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:
- 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?
Why is it sometimes misleading to compare a company’s financial ratios with those of other firms that operate in the same industry?
Complete Chapter 2 problem, 2-8, p. 86
Complete Chapter 3 problem, 3-6, p. 122