1. What IPO price would you set for the Ferrari IPO? Why? Be sure to include a...

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1. What IPO price would you set for the Ferrari IPO? Why? Be sure to include a discussion on value drivers and IPO price-setting strategy.

2. Explain the market-multiples approach to valuation. How does it work?

3. What are the strengths and weaknesses of using the market-multiples approach?

4. What does Ferrari gain (and lose) from the IPO process - that is, what are the benefits and costs to the company by going public?

5. Now that you know that the current price is around $210, try to explain why it has risen so dramatically.

Related Book For answer-question

Case Studies in Finance Managing for Corporate Value Creation

ISBN: 978-0077861711

7th edition

Authors: Robert F. Bruner, Kenneth Eades, Michael Schill

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Posted Date: Mar 07, 2023 07:07 AM

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1. What IPO price would you set for the Ferrari IPO? Why? Be sure to include a...

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Setting the IPO price for Ferrari would require a comprehensive analysis of the companys financials industry and overall market conditions Some of the ... View the full answer

Case Studies in Finance Managing for Corporate Value Creation

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