...Executive Summary In the case GE Capital Canada, Clark Carriers submitted a request for a loan of $270000. It was confirmed first that Clark Carriers met the minimum requirements set out by the commercial equipment financing division of GE for loans. Cash flow was analyzed to ensure that Clark Carriers had sufficient cash flow from operations to make payments on current loans. The projected financial statements of 2003 were created and analyzed to include the new potential loan to display how the new equipment and contract would benefit Clark Carriers’ financial position. Then the financial ratios were analyzed to ensure that Clark Carriers was in fact efficient in its profitability, liquidity, stability, efficiency and growth in which they proved to achieve positive outcomes in all areas, especially profitability. After all of the analyzing of all of these aspects of Clark Carriers, the decision on the matter was that Clark Carriers should be granted the loan from GE Capital Canada and his report should be submitted to the senior account manager. Problem Statement A client that exists at GE Capital Canada, Clark Carriers Ltd. submitted a request to the Commercial Equipment Financing Division of GE for an additional loan amounting to $270000 to finance the purchase of two new freightliner transport trucks, four new mobile satellite systems and four new 53-foot trailers. Assistant account manager Steve Rendl at GE must review Clark Carriers financial situation and have...
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...MAHIDOL UNIVERSITY COLLEGE OF MANAGEMENT Case in Finance “ Crown Corporation ” Group Member: FN15C ไทธัม พัฒนภูมิไท 5550417 ลวิตร ฐกัดกุล 5550423 วรวรรณ ศรีศักดิ์ 5550425 สมชาย กองเกตุใหญ่ 5550427 อดิสัน กันชาติ 5550430 Company’s Background ปี 1960 Crown Corporation ได้เปลี่ยนธุรกิจจากบริษัทเหมืองแร่เป็นผู้รับผลิต superally สำหรับชิ้นส่วนของอากาศยานและผู้ผลิตอลูมิเนียมอย่างครบวงจร เพื่อใช้สำหรับบรรจุภัณฑ์ชนิดต่างๆ โดยเมื่อปี 1966 ได้เข้าซื้อโรงงานโลหะที่ประเทศอเมริกาชื่อว่า Intalco ภายหลังจากการเข้าซื้อกิจการดังกล่าวทำให้ Crown มีส่วนแบ่งทางการตลาดเพิ่มขึ้นเป็น 81% และในเวลาต่อมาในปี 1967 จึงตัดสินใจที่จะสร้างโรงงานอลูมิเนียมแห่งที่สองภายใต้ชื่อ Eastalco ซึ่งสามารถเพิ่มรายได้ราว 3-4 ล้านดอลลาร์ และจากสภาวการณ์ที่ภาคอุตสาหกรรมมีการแข่งขันสูงทำให้ Crown ต้องเติบโตและต้องมีกำลังการผลิตที่สูงขึ้นเพื่อครองการเป็นเจ้าของตลาดจนในปี 1969 ทางบริษัทจึงพิจารณาแหล่งจัดหาเงินทุน เพื่อเพิ่มผลผลิตอลูมิเนียมที่ต้องใช้เงินทุนจำนวนมหาศาล สำหรับเป็นเงินหมุนเวียนและขยายกิจการให้ใหญ่ขึ้นและการวางแผนทางการเงินในระยะยาวโดยไม่กระทบกับการจ่ายเงินปันผลของบริษัท การวิเคราะห์สถานการณ์ในปัจจุบัน จุดแข็ง-จุดอ่อน, Five Forces Model และความสามารถในการแข่งขันด้านอื่นๆ ในอุตสาหกรรมไม่ว่าจะเป็นบริษัทขนาดเล็กหรือขนาดกลาง ล้วนแต่มีการเสนอราคาต่ำกว่าคู่แข่งจึงเกิดการแข่งขันอย่างรุนแรงด้านราคาของสินค้า โดยในแต่ละบริษัทต่างแข่งขันด้านการดำเนินการทุกอย่างเพื่อให้การผลิตสินค้ามีต้นทุนต่ำที่สุด ส่งผลให้ราคาของสินค้าลดลงโดยเฉลี่ยประมาณ 20% ในระหว่างปี 1961 จนถึงช่วงปลายปี...
