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Centennial Pharmaceutical Corporation

Eades, Kenneth M.

Case

Centennial Pharmaceutical Corporation

Eades, Kenneth M.

F-1446 | Published June 29, 2004 | 7 pages Case

Collection: Darden School of Business

Product Details

This case presents a challenging discounted-cash-flow (DCF) problem associated with the valuation consequences of changes made to an earnout agreement. The task of the student is to conduct a DCF analysis to compare the values of the original earnout and the amended earnout. The case is designed to be taught in an introductory course as an application of DCF principles, in particular, the choice of an appropriate discount rate consistent with risk.

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