Both Mike Wilson and Jim Thompson, who are a part of a junior mining Canadian company, Northern Mining Inc., deliberated carefully on the prospect of acquiring the largest graphite deposit in Ontario; Graphite Mining Corporation (GMC) currently possesses this deposit. GMC's U.S. parent company, Jameson Corporation, stopped its mining businesses in the previous year and then proceeded to sell its interest in GMC to a Quebec-based graphite manufacturer, Graphcar Inc.
(A Microsoft Excel spreadsheet is available to be used with this case, merchandise 7A96B014.)
Learning Objective: The objects of this case are to educate pupils about: use of discounted cash flow (DCF) analysis to the valuation of a target company; capital budgeting.
Publication Date: 05/14/1996
This is just an excerpt. This case is about Finance