Briefly, summarize the key facts of the case, identify the problem/decision, and explain why it is important.
Your case report should cover the following questions/topics:
Ferrari believed its value arose from scarcity. Do you agree with Ferrari’s leadership that a slow volume growth strategy to maintain that scarcity is the best
strategy for the company in order to maximize value for investors?
Comment on important assumptions used in the DCF analysis, specifically including assumptions relating to Price Growth, R & D Expenses, Terminal Value
and Cost of Capital.
Based on the DCF analysis and other information provided in the case, do you think that the IPO was correctly priced?
As you carry out your analysis, keep in mind the following:
What are some alternative approaches to addressing the case questions?
Are your comments based on appropriate analysis and backed up with rationales?
Does the analysis (both what is presented in the case and any of your own) have any limitations?
