FIN475 Fall 2008 Brown-Forman Distillers Corporation Discussion Questions Note: For this case, you are required

to turn in a short (approximately 1 page if double-spaced or 1/2 page if single-spaced) write-up of the case. In this write-up, you should summarize the important facts and issues of the case. Do not copy passages from the case, but instead synthesize the material. You are NOT required to write-up a solution for this case. The following questions are intended to help you focus on the issues that will be discussed. 1. Should Brown-Forman buy Southern Comfort Corporation at the asking price of $94.6 million? (Note: Youll want to provide exhibits detailing your valuation of the Southern Comfort Corporation.) 2. On what key assumptions does your answer to the first question depend? How robust is the purchase decision to variations in those key assumptions? (This sounds like a good place for some sensitivity analysis. Attempt to provide some rationale/calculations for your various assumptions such as the hurdle rate, growth rate, etc.) 3. If Brown agrees to acquire Southern Comfort, to what key considerations should he devote his attention in order to make the acquisition an economic success? 4. Apart from the possible acquisition, how appropriate is Brown-Formans hurdle rate of twelve percent for projects in place?