... Case Study Questions: Midland Energy Resources, Inc: Cost of Capital Janet Mortensen, senior vice president of project finance at Midland Energy Resources, is in the process of preparing her annual cost of capital estimates for Midland and each of its three divisions (oil and gas exploration and production (E&P), refining and marketing (R&M), and petrochemicals). These estimates are used in many analyses within Midland, including capital budgeting decisions, financial accounting, performance appraisals, M&A proposals, and stock repurchase decisions. There has been some disagreement in the past about specific inputs and assumptions used to arrive at the cost of capital estimate, so Mortensen needs to devote extra care in preparing the cost of capital estimates and justifying her assumptions. These questions relate to the Midland Energy Resources, Inc: Cost of Capital case. You can find the data for this case on the course website in a spreadsheet named: Midland Energy Resources Exhibits.xls. 1. For what purposes does Mortensen estimate Midland’s cost of capital? What would be the potential consequences of a too high estimate compared to the firm’s “true” cost of capital? What about a too low estimate? Mortensen estimates Midland’s cost of capital to use for other analyses within Midland such as capital budgeting and financial accounting, performance assessments, M&A proposals, and stock repurchase decisions. If the cost of capital is too high, Midland could...
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...Message Our team has performed thorough analysis surrounding the questions of cost of capital for Midland Energy Resources, Inc. (Midland). Here are the results of our research: 1. Ms. Mortensen estimates Midland’s cost of capital for a variety of reasons including use for capital budgeting, financial accounting, performance assessments, stock repurchase estimations, and potential “M&A” opportunities. In addition, Midland relies on the cost of capital to deliver on the financial and investment policies set forth by the Board. Finally, the cost of capital is also used in relation to expected growth and forecasted demand. To explain, if the forecasting department foresees an increase in sales of resources, Ms. Mortensen can use the cost of capital to properly determine if it is financially sound to make an investment in the company to support that demand. Should Ms. Mortensen overestimate the cost of capital for the firm, Midland may miss out on investment opportunities and will under value the investment at hand. Furthermore, it is possible for shareholders to see a lower return on their investment. At the other end, in which the cost of capital is understated, Midland may engage in an investment that is potentially “bad” and will be overvalued. Shareholders will see over inflated returns based on this approach. 2. Based on our calculations, our team has determined that Midland’s firm-wide WACC is 8.48%. Assumptions that our team made can be found starting...
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...Who Is Archer Daniels Midland? Archer Daniels Midland Company (ADM) is one of the world's leading processors and distributors of agricultural products for food and animal feed, with additional operations in transportation and storage of such products. Archer Daniels Midland was founded in 1902 and incorporated in 1923. Since then, ADM has made a major impact in American productions. In 1902, the founders George A. Archer and John W. Daniels began a linseed crushing business in Minneapolis, Minnesota. In 1923 the company bought Midland Linseed Products and the Archer Daniels Midland was formed. Archer Daniels Midland is headquartered in Decatur, Illinois, and operates processing and manufacturing facilities across the United States and worldwide. ADM currently operates in more than 140 countries including the Middle East, Europe and Asia.1 With 30,000 employees, the people of Archer Daniels Midland strive to turn crops into renewable resources. The company specializes in converting corn, oilseeds, wheat and cocoa into products for food, animal feed, industrial, and energy uses. ADM also offers a variety of investment opportunities as well as career opportunities within the corporation and manufacturing. According to Archer Daniels Midland’s company website, their vision is “To be the most admired global agribusiness. Creating value. Growing responsibly. Serving vital needs.” With more than 265 processing plants, 400 crop procurement facilities, and the world’s premier...
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...organization where quality service delivery is of great importance WORK EXPERIENCE Team Leader, September 2011 – November 2011 SMG Solutions, Coventry United Kingdom • Managed a team of people: Trained and developed individuals on the business and sales sector of the company using some key strategic factors to achieving the target. • Involved in the recruitment process, conducted 2nd round interviews to select candidates for sales position. • Delivered public and In-house motivational presentations. • Organized campaign and market research for one of the biggest insulation companies in UK (Macrow Energy) under the government scheme (CERT). • Part of a team, went on business trip around the West Midlands to promote Macrow energy brand and expand their market segment. • Contributed to the Management of SMG Solutions satellite offices to ensure they are adhering to business strategy and policy 1. Call centre advisor, June2010 – September 2010 Zain, Nigeria. • Tasked with answering and projecting a professional company image through phone...
