Compass maritime services

Please read HBS Case No. 9-211-014 “Compass Maritime Services, LLC: Valuing Ships” and answer the following questions. Please turn in only a pdf file (i.e. no Excel spreadsheets).

Please use documents attached. Data is in the excel.Assignment #4 (G2) Harvard Case Group Assignment Please read HBS Case No. 9-211-014 “Compass Maritime Services, LLC: Valuing Ships” and answer the following questions. Please turn in only a pdf file (i.e. no Excel spreadsheets). 1. How much is the Bet Performer worth based on comparable transactions (no regression needed here)? Which ship is the best reference transaction (the closest comparable)? 2. Regression Analysis a. What is the expected relationship between ship price and each factor listed in Exhibit 4 (size, age, and charter rates)? What is the economic logic for why each factor might affect ship value? b. Can you think of other factors that might predict ship prices? c. How well do all three factors jointly explain ship prices? In other words, what percentage of the variation in ship prices does your model explain? d. Using all three factors, what is the predicted price for the Bet Performer? Compute a 95% confidence interval for an average ship like the Bet Performer and a 95% prediction interval for the Bet Performer itself. e. What would the price be if the Bet Performer were 5 years younger (6 years old rather than 11 years old), if the ship were 20K DWT smaller (152K DWT rather than 172K DWT) or if charter rates in May 2008 were 30% lower (the trailing Capesize Index were 8,735 instead of 12,479)? In each case, assume all other factors remain the same (e.g., when considering the 6 year old ship case, keep the other factors at 172K DWT and 12,479 Capesize Index). No need for confidence intervals here. 3. If you were Basil Karatzas, what would you recommend to your client regarding an offer price for the Bet Performer? What concerns, if any, would you have? What recommendations would you make? Exhibit 4: Sales of Capesize Ships from January