Kohler case summary PDF

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J a k eAms t e r BMGT4 40

3 / 5 / 1 9 Pr o f e s s o rKa s s Ko hl e rCa s eSu mma r y

1 . Wh a t i st h eg o a loft h ec a s e ? Ko hl e rCo mp a n yi sap r i v a t ef a mi l ybu s i n e s so wn e db yt h eKoh l e rf a mi l yi nWi s c on s i n . Th e y s pe c i a l i z ei nma nu f a c t u r i n gp l u mbi n gi t e msa nda l s opr o du c eo t h e ra p pl i a nc e ss uc ha sg e n e r a t o r s a n df u r n i t ur e . 8 0% o ft h es ha r e sa r eo wne db yt hef a mi l ya ndKo hl e rr e s t r i c t e dt hea mo un tof o ut s i des h a r e ho l de r st ol e s st ha n50 0. Theg oa loft hec a s ei st ofig ur eou twha t t h ea c t ua lv a l ue o faKoh l e rs h a r ei s .Thev a l ueo fas ha r ec l a i me db ys ha r e ho l de r swa s$2 73 , 00 0p e rs h a r ea nd t hes h a r ev a l ueKo hl e rs a i dt opa ys h a r e ho l de r swa s$ 55 , 40 0p e rs h a r e . 2 . Wh a ta r et hek e yq u e s t i on si nt hec a s e ?   

Wh a ts ho ul dt hepr i c eo ft hes t oc kbe ? Sho ul dKoh l e rne g o t i a t ewi t ho ut s i des t oc kho l d e r s ? Sho ul dKoh l e rfigh twi t ht hedi s s e nt e rg r ou pi nc ou r t .

3 . Wh a tda t awo ul dy oune e dt oa ns we rt he s eq ue s t i on s ?   

Us i n gt h eDCFmo de lt ofin dKoh l e r ’ sv a l u e :FCFF=EBI T( 1Ta xRa t e ) +De p r e c i a t i on CAPEXCha n g e si nwor ki n gc a p i t a l Ca l c ul a t et h ec os to fe q u i t y :Re =Rf +Be t a( RmRf ) Ca l c ul a t et h ec os to fd e b t :I n t e r e s te xp e ns e / De bt...