...Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows: Price to public $5 per share Number of shares 3 million Proceeds to Beedles $14,000,000 The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $300,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? • a.$5 per share Gross Proceeds 3,000,000 x 5 = 15,000,000 Net Profit 15,000,000 – 14,000,000 – 300,000 = 700,000 b. $6 per share Gross Proceeds 3,000,000 x 6 = 18,000,000 Net Profit 18,000,000 – 14,000,000 – 300,000 = 3,700,000 • c.$4 per share Gross Proceeds 3,000,000 x 4 = 12,000,000 Net Profit 12,000,000 – 14,000,000 – 300,000 = -2,300,000 Chapter 20 – Problem 20 – 2 Underwriting and Flotation Expenses The Beranek Company, whose stock price is now $25, needs to raise $20 million in common stock. Underwriters have informed the firm’s management that they must price the new issue to the public at $22 per share because of signaling effects. The underwriters’ compensation will be 5% of the issue price, so Beranek will net $20.90 per share. The firm will also incur expenses in the amount of $150,000. How many shares must the firm sell to net $20 million after underwriting and flotation expenses? 20,000,000 = 20.90x – 150,000 20,150,000 = 20.90 x ...
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...FIN-516 – WEEK 3 HOMEWORK ANSWER KEY OPTION PROBLEM NO. 1 Exercise Value: Current Stock Price – Strike Price Exercise Value: $36 - $30 = $6 Time Value = Option Price – Exercise Value Time Value = $9 - $ 6 = $3 OPTION PROBLEM NO. 2 Time Value = Market Price of the Option – Exercise Value $7 = V - $23 V = $30 Market Price Exercise Value = Po – Strike Price $23 = Po - $21 Po = $43 Price of the Underlying Stock PROBLEM 15 - 4 S = (1 – wd) (Vop) = (1 – 0.4)($500) = $300 million is the Value of Equity PROBLEM 15 - 6 n = n0 – (D/P) = 60 – ($150/$7.5) = 60 – 20 = 40 million shares Problem on Swaps based on Chapter 23 A pays LIBOR + 1% to its lenders, receives LIBOR from B, and pays B 7.95%, for a net fixed payment of 8.95%. B pays 9.4% to its lenders, pays LIBOR to A, and receives 7.95% from A, for a net payment of LIBOR + 1.45%. PROBLEM BASED ON CHAPTER 23 – FUTURES CONTRACT What is the implied interest rate yield on a Treasury Bond ($100,000) futures contract that settled at 100’24 (or 100 24/32)? If interest rates increased by 0.75%, what would be the contract’s new value? Assume that this is based on 20 Years, with an annual yield of 8%, with semi-annual Payments. Using a financial calculator we solve for rd: N = 40; PV = -1,007.50; PMT = $40; FV = 1,000 Solve for I or rd = 3.9623; Annualizing rd =...
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...FIN-516 – WEEK 3 HOMEWORK PROBLEMS Problem No. 1 on Options based on Chapter 8 A Call Option on the stock of XYZ Company has a market price of $9.00. The price of the underlying stock is $36.00, and the strike price of the option is $30.00 per share. What is the Exercise Value of this Call Option? What is the Time Value of the Option? Price of stock is 36 – Strike price 30 = 6 value of the call option. 9 market price of call option – 6 value of the call option = 3 time value of the option. Problem No. 2 on Options based on Chapter 8 The Exercise (Strike) Price on ABC Company’s Option is $21.00, its Exercise Value is $23.00, and its Time Value is $7.00. What is the Market Value of the Option? What is the price of the underlying stock? Mp 30= Excersie value 23 + time value 7 Ps – 21 strike price = 23 exercise value Ps Stock Price 44 = 21strike price + 23 exercise value Problem on Capital Structure Change – Chapter 15 – No. 4 Value of operation = $500 Raised debt Wd(.40) = 200 Value of Debt 500 * We(.6) = 300million Problem on Capital Structure Change – Chapter 15 – No. 6 Debt raised 150million 7.5 new stock price 60 million before the restructure 150/7.5 = 20 60m -20m = 40million Problem on Swaps based on Chapter 23 Company A can issue floating-rate debt at LIBOR + 1%, and it can issue fixed rate debt at 9%. Company B can issue floating-rate debt at LIBOR + 1.5%, and it can issue fixed-rate debt at 9.4%. ...
