Investment Banking

assignment_7.docx

Home >Business & Finance homework help >Investment Banking

From the office of I. C. Dollard Managing Director Optimum Prime & Partners, LLC 10 Wall Street New York, New York 10005 19 April 2016 My staff and I welcome you to the company. We’ve been expecting you and we have several tasks waiting for you. We have had several young investment bankers who have not been able to answer these question posed to us by several of our most important clients; however, with your education from Illinois Tech’s prestigous Stuart School of Business, you should not have difficulty answering each question in under one page .

1• An Internet-based full stack disruptive company founder wonders if customer acquisition costs, when compared with traditional bricks-and-mortar companies, have a significant impact on valuation. Does it?

2• Another founder of a start-up is interested in learning if there are any difficulties using earnings multiples to value a start-up?

3• A smokestack industrialist is concerned that the market value gains of acquisitions have outperformed the book value gains on the balance sheet and wants to know why this phenomenon is occurring.

4• The head of a fast growing retailer is contemplating taking the company in a new strategic direction that would reduce inventory turns and increase working capital needs. Would this strategic change have a material impact on the company’s valuation?