Goodyear Tire & Rubber Company: Follow-On Equity Issue Harvard Case Solution & Analysis

This case illustrate advertising procedure for follow-on equity offerings, the indirect and direct costs of problem, and the long run performance of equity issuers. Pupils use analysts' projections from which to guess the inherent worth of the business's share - including the price savings from the VEBA and fiscal advancements over the next quite a lot of years. It is proper to be used in corporate finance classes covering the subjects of costs of financing, equity lending, capital structure, capital raising, funding options, investment banking, and valuation.

Will the dilemma lead to additional value that creates opportunities for shareholders, or is it a hint the firm is overrated? The case investigate the philosophy of a well-known investment manager who'd accumulated a substantial stake in Goodyear and who did not see the demand for Goodyear to make an equity problem at this time. The position of the company was that the high stock would enable it to further strengthen its balance sheet and pursue international growth opportunities. Students are requested to decide what the investor should do with respect to the present offer-purchase, sell, or hold.

PUBLICATION DATE: July 16, 2009 PRODUCT #: UV2555-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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