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Eastboro Machine Tools

In: Business and Management

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Deutsche Brauerie

A director of small German brewery must prepare to vote on three issues: 1. approval of financial plan for 1993, 2. quarterly dividend declaration, 3. incentive compensation plan.

1. What accounts for Deutsche’s rapid growth in recent years? What policy choices account for this success?

2. What is Deutsche’s credit policy toward its distributors in Ukraine? Why is it different from the policy toward its other distributors? Is the company’s credit policy appropriate? Is it profitable? If not, how to change it?

3. Why does this firm need increasing amounts of bank debt?

4. As a member of BoD, how would you vote on: o The proposed raise for Oleg Pinchuk o The quarterly dividend declaration of €698,000. o Adoption of the financial plan for 2001?

Spreadsheet file: Available

Donaldson, Lufkin & Jenrette 1995 (Abridged)

1. Why is Equitable considering selling an interest in DLJ?

2. What are the relative advantages and disadvantages of carve-outs, spin-offs and divestiture through cash sale?

3. What is your estimate of DLJ's fair value per share? In answering this question, please draw upon as many valuation approaches as you can. Give special attention to the valuation multiples of DLJ’s peers. Who are these peers? Why do they qualify as peers?

4. At what price should DLJ be offered? Think carefully about your answer here. The offering price need not be identical to your answer to question 3. If answers to 3 and 4 differ, please prepare to explain why.

Paginas Amarelas

1. What is the valuation problem here? In what currency are the cash flows denominated? In what currency should the discount rate be denominated?

2. In this case, why doesn’t J.P. Morgan discount local cash flows at a local required rate of return? In fact, why not use that approach generally?

3. To complete the estimation ofr a required rate...

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