...The Given Pledge 1. ”The Giving Pledge” is a commitment by the world’s wealthiest families and individuals to dedicate the major proportion of their wealth to philanthropies. It is a project Warren Buffet, Bill and Melinda Gates have created. The intended meaning is to give over half of their fortune to charity. Buffet, Bill and Melinda Gates and others called some of the wealthiest individuals, with intentions that they would give half of their fortunes themselves. “My Philanthropic Pledge” has a very positive attitude, which is obvious since the author of text 2 is Warren Buffet, one of the co-founders of the project. Buffet is very satisfied with his decision, he has promised 99% of his wealth to charity, primary because he doesn’t value money as much as his health and long-standing friends. That is why he can donate all his unneeded money to philanthropy. Buffet encourages other wealthy people to join the pledge. He mentions that giving away 99% of his fortune won’t mean anything to his way of living. Buffet, his children and his wife will continue to live their life unaffected. His children have received considerable sums for their personal use and further life - he is using this argue to tell the wealthy, that even though they give away half of their fortune doesn’t necessarily means they have to change their lifestyle. It can mean life or dead for the suffering, while it can mean a little or big yacht for the rich. In “The rich want a better world? Try...
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...founded by Microsoft co-founder Bill Gates and billionaire investor Warren Buffet in June. In a conference call Wednesday Warren Buffet explained more of the purpose behind founding the organization, saying that he, Bill Gates, Melinda Gates and others, have been calling other rich American people to join the organization and to give a helping hand by calling some of their friends while they are at it. To make it more nationwide there will be held small dinners, to spread the word but they are also planning to meet with groups of wealthy people outside of America, such as China and India. Some of the generous donating people have decided to stay anonymous, while others were simply not interested in joining. Even though they agreed, those who did agree, to pay half of their fortunes none of them will be told when or how to give their money. Text 1 is written by Jon Swartz in form of an article where he explains the idea behind The Giving Pledge. It is written in a way where the project is set in a positive perspective, and he has a couple of statements from the founders themselves, but also some of those who give half of their fortune to charity. In text 2 we get a more personal view of this project because it is written by Warren Buffet, who is one of the founders of The Giving Pledge. He gives us a personal explanation about why he chose to start such a project and what his really intentions is. Mr. Buffet is very proud of his achievement and to know that he would be...
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...supply-demand mismatch is ongoing for over a decade and the deficit has adversely affected almost all residential, industrial and commercial customers resulting in lower economic growth in Pakistan. The new government is determined to address the shortfall through various hydel, coal, solar, nuclear and wind power projects. However, due to urgency of the power requirements various private investments have been encouraged to address the instant energy needs of the country. Under the power policy of 1996 and 2002, twenty-nine Independent Power Producers (IPPs) have been introduced with gross installed capacity of 8,657 MW. KAPCO, being one of the largest IPPs, has installed capacity of 1,638 MW and dependable capacity of 1386 MW.1 This report is drafted from investor’s standpoint and can help in assessing the financials of KAPCO using following stock valuation frameworks: 1). Warren Buffett 2). Price-Earnings Multiple Approach 3). Capital Asset Pricing Model 4). Financial Ratio Analysis. Section 2 introduces the Company and gives an overview of the stock currently trading at Karachi Stock Exchange (KSE). KAPCO share analysis starts from Section 3 with Warren Buffet qualitative and quantitative pricing frameworks. Thirteen different parameters have been evaluated for qualitative analysis while three different pricing models show that it is better to invest in State Bank of Pakistan (SBP) Investment Bond than to invest in KAPCO share. Section 4 and 5 examine the current stock...
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...about the personal charitable contributions made by Mr. Jobs. Apple, on the other hand made numerous contributions to schools and other civic groups. Apple (maybe in an effort to reduce criticism from others in his group that gives generously) has started to match employee charitable contributions to their various charities, up to a limit of $10,000.00 (Mogg, 2011). The next individual to be discussed is Warren Buffet. Mr. Buffet states to have made over 62 billion dollars in 2010, with an AGI (adjusted gross income) of 39 billion dollars (Kent, 2011). Most of the variance is due to capital gains and losses which are the adjustments for AGI. The charitable contributions and local taxes are from AGI which is how his taxable rate of 17.4% was determined. This is a much lower rate than many of those employed by his company, and since his income is much higher than this group of employees he qualifies for a higher percentage of charitable contribution. At the AGI, Mr. Buffet states to have in 2010, he would qualify to contribute about 20 billion dollars just in cash donations. Mr. Buffet is obviously doing many things right, not only to benefit him and his family, but to the benefit of many others. There will be more on this and the ethical concerns related to his charitable donations later in this report. The majority of Americans fall in the 30% taxable rate (CBS Political News Hotsheet, 2011). The next individual will be Bill Gates. Mr. Gates and his wife, Melinda supports the Bill...
