Compass Records Case Resolution

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Category: Business and Industry

Date Submitted: 01/26/2011 09:17 AM

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Compass Records

Case Study Solution

The solution for the Compass Records case study consists of 3 files; 2 word and 1 excel.

The first word file is over 900 words. This word file focuses on "how to solve" the Compass Records case study. Below is the table

of contents for the paper:

Background Info

Music Industry Analysis

Industry Expenses

Sales by Channel

The Rosecommon Decision Analysis

Analysis of Financials

The second word file is over 2,100 words and is a 6 part analysis of the solution. There is overlap between the first and second file,

as some of the sections are identical. But the second file actually discusses the solution with the answers, while the first file just

goes over how the case study should be solved. Below are the table of contents of the second paper:

Carefully estimate expected future cash flows (Quantative)

Select a discount rate consistent with those future cash flows (Quantative)

Compute a base case NPV (Quantative)

Identify the risk and uncertainties. Run a sensitivity analysis (Qualatative)

Identify qualitative issues (Qualatative)

Decide (Qualatative)

Background Info

Music Industry

Industry Expenses

Sales by Channel

The Roscommon Decision Analysis

Analysis of Financials

The third file is the financial analysis in an excel file. The file contains all formulas so you can easily trace the work to fully understand

how the calculations were performed. The tabs for the Compass Records case study solution are:

Cash Flows Analysis and Projection

Weighted Average Cost of Capital (WACC)

Capital Asset Pricing Model (CAPM)

Net Present Value (NPV)