
Goodyear Tire & Rubber Company: Follow-O...
Chaplinsky, Susan;...
Goodyear Tire & Rubber Company: Follow-On Equity Issue
Chaplinsky, Susan; Estey, Warren
F-1596 | Published July 16, 2009 | 20 pages. Case
Collection: Darden School of Business
Product Details
This case explains marketing process for follow-on equity offerings, the direct and indirect costs of issue, and the long-run performance of equity issuers. Students use analysts’ projections from which to estimate the intrinsic value of the company’s share—including the cost savings from the VEBA and financial improvements over the next several years. It is appropriate for use in corporate finance courses covering the topics of capital raising, equity financing, capital structure, costs of financing, funding alternatives, investment banking, and valuation. It presents the classic profile on an equity issuer—a firm whose stock price has risen to new heights in recent months. Will the issue lead to additional value that creates opportunities for shareholders, or is it a sign the firm is overvalued? The case explores the thinking of a prominent investment manager who had accumulated a large stake in Goodyear and who did not see the need for Goodyear to make an equity issue at this time. The company’s position was that the high stock would allow it to further strengthen its balance sheet and pursue international growth opportunities. Students are asked to decide what the investor should do with respect to the current offer—buy, sell, or hold.
0
Products To Upsell

Global Medical Imaging, LLC
Hess, Edward D.; G...

Enchanting Travels
Hess, Edward D.; M...

Better World Books
Hess, Edward D.; G...

Valuation of "Plain-Vanilla" Interest-Ra...
Conroy, Robert M.;...

FindingFIT
Clawson, James G.

List Testing Exercise: Economic Selectio...
Pfeifer, Phillip E...

An Introduction to Case Teaching (Part 1...
Clawson, James G.

What Is Giving Voice to Values? (VIDEO)
Gentile, Mary

Giving Voice to Values: An Educators' Pr...
DARDEN, Darden

Digital Marketing Simulation: Media Attr...
Venkatesan, Rajkum...

Dr. Bronner's: Do Psychedelics Fit with ...
Freeman, R. Edward...

AMP - Strategic Innovation & Entrepreneu...
Gupta, Uday

Accounting for Owners’ Equity
Lynch, Luann J.; B...

Test Syllabus 45
Daren Business Sch...

Athlete Brands: How to Benefit from Your...
Whitler, Kimberly ...

What is Design Thinking? (VIDEO)
Liedtka, Jeanne M.

Copyright Permissions
Daren Business Sch...

Thinking Strategically About Communicati...
West, June A.

Optix Corporation
Powell, Elizabeth ...

Leaders Bank: Creating a Great Place to ...
Hess, Edward D.; G...

LG Investments, LLC: A Family Business i...
Hess, Edward D.

Finance People
Schill, Michael J.