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Is Sun Microsystems a good strategic fit for Oracle? What approaches would you use to to place a value on Sun Microsystems? Assuming a discounted
- Is Sun Microsystems a good strategic fit for Oracle?
- What approaches would you use to to place a value on Sun Microsystems?
- Assuming a discounted cashflow (DCF) valuation:
- What rate of return should Oracle require on the acquisition?
- What base-case cashflows do you forecast?
- What is your estimate of terminal value?
- What is the enterprise value of Sun Microsystems?
- What is Sun's equity value?
- You should assume a 35% corporate tax rate and a 7% market risk premium for your valuation.
- Identify the synergies and estimate the effect of synergies on enterprise value?
- If a competing bidder appears, how high a price should Oracle be willing to offer?
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Effective small business management An Entrepreneurial Approach
Authors: Norman M. Scarborough
10th Edition
132157462, 978-0132157469
