Ivey Publishing

Product Details

Ramsync Brief
Product Number:
9B05N012
Publication Date:
08/12/2005
Revised Date:
10/21/2019
Length:
5 pages (2 pages of text)
Product Type:
Case (Gen Exp)
Source:
Ivey
The manager of a billion dollar hedge fund had just been approached by a syndicate of funds to gauge her interest in a bid to purchase RamSync Incorporated, a Silicon-Valley manufacturer of memory chips. Using a traditional discounted cash flow analysis (the APV method), the manager quickly determines that at a purchase price of $900 million, RamSync has a negative NPV of $33 million. However, purchasing RamSync, which currently produces SDRAM, would allow the owner to enter the much-anticipated MRAM market at a future period in time. The manager is now forced to reconsider how to value RamSync considering the hidden call option it has on the MRAM market.
Issues:
Disciplines:
Finance
Industries:
Finance and Insurance
Setting:
United States, 2005
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
Associated Materials
Supplements: 7B05N012 (152 KB)
You Might Also Like...

Save In: