corporate value
Answer the attached questions with at least five sentences
each:
? Identify
the differences between an internal estimate of company value and an external
estimate of corporate value. Does access to managerial accounting data
necessarily lead to better corporate value estimates than relying on publicly
available information?
? Identify
the key issues an analyst should consider when valuing start-up companies. How
might an analyst resolve these issues?
? In terms
of research and development, purchasing, and advertising, describe how the
product compatibility of a corporation’s business units might impact the value
of the corporation.
? How
might lack of product compatibility affect the realignment of a corporation’s
divisions?
? At what
point in the incurrence of costs does the allocation of corporate costs lead to
misleading results for the firm’s business units? Indicate a few such costs.
? What are
some of the corporate advantages in dealing with customers who shop at
dot.coms?
? Assume
that one of the earlier problems of dot.coms — heavy startup costs involving
substantial discontinuities — is to some degree over. How should this impact
the valuation process?
? What do
you foresee in the future for dot.coms, and what does that imply for changes
that must occur from the present time?





