Please turn-In by the due date:

1. A PDF of your 1p memo including memo exhibits to the D2L PDF assignment folder. Note

there is a special folder for just the pdf submission. This aides grading of the assignment.

2. A softcopy of the exam files to the D2L supporting documents folder. This means a) your 1

page WORD document of your memo and b) the supporting Excel worksheets used in your

analyses. Note: the Excel worksheets should include a) your memo exhibits; b) your intermediate

spreadsheets and c) the case exhibits.

Note:

o Place name(s) on a last page by itself; it will not be included in the page count..

o Name your files using the following convention since D2L has problems with longer

names:

C4_LastNames _F20 (for excel file)

C4_ LastNames _ F20 (for word file. Any excel based final exhibits can be copied and pasted into this file as a picture)

C4_ LastNames _ F20 (for the pdf file)

General Instructions - Individual or Team. Read these.

1 page (500 words) memo analyzing case issues and providing a well-supported recommendation. Up to 8

pages of exhibits. Multiple exhibits on the same page are encouraged. Include:

q 1st paragraph Executive Summary: Short summary of the problem at hand, the relevant

context, core results of your analysis, and a specific recommendation. Include brief discussion

of key criteria and related data that you believe is relevant to the recommendation.

Remainder:

q Include a consideration of the company's financial and strategic outlook (historically, and a

future) as it relates to the issues at hand and identification of the significance of this

information to addressing the issue(s);

q Provide the relevant analysis, with interpretation of results & explicit recommendation.

q Use headings, bullet points and summary tables to aid your communication.

q 10% of points will be deducted for poor formatting and excessive page use. Poor formatting

includes the use of a Question & Answer format in your 1 page (500 words) of text, or a series of bullet

points. Review the memo guidelines attached at the end of this document.

q 10% of points will be deducted if not turned into the two dropbox assignment folders

as noted above.

Case Options

You may prepare the final as a team or individual.

o Team size = 2. Teams are not restricted to assigned class teams.

o Team submissions are expected to pay greater attention to exhibit detail and writing and

will be graded accordingly.

No discussion or communication with others about the case outside of your final exam team. No

team? Then no discussion w/ others. This is a test of your understanding of concepts.

2

Case: Burton Sensors

Approach: the considerations below are guidelines. Your memo should explore these issues

as part of your assessment of the issues faced by Burton Sensors.

Case is in the Harvard Course pack link #2.

Data:

o Use only case data. Do not search the web for additional data.

o Missing data you believe you need and don't see it as available? Make a reasonable

assumption about that input, note it on the relevant excel exhibit, and move on so you

can complete the analysis. Avoid spinning your wheels as much as possible.

Considerations: Consider the following as you address the situation at Burton Sensors

Should Marshall continue to pursue a high growth strategy? Can it slow growth?

Include an examination of the appropriate situational factors, including an assessment of

current and past financial health. Go beyond a simple review of 1 or 2 metrics.

Consider:

How did Marshall end up in financial distress? Do you believe the situation is

temporary or permanent?

What is the effect of growth on Burton's stock value? Use a DCF valuation of

Burton to shape your view.

Incorporate your assessment of the issues outlined below.

Evaluate the key issues identified by the financial consultant and provide your

recommendation around the following:

Assuming no new investment, does Burton have the ability to satisfy the

restrictions imposed by the bank? Consider covenants and credit availability.

Should Burton purchase the new thermowell machine if financing were available?

Support with an assessment of the economic value of the machine. (1 page 500 words exhibit)

Should Burton acquire Electro-Engineering? (Assume historical financial statement

relationships continue). What is the most important consideration in the decision

to acquire EE? Does it offer other benefits or costs? (1 page 500 words exhibit)

Include a WACC and risk analysis as warranted by each analysis. (Separate exhibits

placed adjacent to related body of analysis. For example, exhibits for NPV WACC,

NPV, NPV risk analysis)

Note this assignment is not asking you to evaluate whether Burton should raise

additional capital through a private placement.

3

Memo Guidelines - Content and Instructions

Analysis:

Focus on providing an analysis of the company as it relates to each of the questions.

Include relevant market, competitive and financial factors that influence or provide insight to

the specific finance topic you are addressing.

Summarize your analysis, conclusions and key supporting evidence and discuss relevance.

Also:

Do not describe information or how you calculated something; instead, interpret the data

developed for the analysis. This means you want to identify key aspects, note the significance

of the results, compare and contrast w/ others in industry/peer group, and elaborate

reasoning, where appropriate.

