In this class, we explore the estimation of discount rate for use with cash flows generated in an emerging economy.  We will also consider the role of foreign joint ventures in corporate growth strategies.

 

 

 

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

Class #7, Wednesday, February 6, 2002

Topic: Joint venture and cross-border valuation

Case:  Continental Cablevision/Fintelco Joint Venture, 
           UVA-F-1149

File: CONCAB.XLS

Assignment Questions:

1.      Is entry into the Argentine market a good strategic move for Continental?  Is Fintelco an appropriate venture partner?

2.  What are the major opportunities and risks you see in the venture?

3.   Is $80 million for a 50 percent interest in Fintelco a fair price? 

4.     Should Hostetter recommend the joint-venture proposal for adoption?