...For 85 years, the Williams Machine Tool Company had provided quality products to its clients, becoming the third largest U.S.-based machine tool company by 1990. The company was highly profitable and had an extremely low employee turnover rate. Pay and benefits were excellent. Between 1980 and 1990, the company’s profits soared to record levels. The company’s success was due to one product line of standard manufacturing machine tools. Williams spent most of its time and effort looking for ways to improve its bread-and-butter product line rather than to develop new products. The product line was so successful that companies were willing to modify their production lines around these machine tools rather than asking Williams for major modifications to the machine tools. By 1990, Williams Company was extremely complacent, expecting this phenomenal success with one product line to continue for 20 to 25 more years. The recession of the early 1990s forced management to realign their thinking. Cutbacks in production had decreased the demand for the standard machine tools. More and more customers were asking for either major modifications to the standard machine tools or a completely new product design. The marketplace was changing and senior management recognized that a new strategic focus was necessary. However, lower-level management and the work force, especially engineering, were strongly resisting a change. The employees, many of them with over 20 years of employment at Williams...
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...Precision Tools 1.) Vernier Caliper – a precision instrument that can be used to measure internal and external distances extremely accurately. 2.) Height Gage – a tool which used for measuring height 3.) Steel Ruler – a tool used for measuring objects 4.) Combination Square – a multi-purpose precision instrument which of a steel rule that slides through an adjustable protractor head or level or a center head. 5.) Precision Square – a tool used for 90 degrees alignment 6.) Indicator/Dial Indicator – a device that determines if an object is center aligned or notHand Tools 1.) Ball peen Hammer – a type of hammer used for metalworks such aspeening. 2.) Mallet – a type of hammer used used so that the object will not deform 3.) Hacksaw – A saw consisting of a tough, fine-toothed blade stretched taut in a frame, used for cutting metal. 4.) Vise – A heavy clamp, usually mounted on a workbench and operated by a screw or lever, used in carpentry or metalworking tohold a piece in position. 5.) Scriber – A sharply pointed tool used for marking lines, as on wood, metal, or ceramic. 6.) Punch – A tool or machine for piercing holes in a material 7.) Screw Driver – A tool used for turning screws 8.) Files - Any of several hardened steel tools with cutting ridges for forming, smoothing, orreducing especially metallic surfaces. a. Flat b. Triangular c. Half round d. Round 9.) Hand Tap and Tap Handle – 10.) Stock and Dice – a tool used for treading...
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...two of his senior management team unhappy. • The question at hand was whether Pinnacle Co., the small, publicly held Indiana-based machine tool company he led as CEO, should attempt to acquire Hoilman Inc. Hoilman was a company known for the cutting-edge sensor technology and communications software it had developed to monitor robotics equipment. Anglos had just heard a credible rumour that one of Pinnacle’s chief competitors was planning a hostile takeover of the company. Coincidentally, Don Anglos knew Hoilman well because he had recently held exploratory talks about the possibility of a joint venture designed to develop similar technology capable of monitoring a broad range of manufacturing equipment. The joint venture did not work out. But now, by acquiring Hoilman, Pinnacle could develop software that transmitted real-time information on its customers’ equipment, enabling it to set itself apart by providing top-notch service far more sophisticated than its current standard maintenance and service contracts. • Don, a hard-charging 48-year-old, firmly believed that bigger was better. It was a premise that had served his Greek immigrant father well as he built a multi-million-dollar business from nothing by acquiring one commercial laundry after another. The CEO had to admit, though, that getting bigger in the machine tool industry, currently a slow-growing sector facing increasing competition from low-priced foreign manufacturers, was going to be a challenge...
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...Data Mining Practical Machine Learning Tools and Techniques The Morgan Kaufmann Series in Data Management Systems Series Editor: Jim Gray, Microsoft Research Data Mining: Practical Machine Learning Tools and Techniques, Second Edition Ian H. Witten and Eibe Frank Fuzzy Modeling and Genetic Algorithms for Data Mining and Exploration Earl Cox Data Modeling Essentials, Third Edition Graeme C. Simsion and Graham C. Witt Location-Based Services Jochen Schiller and Agnès Voisard Database Modeling with Microsoft® Visio for Enterprise Architects Terry Halpin, Ken Evans, Patrick Hallock, and Bill Maclean Designing Data-Intensive Web Applications Stefano Ceri, Piero Fraternali, Aldo Bongio, Marco Brambilla, Sara Comai, and Maristella Matera Mining the Web: Discovering Knowledge from Hypertext Data Soumen Chakrabarti Understanding SQL and Java Together: A Guide to SQLJ, JDBC, and Related Technologies Jim Melton and Andrew Eisenberg Database: Principles, Programming, and Performance, Second Edition Patrick O’Neil and Elizabeth O’Neil The Object Data Standard: ODMG 3.0 Edited by R. G. G. Cattell, Douglas K. Barry, Mark Berler, Jeff Eastman, David Jordan, Craig Russell, Olaf Schadow, Torsten Stanienda, and Fernando Velez Data on the Web: From Relations to Semistructured Data and XML Serge Abiteboul, Peter Buneman, and Dan Suciu Data Mining: Practical Machine Learning Tools and Techniques with Java Implementations Ian H. Witten and Eibe Frank ...
