...UST Items for Discussion 1. What are the attributes and primary business risks associated with UST, from viewpoint of a potential creditor (bondholder). Attributes: UST has been a dominant producer in the tobacco industry. Also, UST is well known for its high gross profit margin, which means UST is capable of maintaining its stable financial situation. UST is a major moist smokeless tobacco producer, and the demand on moist smokeless tobacco is growing very fast due to increased government regulation on smoking. Potential business risks: UST has very little debt, which makes it more able to resist potential risk when the economy goes bad. In addition, the legislative environment is not good for UST because the government has the ongoing health concerns. Due to the high price of UST’s products, other companies selling low price tobacco threaten the market share of UST. 2. Rate the overall business risk The S&P rates UST’s long-term credit as A, and its short-term credit as A-1. However, the future of tobacco industry is unclear, and government may conduct some policy to control the tobacco industry’s growth due to health concerns. Therefore, the UST’s long-term credit should be BBB. Also, UST’s short-term credit should be lower than the S&P’s rating, which is A-2. 3. Why are they considering a leveraged recap after a long history of conservative debt policy UST’s growth rate is reducing since 1994. They are not able to make a high growth in the...
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... 1. What are the primary business risks associated with UST Inc.? What are the attributes of UST Inc.? Evaluate from the viewpoint of a bondholder. (Your answer should be more qualitative than quantitative!) The following factors weave into the risks and attributes of the company from the creditors’ point of view: A. UST had seven pending health related lawsuits at the end of 1998. The outcomes of these suits are uncertain. Despite the major Medicaid state settlements, lawmakers are expected to continue to push for new laws to combat youth tobacco use. Other litigation against tobacco companies is expected to continue, especially suits filed by individuals. This uncertain litigation and legislative environment makes the future cash flows of UST risky B. UST is a dominant player and market leader and its strategy is to combat entrants by launching similar products, rather than cutting prices. But the recent market erosion by small companies has raised concerns. And UST’s “counter attack” has not been effective in competing against price-value brands. The resignation of his CFO and President of tobacco unit further raise the uncertainty of the company’s efficiency of solving the market erosion problem. C. The previous uncertainty is enhanced by a lawsuit that alleged that UST had violated antitrust and advertising laws and participated in anti-competitive conduct. Should UST lost the suite, it will be more vulnerable with competitors...
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...THE UNIVERSITY OF NORTH CAROLINA AT GREENSBORO Joseph M. Bryan School of Business and Economics Department of Accounting and Finance Fall 2008 I. Meeting Time and Place FIN 625.01, Corporate Strategy and the Finance Function 6:30 pm – 9:20 pm M, Bryan School (Room 204 Bryan Bldg.)[1] II. Instructor Daniel T. Winkler Office: 324 Bryan Bldg. Phone: 256-0122 E-mail: dt_winkler@uncg.edu Blackboard: http://blackboard.uncg.edu Office Hours: 5:15 pm – 6:15 pm M, 11:15 am – 12:15 pm W, or by appointment III. Prerequisites Prerequisites: MBA 605, 617; Co-requisite is MBA 620 IV. Course Materials Douglas R. Emery, John D. Finnerty, and John D. Stowe. Corporate Financial Management, 3rd Ed., Prentice Hall Publishing (Pearson), 2007. ISBN: 9780132278720. Harvard Business Review Cases (HC) purchased and downloaded online at: http://harvardbusinessonline.hbsp.harvard.edu/b02/en/cases/cases_home.jhtml. Case ordering numbers are given in parentheses next to each case in the Tentative Schedule. HP (Hewlett Packard) 10 B II, 17BII financial calculator or the equivalent. V. Course Description and Purpose The UNCG Graduate Bulletin describes MBA 625 as follows: "Finance in the strategic management process; corporate strategies and shareholder value creation, financing...
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...Business Entities, Financial Statements Week 2: Accounting for Transactions –Part 1 Week 3: Accounting for Transactions –Part 2 Week 4: Accounting for Adjustments- Part 1 Week 5: Accounting for Adjustments- Part 2 Week 6: Completion of Accounting Cycle Accounting Systems Revision Chapters 1 – 4 Week 8: Accounting for Retailers Week 9: Accounting for Inventories Week 10: Non-Current Assets Week 11: Cash Management and Control Week 12: Accounting for Receivables Week 13: Revision Tutorial Exercises Terminology Page 3 14 27 42 53 64 70 80 86 97 111 123 134 149 150 168 2 Lecture Notes Week 1 Introduction to Accounting, Ethics, Business Entities, Financial Statements Required Readings: HEM : Chapters 1 and 2 All required readings m ust be com pleted before attending class 3 What is Accounting? The process of ________________________________and ___________ economic information to assist users to make _____________. Users of Accounting Information The users are internal and external decision makers. Internal: External: Management Accounting Providing information to management to help them ____, ______ and ____________. Users are ________. Financial Accounting Reporting information to ________users to help them make decisions about the entity’s __________ and ____________. The reports produced for the external users are known as General Purpose Financial Reports (GPFR) and include: Balance Sheet Income Statement Statement of Changes in Equity Statement of Cash...
