(2 points) Why did Daniel Loeb's firm acquire a large stake in FANUC? What is his ultimate goal? (2 points) "At the end of 2014, the Nikkei 225 index was still 50% below its all-time high, achieved some 25 years earlier." In the context of this statement explain why Japan's President, Shinzo Abe, is targeting corporate governance reforms (2 points) A very successful and profitable company like FANUC (40% operating margins, huge cash reserves, little debt, strong competitive position etc.) should not change, but instead simply continue along the path that brought it success. Give an argument against this statement. (3 points) "We prefer to pay executives with cash and bonuses rather than stock and options. Bonuses provide strong incentives." Do you agree or not? Discuss. 5 points) "Loeb was demanding that the Japanese firm change its financial and governance policies...to increase its value." First, make a case for why FANUC should follow Loeb's advice. Next, make a case against following Loeb's advice. Try to make each side as convincing as possible. (3 points) -How has FANUC performed since the case ended? Has its performance been good? Discuss. Useful information in this context may include, 2. 3, 4. 6. icker EWJ iShares MSCT JapanET Tracks he investmen results ofan indexcomposed iShares MSCI Global ETF Tracks the investment results of an index composed Wilshire 5000 of Japanese equities ACWI of global equities Tracks the investment results of an index composed of all US equities 5000 FANUY Fanuc Corporation (2 points) Why did Daniel Loeb's firm acquire a large stake in FANUC? What is his ultimate goal? (2 points) "At the end of 2014, the Nikkei 225 index was still 50% below its all-time high, achieved some 25 years earlier." In the context of this statement explain why Japan's President, Shinzo Abe, is targeting corporate governance reforms (2 points) A very successful and profitable company like FANUC (40% operating margins, huge cash reserves, little debt, strong competitive position etc.) should not change, but instead simply continue along the path that brought it success. Give an argument against this statement. (3 points) "We prefer to pay executives with cash and bonuses rather than stock and options. Bonuses provide strong incentives." Do you agree or not? Discuss. 5 points) "Loeb was demanding that the Japanese firm change its financial and governance policies...to increase its value." First, make a case for why FANUC should follow Loeb's advice. Next, make a case against following Loeb's advice. Try to make each side as convincing as possible. (3 points) -How has FANUC performed since the case ended? Has its performance been good? Discuss. Useful information in this context may include, 2. 3, 4. 6. icker EWJ iShares MSCT JapanET Tracks he investmen results ofan indexcomposed iShares MSCI Global ETF Tracks the investment results of an index composed Wilshire 5000 of Japanese equities ACWI of global equities Tracks the investment results of an index composed of all US equities 5000 FANUY Fanuc Corporation