Discussion 1

Please read the Harvard Case Study — eBay Inc.: Internet Success or Fairy Tale? by David F. Hawkins and Jacob Cohen. This case study can be found in the Harvard Case Study website using the following link: http://cb.hbsp.harvard.edu/cb/access/13637669

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Please answer the following questions about the case study:

1. Use the 2002 Financial Statement data to replicate the Meyer’s report calculations that illustrate the following conclusion based on the 2001 data reached in the report: eBay has never been profitable. Why? Why not?
2. Do you agree with Meyer’s report concept of “unfettered” cash flow? Why? Why not?
3. What other conclusions can you reach about the company from the case study?

Discussion 2

Why is it sometimes misleading to compare a company’s financial ratios with those of other firms that operate in the same industry?

Assignment 2

• Complete Chapter 2 problem, 2-8, p. 86

• Complete Chapter 3 problem, 3-6, p. 122