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...many charities rely on donations from people and organizations as well. Furthermore, knowing that one has sacrificed something such as finances, property or time for the purpose to strengthen the way of living of people in need provides a sense of inner satisfaction and a purpose of life (Anheier, 2014). Many governmental entities are incapable to support certain types of charities. Therefore, these non-profit organizations depend on the funding from the common pubic. Among these charitable organizations, one organization that often comes in mind is the Bill & Melinda Gates Foundation due to its valuable contribution to the society. This paper will provide an overview about the Bill & Melinda Gates Foundation and highlights the projects it currently supports. Discussion Bill & Melinda Gates Foundation is a charitable organization situated in Seattle, U.S. The foundation came into existence by the efforts of Bill and Melina Gates (Bill & Melinda Gates Foundation, 2015). The foundation is considered as the largest private foundation across the globe. Additionally, the foundation is regarded as the largest transparently managed private...
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...In 1930, Buffett was conceived in Nebraska he was a child of a stockbroker and Congressman. He has ended up presumably the planet's best guru. As a kid, regardless of his family foundation, he conveyed daily papers to profit and this most likely started his premium in the media where he has made a few fruitful speculations incorporating. According to the Washington Post Company, it was the stock which has made him like a cash ton. Furthermore, he did not offers such promises. Permeated with a determination make great and an entrepreneurial nature; however in 1950 his predetermination was contracted promptly in the piece when, in the wake of moving on through Nebraska university; he gave the preference to the Columbia Graduate Business School under the incredible Benjamin Graham. This endeavor grew into a multimillion dollar product globally. He was not having the knowledge related to the trademarks and patents and the importance of the logos and trademark in the large business companies. Due to lack of knowledge he was totally out of the business and his entire business undergo. The business venture has shown the promising indications related to the spirit of entrepreneurship as well as business acumen. Upon being wiped out from his previous business venture he in an individual capacity started to invest actively in the stock market and real estate, respectively until becoming virtually bankrupt. It was an understood fact that this magnitude of debt could not be repaid through...
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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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...Company Profile as of 2/15/2014 Company Profile as of 2/15/2014 Step 1: USG Corporation (USG) Financial Analysis By: Brendan Carr- Materials Step 1: USG Corporation (USG) Financial Analysis By: Brendan Carr- Materials Source | Target Price | Recommendation | Bloomberg | $37.86 | 10/6/1 | Capital IQ | $36.73 | BUY | Siena College | $36.87 | BUY | Yahoo Finance | $36.50 | BUY | Source | Target Price | Recommendation | Bloomberg | $37.86 | 10/6/1 | Capital IQ | $36.73 | BUY | Siena College | $36.87 | BUY | Yahoo Finance | $36.50 | BUY | Step 2: Recommendation: Buy USG Corporation is currently trading at $34.26 and has a market capitalization of $4.7 billion. I recommend a BUY because of the company’s effort to reach an economy of scale, quality of products, and future revenue projections. Step 2: Recommendation: Buy USG Corporation is currently trading at $34.26 and has a market capitalization of $4.7 billion. I recommend a BUY because of the company’s effort to reach an economy of scale, quality of products, and future revenue projections. Thesis: USG Corporation for over 100 years has built an ever-growing portfolio of groundbreaking products backed by unparalleled service. The company continues to show their resilience by continuing to invest in purposeful innovation, expanding into different markets and by working smarter and faster. USG has three main strategic priorities that they are focused on to continue to improve...
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...The University of Lethbridge Calgary Campus Faculty of Management Management 4430Y Financial Management Spring 2011 A.P. Palasvirta Office: Markin 4132, Lethbridge Phone: (403) 332-4582 e-mail: oz.palasvirta@uleth.ca Goal of Course Management 4430 is the capstone course in finance and will incorporate concepts you have learned in through your study of corporate, investments, and international. We will utilize the case methodology to focus our analysis. Cases describe a context in which a particular problem is found. Regardless of the particular characteristics of the problem, problem solving follows a general methodology: identification of the problem, describing the context of the problem, analysis of potential alternative solutions, the identification of the best solution, implementation of the best solution , and the creation of controls and contingency plans, if applicable. Text and Other Sources: E-book based on Case Studies in Finance, 6th ed., 2010, McGraw Hill, Toronto, ISBN Prerequisites Management 3412, Fundamentals of Investments Investments, Analysis & Management, 2nd Canadian Ed., 2005, Cleary & Jones, John Wiley & Sons Canada Ltd., Mississauga ISBN 0-470-83542-7 Management 3460, Corporate Finance Fundamentals of Corporate Finance, 6th Canadian Ed., 2007, Ross, Westerfield, Jordan, & Roberts, McGraw-Hill Ryerson, Toronto ISBN 13: 978-0-07-095910-1 A list of topics for which you should have working knowledge...
