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Study Questions For The Spyder Active Sports Case

The document provides suggested questions for a case study on Spyder Active Sports. The questions ask how Spyder's ownership structure impacts its value, how to estimate Spyder's value using discounted cash flow analysis and trading multiples with adjustments, and how to calculate the implied synergy premium if a strategic buyer acquires Spyder and achieves cost synergies.

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nidhivijay2507
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139 views1 page

Study Questions For The Spyder Active Sports Case

The document provides suggested questions for a case study on Spyder Active Sports. The questions ask how Spyder's ownership structure impacts its value, how to estimate Spyder's value using discounted cash flow analysis and trading multiples with adjustments, and how to calculate the implied synergy premium if a strategic buyer acquires Spyder and achieves cost synergies.

Uploaded by

nidhivijay2507
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Suggested questions for the Spyder Active Sports case

Case write-ups due on Thursday, October 31, at 6:10 pm

1. How, if at all, does the value of Spyder depend upon its ownership structure?
What are the (other) primary determinants of value? (2 pts)

2. Prepare estimates of value based on DCF and the trading and transaction
multiples presented in the case. Are any adjustments to these estimates necessary?
(5 pts)

a. Assume a 35% tax rate.


b. Assume a risk-free rate of 4.77% and market risk premium of 5%.

3. Suppose a purchase by a strategic buyer will generate synergies in the form of a


2% reduction in both Spyder’s cost of goods sold and operating expenses. What
will be the implied synergy premium for Spyder under such scenario? (2 pts)

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