the call options is $21.5‚ and capped at $39.5. Thus this is a combination of a call option at $21.5 and a put option at $39.5 two options‚ and the value is the difference between the two. Based on the Balck-scholes call formula‚ among which‚ ； 1）The price of call option with the strike price of $21.5: S=$20;K=$21.5;r=5.5%;T-t=0.5yrs;σ=75% 2）The price of put option with the strike price of $39.5: S=$20;K=$39.5;r=5.5%;T-t=0
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2014 STUDENT C ASE C OMPETITION The Student Case Competition is sponsored annually by IMA® to provide an opportunity for students to interpret‚ analyze‚ evaluate‚ synthesize‚ and communicate a solution to a management accounting problem. Starfire’s Dilemma Capacity at What Cost? By Thomas L. Albright‚ CPA; Paul E. Juras‚ CMA‚ CPA; and Russ Elrod F ounded in 1968 by Alan James‚ Starfire Trucking Company has grown into a sizeable operation with 90 trucks and 180 trailers. Recently
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Business Harvesting Case Facts Protagonist : Mr. Rakesh Mathur and Mr Viswanathan Iyengar The Occasion: Monthly Lecture Meeting‚ Mumbai Management Association (MMA) Date: 1st Nov‚ 2010 Time : 6pm President : Rakesh Mathur‚ the guest speaker of the month; Viswanathan Iyengar‚ president MMA; Office- bearers and members of the MMA Agenda : Entrepreneurship‚; Objectives of Developing a Business Harvesting Iyengar introducing Rakesh Mathur and tell that Mr. Mathur is going to speak on business
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Foster v. Cross Supreme Court of Alaska 1982 Facts In the fall of 1977‚ Michael Stephens‚ sole proprietor of Stephens Construction‚ asked Warren Sanders‚ a local real estate broker‚ to find a large piece of land that would be suitable for development into a single family residential project. Sanders located several parcels and found a homestead staked and owned by Robert and Arlene Cross. Sanders contacted and met with Robert Cross in February of 1978 and stated that he was looking for land
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Arthritis characterized by erosion of articular cartilage‚ either primary or secondary to trauma or other conditions‚ which becomes soft‚ frayed‚ and thinned with eburnation of subchondral bone and outgrowths of marginal osteophytes; pain and loss of function result; mainly affects weight-bearing joints‚ is more common in older persons. Syn: degenerative arthritis‚ degenerative joint disease‚ hypertrophic arthritis‚ osteoarthrosis. DEFINITION 3. Osteoarthritis‚ sometimes called degenerative joint
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