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...Cases in Finance September 26, 2012 Dr. Thomas McCue Case 1: Hampton Machine Tools Evan Cvejkus Hampton Machine Tools is a company that specializes in the production and manufacturing of machine tools. The company has been in existence since 1915 and weathered all economic and internal struggles where most of their competitors met defeat. In order to purchase new equipment, Hampton requires a new loan of $350,000 and also wants to renew their current loan of $1,000,000 that will soon expire. In this case, we must decide whether or not the bank should give Hampton what it needs to succeed. The bank should renew the loan to Hampton Machine Tools as well as giving them the new loan for equipment purchase. The reason for lag in loan payments is due to the fact that Hampton had purchased a larger amount of raw materials than normal in July and August. Also, there was a small halt in production when the company was awaiting a component for one of the electronic control mechanisms. As stated in the case, they had seven machines totaling $1,320,000 completed with the exception of the control mechanism. This was a onetime hiccup by the supplier and Hampton suffered because of it. Hampton is a very transparent company. They offer up any and all financial statements that they have without even being asked. Benjamin Cowins, who is the president of Hampton, is an honest and trusted man. He is known throughout the community for his upstanding character and honesty within the business...
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...Hampton Machine Tool took out a $1 million loan from the St. Louis National Bank. On September 14, 1979, the company asked for an extension of the loan to the end of December 1979. Moreover, Hampton has asked for an additional $350,000 loan to be repaid at the same time as the previous loan. Both loans are to be repaid with monthly interest payments at the rate of 1.5%. The underlying problem affecting Hampton Machine Tools is its ability to payback its current loan and the requested one on time. Indeed, according to Exhibit 1, if Hampton carries forward as forecasted, the company will be short $331,500. The company could restructure its loan by paying interests ahead of time. However, while it would lessen the company’s cash shortage, Hampton would still have a negative balance by December. The issue is that the company should be able to repay the debt in January. Thus, the company should have asked for an extension up to January instead of December: the company neglected its selling terms of 30 days. While it would be wise for Mr.Eckwood to reject the proposal because his main concern should be the borrower’s repayment of the loan, which Hampton Machine Tool is unable to do on time, I would advise him to modify the terms of the loan. Indeed, Mr. Eckwood should renegotiate the terms of the loan in order to allow Hampton to extend its payment for one month. However, the modification should not come for free: if I were Mr. Eckwood, I would penalize Hampton Machine Tool by increasing...
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...Northboro Machine Tools Corporation * History * Founded in 1923 by two mechanical engineers and designed machinery parts, presses, dies, and molds * 1970s, firm begins its entry into computer aided manufacturing and design or CAD/CAM * By 1991, CAD/CAM made up 40% of sales * Revenue in 1991 * CAD/CAM accounted for 45% of sales * Metal presses, dies and molds accounted for 40% of sales * Miscellaneous machine tools accounted for 15% of sales * Recent developments * Revenue decline from $607 million to $504 million from 1985 to 1991 * Restructuring in 1989 and 1991 * 1989 restructuring – sold two unprofitable lines of business, sold two plants, eliminated five leased facilities, and reduced personal; restructuring costs were $44 million * 1991 restructuring – altered manufacturing strategy, refocused sales and marketing approach, further staff reductions; restructuring costs were $60 million * Greater share of R & D devoted to CAD/CAM which developed a system that management believed would redefine the industry called the Artificial Workforce * CAD/CAM * Manufactures metal parts by responding to computer commands * Allows an engineer to design a part to exact specifications on a computer * Artificial Workforce * Advanced hardware, software, and applications that distribute information around a plant * Allowed a product to be designed, manufactured...
