Continuing in your role as the Chief Financial Officer (CFO) of Anycorp Inc., you begin to realize that your efforts to analyze a potential acquisition of Initech has been driven more from a "can this work" perspective, rather than a "is this a good fit" perspective. Specifically, based on finance theory, we know that there is a direct and (generally) linear relationship between the risk and expected return associated with taking on a project. This is often exemplified in the Capital Asset Pricing Model (CAPM) either in its graphical- or equation- form. As different people, entities, etc. have different risk vs. return preferences, different activities may be more suitable for them than others. Based on your readings from Chapter 8, prepare an Executive Summary discussing the suitability of the potential Initech merger from a corporate perspective. In other words, you should be answering (or providing a framework for answering) the following questions: "Does this project match Anycorp's risk/return preference set?" "Does this acquisition match Anycorp's investors' risk/return preference set?" "If there is a potential mismatch, what can we do to either increase or decrease the risk (and, therefore, return) associated with the merger (with respect to financing tools, financial options, operational set up, and so on)?"

(1) Question at Hand (2) Information Given {data, facts, observations, experiences} (3) Assumptions {explicit or implicit/understood} (4) Concepts {theories, definitions, laws, models, methods, methodologies} (5) Calculations Necessary {actual number crunching and end results} (6) Interpretation {conclusions, solutions} (7) Implications and Consequences {what is the end result, unintended consequences?}