Case write-ups should be no more than 1-2 typed pages, along with any supporting

exhibits. Case write-ups are due at the beginning of class on the due date. Project
teams can turn in a single write-up but all team members should be prepared to
discuss the write-up in class.
Questions for SIPEF:
1.) Describe SIPEFs value chain. Describe the companys competitive environment
using Porters five forces model.
2.) How has SIPEF performed in the last three years, particularly sales growth,
profit margin, asset turnover, leverage, and return on equity (ROE)?
3.) How do the answers to questions 1.) and 2.) differ for Ledesma, if at all?
4.) What are some challenges of comparing SIPEF to Ledesma?
5.) What should Lindsay Cannon do?
Questions for Nuware:
1.) Restate Nuwares 2013 earnings as if the company had used the same
accounting methods and assumptions as R.P. Stuart. Your answer should focus on,
but not necessarily be limited to, Nuwares accounting for investments, receivables,
inventory, and PP&E.
2.) Assess the financial performance of Nuware versus R.P. Stuart.
3.) Would you characterize the accounting discretion applied by Nuwares
management as aggressive? Why or why not?
Questions for Krispy Kreme:
1.) How is Krispy Kreme performing? What are the key success factors for Krispy
Kreme to continue its growth? What are the key risks?
2.) Using what you consider to be reasonable estimates for number of stores and
average sales per store, estimate Krispy Kremes revenue for FY 2003 and FY 2004.
How do your estimates compare to CIBCs? Why are they similar/different?
(Interesting factoid: Roughly 11 billion donuts were consumed in the US and
Canada during 2001.)
Krispy Kreme financial statements have been posted to Stellar.
Questions for Dril-Quip:
1.) Project Dril-Quips income statement for the next five years. Assume 17%
annual growth in product and service revenue over the five-year period. In addition,
assume that all expenses, including depreciation, maintain constant margins over
the five-year period compared to 2013.
2.) Project Dril-Quips balance sheet for the next five years. Assume that all
operating asset and liability line items maintain constant turnover ratios versus
total revenues over the five-year period compared to 2013. Also assume that all
equity line items other than retained earnings remain constant at their 2013
amounts. Use cash and cash equivalents to balance the balance sheet since the

company has no debt as of December 31, 2013 and no plans to access the credit
markets.
3.) Identify one or two instances where you consider an assumption of constant
margin or turnover ratio relative to 2013 to be particularly problematic? What
improvement(s) would you propose to the forecasting model in order to address
your concern(s)?
4.) Project Dril-Quips cash flow statement for the next five years using your
projected income statements and balance sheets. Assume that gain/loss on sale of
equipment is zero.
5.) Assume that annual growth in product and service revenue decelerates to 2%
starting in 2019. Project Dril-Quips financial statements for 2019 and 2020
assuming all assumptions other than revenue growth remain the same.
Dril-Quip financial statements have been posted to Stellar.
Questions for Schneider Square D:
Questions are in the case. Please prepare questions 1, 2, 3, and 5. When valuing
Square D, use both free cash flow and residual income approaches. Assume a
WACC of 13% and cost of equity capital of 15%.
Square D financial statements have been posted to Stellar.
Questions for New Century:
1.) What was New Centurys business model? What were the primary risks faced by
New Century?
2.) Describe in words how New Century accounts for the different ways it treats a
mortgage? How were the primary risks faced by New Century reflected in its
financial statements?
3.) Why did New Century fail?