NYU Corporate Financial Event Toys R Us Bankruptcy Essay & Presentation

You should produce a written report with no less than eight pages (double spaced, font size 12), in addition to appendices or supporting documents. As a general requirement, the report should include the following: a) A detailed description of the specific event you analyze, including how the event starts, evolves, and ends (if applicable), and the parties involved. If it involves a financial transaction, explain clearly the terms of the transaction. b) Discuss general characterizations or mechanisms for the type of corporate financial events you analyze. For example, if the event is an IPO, find out how frequent are the IPO events in recent years, what typically happens during the process of IPO — e.g., hiring investment banks, producing prospectus, going to roadshows, the IPO price setting process (known as “book-building”), public listing at a stock exchange, patterns about typical first day stock return and subsequent stock price moves, etc. Try to link the discussion to the particular event you are analyzing. c) An analysis of the financial situation of the companies involved at the time of the event. Include their financial statements as appendices to your report (they do not count toward the page requirement). d) A discussion of the motivation (i.e., economic rationale) of the corporate decisions. What are the reasons given by the company or the specific decision-making person/party to justify their decision? Do you think the stated reason make sense? e) Provide an assessment, either quantitatively or qualitatively, on how the event will affect shareholder value and firm value for the firm(s) involved. f) Describe the stock market reactions to the announcement of the event (e.g., stock price movement during days before and after the announcement) and include a graph depicting the stock reaction over the relevant time period. Be sure the graph is created to be clear and effective (consider appropriate scales, secondary axes, labels, etc.) From the price reaction, infer whether investors consider this event as creating or destroying values. Please include in your written report a list of the sources of your information.