This case is a way to illustrate the evaluation of business analysis issues, such as: 1) Given a stock price, which is the default value attributable to business running? 2) Given a multiple valuation of a going concern, which is the target price of the underlying shares? Also, if 1) illustrates how the arbitration is to the law of one price meet and maintain efficient markets 2) provides a model case to understand why stocks may be undervalued 3) shows the application of a “stub” evaluation 4 analysis ) provides an example of a pooling strategy covering (equity long / short) 5) show how to calculate margin requirements for a portfolio containing long and short 6 positions) illustrates the effects of leverage and capital requirements on investment returns 7) provides a framework for the calculation of such risk in a complex investment position.
Source: Ivey Publishing
Release: September 15, 2009. Prod #: 909N16-PDF-ENG
Cypress Semiconductor Corporation and SunPower Corporation Case Solution