After reading the case CEMEX’s Debt Dilemma on p. 449-445 in your textbook, write a 6-8-page essay (not including the cover page and references) in which you address the following items and questions:
Why do you think CEMEX overpaid for Rinker? What was the result of this overpayment?
How had the decline in both CEMEX’s and Rinker’s operations’ EBITDAs altered the debt-carrying capacity of CEMEX?
What combination of actions—what plan—would you recommend CEMEX undertake to meet the company’s debt service obligations for 2009?
Your essay should: (a) introduce the problem being explored; (b) offer an arguable thesis statement; (c) provide context/background of the problem; (d) discuss ethical considerations from the perspectives of exporters, banks, and government regulators; (e) discuss economic effects; and (f) issue two evidence-supported recommendations aiming to solve the problem.
Sample Solution