Project the incremental, annual, and cumulative cash benefits and outflows associated with the proposed expansion for Nordstrom into China for the next seven to 10 years using a spreadsheet or other relevant presentation vehicle to support your narrative. Be sure to justify your assumptions and methodology based on sound microeconomic and financial principles. For example, what assumptions have you made about demand, price, volume, capital purchase costs, incremental hiring, and so on? 2. Develop a consolidated financial projection of revenue, pretax income, and cash flow for the overall business, over that same number of years, both with and without the proposed investment. Use a spreadsheet or other relevant presentation vehicle to support your narrative, being sure to describe any relevant assumptions. V. Financing: In this section, compare the proposed loan to alternative financing methods. Specifically: A. Weigh the pros and cons of raising money using internal financing mechanisms versus seeking funding through global capital markets via loans, commercial paper, bonds, or equity financing. Which might be viable alternatives should the loan not be approved? Support your answer with appropriate research and evidence. B. Assess the viability of a business combination as a mechanism for expanding into the new market. Is this a reasonable option for the company? Why or why not? Support your answer with appropriate research and evidence. VI. Track Record: Use this section to persuade the lender that you are credit-worthy. You must: A. Convincingly argue that your organization is on solid financial footing, and thus at a low risk for default, supporting your argument with appropriate financial statements, ratios, and other indicators of financial performance and health. B. Convincingly argue for your organization’s trustworthiness, providing credible evidence of legal and ethical financial behavior. For example, this might include recent audit results; credit history; absence of significant lawsuits, recalls, or regulatory judgments; or other evidence designed to show that the company holds itself to the highest legal and ethical standards.

Big-Box Retail ExpansionIn 2012, Target expanded its business into Canada. The proximity to the U.S. as well as Canadians’ familiarity with the brand made expansion across the border seem like a natural step for the retail powerhouse. However, after only two years, Target faced $2 billion in losses and announced plans to close all of its Canadian stores. Walmart became the largest retailer in the U.S. through superior logistics, cost-cutting, site selection, and a relentless push to focus on low prices. The company assumed the same strategy would work in the rest of the world…but it has not quite gone according to plan. The company has had success in North America, including Mexico. In China, there has been some success with the bricks-and-mortar stores but little with its online presence. Walmart packed up its locations in Germany and Japan and is considering selling off parts or all of its British chain (once the poster child for international expansion). In 2006, Home Depot bought the Chinese home improvement company Home Way and its 12 stores in the country. With its booming economy and strong real estate market, China seemed like it would be an easy win for America’s home improvement giant. However, by 2012 Home Depot closed the last seven of its 12 original stores. Questions:1) Why are big-box stores that are so popular in the United States (and often in Canada and Mexico) failing overseas? Be sure to use the expansion criteria from the chapter in your analysis.2) Do you think these companies should attempt expansion again? Explain why or why not. If so, what should they do differently? Walmart is currently trying to break into India. What suggestions do you have regarding this expansion?

The Case of the Director Who Wore Too Many HatsMaria is one of 5 directors of Beta Investments Corporation. She is also a majority shareholder holding both common and preferred stock. Her stock with voting rights amounts to 47% of all stock issued with voting rights. Maria buys, for $1,500, an option to purchase a tract of real estate called Blackacre, which is next to Beta’s home office, for $50,000. Maria forms a new corporation, Commercial Property, Inc., to hold the option. She then has Commercial Property buy Blackacre. As a director of Beta, Maria orders Beta to authorize its real estate agent to negotiate the purchase of the land from Commercial Property for $100,000. After a successful negotiation for the purchase of Blackacre for $100,000, Maria has Commercial Property sell it to Beta, and loan the money to Beta for the purchase price at a 5% interest rate which is 2% below the market rate. Lakesha, a minority shareholder in Beta, formally complains to Beta’s board which takes no action. The TrialLakesha files a suit against Maria on Beta’s behalf seeking to cancel the sale. Maria asks the Court to dismiss the lawsuit as Lakesha has no standing to bring the lawsuit. Arguments At TrialMaria’s attorney argues that Blackacre is necessary for Beta as it will allow them to expand their offices and production plant thus increasing the net worth and potential profits to the shareholders. Further, the Board of Directors of Beta authorized the purchase which appeared to be in accordance with the Articles of Incorporation.Lakesha’s attorney argues that the purchase of Blackacre should have been put to a vote of the shareholders of Beta as required by Beta’s Bylaws. Beta’s Board of Directors failed in its duty to make sure this sale was in the corporation’s best interest.Questions to DecideWhat kind of suit will Lakesha file and what is its basis?Who are the Plaintiffs and who are the Defendants? Why?What are the defenses, if any, of Beta or Maria?Who will win the case and why?