Review USG’s business, it’s past performance, and the outlook for the future
For the Final Exam, I will expect you to analyze the attached USG case. In your analysis, you should address the following questions:
1) Review USG’s business, it’s past performance, and the outlook for the future. Why is USG the target of a hostile takeover?
2) Value USG under its current operating and financial strategies. How does your valuation compare to the current market price? Value USG under the proposed recapitalization plan.
3) How should Day respond to Desert Partners’ tender offer? Is the proposed recapitalization the best response? As Desert Partners, how would you respond to the proposed recapitalization plan?
Rules:
• Address the questions above in a memorandum.
• YOUR PAPER MUST BE INDIVIDUAL.
• They are due to me by email or hard copy by 4PM on Thursday, Dec 19st. (There will be a box by Michael Jules – course assistant by KMC9-87.)
Notes:
• Your paper must be individual
• At most 8 pages of text (and no less than 3 pages)–double spaced with 10-12 pitch.
• Calculations and Exhibits can be attached as Exhibits.
• Put name on cover page only (I grade them blind).
• Your memo should follow the same format as discussed for the previous memos
• Except I expect much more detail and breadth here.
• Please describe your assumptions.
• Your paper should address the issues raised in an integrated essay.
• I am looking for good arguments and logical descriptions.
