FINANCE, INSURANCE, & LAW

FINANCE, INSURANCE, & LAW 349:
ADVANCED FINANCIAL THEORY AND PROBLEMS
Spring 2020
Pick one of the three following cases to analyze:
1. Ferrari: The 2015 Initial Public Offering (Case 46)
2. Sun Microsystems (Case 48)
3. Facebook’s Initial Public Offering
NOTE: Facebook is on ReggieNet, while Ferrari and Sun Microsystems are in the textbook.
Please prepare a write-up detailing the results of your analysis. You do not need to include a separate section
detailing the background of the case in the write-up. Instead, focus only on the financial issues and assumptions
to make your recommendation. The write-up can be no longer than 3 pages (excluding tables and charts).
Due: Friday, May 1st by 11:59 PM CST.
– Please upload an electronic copy to ReggieNet via the “Drop Box” feature.
Ferrari: The 2015 Initial Public Offering:
– Calculate the discount rate, estimate future cash flows, and then use the discounted cash flow method
and multiples to price Ferrari’s IPO.
– What is the appropriate price for the Ferrari IPO? Why?
Sun Microsystems:
– Calculate the discount rate, estimate future cash flows, and then use the discounted cash flow method
and multiples to value Sun Microsystems.
– How much should Oracle pay for Sun Microsystems? Why?
Facebook’s Initial Public Offering:
– Calculate the discount rate, estimate future cash flows, and then use the discounted cash flow method
and multiples to price Facebook’s IPO.
– What is the appropriate price for the Facebook IPO? Why?
Write-up Grades:
1. Quality of information and analysis.
2. Professional appearance.
3. Assignment completed and turned in on time.
Note: This assignment is an individual project and the final paper you submit must be entirely your own work.
I want you guys to do the charts as well but not in the 3 pages as the teacher explained