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...Case 3: Marriot Corporation Marriot公司的投資方案評估運用的是現金流量折現法並計算其相對應的目標率(Hurdle rate)，我們以其WACC做為目標率，先預估總體的WACC，又因公司旗下擁有三個事業部：lodging, restaurant 和contract services，因此我們將分別計算三個不同事業部門的WACC數值以方便公司未來應用於其投資方案的決策。 1.求出 Marriot Corporation整體之 WACC：= + 在估算公司的beta值時，通常會使用Hamada公式(=[1+(1−)/])，但在此個案中其負債呈現高成長為非固定常數，與負債融資上升時公司的財務風險會同時上升，因其不符合公式須具備的假設前提，故不可使用。因此決議直接估算整間公司的。 由於債券和股市關聯度較低，且公司償債能力良好(較無倒債風險)，所以我們假設 =0，因此， =(E/V)* +(D/V)*=0.59*1.11+0.41*0=0.65 接下來，調整公司的資本結構更趨穩定，目標的資本結構：D/V=60%，E/V=40% =0.65=0.4* +0.6*0，因此， =1.64 無風險利率 | 在考慮通膨與長期投資的情況下，採用30年期公債利率8.95% | 市場風險溢酬 | 採用spread between S&P500 and lon-term U.S. governement bond returns=7.43%，因其最能反映未來30年狀況 | 由CAPM: Re=Rf+ (Rm-Rf) =8.95%+1.64*7.43% =21.14% 假設公司以長期經營為目的，其負債資金成本=30年期公債+公司整體風險溢酬=8.95%+1.3%=10.25%，且稅率為44%的條件下可得： 公司整體的WACC=(1-t)*Rd*(D/V)+Re*(E/V) =(1-44%)*10.25%*60%+21.14%*40% =11.9% 2.分別求出 Marriot Corporation三個事業部門之 WACC： a. lodging部門：目標的資本結構：D/V=74%，E/V=26% | levered beta | E/V | Asset Beta | Weight(revenue的比重) | Weighted Beta | Hilton | 0.76 | 86% | 0.6536 | 23% | 0.150328 | Holiday | 1.35 | 21% | 0.2835 | 50% | 0.14175 | La quinya | 0.89 | 31% | 0.2759 | 5% | 0.013795 | Ramada | 1.36 | 35% | 0.476 | 22% | 0.10472 | | | | | sum | 0.41 | (1) 0.41= *26%+0*74%, Be=1.58 (2)由CAPM，Re=8.95%+1.58*7.43%=20.69% (3) Rd=8.95%+1.1%=10.05% (4) WACC=(1-44%)*10.05%*74%+20.69*26%=9.54% b. Restaurant部門：目標的資本結構：D/V=42%，E/V=58% | levered beta | E/V | Asset Beta | Weight(revenue的比重) | Weighted Beta | ...
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...Lifeline Health Products Assignment – completely answer the following questions: 1. Explain the rational for each of the four variables that make up a firm’s credit policy. How likely (and how quickly) are competitors to respond to a change in each variable, and is their response likely to be the same for a change toward tightness as one toward looseness? 2. What is Lifelines’ current days sales outstanding (DSO) [also called average collection period (ACP)]? What would the expected DSO be if the credit policy change were made? 3. What is the dollar amount of bad debt losses under the current policy? What would be the expected losses under the proposed policy? 4. What is the cost of granting discounts under the current policy? What would be the expected cost under the new policy? 5. What is Lifelines’ dollar cost of carrying receivables under the current policy? What would be the expected cost under the new policy? (Use a 360-day year.) 6. What is the expected incremental profit associated with the proposed change in credit terms? Should Lifelines make the change? (Hint: Construct income statements under each policy and focus on the expected change. 7. Does your analysis up to this point consider the risks involved with a credit policy change? If not, how could risk be assessed and incorporated into the analysis? 8. Suppose the firm makes the change to 3/COD, net 25, but Lifelines’ competitors react by making similar changes in their...
