With this class, we start the second module of the course--incorporating country risk in valuation.

In this class, we examine the applicability in emerging markets of the tools and assumptions that we take for granted when valuing assets in developed countries.

 

Powerpoint slides:

red-october.ppt

 

 

 

Assignment Sheet
Emerging Markets Finance
Darden Graduate School of Business
Spring First Half 2002

Class #5, Wednesday, January 30, 2002

Topic: Valuation challenge in emerging markets

Case: Hostile Bid for Red October, HBS #296-084.

Assignment Questions:

1.      Why does Koloss want to buy Red October?

2.      Is Red October undervalued?  How would you value it?  What models would you use?  What is your estimate of the value?

3.      What should Milner do?  Will he be successful?

4.      Is hostile takeover a good thing for the Russian economy?