2. Should Haier market Maytag’s current brand names or should Haier replace Maytag brands with the Haier corporate brand Name?
· merits of global branding, multi-product brand
· pros and cons for marketing vs. replacing Maytag’s current brand names
3. How much is the Maytag Corporation approximately worth? If Haier submitted a bid for Maytag, what would be a bid price?
· from a financial perspective (price-earning or P/E ratio):
Ø market value = “multiple” x EPS x common shares outstanding
Ø industry “multiples” ranges from 16-21
Ø projected earning-per-share: $.54 (2005), $.75 (2006), and $.80 (2007)
Ø common share outstanding = dollar value of bid ($1,13 billion)/share price bid ($14)
· What the biding price is actually buying (tangible and intangible) based on Maytag’s consolidated balance sheet for 2004 (Exhibit 8A)?
· from a strategic perspective (how much is the Maytag worth to Haier) — benefits, cost and opportunity cost
Answer each question seprerately in an organized way. only use info from case.