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...syllabus outline The global pattern: millionaire cities, mega cities and world cities. Economic development and change related to urbanisation. Contemporary urbanisation processes Urbanisation: characteristics, causes and effects. Suburbanisation: characteristics, causes and effects. Counter-urbanisation: characteristics, causes and effects. Re-urbanisation: characteristics, causes and effects. Planning and management issues. Contrasting case studies within countries at different levels of economic development to demonstrate the above. Urban decline and regeneration within urban areas Characteristics and causes of urban decline. Urban regeneration: gentrification, property-led regeneration schemes, partnership schemes between local and national governments and the private sector. Retailing and other services The decentralisation of retailing and other services – causes and impacts. One case study of an out-of-town centre retailing area. The redevelopment of urban centres – impacts and responses, including one case study of an urban centre that has undergone redevelopment. Contemporary sustainability issues in urban areas Waste management: recycling and its alternatives. Transport and its management: the development of integrated, efficient and sustainable systems. |Topic: World Cities - Economic development and change related to |Unit 3 –World Cities– Contemporary geographical issues | |urbanisation ...
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...Assessment of Impacts of climate variability in Kilosa District, Morogoro Region in Tanzania Scientist. Gerald Mrema. PRECS M&C LTD, P.O. Box 10268, Dar es Salaam, Tanzania *Corresponding Author (Tel: +255714254900 e-mail: mrema.gerald@gmail.com) Abstract This research is basically on assessment of impacts of climate variability in Kilosa District Morogoro Region in Tanzania were the field study was done within three wards that is Ulaya, Kilosa town and Rudewa represent three major zones of Kilosa District that is highlands, midlands and lowlands respectively. Methodologies that were used in field study include physical observation, consultation, interview through research question, literature review and GIS in map updating. Data from Tanzania meteorological agency (TMA), WAMI/RUVU basin and Morogoro agriculture department of rainfall and temperature, water level and water discharge also crop production respectively for 30years from 1980 to 2010 were analyzed statistically in order to show the link between climate variability with its associated impacts in both people and environment at large, results shows that climate variability in Kilosa District generally is of both dry and wet years in different years where the area also experience both MAM and OND seasons of rainfall per year. Also results have revealed that the total annual rainfall at Kilosa is observed to decreases at the rate of 8.04mm/year while in temperature there a slight increase at a rate of 0.1oC/year in temperature...
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...1.0 Introduction Companies around the world are focussing on incorporating sustainability policy and practices in their supply chain (Ageron et al, 2011). The topic of sustainability has been of great interest for the last decade and businesses have adopted a certain level of commitment towards sustainability practices (Hassini et al, 2012), yet some business tycoons suffer in developing an effective supply chain model. This report primarily discusses the issues that Wal-Mart is facing in establishing and maintaining a sustainable supply chain. The report outlines the company's origin and its progress in the years, followed by describing the issue it is faces. The issue described is related to Wal-Mart's failure to develop a Green sustainable process and the effects it has on the environment. 2.0 Company Background - Wal-Mart The idea of retail business grew very popular in the United States in the early 1950's, and Sam Walton, founder of Wal-Mart was convinced that people wanted more than just retail showrooms. Hence he opened his own retail store providing large discounts (Reuters, 2013). Over the years he spread his business across the United States and set up his first Wal-Mart store in 1962. In the next five years he opened 24 more stores and in 1969 Wal-Mart established itself as an incorporated company under the official name, Wal-Mart Stores Inc. (Wal-Mart Corporate, 2013). Phenomenal transformation of national retail business into global retail chains were witnessed...
