Suggested Assignment QuestionsThe instructor may consider the following study questions:1.Is Sun Microsystems a good strategic fit for Oracle?2.What approaches would you use to place a value on Sun Microsystems?3.Assuming a discounted cash flow valuation:a.What rate of return should Oracle require on the acquisition?b.What base-case cash flows do you forecast?c.What is your estimate of terminal value?d.What is the enterprise value of Sun Microsystems? What is the equity value?4.Conduct a multiples analysis to value Sun. What economic fundamentals are reflected in the multiples?5.Identify the synergies and conduct a sensitivity analysis to estimate the effect of synergies on enterprise value.6.If a competing bidder appears, how high a price should Oracle be willing to offer?
