Product details

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Published by: Ivey Publishing
Originally published in: 2008
Version: 2008-05-27
Length: 14 pages
Data source: Field research

Abstract

The chief executive (CEO) of Cequel Energy, Inc (Cequel) is trying to choose between three options: continue operating Cequel as is, selling it, or converting part of the company into an income trust (in combination with another similarly sized firm). The CEO''s key concern is the relative valuation of the three options. Other key issues include the management team''s preferences and an impending tax horizon. This case can be used as an introduction to corporate finance and valuation using multiples. It also allows for consideration of the impact of taxes on valuation and could provide a useful tool to discuss tax policy given changes in the tax treatment of income trusts that occurred subsequent to the case.
Location:
Size:
Medium
Other setting(s):
2004

About

Abstract

The chief executive (CEO) of Cequel Energy, Inc (Cequel) is trying to choose between three options: continue operating Cequel as is, selling it, or converting part of the company into an income trust (in combination with another similarly sized firm). The CEO''s key concern is the relative valuation of the three options. Other key issues include the management team''s preferences and an impending tax horizon. This case can be used as an introduction to corporate finance and valuation using multiples. It also allows for consideration of the impact of taxes on valuation and could provide a useful tool to discuss tax policy given changes in the tax treatment of income trusts that occurred subsequent to the case.

Settings

Location:
Size:
Medium
Other setting(s):
2004

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