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...FINANCIAL MANAGEMENT PAPER Name: Class Time: 3:20PM. Case Study: Google Company Name: Google Inc. Traded As: NASDAQ:GOOG; NASDAQ: GOOGL Industry: Internet, Computer Software, Telecom Equipment Founded on: September 4, 1998 Founders: Larry Page, Sergey Brin Headquarters: Mountain View, California, USA Area Served: Worlwide Revenue: $59.825 billion (2013) Net Income: $12.92billion (2013) Employees: 40, 829 Of the thousands of stocks one can invest in, there is only a handful that you can rely on. Google is one of those companies. Introduction Google is an American Multinational Corporation founded by Larry Page and Sergey Brin. Google has a wide range of products and services including search engines, software, advertising and cloud computing. The company gets most of its profits from a service called ‘ADWords’ which is an online advertising service that places ads on search queries. Google’s total advertising revenues amount upto $42.5 billion which is a significant chunk of the total revenues. Google was initially set up as a private company in in September 1998 and later it went public in August 2004. Even though the company went public and the founder’s only own 14% of the company now however they still control 56% of the stockholder voting power through super voting stocks. Google has grown rapidly since it has been incorporated. Google initially just offered its flagship search engine however a series of mergers and acquisitions...
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...* * Carron Dube 11 Multicultural Portfolio Multicultural Education in a Pluralistic Society Objective | EVIDENCE | EVIDENCE FOUND ON PAGE(S) # | The importance of diversity in teaching and learning | * Enables ability to relate and understand other people from diverse cultures e.g. sexual orientation, ability, race ,social class, religion * Understanding other people and accepting that treating everyone the same is not really a good thing | 3, 4,5,8 | How to develop and teach lessons that incorporate diversity | * Understanding/adapting to other cultures and values in order to incorporate every child’s need. | 9,10,11 | How to develop a classroom and school climate that values diversity | * Ability to show other students that being different is not bad. * Standing against gender inequality and racism | 11,12,13,63,67 | How different teaching and learning styles are shaped by cultural influences | * | 49,50 | Dispositions that value fairness and learning by all students | * Understanding student’s background, culture, gender, sexual orientation * Not using social class status to treat them differently or for some to have an advantage over other students. | 30,31,57, 86 | Competency Name | EVIDENCE | | Open Attitude * Receptive to cross cultural learning * Maintains an open and productive attitude * Avoids quick judgments * Tolerates ambiguity and complexity in cross-cultural situations...
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...Case 1 Warren E. Buffett, 1995 How is Berkshire Hathaway’s business composition from Exhibit 1 different or similar today? Be specific. Provide an overall statement to describe Berkshire Hathaway’s performance over time compared to the S&P 500. Can you discern a trend in the investment decisions of Mr. Buffett and are his decisions consistent with the principals learned from his mentor Dr. Graham? Based on the types of company’s that BK now owns, have the Acquisition Criteria been held to, modified, expanded upon? Is there something more to his theories? Comment on the quote “all you need to know to become a successful investor is two courses, (1) A course on how to value companies and (2) a course on human behavior”. How does Buffet’s philosophy statements on page 19 and 20 compare to what you have learned so far in your other management classes or personal experiences? What does the advice that Buffet gave the University of Florida students mean to you? Select 2 quotes on page 22 and comment on why they are meaningful to you. How has Mr. Buffet taken advantage of the recession of the past 4 years? Comment on Mr. Buffet’s quote “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”. By use of research, how has Buffet and his company applied this statement with their current actions? Case 2 INTUIT Your textbook on page 19 makes reference to the fact that most entrepreneurs learn...
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...Ben & Jerry's Homemade ice cream Inc. Tutor’s Introduction This case study comes from the second edition of Business Strategy: an introduction published in 2001. It is very readable and interesting, providing students with insights into how two entrepreneurs who set up an ice cream shop in a renovated petrol station became the names behind one of the most well-known ice cream brands around the globe. Students will find out how Ben and Jerry tackled the almighty (at the time) Pillsbury and Häagen-Dazs, how they developed a brand to distinguish them from competitors which included a focus on people and giving back to society, and how they successfully used PR to come up trumps in the ‘ice cream war’. At the end of the case study you will find a series of questions for students to get them thinking critically about Ben & Jerry’s strategy from its humble beginnings to where it is now. The case also provides the opportunity for students to conduct research into the current state of play. They could find out how Ben & Jerry’s have further developed their brand and product offerings (they now have ice cream counters in cinemas, they offer a full selection of Fair Trade ice creams, etc.) and what competition they now face, if any. Students will find it helpful to read chapter 20 on social responsibililty and business ethics. They could also use this longer case study as a springboard for their work on the Strategic Planning Software (SPS), to which they have free access with...
