INSTRUCTIONS
Read case number 46 starting on page 583 in the text book. Use the lesson video to answer the following questions in your case analysis.
- In preparation for Ferrari’s listing on the New York Sock Exchange, at what price in U.S. dollars would you recommend that Ferrari shares be sold?
ANSWER
I would recommend a price of USD xxx per price for Ferrari shares based on several reasons. First, Ferrari has a better financial health and marketing position, placing it at the top. This is because the company is known for owning luxurious and high-end performance vehicles, thus commanding a unique position in the automotive industry (xxx et al., 2018). As such, with this position, the company warrants a premium valuation. The company’s balance sheets and income statements show how the company makes profits, meaning that the company has a better financial position in the automobile market. Further, the company’s high margins, strong brand equity, and consistent revenue growth indicate that it requires ….. To access full answer, use the purchase button below.