1. Use three different approaches to calculate the value of the firm in 1990. The Share price fluctuated between f 30 and f 53 during that year. The company results since 1990 are shown in the appendix (source: annual report 1994). 2. Explain (with help of the 1994 figures) with help of the Altman formula whether or not the company would go bankrupt. Give also your comments with regard to this formula and its ability to predict a bankruptcy. Illustrate the different financing instruments Fokker used during the years 1990-1994. Which amounts were provided by DASA, Dutch State and private investors? Include the different leasing instruments used by the company, 4. Evaluate which foreign currency risks the company ran and how these were hedged. Mention the three types of exposure.

(This question was in coursehero itself there are few numbers that cant be seen but can an expert just give estimated analysis)

Fokker case When in spring 1996 Fokker went into bankruptcy the parent company DASA (part of the largest German industrial conglomerate Daimler Benz) had to take severe losses. During January 1996 Daimler Benz gave a profit warning of US$ 4 billion! Also the Dutch State (partly owner of Fokker) lost a huge amount of money. The following (and the website http://www.fokkernl.com/content/verslag5/RAPUS06.htm) will give you an overview of the financial activities during the years before 1996. 1. Use three different approaches to calculate the value of the firm in 1990. The shareprice fluctuated between f 30 and f53 during that year. The company results since 1990 are shown in the appendix (source: annual report 1994). 2. Explain (with help of the 1994 figures) with help of the Altman formula whether or not the company would go bankrupt. Give also your comments with regard to this formula and its ability to predict a bankruptcy. 3. Illustrate the different financing instruments Fokker used during the years 1990-1994. Which amounts were provided by DASA, Dutch State and private investors? Include the different leasing instruments used by the company. 4. Evaluate which foreign currency risks the company ran and how these were hedged. Mention the three types of exposure. Altman Formula Working capital/total assets x 1.2 Retained earnings/total assets x 1.4 EBIT/total assets x 3.3 Market value of equity/book value of total liabilities x 0.6 Sales/total assets x 1 Total = Z-score Z > 3 healthy companies Z