Jaguar plc--1984* Harvard Case Study Solution

Jaguar plc--1984*: Timothy A. Luehrman: William T. Schiano Product #: 290005 Length: 13p Teaching Note: 290034 A vehicle for analyzing the exposure of operating cash flows to exchange rate changes. Considers the value of Jaguar plc at the time of its privatization and share offering in 1984. Jaguar is a major exporter from the United Kingdom and the United States is therefore exposed to changes in the dollar/sterling exchange rate. Students are asked to estimate the value of the company as a function of expected future exchange rates. Students may also be asked whether and how Jaguar's exposure should be hedged. Subjects Covered: Automobiles; Foreign exchange rates; Industry analysis; International finance; Privatization; Stock offerings; Valuation Jaguar plc--1984*: Timothy A. Luehrman: William T. Schiano Product #: 290005 Length: 13p Teaching Note: 290034 A vehicle for analyzing the exposure of operating cash flows to exchange rate changes. Considers the value of Jaguar plc at the time of its privatization and share offering in 1984. Jaguar is a major exporter from the United Kingdom and the United States is therefore exposed to changes in the dollar/sterling exchange rate. Students are asked to estimate the value of the company as a function of expected future exchange rates. Students may also be asked whether and how Jaguar's exposure should be hedged. Subjects Covered: Automobiles; Foreign exchange rates; Industry analysis; International finance; Privatization; Stock offerings; Valuation