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    The Valuation and Financing of Lady M. Confections PDF

    Uploaded by

    Hasbi Asidik
    This document contains 6 suggested assignment questions for students regarding a business case involving a bakery called Lady M needing to sell a certain number of cakes to break even in its first year, and how quickly sales would need to grow thereafter to pay back startup costs within 5 years. It also involves questions about valuing Lady M's enterprise, assessing assumptions made by key figures, and whether to accept an offer from Chinese investors.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    The Valuation and Financing of Lady M. Confections PDF

    Uploaded by

    Hasbi Asidik
    263 views1 page
    This document contains 6 suggested assignment questions for students regarding a business case involving a bakery called Lady M needing to sell a certain number of cakes to break even in its first year, and how quickly sales would need to grow thereafter to pay back startup costs within 5 years. It also involves questions about valuing Lady M's enterprise, assessing assumptions made by key figures, and whether to accept an offer from Chinese investors.

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    The Valuation and Financing of Lady M. Confections.pdf

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    This document contains 6 suggested assignment questions for students regarding a business case involving a bakery called Lady M needing to sell a certain number of cakes to break even in its first year, and how quickly sales would need to grow thereafter to pay back startup costs within 5 years. It also involves questions about valuing Lady M's enterprise, assessing assumptions made by key figures, and whether to accept an offer from Chinese investors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    263 views1 page

    The Valuation and Financing of Lady M. Confections PDF

    Uploaded by

    Hasbi Asidik
    This document contains 6 suggested assignment questions for students regarding a business case involving a bakery called Lady M needing to sell a certain number of cakes to break even in its first year, and how quickly sales would need to grow thereafter to pay back startup costs within 5 years. It also involves questions about valuing Lady M's enterprise, assessing assumptions made by key figures, and whether to accept an offer from Chinese investors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Dear Students, 

    These are suggested assignment questions:

    1. How many cakes would Lady M need to sell in a year in order to break-even? Does this
    number seem feasible?
    2. Assuming sales in year one are break-even, how quickly would sales need to grow after the
    first year to pay the start-up costs within 5 years? Is this growth rate feasible?
    3. What is your recommendation? Should Romaniszyn open the new location in the World
    Trade Center?
    4. What is Lady M’s enterprise value? Does it matter if one uses an EBITDA multiple or a
    perpetuity growth formula for a terminal value? How much of an equity stake should they be
    giving up to the Chinese investors?
    5. What do you think of Romaniszyn’s and Tom's baseline assumptions? Are they realistic?
    6. Do you think they should take the Chinese investors' offer? Why/why not?

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