What changes, if any, would you suggest as an outside investor to its business model?

  1. Consider some changes and sensitivity analysis. What changes, if any, would you suggest as an outside investor to its business model? What are the risks? What are the implications of these changes? Here this may involve qualitative aspects and “what would you want to know” from an inside the firm perspective.
  2. Based on what you recommend for a business model ($ spent on customer acquisition/marketing and other key variables), come up with a value for Spotify—IPO (your value would be post-money if the IPO money is necessary to grow the business) to guide your IPO decision. Use a discount rate of 20% (late stage venture/ IPO tech SaaS company). Consider a range of exit multiples after 3-5 years (15/20/25 times EBITDA).
find the cost of your paper

Given the bank forward rates in part (a), were short-term interest rates higher or lower in Poland than in Canada? Explain

Your start-up company has negotiated a contract to provide a database installation for a manufacturing company in Poland. That firm has agreed to pay you 100,000 CAD in three-month’s time….

Plot your profits in one year from the contract as a function of the exchange rate in one year, for exchange rates from 0.75 CAD/EUR to 1.50CAD/EUR. Label this line “Unhedged Profits.”

You are a broker for frozen seafood products for Choice Products. You just signed a deal with a Belgian distributor. Under the terms of the contract, in one year you….

What is the present value of the 5 million EUR cash inflow computed by first discounting the EUR and then converting it into CAD?

You are a Canadian investor who is trying to calculate the present value of a 5 million EUR cash inflow that will occur one year in the future. The spot….