Overview: The “CEMEX and the Rinker Acquisition” case study illustrates the fina
Overview: The “CEMEX and the Rinker Acquisition” case study illustrates the financial restructuring of a nonfinancial corporation and focuses on traditional financial metrics of corporate performance and indebtedness. For this assignment, you will review the company’s performance, explain the company’s performance based on the information presented, and apply market knowledge. This assignment supports the final project through application of market knowledge, analysis of financial reports, and analysis of the company’s response to the 2007–2008 financial crisis. Prompt: To complete this assignment, read parts A and B of the “CEMEX and the Rinker Acquisition” case study.  Apply market knowledge and address the company’s response to the 2007–2008 financial crisis.  Provide examples from the case study and previous learning. Rubric Guidelines for Submission: Submit this assignment as a Word document with double spacing, 12-point Times New Roman font, and one-inch margins. The submission should be 2 to 3 paragraphs in length. Some helpful questions: Was the Rinker acquisition the right move for CEMEX? How does CEMEX customarily create value for its owners through acquisitions? Does the Rinker acquisition offer the same opportunities? If so, how and why? Was Rinker a good fit for CEMEX? If so, why; if not, why? What, if any, roadblocks stood in the way of CEMEX's acquisition of Rinker? What are the components of a typical CEMEX acquisition? How often does CEMEX acquire a new company? What is CEMEX's normal process for executing an acquisition? What do they look for in their target companies? Did CEMEX follow its standard process with the Rinker acquisition? How did this benefit or harm CEMEX? What was Rinker's reaction to CEMEX's unsolicited offer? Why did CEMEX want Rinker? Did CEMEX overpay for Rinker? Was the market undervaluing Rinker? How did CEMEX justify the acquisition and purchase price to its shareholders? What about housing starts? What was the significance before and during the acquisition phase? How should this have affected CEMEX's decision process? Why is Net-Debt/EBITDA considered an appropriate metric for corporate indebtedness? How was CEMEX's Net-Debt/EBITDA ratio impacted by the Rinker acquisition? How might a firm's debt carrying capacity be determined? Why was this important for this acquisition? What does an analysis of CEMEX's Net-Debt/EBITDA ratio for the 2006-2008 period reveal? What is something you would've told CEMEX they should do differently based on your market knowledge and finance background? How did the crisis affect CEMEX? What must a possible financial plan for CEMEX in 2009 include? What would you or your team recommend as a financial plan for CEMEX in 2009?

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