FIN 320 Lecture Notes - Lecture 15: Case Report, Microsoft Word, Capital Asset Pricing Model
Document Summary
Your due date for the hertz case report and presentation is coming up soon. Here are a few comments about some of the case study questions: Question 1: discuss the pros and cons of selling hertz versus issuing shares through an ipo. An ipo provides a useful backup if the sale of hertz fails. The ipo option also improves the bargaining position of the seller during the negotiations of the sale of hertz. You should expand on these points in the report and presentation. Question 3: pages 6 to 8 of the case provide a useful outline of the operational and financial value- creating opportunities that the sponsors can exploit in this transaction. Question 4: information for this question starts on page 7. Interpret the financial synergies in your own words. Question 5: there is little reason to believe that the projected growth rates are unreasonably high. In fact, the projections might even be a little too conservative.
