The Senate recently released a report on wrongdoing at JP Morgan Chase. It found that bank executives lied to investors and the public. Also, traders, with the knowledge of top management, changed risk limits to facilitate more trading and then violated even these higher limits. Executives revalued the bank’s investment portfolio to reduce apparent losses. JP Morgan’s internal investigation failed to find this wrongdoing. Into what ethics traps did these JP Morgan employees fall? What options did the executives and traders have for dealing with this wrongdoing?
April 25, 2020Explain how a business can assess international business opportunities giving examples. Do you think the size of the company matters in assessing an international business opportunity? Give reasons for your answer.
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nnThis case written assignment is on Arcadian Microarray Technologies, In. (Case 44).nn nnReport Requirements:nn· Cover sheet with case name, date, team number and team members;nn· One or two page written report analyzing questions given; andnn· Exhibit with any financials, ratios, charts/graphs that you address in your report.nn nn nnYour analysis should cover the following concerns:nn1.nn3. 1.. Regarding the cash flow forecasts in case Exhibit 5, at what point in the future would you set the forecast horizon for the three investments? Why? More generally, what should determine when you stop forecasting annual cash flows and estimate a terminal value?nn4. 2. Estimate other terminal values based on alternate estimation approaches. From these various estimates, please triangulate toward a single composite estimate of terminal value for each of Sierra Capital and Arcadian’s forecasts.nnWhat is the resulting present value (PV) of cash flows under Sierra Capital and Arcadian’s outlook?nnHow significant was TV in creating the difference between the two present value estimates?nn5. 3. As a general matter in valuation work, how much attention should terminal value garner? What short list of questions about TV could you keep on hand in case a client asked you to opine on a valuation of that company?nn nn
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