Questions from Corporate Finance

Q: In what way were the situations at Boeing (with the 787

In what way were the situations at Boeing (with the 787) and Airbus (with the A380) similar, and in what way were they different? Discuss this question through the lens of the planning fallacy.

Q: In what way were the situations at Boeing (with the 787

In what way were the situations at Boeing (with the 787) and Motorola (with the Iridium project) the same, and in what way were they different? Discuss this question through the lens of the planning f...

Q: In 1999 Iridium declared bankruptcy and was sold to private investors.

In 1999 Iridium declared bankruptcy and was sold to private investors. Suppose that you were to learn that by the end of 2003, Iridium had gone out of business. How surprised would you be? How would y...

Q: Consider Robert Galvin’s approach to evaluating the satellite project proposal. The

Consider Robert Galvin’s approach to evaluating the satellite project proposal. The text suggests that in not developing discounted cash flow analysis, Galvin’s approach was flawed. In hindsight, Irid...

Q: Consider the contention that excessive optimism and overconfidence are important characteristics of

Consider the contention that excessive optimism and overconfidence are important characteristics of leadership. Might these traits help managers initiate and complete daunting projects that they would...

Q: One of the points made in the discussion about the construction of

One of the points made in the discussion about the construction of the Anglo-French tunnel is that engineers designed the tunnels before they designed the trains, so there were many design changes bec...

Q: In April 2003, analysts at Morgan Stanley and Prudential had set

In April 2003, analysts at Morgan Stanley and Prudential had set 12-month target prices of $106 and $108 for the firm eBay. At that time, eBay’s stock price was $89.22 and the consensus forecast for e...

Q: Consider the comments of Brian Walker, the president of Herman-

Consider the comments of Brian Walker, the president of Herman-Miller North America, who was quoted in the chapter as having said: “For dot.coms, it appears that the market has implicitly capitalized...

Q: For many years, the large retail firm Walmart chose not to

For many years, the large retail firm Walmart chose not to provide guidance. The firm’s legendary founder, Sam Walton, wrote in his autobiography that he did not care what the market thought. Beginnin...

Q: On August 19, 2004, the Internet search firm Google went

On August 19, 2004, the Internet search firm Google went public, at an offer price of $85 per share. The IPO was unconventional in that Google used an auction to determine its offer price and to sell...