1. What is the immediate issue facing J.C. Penney (JCP)? What alternatives can it consider to address this issue? How could raising capital be part of a "solution" to JCP's issue? 2. If JCP were to raise capital, how would potential investors assess the attractiveness of their investment? How could investors use past financial performance measures to assess the attractiveness of investing in JCP? While the "Ratio" tab in the Excel file provides computed ratios, please spend some time trying to understand both how they are computed and what they "mean". 3. The tab "2013Forecast" provides a model to forecast the balance sheet and income statement for JC Penney. All inputs are highlighted in yellow. A key starting point is revenues, which is initial expected to be12,500 (down from 2012). The key output is the cash line in the balance sheet. We will spend some time going through the model in class so you can understand the mechanics, but you should spend some time in advance looking at cells in columns L and Y to try to understand how it is put together (and think about its shortcomings!). Try changing some inputs to see what happens to cash. What happens to cash if inventory as a % of sales drops to 15%? Increases to 20%. What, in your opinion, are the key variables affecting JCP's cash position? 4. What would you recommend be JCP's priorities in the coming months?