FIN 101 Ferrari: The 2015 Initial Public Offering – [Solved Assignment]
Ferrari: The 2015 Initial Public Offering Please work with members of your group on this group case assignment. The report should be around 10 double-spaced pages long. There are some suggested questions listed below for you to consider. Your discussion is not limited to these questions. Instead of answering the end-of-case questions one by one, you need to write an integrative report. Do not copy others’ assignments. It must be your own work. Initial Public Offering Suggested Case Questions 1. Why does FCA want to spin off Ferrari? What are the pros and cons of FCA’s strategy? 2. Explain briefly the critical factors in launching an IPO successfully. How does Ferrari, a foreign company, issue stock in the U.S.? What does Ferrari gain from the IPO process? 3. What is the market-multiples approach in valuation? What are the strengths and weaknesses of such an approach? Based on this approach, what should the offer price for Ferrari be? 4. What is the discounted cash-flow (DCF) approach in valuation? What are the strengths and weaknesses of such an approach? Based on this approach, what should the offer price for Ferrari be?