Rocky Mountain Advanced Genome, Inc Case

The following paper will analyze different facets of the presentation and supporting documents presented last week for the case study of Rocky Mountain Advanced Genome, Inc (hereinafter referred to as RMAG Inc). Recommendations will be given in regards to the following parts of Ms. Todorova's presentation:

• Value of supplemental readings provided

• Quality and content of the concept lecture

• Quality of the case analysis

• Strength of the case recommendation

• Presentation/communication skills displayed

This particular case primarily focused on valuing a company in preparation for an equity offering. It particularly focused on the calculation of terminal value and different methods of how to estimate this figure.

Value of supplemental readings provided:

Ms. Todorova provided copies of a section of Chapter 15 from Financial Management: Theory and Practice that dealt specifically with corporate valuation. With RMAG Inc. being a fictional company, and the material in this chapter providing an excellent overview of the concept of terminal or horizon value and how to calculate it, the supplemental reading provided is sufficient.

Quality and content of the concept lecture:

Ms. Todorova was quite knowledgeable concerning the topic of terminal value, the methods of how to calculate it, and why it was so important to this particular case. The Concept Module did an excellent job of expanding on corporate valuation and delving into net present value (NPV), discounted cash flow analysis, etc.

One thing that was mentioned in passing that is crucial to an understanding of the concept provided is when one method for calculating terminal value should be chosen over another. Essentially, using the method that best fits the circumstances facing the firm being valued should be the rule of thumb. For example, if a firm faces no growth prospects and debt that can not be serviced given