Case study Security analysis

SESSION 13&14: INTRODUCTION TO VALUATION, ESTIMATING A FIRM’S COST OF CAPITAL, AND ESTIMATING REQUIRED RATES OF RETURN FOR PROJECTS 2 problems will be assigned to 2 parts of the class P

SESSION 13&14: INTRODUCTION TO VALUATION, ESTIMATING A FIRM’S COST

OF CAPITAL, AND ESTIMATING REQUIRED RATES OF RETURN FOR PROJECTS

(2 problems will be assigned to 2 parts of the class) Problem: VC Valuation and Deal Structuring (Chap 10 –Valuation, Titman)

*Important Note:

- Students are required to prepare the answer for question (a) at home

- For question (b) and (c) you will discuss in-class with your group and present the result in front

of the class This question will be assigned to 2 groups Hence, one group will present and the other give comments on that presentation

Problem: LBO Valuation (Chap 10 –Valuation, Titman)

*Important Note:

- Students are required to prepare the answer for question (a) and (b) at home

- For question (c) you will discuss in-class with your group and present the result in front of the class This question will be assigned to 2 groups Hence, one group will present and the other give comments on that presentation