For this assignment, please submit a report on the mini case titled “S&S Air Goes International” at the end of chapter 21 in the textbook. Please upload your case report into the appropriate drop box in D2L by August 1st.
The objective of the assignment is to help you deepen your understanding of certain key topics and give you an opportunity to apply financial theory to a practical problem.
Below are guidelines on how to structure your report.
(1) Begin your report with a brief summary of the key facts of the case. Identify the problem, and state and explain the decision that needs to be made.
An excellent paper will demonstrate the ability to construct a clear and insightful problem statement while identifying all underlying issues.
(2) In the next part of your report, respond to the specific case questions at the end of the case. As you respond to the questions, keep in mind the following:
(a) What are some approaches that can be used to solve this problem? What are some criteria or metrics that can be used to help make this decision?
In almost every case, there is likely to be more than one approach. For example, in a capital budgeting case, it may be possible to analyze an investment opportunity using the Discounted Cash Flow approach or a Real options approach or some combination of the two. Regarding criteria, one may base the decision primarily on the NPV of the project or on other metrics (such as the IRR or the payback period). In a capital structure case, one may evaluate alternate debt-equity mixes using metrics such as the EBIT and EPS, or apply the trade-off theory of capital structure. In a risk management case, it may be possible to hedge the risk using alternative instruments such as forward contracts, futures contracts and call or put options.
An excellent paper will propose and examine multiple approaches and criteria that are based on theory and sensitive to all the identified issues.
(b) Most case studies will require you to analyze the problem, consider alternative solutions and make a recommendation. If so, support your solutions and recommendations with analysis and provide appropriate justification.
An excellent paper will propose solutions that are sensitive to all the identified issues and supported by reasons and rationale. It will include an evaluation of solutions containing thorough and insightful explanations, feasibility of solutions, and impacts of solutions.
(3) In the last part of your report, briefly state the limitations of the approach you used in making this decision, and outline what further analysis you would recommend, if any. Conclude the report with a very brief restatement or summary of your main recommendations.
An excellent paper will provide concise yet thorough action-oriented recommendations using appropriate subject-matter justifications related to the problem while addressing limitations of the solution and outlining recommended future analysis.
I have uploaded a picture of the reading. Please let me Know if you have any questions. thanks.