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...Introduction Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Hampton's customer base is made up primarily of military aircraft manufactures and automobile manufacturers in the St. Louis area. Hampton felt the boom in the 1960 with record setting profits in the mid to late 1960. Hampton slowed down in the 1970s with the withdrawal from Vietnam War and the oil embargo. Hampton stabilized by the late 1970s and now has a larger market share, as other competitors were unable to make it through those tough times. Hampton’s conservative financial policy helped the firm to weather the business cyclical fluctuation in capital goods industry, and had no debts on its balance sheet during ten years prior to 1978. Traditionally, the company had kept its cash balances at St. Louis National Bank. President of Hampton is Mr. Benjamin G. Cowins. He is 58 years old, widely respected, energetic, successful and was a successor to his father in law. Problem It is now September 14, 1979; President of Hampton Mr. Benjamin G. Cowins has asked Mr. Eckwood for an extension to the end December 1979 on the $1 million loan they took out from the St. Louis National Bank at the end of December 1978. The loan was originally taken out on the terms of monthly interest payment at a rate of 1.5% with the principle to be paid back at the end of September 1979. Hampton also has asked for an additional $350,000 loan to also be repaid at the end of December 1979 with interest payments...
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...Deutsche Brauerie A director of small German brewery must prepare to vote on three issues: 1. approval of financial plan for 1993, 2. quarterly dividend declaration, 3. incentive compensation plan. 1. What accounts for Deutsche’s rapid growth in recent years? What policy choices account for this success? 2. What is Deutsche’s credit policy toward its distributors in Ukraine? Why is it different from the policy toward its other distributors? Is the company’s credit policy appropriate? Is it profitable? If not, how to change it? 3. Why does this firm need increasing amounts of bank debt? 4. As a member of BoD, how would you vote on: o The proposed raise for Oleg Pinchuk o The quarterly dividend declaration of €698,000. o Adoption of the financial plan for 2001? Spreadsheet file: Available Donaldson, Lufkin & Jenrette 1995 (Abridged) 1. Why is Equitable considering selling an interest in DLJ? 2. What are the relative advantages and disadvantages of carve-outs, spin-offs and divestiture through cash sale? 3. What is your estimate of DLJ's fair value per share? In answering this question, please draw upon as many valuation approaches as you can. Give special attention to the valuation multiples of DLJ’s peers. Who are these peers? Why do they qualify as peers? 4. At what price should DLJ be offered? Think carefully about your answer here. The offering price need not be identical to your answer to question 3. If answers to 3 and 4 differ, please prepare...
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...School of Accounting and Finance Master of Applied Finance Degree Assignment Corporate Finance Theory Dr. Jean Canil Instructions 1. Assignment two can be done in a group of no more than 2 students and it is the responsibility of the group to ensure that each student has contributed equally. 2. The first page of your assignment should specify your name(s), student number(s) and the assignment title. The assignment should be completed in Word format. Please show all workings. 3. Late assignments will not be accepted unless arrangements have been made with myself before the due date. EASTBORO MACHINE TOOLS CORPORATION In mid-September of 2001, Jennifer Campbell, chief financial officer of Eastboro Machine Tools Corporation, paced the floor of her Minnesota office. She needed to submit a recommendation to Eastboro’s board of directors regarding the company’s dividend policy, which had been the subject of an ongoing debate among the firm’s senior managers. Compounding her problem was the previous week’s terrorist attacks on the World Trade Center and the Pentagon. The stock market had plummeted in response to the attacks, and along with it Eastboro’s stock had fallen 18 percent, to $22.15. In response to the market collapse, a spate of companies had announced plans to buy back stock, some to signal confidence in their companies as well as in the U.S. financial markets, and others for opportunistic reasons. Now Jennifer Campbell’s dividend-decision...
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...Hampton Machine Tool Company On September 14, 1979, Mr. Jerry Eckwood, vice president of the St. Louis National Bank was considering a loan request from a customer located in a nearby city. The company, Hampton Machine Too] Company, had requested renewal of an existing $1 million loan originally due to be repaid on September 30. In addition to the renewal of the existin- loan, Hampton was asking for an additional loan of $350,000 for planned equipment purchases in October. Under the terms of the company's request, both loans, totaling $1.35 million, would be repayable at the end of 1979. Since its establishment in 1915, Hampton Machine Tool Company had successfully weathered the severe cyclical fluctuations characteristic of the macl-tine tool manufacturing business. In the most recent cvcle, Hampton had experienced record production and profitability during the niid- and late 1960s. Because Hampton's major customers included the aircraft manufacturers and automobile manufacturers in the St. Louis area, the company's success in the 1960s reflected a strong automobile market and the heavy defense spending associated with the Vietnam War. Hampton rode the 1960s boom into the early 1970s. Hampton, along with the rest of the capital goods industry, experienced a severe decline in sales and profitability in the rriid-1970s. Precipitous declines in the production of automobiles in St. Louis facilities reflected the Arab oil embargo, subsequent increases in the price of...
