Case 1: The Walt Disney Company’s Stock: Buy, Hold, or Sell?
1. Read Exhibits 1-5, 7 and 8:
1) Discuss the strengths and weaknesses of Disney’s financials compared to Netflix, Comcast, and Viacom.
2) Discuss Disney’s valuation compared to Netflix, Comcast, and Viacom.
(note: you do not need to worry about the Treasury Bill yield)
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2. Looking forward…
1) Read Exhibit 9: how would you assess Disney’s future expected performance relative to its peers?
2) In the place of Crowley in December 2019 (the time of the case), based on the investment strategy of GARP, would you buy, hold, or sell Disney?Explain your answers.
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Case 2: The Coca-Cola Company: A Stock Investment Decision
1. Read Exhibits 8-12, 14, and 15:
1) Discuss the strengths and weaknesses of Coca-Cola’s financials compared to PepsiCo, Keurig, and Monster Beverage.
2) Discuss the comparable valuation for Coca-Cola and its peers.
(note: you do not need to worry about the Treasury Bill yield)
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2. Looking forward…
1) Read Exhibit 16: how would you assess Coca-Cola’s future expected performance relative to its peers?
2) At the time of the case (Nov. 2022), would you recommend WAM Investment Company to invest in Coca-Cola’s stock? Explain your answers.
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Case 3: Tesla’s Bid for SolarCity
1. Financial analysis using Exhibits 8 and 11:
1) Based on Exhibit 8: what are the key weaknesses of Tesla’s financials?
2) Based on Exhibit 11: what are the key weaknesses of SolarCity’s financials?
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2. If you were a shareholder of Tesla, would you vote yes or no for the merger at the time of the case? Why?
Note: you should consider the synergies, strategies and visions, financials, and market and industry conditions.
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Case 4: Toys “R” Us: Come Buy More Toys
1. Based on the case, what caused Toys R Us to fail? What could be done differently to possibly create a different outcome?
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2. Who bears the risks in a private equity transaction? Should or will the government take a more active role in overseeing private equity activity as a result of bankruptcies like Toys R Us?
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Case 5: Call of Fiduciary Duty: Microsoft Acquires Activision Blizzard
1. Based on the financials on Exhibit 6a & 6b, what are some key weaknesses and key strengths of Activition’s financials?
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2. If you were a shareholder of Microsoft, would you vote yes or no for Activision acquisition at the time of the case? Why?
Note: you should consider synergies, financials, industry and market conditions, and Activition’s current challenges.
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Case 6: The Harder We Fall: The We Company’s 2019 IPO Fiasco
1. WeWork’ business model & Financials
1) Read Exhibit 4: Discuss why WeWork was not profitable.
2) How did SoftBank’s investment influence WeWork’s growth strategy?
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2. WeWork’s Failure
1) Do you think that WeWork could “turn the dial” to become profitable? If so, what changes should the company make? If not, why not?
2) Learning form this case, discuss 2-3 mistakes you should avoid as an entrepreneur.
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