Buy Research Paper-Finance 3504 Intermediate Corporate Finance


Buy Research Paper-Finance 3504 Intermediate Corporate Finance

Finance 3504 Intermediate Corporate Finance © 2017 Pavel G. Savor
INTERMEDIATE CORPORATE FINANCE (FIN 3504)
Spring 2017
Professor Pavel Savor
Alliance Concrete Case Instructions and Questions
You can buy the case at: http://store.darden.virginia.edu/alliance-concrete (choose the “PDF Download” option).
You should prepare a written case report, with a page limit of five pages. Please ensure you answer the following questions in your report.
1. What is your best estimate of the 2006 financial statements? As a starting point, you can assume that Alliance will make the expected $3 million dividend payment to National. Hence, the balance sheet will be balanced by adjusting the amount of the bank loan. This implies a possible renegotiation with the bank.
Once this forecast is completed, consider the effects on the borrowing amount from changing the dividend and/or capital expenditure choices.
Please note that this question requires you to do a financial projection of Alliance Concrete’s 2006 financial statements (using Excel or similar spreadsheet software). I will ask you about your projections.
2. Alliance faces the following options:
a. make the principal repayment to the bank
b. make the capital investments proposed by the plant manager
c. make the dividend payment to National
Most likely, it cannot do all three. What is your recommendation about how to proceed (provide the reasoning underpinning your recommendation)?
3. Assume you chose to renegotiate with the bank. How would you approach the bank, and what arguments would you put forward?
4. Assume you chose to skip the dividend. How would you approach National, and what arguments would you put forward?

Buy Research Paper-Finance 3504 Intermediate Corporate Finance

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