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...Case Studies Solutions Case Studies Solutions,Article Writing,Assignments,Research Work,Home Work MenuSkip to content Home How We Work ? Refund Policy How to Order ? Disclaimer Contact Us Finance Cases List POSTED ON MARCH 8, 2013 Hello, If u want us to solve any case study from below list, do contact us anytime, We are here to provide the experience, expertise, and professionalism that you are looking for , Our tutors are available 24/7 to assist you what you need, Click Here to submit your Order. ======================================================================================= Acquisition of Consolidated Rail Corp. by Benjamin C. Esty Airbus A3XX: Developing the World’s Largest Commercial Jet by Benjamin C. Esty American Chemical Corp.by William E. Fruhan, John P. Goldsberry American Home Products Corp.by David W. Mullins AQR’s Momentum Funds by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc. by Mark L. Mitchell Dell’s Working Capital...
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...Green chemistry, also called sustainable chemistry, is a philosophy of chemical research and engineering that encourages the design of products and processes that minimize the use and generation of hazardous substances. Whereas environmental chemistry is the chemistry of the natural environment and of pollutant chemicals in nature, green chemistry seeks to reduce the negative impact of chemistry on environment by preventing pollution at its source and using fewer natural resources. As a chemical philosophy, green chemistry applies to organic chemistry, inorganic chemistry, biochemistry, analytical chemistry, physical chemistry and even chemical engineering. While green chemistry seems to focus on industrial applications, it does apply to any chemistry choice. Click chemistry is cited as a style of chemical synthesis that is consistent with the goals of green chemistry. The focus is on minimizing the hazard and maximizing the efficiency of any chemical choice. In 2005 three key developments in green chemistry were identified: use of superficial carbon dioxide as green solvent, aqueous hydrogen peroxide for clean oxidations and the use of hydrogen in asymmetric synthesis. Examples of applied green chemistry are supercritical water oxidation, on water reactions and dry media reactions. Bioengineering is also seen as a promising technique for achieving green chemistry goals. A number of important process chemicals can be synthesized in engineered organisms, such as shikimate, a Tamiflu...
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...BUNGE LTD. Analysis Team Shelby Bentley Nicolas King Jon Murphy Colby Norris Georgia Sanchez shelby.bently@ttu.edu nick.king@ttu.edu jon.murphy@ttu.edu colby.norris@ttu.edu georgia.sanchez@ttu.edu 1 Table of Contents Executive Summary ………………………………………………………………………..8 Company Overview ……………………………………………………………………….14 Industry Overview …………………………………………………………….............15 Five Forces Model …………………………………………………………………………16 Rivalry among Existing Firms ………………………………………………..18 Industry Growth …………………………………………………………………………18 Concentration …………………………………………………………………………….20 Differentiation ……………………………………………………………………………21 Switching Costs ………………………………………………………………………….22 Economies of Scale …………………………………………………………………….22 Learning Economies of Scale ……………………………………………………….23 Fixed Variable Cost ……………………………………………………………………..24 Threat of New Entrants ………………………………………………………..25 Economies of Scale ………………………………………………………..……………25 First Mover Advantage ………………………………………………………………..26 Distribution Access and Relationships …………………………………………..26 Legal Barriers …………………………………………………………………………….27 Threat of Substitute Products ……………………………………………….28 Relative Price and Performance ……………………………………………………28 Customers Willingness to Switch ………………………………………………….29 Bargaining Power of Customers …………………………………………….30 2 Switching Costs ……………………………………………………………………….…30 Differentiation ……………………………………………………………………………31 Cost and Strategy Importance …………………………………………………….31 Number of Customers …………………………………………………………………32...
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...ambitious concept which targets to make sure that there is enough water to support any development without requiring additional water resources. There are two main reasons because of which the water neutrality becomes an important concept which include the policy of government which aims at a quicker growth in housing keeping a target of over 3 million new houses by 2020. The plan to achieve this growth depends upon existing water management plans and the growth point and eco-towns. The other key factor is the availability of water resources either today or in future which can be used to meet the demand for water in the areas of England and Wales. Most of East midlands area is served by Severn Trent water which is targeting to put a check on the carbon footprint by bringing in water neutrality and improving energy efficiency. Introduction The concept of water neutrality is a vital concept for the purpose of water resource management keeping new development in mind. It can be defined as offset of water demand in the existing community by the means of making the buildings and houses increasingly water efficient. In other words, total water demand should remain same with the new housing development in the region. Most of the studies performed on the subject of water neutrality have been based on this definition of the concept. Most importantly the study performed by the Environment Agency on feasibility of achieving water neutrality in the Thames Gateway region (Environment Agency...
