We use this class to consolidate our learning on valuation tools in emerging markets.

 

 

Assignment Sheet
Emerging Markets Finance

Class #12, Wednesday, November 30, 2005

Topic: Joint Venture

Case: ASIMCO-NANYUE JOINT VENTURE IN CHINA, UVA-F-1374.

File: F-1374 ASIMCO v.1.5.xls

Assignment Questions:

1. Review ASIMCO's cash flow projection. Are the assumptions reasonable? Are the exchange rate forecasts reasonable?

2. Estimate the cost of capital for this joint venture using the Lessard method, the country credit rating method, and ROBOCC.

3. Is US$7.8M for 51% of the joint venture a good  price for ASIMCO?