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...| FIN-516 Week 2 - MINI – CASE ASSIGNMENT | Deere & Company (NYSE:DE) | | A fundamental Analysis into the financial performance of Deer and Company (NYSE :DE ), better known as JOHN DEERE & CO. | FIN-516 – WEEK 2 – MINI – CASE ASSIGNMENT Deere & Company (NYSE:DE) 1. What is the name of the company? What is the industry sector? Deere & Company also more commonly known as John Deere, along with its subsidiaries, operates in three segments: agriculture and turf segment, construction and forestry segment and financial services segment. The John Deere agriculture and turf segment manufactures and distributes a full line of agricultural and turf equipment and related service parts. John Deere construction, earthmoving, material handling and forestry equipment includes a broad range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape loaders, skid-steer loaders, log skidders, log feller bunchers, log loaders, log forwarders, log harvesters and a variety of attachments. The financial services segment primarily finances sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment 2. What are the operating risks of the company? John Deere being a global company has multiple factors that could be considered as operating risks for the company. Listed here are few of the risks. * International...
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...FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14, Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010, and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget for this project is $12.0 Million in 2012. • If Middlesex increases its cash dividends in 2012 at the same rate of growth as its Net Income rate, what will be the total 2012 dividend payout in Dollars? • What is the 2012 dividend payout ratio if the company increases its dividends at 8%? • If the company follows a residual dividend policy, and maintains its 35% Debt level in its capital structure, and invests in the $12.0 Million capital budget in 2012, what would be the Residual Dividend level (in Dollars) in 2012? What would be this Residual Dividends payout ratio? • How much additional capital (Debt and/or Equity) will the company have to raise from outside sources in 2012 if it invests in this capital project, and follows a residual dividend policy? • What would be the prudent dividend policy for 2012?: Pay dividends at the current dividend growth rate of 8%, or pay the residual dividend amount. 1. If Middlesex increases its cash dividends in 2012 at the same...
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...FIN 516 – Advanced Managerial Accounting IPO Paper The Fresh Market, Inc. June 9, 2013 Fresh Market, Inc. Company Overview The Fresh Market is a high-growth specialty retailer focused on creating an extraordinary food shopping experience for its customers. Since opening the first store in 1982, the company has offered high-quality food products, with an emphasis on fresh, premium perishables and an uncompromising commitment to customer service. The Fresh Market seeks to provide an attractive, convenient shopping environment while offering its customers a compelling price-value combination. As of October 28, 2010, The Fresh Market operated 100 stores in 20 states, primarily in the Southeast, Midwest and Mid-Atlantic United States (Nasdaq, 2013). The business is characterized by the following key elements: • Differentiated food shopping experience. The Fresh Market provides a differentiated shopping experience that generates customer loyalty and favorable word-of-mouth publicity. We combine fresh, carefully-selected, high-quality food products focused on perishable categories, with a level of customer attention that the company believes is superior to conventional grocers, and it strives to create a “neighborhood grocer” atmosphere. • Smaller-box format and flexible real estate strategy. The stores average approximately 21,000 square feet, compared to the approximately 40,000 to 60,000 square foot stores operated by many conventional supermarkets. Within this...
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...CAMPUS TELEPHONE 463-5728 E-MAIL ADDRESS Matthew.Sonfield@ hofstra.edu (e-mail messages will receive responses much faster than voice-mail messages) HOME PAGE http://people.hofstra.edu/hu/faculty/matthew_sonfield/ GENERAL INFORMATION Location of Department Office 228A Weller Hall Telephone of Department (516) 463-5726 Department Chairperson Dr. Li-Lian Gao HOFSTRA UNIVERSITY BULLETIN DESCRIPTION OF COURSE A capstone course enabling students to integrate functional area knowledge in order to effect managerial decisions and assume leadership roles in organizations. Theory and concepts are applied using both case analysis and a computer-based business simulation. Topics include: elements of the strategic planning process, such as strategy formulation and implementation; ethics and corporate social responsibility; corporate, business, and functional-level strategy; the relationship between strategy and organizational structure; and strategic control and reward systems. PREREQUISITES OF COURSE Business majors with senior class standing and MGT 101, FIN 101 and MKT 101. (Students who have completed 88 s.h. or above may seek a...
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...FIN-516 – WEEK 2 – MINI – CASE Merck & Co., Inc. by M. Luisa Ribeiro 1. Merck & Co., Inc. is a company in the Pharmaceutical Sector. The headquarters are in Whitehouse Station, NJ but it has global presence providing prescription pharmaceuticals, animal health, and consumer care, which include animal health, consumer care products and pharmaceutical medicines which include vaccines, biologic therapies. Merck’s products are marketed directly and through joint ventures. 2. Merck’s operating risks: Merck’s operating risks include recently expired and expiring patented medications which are and soon will be facing market competition from generics, and fewer that optimal products in the development stage to be brought to market. Additionally, some European countries, in an effort to reduce and curtail costs as they are coping with the effects of austerity measures, are imposing a mandatory switch to generic drugs. Some disappointing results of new products in the development stage are posing a risk to the company that needs to stay in compliance, particularly in the face of law suits for past and current medications under Merck’s patent. With changing environment in the health care field in the US, Merck’s efforts to expand operations and distribution to developing countries, also posed a challenge to the company, as developing regions, such as Africa and developing countries such as India, China, Russia and Brazil, that may not offer a stable political, regulatory...