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...* Skip to Navigation * Skip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory * Join * Search * Browse * Saved Papers ------------------------------------------------- Top of Form Search Bottom of Form * Home Page » * Business and Management Jonesville Candy Company In: Business and Management Jonesville Candy Company Jonesville Candy Company 123 Candycane Lane, Ozark, Aekansas 20034; Charity Bank Attention: Lola Banks 435 Hopeful Lane Ozark, Arkansas 20034 Dear Mrs. Banks: I am writing to request a Line of Credit for Jonesville Candy Company. We need the loan to help with the current and future growth of the company. Jonesville Candy Company has been in business for three generations selling a variety of candy products. We have recently been successful growing our private label products. This particular product allows large customers to choose a product and have it packaged in specified packaging and shipped as directed to their customers or to customer for their sale. We would like to expand this opportunity for the company. I have evaluated our financial statements and prepared forecasts for the next five years which you will find enclosed. There are a few areas I would like to point out while you are reviewing the financial statements and forecasts. First, you will notice that we have significant assets with minimal liabilities. I have estimated...
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...Orhun Akbulut Case 1 PLRe88 Case Based Course in Finance 1,2) Stock Rate | Total Dividend,2003 ($) | 5-yr Dividend Growth (%) | Beta | Price ($) | Ke | Intrinsic Value ($) | 1 | 0.95 | 0.58 | 0.74 | 14.89 | 0.1002 | 10.122 | 2 | 0 | -100 | 2.3 | 29.02 | 0.2250 | 0 | 3 | 0 | 0 | 1.89 | 18.83 | 0.1922 | 0 | 4 | 1.25 | 8.50 | 1.31 | 93.48 | 0.1458 | 22.306 | 5 | 0.78 | 1.25 | 1.52 | 67.29 | 0.1626 | 5.270 | 6 | 0.06 | -9 | 1.04 | 3.28 | 0.1242 | 0.25 | 7 | 0 | -100 | 1.99 | 9 | 0.2002 | 0 | 8 | 0 | 0 | 0.89 | 55.91 | 0.1122 | 0 | 9 | 6.22 | 0.98 | 1.06 | 98.47 | 0.1258 | 54.14 | 10 | 1 | -0.48 | 1.76 | 43.07 | 0.1818 | 5.33 | 11 | 0 | -100 | 0.91 | 37.55 | 0.1138 | 0 | 12 | 0.25 | 2.10 | 1.8 | 38.30 | 0.1850 | 1.57 | 13 | 0.98 | -2 | 0.82 | 76.33 | 0.1066 | 7.6 | 14 | 2.25 | 4 | 1.12 | 67.09 | 0.1306 | 25.82 | 15 | 5.8 | -8 | 0.99 | 193.05 | 0.1202 | 26.65 | 16 | 1.02 | 13 | 1.01 | 38.33 | 0.1218 | -140.55 | 17 | 6 | 5 | 0.67 | 71.11 | 0.0946 | 141.26 | 18 | 0 | 0 | 1.11 | 9.23 | 0.1298 | 0 | 19 | 1 | 9 | 0.78 | 19.35 | 0.1034 | 81.34 | 20 | 0 | -100 | 1.2 | 29.92 | 0.1370 | 0 | 3) The differences between intrinsic values and the actual market prices are caused by characteristics and complexity of the markets. Because of the fact that some stocks did not pay any dividend at all and the value is related to the divident that has been paid in 2003, the intrinsic value formula will return zero and this endangers the formula’s usefulness...
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...4/27/2003 CHAPTER 4 MINI CASE SITUATION Assume that you recently graduated with a major in finance, and you just landed a job as a financial planner with Barney Smith Inc., a large financial services corporation. Your first assignment is to invest $100,000 for a client. Because the funds are to be invested in a business at the end of 1 year, you have been instructed to plan for a 1 year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associtated outcomes. Barney Smith's economic forecasting staff has developed estimates for the state of the economy and its security analyst have developed a sophisticated computer program which was used to estimate the rate of return on each state of the economy. Alta Industries, Inc. is an electronics firm; Repo Men Inc. collects past due debts; and American Foam manufactures mattresses and various other foam products. Merril Finch also maintains an "index fund" which owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund, and thus obtain average stock market results. Given the situation as described, answer the following questions. State of Economy Probability T-Bills Alta...