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...GOVERNMENT OF ZIMBABWE Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) “Towards an Empowered Society and a Growing Economy” OCTOBER 2013- DECEMBER 2018 Contents List of Acronyms......................................................................................... 3 Foreword ................................................................................................. 6 EXECUTIVE SUMMARY ................................................................................... 8 Chapter 1............................................................................................... 12 1.0 Introduction…………………………………………………………………………………………………………………….12 Chapter 2............................................................................................... 16 2.0 Situational Analysis………………………………………………………………………………………………………..16 Chapter 3............................................................................................... 26 3.0 Towards an Empowered Society and a Growing Economy:………………………………………26 Chapter 4............................................................................................... 45 4.0 Implementation Structure…………………………………………………………………………………………….45 Chapter 5............................................................................................... 47 5.0 Monitoring and Evaluation…………………………………………………………………………………………….47 Chapter 6................................................................................
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...Test Bank to Accompany Microeconomics Seventh Edition by Pindyck / Rubinfeld Pearson Education © 2009 8/12/2008 Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Preliminaries ........................................................................................................................1 The Basics of Supply and Demand..................................................................................16 Consumer Behavior...........................................................................................................55 Individual and Market Demand...................................................................................125 Uncertainty and Consumer Behavior ...........................................................................179 Production ........................................................................................................................236 The Cost of Production ...................................................................................................273 Profit Maximization and Competitive Supply ............................................................327 The Analysis of Competitive Markets ..........................................................................375 Chapter 10 Market Power: Monopoly and Monopsony.................................................................438 Chapter 11 Pricing with Market Power .....
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...TERMS OF REFERENCE This report has been compiled by Anisa Suleman in accordance with the brief obtained from Mr R.H. Salisbury for the purpose of obtaining a percentage of the semester mark. The topic of discussion is to prepare a comprehensive operations management report for a new enterprise located in a timber supply chain. My objective is to devise an enterprise that will be able to add value and develop core competencies that enable it to compete successfully with similar enterprises competing in the same market taking into account all ten Operation Management Strategies. The report must be clear and concise and include an executive summary, introduction, body, conclusion, recommendations and references. Due date: 29 April 2014 EXECUTIVE SUMMARY The enterprise will be a dynamic and growing sawmill enterprise; the new company’s strategies are formulated according to my operations plan and this plan involves gaining a good customer base and competitive advantage in the market. My objective is to prepare a report that describes the operations management of this new enterprise in terms of the ten OM strategic decision areas that I have devised. The name I have chosen is KZN Timber Pine and it’s a sawmill facility where logs are cut into board or planks. The process takes place in multiple steps and the planks are prepared using various machines. Logs are stripped of the bark and the wood is cured before being cut into planks. Planks go through a process of drying...
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...objective of this course is deepen your understanding of the many issues faced by firms as they identify valuable investment opportunities, raise funds for those investment opportunities, distribute profits to share-holders and debt-holders and deal with the consequences of both good and bad investment financing decisions. We will expand on the concepts that you have learned in FINA 760 or in DMSB 715. Class time will be divided between lectures and case studies. My lectures will briefly review concepts from prior courses. The bulk of my lectures will present advanced material that will be new to you. It is assumed that you understand the concepts from your earlier finance and accounting courses. If not, it is your responsibility to review. In order to reduce your note-taking, my lecture notes will be available on the class web-site in PowerPoint format. I suspect that you will have difficulty paying attention for a full 2.5 hours some days. Thus, I intend to supplement live lectures with recorded lectures on a case-by-case basis. Recorded material can be viewed at your leisure when you are fresh and attentive. In addition to lectures, we will spend a significant amount of time analyzing...
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