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...Williams Machine Tools Company – A case study Background Williams Machine Tool Company was the third largest US based machine tool manufacturer by 1990. Williams felt the boom during 1980 – 1990 with record level profits. William’s success came from a single product line of standard manufacturing machine tools. The company focused chiefly on this product line rather than diversify with new products. Situation during early 90’s: The recession of the early 1990’s has significantly changed the market environment. Cutbacks in production have decreased the demand for standard machine tools and customers are asking for new products. Upper management has recognized the need for a new strategy but lower level management shows no flexibility to change. Situation during mid 90’s: By 1995 the recession has been over for a couple of years but nothing has changed within William’s organization and product line. Revenues and sales are decreasing rapidly. By 1996 the company was sold to Crock Engineering. Crock replaces all of the Williams senior managers when the company shows losses. Crock announces than Williams would become a specialty machine tool manufacturer as demand for specialty products have increased threefold. Situation during late 90’s: The upper management tries to change the company culture through project management, concurrent engineering and total quality management. Unfortunately long term employees are not on the same page as upper management and...
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...Eastboro Machine Tools Corporation Problem Statement When considering whether or not it is necessary to pay dividend, Eastboro Machine Tools Corporation is facing a problem, i.e. how to provide enough cash to ensure the upcoming aggressive growth in the following years. If dividend is necessarily paid, how much dividend will be paid to benefit the shareholders most in the long run? Situation Analysis After two massive restructurings, the firm seems to get in a quick track to development. Its product “Artificial Workforce” appears to have a bright future. Most of securities analysts are optimistic about the product’s impact on the company. That’s why Campbell took the boldest approach by assuming that the company would grow at a 15% compound rate. However, we have noticed that whether or not the 15% growth rate could be achieved heavily depends on the financial decision and the dividend decision even if the firm has good opportunity to generate satisfactory free cash flow to firm (FCFF). Thus, in order to ensure the maximization of the shareholders’ long-term benefits, Ms. Campbell has to take a close look at how the dividend decision impacts the financial decision and the resultant effects on investment decision and the market values of the entire firm and the equity. As the case indicates, Campbell has five options: Zero-dividend, 40%-dividend, Residual-dividend, stock repurchase and not to matter. In my mind, Campbell’s ultimate target is to guarantee...
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...Pinnacle Machine Tool Company Don Anglos had to decide whether to trust his gut or his head, and he had to make that decision by next week’s board meeting. Either way, he knew he was bound to make at least a member or two of his senior management team unhappy. The question at hand was whether Pinnacle Company, the small, publicly held Indiana-based machine tool company he led as CEO, should attempt to acquire Hoilman Inc. Hoilman was a company known for the cutting-edge sensor technology and communications software it had developed to monitor robotics equipment. Anglos had just heard a credible rumor that one of Pinnacle’s chief competitors was planning a hostile takeover of the company. Coincidentally, Don Anglos knew Hoilman well because he had recently held exploratory talks about the possibility of a joint venture designed to develop similar technology capable of monitoring a broad range of manufacturing equipment. The joint venture did not work out. But now, by acquiring Hoilman, Pinnacle could develop software that transmitted real-time information on its customers’ equipment, enabling it to set itself apart by providing top-notch service far more sophisticated than its current standard maintenance and service contracts. Don, a hard-working 48-year-old, firmly believed that bigger was better. It was a premise that had served his Greek immigrant father well as he built a multimillion-dollar business from nothing by acquiring one commercial laundry after another. The CEO...
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...Gainesboro Machine Tools Corporation In this case we analyze the impact of an external issue (hurricane Katrina) on the dividend policy of the company. Ashley Swenson, CFO of Gainesboro Machine Tools Corporation, needs to decide whether to buy back stock or pay dividend to shareholders, considering the significant drop after the storm and the possibility of a significant increase in the near future. She should recommend one of these three policies: Zero dividend payout, 40% dividend payout (dividend of around $0.20 a share) or residual dividend payout). Ashley should also position herself regarding the image advertising and name change to Gainesboro Advanced Systems International, seeking to enhance firm visibility and image. When deciding the dividend policy, Ashley must keep in mind that the firm’s objective is to maximize shareholders value. However, if the firm increases dividends, there will be less money available for reinvestment. Therefore, when setting the optimal dividend policy, Ashley should face a trade-off between current dividends and future growth in order to maximize the firm’s stock price. Considering the total values of Sources, Uses, dividends and excess cash, we have: Using these total values, we can simulate proposed dividend payouts and compare them to other companies in the CAD/CAM market and also in the electrical and machinery markets: Analyzing the table above, Ashley should opt for the zero-dividend pay-out policy because it would strengthen...
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