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...CASE : Solectron: From Contract Manufacturer to Global Supply Chain Integrator Most people think we're a manufacturing company. We're good at manufacturing, but we're really a service com In mid-2001, Solectron Corporation was con fronting issues that it had never before faced in its twenty-four year history. The company was the world's premier supply chain integrator, with pany. 1Bill Roberts, "CEO of the Year Koichi Nishimura, Contract rate with automo- tishi, and own sup e-market non pro- 3S, thee us supply :omaker's respond ;hallenge ;tandards lustry will 3.Y to their • Covisint ation and example s.ln 1999, 1ce to pro lSferred to that is, the ast. Unlike more than He market hangs and th benefits ms should rm has the decisions mce, tech- categories ·ocurement rate with automo- tishi, and own sup e-market non pro- 3S, thee us supply :omaker's respond ;hallenge ;tandards lustry will 3.Y to their • Covisint ation and example s.ln 1999, 1ce to pro lSferred to that is, the ast. Unlike more than He market hangs and th benefits ms should rm has the decisions mce, tech- categories ·ocurement CHAPTER 9: PROCUREMENT AND OUTSOURCING STRATEGIES 305 CHAPTER 9: PROCUREMENT AND OUTSOURCING STRATEGIES 305 -Koichi Nishimura, Solectron CE01 Manufacturing Visionary," Electronic Business, December 1999. 306 DESIGNING AND MANAGING THE SUPPLY CHAIN 306 DESIGNING AND MANAGING THE SUPPLY...
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...with our flexible, year-round full-time schedule of classes. If you really want to attend a school where your needs (your real needs) come first, consider Sullivan University. I believe we can help you exceed your expectations. Since words cannot fully describe the atmosphere at Sullivan University, please accept my personal invitation to visit and experience our campus for yourself. Sincerely, Glenn D. Sullivan President MESSAGE FROM THE PRESIDENT 1 Table of Contents Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Sullivan University Success Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4...
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...RAPPORT ANNUEL 2009 2009 : UNE ANNÉE DE CRISE ET DE GRANDE RÉACTIVITÉ 2010 : NOUVELLES AMBITIONS POUR L’HÔTELLERIE LES SERVICES — SOMMAIRE 01 MESSAGE DU PRÉSIDENT-DIRECTEUR GÉNÉRAL 05 INTERVIEW DU VICE-PRÉSIDENT DU CONSEIL D’ADMINISTRATION 06 FONCTIONNEMENT DES ORGANES SOCIAUX 08 CONSEIL D’ADMINISTRATION 10 COMITE EXÉCUTIF AU 31 DÉCEMBRE 2009 12 CHIFFRES CLÉS 2009 2009, CRISE, RÉACTIVITÉ ET PERSPECTIVES 16 BEST OF 2009 18 01 — LE MONDE BOUGE, ACCOR ANTICIPE 56 04— AU SERVICE 58 60 DES COLLABORATEURS GARANTIR LES FONDAMENTAUX, PROTÉGER ET PARTAGER L’ESSENTIEL ACCOMPAGNER LES MUTATIONS DU GROUPE 20 22 ACCOR POURSUIT SA TRANSFORMATION ACCOR S’ADAPTE AU CONTEXTE ÉCONOMIQUE 24 02 — SE DÉVELOPPER 26 28 30 32 POUR PRÉPARER L’AVENIR DÉVELOPPEMENT : ACCOR RÉSISTE BIEN UN DÉVELOPPEMENT BASÉ SUR L’« ASSET RIGHT » ACCOR SERVICES : UNE DYNAMIQUE QUI NE SE DÉMENT PAS LES PRODUITS PHARES DE ACCOR SERVICES 64 05— DÉVELOPPEMENT DURABLE 67 AGIR POUR LE BIEN-ÊTRE DES HOMMES 70 PRÉSERVER L’ENVIRONNEMENT 73 FONDATION ACCOR 74 ACCOR, 42 ANS DE CONQUÊTE 34 03 — L’INNOVATION 36 40 42 44 46 2010, NOUVELLES AMBITIONS POUR L’HÔTELLERIE ET LES SERVICES 82 86 88 92 ENTRETIEN AVEC GILLES PÉLISSON COMITÉ EXÉCUTIF DE L’HÔTELLERIE ENTRETIEN AVEC JACQUES STERN COMITÉ EXÉCUTIF DES SERVICES AU SERVICE DES VENTES ACCOR SERVICES : COMPÉTITIVITÉ ET VIRAGE TECHNOLOGIQUE MIEUX SÉDUIRE NOS CLIENTS UNE STRATÉGIE EFFICACE DE VENTE EN LIGNE PROXIMITÉ ET RÉACTIVITÉ COMMERCIALES...
