What characteristics of NECK Corporation make it similar to a classic Japanese ? B. The Japanese corporate governance system differs vastly from the US system. Discuss corporate governance issues that may arise under the Japanese system from the perspective of a) financiers b) owners c) suppliers and d) employees. 2. What is the fundamental value of NICE shares? Provide a valuation and a Justification of how you calculated it. 3. Is NICE a good investment?
How does the price of its shares compare to their fundamental value? Come up with at least two different sets of reasons why these two values may be different. 4. If you were a minority shareholder, what would you pay for the shares of a subsidiary or a company the time of the subsidiary PIP? A. Explain the intuition behind the price that you would pay in both efficient markets (I. E. , markets are fully rational) and inefficient markets (I. E. , markets are less than fully efficient) and provide empirical evidence to back up each of your answers. B.
Justify your answers in question (a) using the model about “the choice between dividends ND stealing” that was discussed In class. 5. Are there any Incentives for parents to list subsidiaries In Japan? A. Justify your answer conceptually. B. Can you back up your answer with data from this case? (Hint: Think about market performance. ) 6. Can you explain the Incentives behind Neck’s repurchases of NECK Soft and NECK System Technologies? Please Justify your answer quantitatively. 7. A. Can you analyze the advantages and disadvantages of the 3 main choices that Excel has? (I. E. Increase Its stake In NICE; sell Its position; confront NECK) b. If Excel ere to confront NECK through litigation and considering the Japanese corporate and securities laws at the time, would Excel be able to prove self-dealing? If so, how? (I. E. , what Information would Excel need to do so? ) c. If Excel were to confront NECK through lobbying other shareholders, what are his chances of success?
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