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...Reading Your Credit Report John R Scott Everyonew ritesa rticlest o inform consumerosf the impoftanceo f credita ndk eepingi t "clean".T his is not oneo f thosea rticlesd isguiseudn dera "CreditR epair"t itle thatd oes notg ivey ou vital informationo r just vaguer amblings. In this serieso f articlesy ou will frndw ayst o not only repairi temso n your creditr epofi, you will learn how to improve your credit rating quickly andfor very little, to no costs. You will learnh ow to ready our creditr eporta ndu nderstandit. Evenp ersonsw ith great creditr atingsc anu set heset echniquetso improvet heir scoresw ith the creditb ureaus. Understandinhgo w to obtaina ndr eada creditr eporti s the first stepi n understanding how you will be able to improve and repair what is on it. These are the 3 major credit reportinga genciesw hich 99o/o f theb ankso ut thereu set o determineif they areg oingt o give you credit: Experian www.experian.com 1-888-397-3742 Equifax www.equifax.com l -800-685-1l I 1 TransUnion www.transun i on.com/d irect I -800-888-4231 You can obtain a copy of your credit report from any one of these agencies, all three would be preferable, one may have information the other does not. Once you obtain a copy of your credit report, you can verify that all information is correct, such as your social, birth-date and address and employment. Know your scores and what is on your report. You have a right to receive a FREE copy ofyour credit report once every...
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...to work longer hours at more demanding jobs to cover their expenses. This can interfere with academic performance. A 2002 study by the State Public Interest Research Group's Higher Education Project found that working full-time can harm grades. Forty-two percent of survey respondents reported that working hurt their academic progress, and 53 percent reported that work limited the classes they could take (Global Post ). In United States, tuition increase have caused chronic controversy since shortly after World War II. It was during a time when the workforce was slow from the aftermath of war and higher education was blooming in order to pursue more knowledge in hopes of finding a successful, stable career. Many families went into debt in...
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...Executive Summary A. Market Study Food and parties have been a part of the culture of the Filipino. Filipino have always been a food lover, be it traditional food or food from another country. Hot is an adjective word that means having or giving off heat; having a high temperature; showing intense; requiring immediate delivery or correspondence; demanding priority. Spot is a noun word that means a place or locality; a specific position in a sequence. The owners chose this name because of the very reason that it is catchy and the word itself is explainable; it will be easily understood by their chosen target markets. Also, the owners thought of using this name because their main mission is to serve their customers with products that are warm and fresh. It features a variety of menu such as salads, pasta, hamburgers, rice meals, desserts and beverages hot or cold, alcoholic or non-alcoholic. It is also known for having the best ambiance having a laid back style with a twist of modernized furniture. Rest assured that Hotspot bar restaurant will maintain its security well. Hotspot bar and restaurant is an establishment that is very flexible and in its operations, it will make sure to cater to the needs and wants of every individual of all ages. B. Technical Study Burgers was introduced to the Philippines by the Americans, since then the Filipinos are fond of eating burgers. Hotspot bar and restaurant wants to be known for their best tasting burgers but they...
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...Licensed to: CengageBrain User Licensed to: CengageBrain User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: CengageBrain User Sociology in Our Times: Ninth Edition Diana Kendall Sponsoring Editor: Erin Mitchell Developmental Editor: Renee Deljon/Kristin Makarewycz Freelance Development Editor: Tricia Louvar Assistant Editor: Linda Stewart Editorial Assistant: Mallory Ortberg Media Editor: Mary Noel Marketing Manager: Andrew Keay ...
