As a recent MBA graduate, you have been hired as a financial analyst by a private equity firm. Your firm along with the management of Advanced Micro Devices, Inc. (AMD) is investigating the possibility of taking the company private, i.e. your firm and AMDs management will buy all of the shares.

You have been assigned to address the issues found below. The information, which you provide will be used by the decision makers to determine a price per share for the stock. You will need to determine the final stock price. You will just address the questions below. For the computations, use the information found on the Yahoo! Finance web pages for Advanced Micro Devices, Inc. (AMD). The numbers used would be for the financials of December 30, 2017 and December 31, 2016. Other computations and issues, which require information that is more current, will be found on these webpages as well as Gurufocus.com and Morningstar.com.

For discussion questions, a good source of information is found in the 2017 Annual Report for AMD, as well as recent articles concerning AMD. The link to the companys official web site is found in the Profile page on Yahoo! Finance. Your grade for the qualitative answers depends on the quality and quantity of relevant information, as well as the quality of writing.

a) DiscussAMD in the context of the forces considered in performing an environmental scan.

b) Discussthe risks that AMD needs to consider in conducting its operations.

c) Indicate the Beneisch M-Score for AMD and explain its significance.

d) Explainwhether you believe that AMD can take on more debt. Use some computations to support your conclusion.

e) DiscussAMDs inventory position. Compare AMDs inventory

position to that of the NVIDIA Corporation (NVDA).

f) Construct the DuPont Identity for AMD and NVDA. Explainyour results.

g) Determinethe MVA for AMD and NVDA and discussthe results.

h) Determinethe EVA for AMD and discussthe results. Assume that AMDs cost of capital is 20 percent. Use a tax rate of 35 percent for AMD. Discussthe results.

i) DetermineAMDs free cash flow for 2017. Commenton the results.

j) Compareand discussthe PE ratios for AMD and NVDA.

k) Discussthe overall financial health of AMD.

l) After the final price is determined for AMD, do you believe

that this is evidence of an efficient or inefficient market? Explain.