Need help answering Q1-7 (on page 7) for Abercrombie & Fitch Case. Leave your em

Question

Need help answering Q1-7 (on page 7) for Abercrombie & Fitch Case. Leave your email if you would like me to send you the Excel Workbook for reference as this case study is pretty in-depth.

Balance Sheet:

Abercrombie & Fitch CLASSIC LoOKS ING 201 The Future of Abercrombie & Fitch At year-end 2013, Abercrombie & Fitch found itself at a pressure filled cross roads. After several years of poor performance and unsuccessful strategy redesigns, the company was being compelled to quickly remake itself and reinvigorate its brands, or face a possible reorganization or sale to a competitor, corporate activist, or other private- equity group

Explanation / Answer

1.) Corporate Acivism is not favourable for the company, but is favourable for the short to long term benefits of the shareholder's and activist who prefer to take managment in their control and removing and reappointing people as per their desire or wishes. Decision taking power is taken away from the board of director's thus leaving them with no power. So, it can be said that corporate activism is good for the shareholder's and financial market's as it gives their shares an artificial boost but affect's the companies working and operation's in the long-run which is very difficult to rebuild.

2.) I think the board was right as new competition was being faced by them and If same was exercised it would have resulted in either takeover or resultant being purchased as it was seeing obvious problem's were emerging from the poison pill agreement getting 10% will have considerable impact on the decision making of the company and approval for decision making will be problem for the company as well. This resulted in benefit to the company as well.

3.) For that data needs to be analyzed on excel but EBITDA and EBIT and take data of two-three companies given in excel as I have time constraint same is doable and you can arrive at the same.

4.) to find DCF factor multiply current figures by 1+discount factor to get future projections, repeat this exercise. Take DCF factor based on average growth or other valaution method.

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