Monmouth Inc. Case Questions 1. Assess the strategic t of Robertson Tool Company for Monmouth. If you were Mr. Vincent, the executive Vice President of Monmouth, would you try to gain control of Robertson Tool in May 2003? 2. What is the maximum price that Monmouth can pay for Robertson? To answer this question: a. Do a discounted cash ow analysis using the numbers in the case. Comment on the reasonability of forecast of margin improvements. (Use the excel spreadsheet template for this analysis). What is the WACC? b. Use multiples valuation to determine the maximum price. Use market multiples of latest year's EBIAT (2002). Repeat your analysis using prospective EBIAT. Comment on the differences. Use the excel spreadsheet template for this analysis. c. Based on the analysis above, what is the maximum price Monmouth can pay for Robertson? 3. What price will be necessary to gain the support of the Robertson family, Simmons, and the great majority of the shareholders? a. What are the interests, concerns, and alternatives of each group? b. Does Monmouth have a competitive advantage over NDP in the bidding contest? How likely is NDP to increase its offer in response to a bid by Monmouth