1. Financial analysis using Exhibits 8 and 11
1) Based on Exhibit 8: what are the key weaknesses of Tesla’s financials?
2) Based on Exhibit 11: what are the key weaknesses of SolarCity’s financials?
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2. If you were a shareholder of Tesla, would you vote yes or no for the merger at the time of the case? Why?
Note: you should consider the synergies, strategies and visions, financials, and market and industry conditions.
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Case 3: Call of Fiduciary Duty: Microsoft Acquires Activision Blizzard
1. Based on the financials on Exhibit 6a & 6b, what are some key weaknesses and key strengths of Activition’s financials?
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2. If you were a shareholder of Microsoft, would you vote yes or no for Activision acquisition at the time of the case? Why?
Note: you should consider synergies, financials, industry and market conditions, and Activition’s current challenges.
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Case 4: Toys “R” Us: Come Buy More Toys
1. Based on the case, what caused Toys R Us to fail? What could be done differently to possibly create a different outcome?
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2. Who bears the risks in a private equity transaction? Should or will the government take a more active role in overseeing private equity activity as a result of bankruptcies like Toys R Us?
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Case 5: Driving Decarbonization at BMW
1. Decarbonization
1) In the automotive industry, regulators and many automakers are focusing on the transition from ICE to EVs which affects primarily use-phase emissions. Why is BMW focusing on carbon emissions in the full value chain? Do you think this is a wise strategy?
2) Among the various scopes of emission (Scope 1 and 2; Scope 3 Supply Chain; Scope 3 Use-Phase), if you are an investor at BMW, for which emissions would you want to hold management accountable?