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...FIN 444 MID 2 assignment FACULTY MzF How Leeson Broke Barings |The activities of Nick Leeson on the Japanese and Singapore futures exchanges, which led to the downfall of his employer, | |Barings, are well-documented. The main points are recounted here to serve as a backdrop to the main topic of this chapter - the | |policies, procedures and systems necessary for the prudent management of derivative activities. | |Barings collapsed because it could not meet the enormous trading obligations, which Leeson established in the name of the bank. | |When it went into receivership on February 27, 1995, Barings, via Leeson, had outstanding notional futures positions on Japanese | |equities and interest rates of US$27 billion: US$7 billion on the Nikkei 225 equity contract and US$20 billion on Japanese | |government bond (JGB) and Euroyen contracts. Leeson also sold 70, 892 Nikkei put and call options with a nominal value of $6.68 | |billion. The nominal size of these positions is magnificent; their enormity is all the more astounding when compared with the | |banks reported capital of about $615 million. | |The size of the positions can also be underlined by the fact that in January and February 1995, Barings Tokyo and London | |transferred US$835 million to its Singapore office to enable the latter the meet its margin obligations...
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...management will creates a good public image. - Profitability: A profitable company tells investors that they will actually get a return on their investment. It also shows potential for growth, which can lead to dividends for investors. - Growing Industry: A company can’t grow in a shrinking industry. In a growing industry, the company has better potential to capture a larger portion of market share. - Growing Company: More is better. Investors will reach their maximum utility with a growing company. The objective is to maximize shareholder wealth. A growing company has the best chance of reaching this goal. 2) How does TRX compare on these dimensions? - Good Business History and Background: This company started up in 1999. This case has 6 years of data. - Experienced Management: The management team made a good decision to cut off low margin products in order to focus on their more profitable operations. This is an example of the quality of management in TRX. - Profitability: Over the last five years, TRX has yet to turn profit, although they are coming closer to turning a...
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...bru6171X_case02_023-038.qxd 11/24/12 2:24 PM Page 23 CASE 2 Bill Miller and Value Trust Bill Miller’s success is so far off the charts that you have to ask whether it is superhuman. Quite simply, fund managers are not supposed to be this good. Is it mortal genius, or is it celestial luck?1 By the middle of 2005, Value Trust, an $11.2-billion mutual fund2 managed by William H. (Bill) Miller III, had outperformed its benchmark index, the Standard & Poor’s 500 Index (S&P 500), for an astonishing 14 years in a row. This record marked the longest streak of success for any manager in the mutual-fund industry; the next longest period of sustained performance was only half as long. For many fund managers, simply beating the S&P 500 in any single year would have been an accomplishment, yet Miller had achieved consistently better results during both the bull markets of the late 1990s and the bear markets of the early 2000s. Over the previous 15 years, investors in Value Trust, one of a family of funds managed by the Baltimore, Maryland–based Legg Mason, Inc., could look back on the fund’s remarkable returns: an average annual total return of 14.6%, which surpassed the S&P 500 by 3.67% per year. An investment of $10,000 in Value Trust at its inception, in April 1982, would have grown to more than $330,000 by March 2005. Unlike the fund’s benchmark, which was a capitalization-weighted index composed of 500 widely held common stocks, Value Trust only had...
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...Case 27 1. For this question, ignore the forecasted receivables collection pattern in Exhibit 27.4. Using paper and pencil (do NOT use the template), calculate the projected ACP and average daily sales (ADS) under the following conditions: 30% of customers pay on the 10th day 50% of customers pay on the 30th day 20% of customers pay on the 60th day 800,000 units sold per year @ $5 per unit = $4,000,000/360 Remember, since there are no balance sheets or operating statements, you will have to MANUALLY calculate the ACP. Just look at the numbers: 30% pay after 10 days + 50% pay after 30 days + 20% pay after 60 days. What’s the average? Voila! Also, for consistency, use 360 days = one year Answer: ADS= $11,111 ACP= 33 days 2. Given your answers to #1, what is the projected average receivables level on any given day? (HINT: Formula is ACP x ADS) Answer: $366,663 3. Given your answer to #2, and assuming a contribution margin of 20% and short term bank loans of 10% cited in the case study, what would the firm’s balance sheet look like for accounts receivable and notes payable accounts at the end of the year if notes payable are used to finance the investment in receivables? (HINT: A/R on the assets side; notes payable and ? on the other side of the ledger. ANOTHER HINT: What is another name for contribution margin on the balance sheet [i.e., where do the profits show up on a balance sheet]? This is a short answer, not complicated. Only three accounts involved...
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