Huazhang is a joint venture between China Machine Press and Multi-Lingua Publishing International, Inc. of the United States. Since its establishment, Huazhang had developed from a business with three employees to more than 100 workers. The shareholders are interested in determining how well the business was managed and the board decides the best way to do this would be to value the business.
The board also needs to measure the general managers' future performance based on the increased value of the firm. The problem for the newly-appointed general manager will be to decide which of the many potential procedures should be used to value the company, including the discounted cash flow model, and to perform sensitivity tests.
Publication Date: 11/09/2001
This is just an excerpt. This case is about Finance
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