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...HBS 9- 287- 057) . N O M ORE BRAI N FREEZE - j ust love ly ide a s j uice ! W e 've got 1 ,4 6 2 GCSE Gr e e n Pla n t s a s Or ga n ism s Essa ys on lin e r ig h t n ow t o in sp ir e you St udy t he w ork of t he bright est st u den t s in t h e u k , a ll for le ss t h a n 1 7 p a da y. Accoun t ing ( 513 Essays) Econom ics (1,080 Essays) Fina nce ( 1, 083 Essays) H um a n Re sour ce M a na ge m e nt ( 1,012 Essays) M a na ge m e nt St udie s ( 1, 723 Essays) - I n t e r n a t ion a l Fin a n cia l R.J. Rey nolds I nt er nat ional Financing ( HBS 9- 287- 057) The case is set in t he cont ext of RJR’s 1985 financing of it s $4.9 billion acquisit ion of Nabisco Brands I nc. To finance t he acquisit ion, RJR was pr oposing t he issue of $1.2 billion of 12 year not es and t he sam e am ount in pr efer r ed st ock . I t had alr eady funded $1.5 billion of t he acquisit ion leav ing $1 billion m or e t o finance. Challenges facing RJR: Of t he $1.5 billion t hat had been funded, $500 m illion cam e from cash and t he r em aining was t hr ough bank bor r owings and com m er cial paper. These borrow ings added t o t he debt t hat RJR had issued in 1984 and br ought t heir debt rat ings dow n t o A. The r em aining $1 billion financing w ould hav e t o k eep t his in m ind as w ell as t he $1.2 billion of 12 - y ear not es t o be funded. To det erm ine t he financing, w e need t o consider t he following choices: Debt vs. Equit y : RJR is a m at ur e com...
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...FIFTH EDITION 2005 Transforming Real Estate Finance A CMBS Primer Primary Analysts: Howard Esaki Marielle Jan de Beur Masumi Goldman This book is an overview of the Commercial Mortgage-Backed Securities (CMBS) market. The contents of this publication are over eight years in the making and include excerpts of research reports from as early as 1997. In this fifth edition of our primer, we have reorganized the chapters to highlight the different investment options within CMBS. New material since our last edition includes sections on the various types of AAA CMBS classes, total rate of return swaps, floating rate large loan transactions, and an updated version of the commercial mortgage default study. We hope you find this book useful and welcome comments so that we can improve future editions. FIFTH EDITION 2005 Transforming Real Estate Finance A CMBS Primer Primary Analysts: Howard Esaki Marielle Jan de Beur Masumi Goldman The Primary Analyst(s) identified above certify that the views expressed in this report accurately reflect his/her/their personal views about the subject securities/instruments/issuers, and no part of his/her/their compensation was, is or will be directly or indirectly related to the specific views or recommendations contained herein. This report has been prepared in accordance with our conflict management policy. The policy describes our organizational and administrative arrangements for the avoidance, management and disclosure...
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...Australian School of Business Banking and Finance FINS3625 Applied Corporate Finance Course Outline Semester 1, 2014 Part A: Course-Specific Information Part B: Key Policies, Student Responsibilies and Support Table of Contents PART A: COURSE-‐SPECIFIC INFORMATION 1 STAFF CONTACT DETAILS 1.1 Communication with Staff 2 COURSE DETAILS 2.1 Teaching Times and Locations 2.2 Units of Credit 2.3 Summary of Course 2.4 Course Aims and Relationship to Other Courses 2.5 Student Learning Outcomes 3 LEARNING AND TEACHING ACTIVITIES 3.1 Approach to Learning and Teaching in the Course 3.2 Learning Activities and Teaching Strategies 4 ASSESSMENT 4.1 Formal Requirements 4.2 Assessment Details 4.3 Assessment Format 4.4 Assignment Submission Procedure 4.5 Late Submission 5 COURSE RESOURCES 6 COURSE EVALUATION AND DEVELOPMENT 7 COURSE SCHEDULE PART B: KEY POLICIES, STUDENT RESPONSIBILITIES AND SUPPORT 8 PROGRAM LEARNING GOALS AND OUTCOMES 9 ACADEMIC HONESTY AND PLAGIARISM 10 STUDENT RESPONSIBILITIES AND...
