Sometimes you have to look beyond what is presented to question what is reported or provided in an opinion. Numbers can be misleading and you should learn to question assumptions regarding the numbers presented. This will in turn provide you with greater insight into the realities of the situation.
Topic 1: Case Study
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. This link is in your Syllabus.
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Please answer the following questions about the case study:
- 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?
- Do you agree with Meyer’s report concept of “unfettered” cash flow? Why? Why not?
- What other conclusions can you reach about the company from the case study?