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...Udolcy Zukowski: SAD Pathfinder Director Copyright © 2014 by the Youth Ministries Department of the Seventh-day Adventist® Church All rights reserved. Published 2014 First edition published 1998. Second edition 2011. Third edition 2014 Rights for publishing this book outside the U.S.A. or in non-English languages are administered by the Youth Ministries Department of the Seventh-day Adventist® Church. For additional information, please visit our website, www.gcyouthministries. org, email youthinfo@gc.adventist.org, or write to Youth Ministries Department, General Conference of Seventh-day Adventists® Church, 12501 Old Columbia Pike, Silver Spring, MD 20904, U.S.A. Cover and inside design by Jonatan Tejel Printed in the United States of America -4- Table of Contents Philosophy of the Pathfinder Honors 6 Introduction 7 Guidelines for Participating in the Pathfinder Honor Program 8 Advanced Honors: A Glimpse Toward the Future 8 Check List for Evaluating New Pathfinder Honors 9 Approval Procedure for a New Pathfinder Honor 10 Instructions for Completing New Honor Worksheet 10 Worksheet for developing new...
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...T ABLE OF CONTENTS RANKINGS & PROJECTIONS REVISIONS.................................................................................... 3 OVERALL RANKINGS........................................................................................................... 5 RANKINGS BY POSITION..................................................................................................... 7 QUARTERBACK SEASON PROFILES......................................................................................... 9 RUNNING BACK SEASON PROFILES......................................................................................... 13 WIDE RECEIVER SEASON PROFILES........................................................................................ 18 TIGHT END SEASON PROFILES............................................................................................... 26 KICKER SEASON PROFILES................................................................................................... 29 TEAM DEFENSE SEASON PROFILES......................................................................................... 33 IDP LINEBACKER & D-LINE SEASON PROFILES............................................................................ 37 IDP DEFENSIVE BACK SEASON PROFILES.................................................................................. 39 SLEEPERS & UNDERVALUED PLAYERS..................................................................................... 41 BUSTS & OVERVALUED...
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...“Deconstructing Independent Directors”(*) María Gutiérrez Maribel Sáez Universidad Carlos III de Madrid and ECGI Universidad Autónoma de Madrid January 2012 Abstract In this paper we argue that boards of directors lack the mandate, the incentives and the ability to control insiders, especially in jurisdictions where the main agency problem arises between controlling and minority shareholders. We analyze the problems that render independents an inefficient monitoring device for companies with concentrated ownership structures and conclude that the current focus of the regulators and codes of best practice on empowering independents is ineffective and companies would be better off choosing their board members at liberty. Nevertheless, we also present two different proposals for reform: independents as gatekeepers for the regulator and independents as surrogates of the minority. Both proposals are based on the idea that if independent directors are expected to monitor controlling shareholders their most important characteristic should be accountability rather than mere independence. JEL Classifications: G32; G34; K22 Keywords: Independent directors, Board of directors, Concentrated ownership, Monitoring, Corporate Law (*)The authors wish to thank, Jesus Alfaro, Magda Bianco, Fernando Gómez Pomar and Assaf Hamdani and seminar audiences at AEDE 2010 and SIDE 2011 for many useful comments. The contents of this paper are the sole responsibility of...
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...LINUX: Rute User’s Tutorial and Exposition Paul Sheer August 14, 2001 Pages up to and including this page are not included by Prentice Hall. 2 “The reason we don’t sell billions and billions of Guides,” continued Harl, after wiping his mouth, “is the expense. What we do is we sell one Guide billions and billions of times. We exploit the multidimensional nature of the Universe to cut down on manufacturing costs. And we don’t sell to penniless hitchhikers. What a stupid notion that was! Find the one section of the market that, more or less by definition, doesn’t have any money, and try to sell to it. No. We sell to the affluent business traveler and his vacationing wife in a billion, billion different futures. This is the most radical, dynamic and thrusting business venture in the entire multidimensional infinity of space-time-probability ever.” ... Ford was completely at a loss for what to do next. “Look,” he said in a stern voice. But he wasn’t certain how far saying things like “Look” in a stern voice was necessarily going to get him, and time was not on his side. What the hell, he thought, you’re only young once, and threw himself out of the window. That would at least keep the element of surprise on his side. ... In a spirit of scientific inquiry he hurled himself out of the window again. Douglas Adams Mostly Harmless Strangely, the thing that least intrigued me was how they’d managed to get it all done. I suppose I sort of knew. If I’d learned...
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