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...c02AFurtherLookatFinancialStatements.qxd 7/27/10 9:39 AM Page 46 chapter 2 A FURTHER LOOK AT FINANCIAL STATEMENTS ● the navigator ● ● ● ● ✓ Scan Study Objectives Read Feature Story Scan Preview Read Text and Answer Do it! p. 52 p. 53 p. 62 p. 68 Work Using the Decision Toolkit Review Summary of Study Objectives Work Comprehensive Do it! p. 72 Answer Self-Test Questions Complete Assignments Go to WileyPLUS for practice and tutorials Read A Look at IFRS p. 96 study objectives After studying this chapter, you should be able to: 1 Identify the sections of a classified balance sheet. 2 Identify and compute ratios for analyzing a company’s profitability. 3 Explain the relationship between a retained earnings statement and a statement of stockholders’ equity. 4 Identify and compute ratios for analyzing a company’s liquidity and solvency using a balance sheet. 5 Use the statement of cash flows to evaluate solvency. 6 Explain the meaning of generally accepted accounting principles. 7 Discuss financial reporting concepts. ● ● ● ● ● ● ● INSIDE CHAPTER 2… 46 c02AFurtherLookatFinancialStatements.qxd 7/27/10 9:39 AM Page 47 feature story Few people could have predicted how dramatically the Internet would change the investment world. One of the most interesting results is how it has changed the way ordinary people invest their savings. More and more people are striking out on their own, making their own investment decisions. Two early pioneers...
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...BAR EXAMS QUESTIONS AND ANSWERS 2001 GEN TOPIC: RECEIVERSHIP SPECIFIC: REMEDIES Joaquin filed a complaint against Jose for the foreclosure of a mortgage of a furniture factory with a large number of machinery and equipment. During the pendency of the foreclosure suit, Joaquin learned from reliable sources that Jose was quietly and gradually disposing of some of his machinery and equipment to a businessman friend who was also engaged in furniture manufacturing such that from confirmed reports Joaquin gathered, the machinery and equipment left with Jose were no longer sufficient to answer for the latter’s mortgage indebtedness. In the meantime judgment was rendered by the court in favor of Joaquin but the same is not yet final. Knowing what Jose has been doing. If you were Joaquin’s lawyer, what action would you take to preserve whatever remaining machinery and equipment are left with Jose? Why? (5%) SUGGESTED ANSWER: To preserve whatever remaining machinery and equipment are left with Jose, Joaquin’s lawyer should file a verified application for the appointment by the court of one or more receivers. The Rules provide that receivership is proper in an action by the mortgagee for the foreclosure of a mortgage when it appears that the property is in danger of being wasted or dissipated or materially injured and that its value is probably insufficient to discharge the mortgage debt. (Sec. 1 of Rule 59). 2001 GEN TOPIC: WRIT May a writ of preliminary attachment be issued ex-parte...
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...Harvard Business School 9-899-062 Rev. December 7, 1998 Walnut Venture Associates (A): RBS Group Investment Memorandum Ralph Wagner pulled his file on the RBS Group, a young company that developed and sold accounting software specifically targeted to software companies. Wagner was a private investor—an “angel”—and a member of an informal group of other investors known as Walnut Venture Associates. (See Exhibit 1 for background information on Walnut) RBS was seeking to raise $2 million in equity capital to fund its growth. Wagner had agreed to take the lead role in evaluating RBS as an investment opportunity for Walnut. While Wagner would spearhead the process, each individual would make his own decision about whether to invest in the company. It was December 26, 1997 and Bob O’Connor, RBS’s founder and CEO, had presented to the Walnut group one week ago. The group had been impressed with O’Connor, with RBS’s business focus, and with the fact that the company had a product, sales and even earnings. Based on this positive first impression, the group had decided to take the next step and begin a more in-depth investigation of the company and its prospects. Half a dozen or so “Walnuters” had indicated an interest in possibly investing, and it was up to Wagner to come up with a due diligence agenda for these individuals. He pulled out RBS’s plan (See Exhibit 2) and began to sort through the issues the group should investigate during this phase, as well as an...
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...Jeremy Harmer how to teach english new edition r ----------------------------------------- ^ - 1 \I with DVD _ "The How to... series is written by teachers and teacher trainers, people who know the reality of the classroom and the support teachers need to get the most out of their students. Our aim is to build teachers' confidence, knowledge and classroom abilities - and inspire them to try out new ideas." Jeremy Harmer, Series Editor How to Teach English is a practical guide for teachers who are at an early stage in their careers and for those studying for the CELTA, Certificate in TESOL and TKT exams. This new edition has been fully revised to reflect recent methodological developments and includes a DVD with clips from actual classes demonstrating good teaching practice a comprehensive glossary of teaching terminology, including terms required for the TKT exam • a new chapter on testing a Task File of photocopiable training tasks www.longman.com/methodology i Jeremy Harmer has taught in Mexico and the UK, and has trained teachers around the world. As well as editing the How to... series of books, he is also the author of the highly acclaimed The Practice of English Language Teaching. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world. www.longman.com © Pearson Education Limited 2007 All rights reserved; no part of this publication may be reproduced, stored in a retrieval system...
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