Develop a clear link between the data and analysis you develop and your conclusions and

recommendations. It is not sufficient to let the reader draw their own conclusions - I want to

see YOUR logic and analysis in defense of your conclusions.

Interpret the evidence & insights relative to general finance theory/practice, as it is associated

with that subject. Do not simply repeat general text information about a topic.

Be succinct; Incorporate summary tables and exhibits 1 page (500 words) where it makes sense.

Include: supporting evidence you've developed as well as insights & observations that are

specific to application of the topic to your companies/industry.

You will be evaluated on the basis of the quality of analysis, quality and the completeness of

your assessment, presentation, and the use of financial concepts and tools.

Format:

11pt font, single or 1.15 spacing. Reasonable margins (no smaller than .75 inches all around).

Use headers as appropriate. Summary tables & figures are strongly encouraged within the

Executive Summary.

Readable Exhibits, up to 8 pages , placed after the Exec Summary. To include:

Key data about the company/industry relevant to developing your assessment.

Identify and explain the source & economic rationale behind assumptions on your exhibits.

Relevant analyses for the topic.

Comparison tables, w/ pertinent observations. Clearly titled and numbered exhibits with

full documentation of all input sources & reasoning on the exhibit.

Do not include an exhibit w/ the question unless you interpret/discuss the meaning of

each w/in the writeup. In the submitted document, do not include intermediate exhibits

that are not key to the final assessment. For example, specific ratios may be important to

show but I do not need to see either the specific Income statement and balance sheet or

how you calculated a ratio from the IS and BS information in a final exhibit. The ratio itself

is important but not that extra detail. The exception to this is that any WACC exhibit needs

to show details on inputs and final estimate.

There will be a 10% grade penalty if you include case exhibits.

Assume you have an informed reader. Do not describe how you calculated something. Instead, use

your exhibit tables to show the key steps of the analysis and note all sources & the reasoning behind

your input choices. Focus your write-up on the interpretation of the results, provide relevant key

statistics, refer to exhibits, and summarize its significance to the topic.

Ratios should be denoted clearly, so the reader knows the information depicted by the ratio. For

example, 'debt ratio' is not informative since a variety of 'debt' ratios exist. Instead, a ratio described

as 'LT Debt to Capital' or 'LT Debt to Equity' will tell the reader what type of ratio you are evaluating.

4

1 page (500words) - Guidelines

Use the following general guidelines for your 1 page(500 words) write-up.

1st paragraph

This should be an executive summary paragraph that provides an overview of the main points of the

problem or issue being assessed, important aspects of context that shape the issue, key results of your

analysis, and a final conclusion and/or recommendation tied to the identified issue/problem.

Analysis

Your analysis is the foundation of your conclusions and recommendation. It should clearly develop relevant

decision criteria and provide a clear indication of alternatives. Your analysis should be clear, concise, and

report & interpret key results, and if relevant, include supporting data. Any detailed data should be

included in an appendix, not in the body of the memo. The analysis often includes an assessment of

qualitative, context information that helps to shape an understanding and interpretation of your

quantitative assessment. A risk analysis is expected. From this data, you will draw conclusions that will be

useful in supporting your recommendation.

Recommendation

This is the heart of your memo. This analysis is based upon your analysis of the alternatives using the

decision criteria. Use the results of your analysis and context to develop a recommendation or conclusion

specific to the problem at hand. Make a specific recommendation even if you feel data is inadequate. Use

what you have.

Implementation

Identify key steps and requirements to implement the recommendation, expected competitive reaction (as

relevant), metrics to measure success, and any risks to the proposed plan.

Additionally, make sure your writing uses:

Evident structure

Can the reader easily follow your argument?

Do you use clear headings, bullets and break-up long paragraphs to keep content skimmable and

easy to read?

Does the closing summarize and emphasize the position taken?

Effective opening

Does it engage the reader and make them want to read on?

Does it contain a clear position?

Does it preview the structure of what's to follow?

Clear language

Is it concise?

Is your writing easy to follow and free of unnecessary jargon?

Is it free of grammatical, spelling and punctuation errors?

Does the writer use active voice when possible?

Audience focus

Is this written with the targeted audience in mind?

Is the proper context established for them? Is the appropriate language and tone used?

Does it meet their needs and the assigned task (i.e. to inform, persuade, etc)?

Other: There is often no "right" answer. Ground your logic with data to build a stronger case. Limit the

background information in your write-ups and presentations. We've read the class materials too.