LP4.2 Assignment:Preparing a Bankruptcy Plan

This assignment will assess the competency 4. PREPARE different alternatives within the corporate investments environment.

Directions: Revco Drug Store filed for bankruptcy in July of 1988 and was one of the largest bankruptcies in US financial history as well as being one of the largest leveraged buyouts. As recently as 1984, Revco was operating approximately 2,000 stores in 30 states and was taken private in a leveraged buyout in 1986 which lead to a significant increase in Revco’s debts from $44.7 million in 1985 to over $700 million in 1986 after the leveraged buyout. Eventually, its debt reached $1.3 billion and Revco announced that it could no longer make the interest payments on its debts. Using the basic background information already provided conduct more extensive research about the Revco bankruptcy on ProQuest and prepare a plan for the firm’s bankruptcy. Be sure to address issues such as whether it would be better for Revco to file for formal bankruptcy instead of private restructuring, what the costs of the Revco bankruptcy will be, and how long you expect before Revco will emerge from bankruptcy.

To access ProQuest go to the NAU Online Library's Business Subject Guide.

Submit this assignment to your instructor via the dropbox "LP4.2 Assignment:Preparing a Bankruptcy Plan." This assignment is worth 65 points and will be graded according to the Graduate Case Study Rubric.

LP4 - Final Project

Part D: Discussion of Free Cash Flow. You will determine Ford’s consolidated free cash flow. In this part, you will make a prediction as to what the company’s stock price would be in three (3) months. You will also review analysts’ estimates and predictions for the past year.

Requirements:
Step 1: Look at Ford’s Consolidated Statement of Cash Flows. Note the operating cash flow section is found in Note 25.

Step 2: Calculate the free cash flow. Share your calculations with your classmates in Discussion 4.2.

Step 3: Compare your answer to any of the websites listed in the directions. Share your research with your classmates in Discussion 4.2.

Step 4: Make your prediction as to what the stock price will be 3 months from now. Share your predictions with your classmates in Discussion 4.2.

Step 5: Add to the document you started on Part A. Your final submission will include the results from part A - D.

 

 

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Status NEW Posted 07 Oct 2017 04:10 AM My Price 10.00

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file 1507351969-FN6350 LP4.2 Financial Management Assignment.docx preview (905 words )

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