business/computer

Unit 5 Discussion: Too Big to Fail?

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Is any company too big to fall? In the last 5 years we have seen businesses that had been established for over 50 years suddenly hit financial crises, and banks were at the top of the list. According to the FDIC, more than 300 banks have failed since 2009.

The US Government stepped in and created a program called TARP (Troubled Asset Relief Program) to purchase assets and equity from the failing financial sector to stabilize our economy.

Using research and your own opinions that you derive from your understanding of the concepts in this course and in this unit, research a public company that has filed bankruptcy (or reorganization), merged or been acquired by another company in the last five years.

Respond to the following questions:

1.Give the name of the company and write a short description of its business.

2.What was the stock price in the years preceding its failure, merger or acquisition? What was the stock price after, if it still existed? (You may find this information on Yahoo Finance.com)

3.Summarize what led to this company"’s downfall: What are the differences between this company and another company (that is thriving) in the same industry?

4.If the company still exists in some aspect, what is the current condition of it? Do you believe that it would be a good investment? You may use the required rate of return as determined by the CAPM to support your position.