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...FINANCIAL MANAGEMENT http://mycourses.hult.edu MODULE B 2012-13 INSTRUCTOR Professor Xiaozu Wang EMAIL xiaozu.wang@faculty.hult.edu INSTRUCTOR AVAILABILITY Please contact by email CLASS TIMES & ROOM(S) MIB1: Jan 7, 9, 11, 15, 17, 21, 23, 25, 1:30-4:50, Feb. 1, 9:00-12:20, Feb. 7, 1:30-4:50 COURSE AIMS AND DESCRIPTION OF CONTENT This is an introductory course of finance for MIB students. The course aims to provide students with a conceptual framework and a set of technical tools for making corporate investment decisions. The focus will be maximizing the value of the firm and capital budgeting. Some ethical issues will be highlighted throughout the course. INTENDED LEARNING OUTCOMES Key (Assessed) Learning Outcomes: On completion of this course, students should understand and be able to do the following: 1. Estimate the cost of capital for corporate investment decisions; 2. Make corporate investment decisions using discounted cash flow method; 3. Manage working capital and corporate long-term growth. Supplemental Learning Outcomes: While not assessed, it is anticipated that students will develop the following: 4. Understand the importance of corporate governance for achieving long-term corporate financial objectives and valuation; 5. Understand some unique features of Chinese capital markets. TEACHING AND LEARNING The course will be a mixture of lectures, case discussions and individual and group practices. Students are expected to do the following. 1. 2...
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...Discussion Questions for Gillette Case (Final Project) Adv. Topics in Int. Biz 1. What were the possible synergies and forces propelling the merger between P&G and Gillette – as well as the history of other takeover attempts for Gillette? 2. In light of Gillette’s large increase in value during James Kilt’s tenure, was his compensation reasonable? Was his pay package in the best interest of shareholders? 3. Evaluate the P&G offer. Make a list of the positive and negative aspects of receiving shares or cash from both the perspective of P&G and Gillette shareholders. 4. Compare the valuation analyses in Case Exhibits 6 and 7. Why are they different? Support and defend the validity of using each valuation method. 5. Should investment bankers and companies spend their time appeasing politicians worried about the effects of possible merger? Are politicians representing the interests of the American public when they question the merits of a deal? Also evaluate the role played by federal and international regulators. Is there any better solution to the complicated regulatory process? 6. Evaluate the role played by Warren Buffet in the merger. Should the support of one investor be a deciding factor in the completion of an M&A transaction? * You are required to answer these discussion questions. The due date for this case analysis is by Dec. 16 by 5 PM (in class). The length of the report is expected to be 8-10 pages (excluding graphs...
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...1. Recently, the union government has given in-principle approval for the creation of two new tiger reserves at ____? [A]Ratapani and Sunabeda [B]Rajaji and Bor [C]Kudremukh and Bor [D]Ratapani and Rajaji 2. Currently (July 2014), which country holds the chair of the Group of Twenty (G-20) forum? [A]Russia [B]Australia [C]Brazil [D]Canada 3. The Kameng hydropower project is a 600 MW hydropower project in ____? [A]Andhra Pradesh [B]Arunachal Pradesh [C]Sikkim [D]Haryana 4. The sobriquet “Oracle of Omaha” is refers to which of the following business tycoons? [A]Carlos Slim [B]Warren Buffet [C]Bill Gates [D]Lakshmi Mittal 5. Nelson Mandela International Day is celebrated on ____? [A]July 14 [B]July 17 [C]July 18 [D]July 19 6. The Union government has announced the setting up of “Jal Marg Vikas” project on river Ganga to link which of the following places? [A]Allahabad and Haldia [B]Allahabad and Kanpur [C]Kanpur and Patna [D]Varanasi and Haldia 7. As per the latest report, which among the following countries has the world’s highest deforestation rate? [A]Brazil [B]Indonesia [C]Kenya [D]South Africa 8. Recently, India and which one of the following countries has signed an agreement on cooperation in the field of environment? [A]Brazil [B] China [C] Russia [D]Japan 9. The controversial “Mankading Law” is associated with which one of the following sports? [A]Tennis [B]Cricket [C]Football [D]Hockey 10. Recently, NASA has launched Ship-Aircraft Bio-Optical...
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...and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.” Berkshire Hathaway Berkshire Hathaway (Berkshire) is a holding company that engages in a number of diverse business activities through its subsidiaries. The group's business activities primarily comprise insurance and reinsurance operations. Additionally, the group is also engaged in non insurance businesses including building products, finance and financial products, flight services, retail, and apparel production. A strong capital position together with strong credit ratings enhances its bargaining power in the debt markets and gives it a competitive advantage. However, Europe's Solvency II project may put pressure on its profitability in Western Europe. Berkshire Hathaway | Parent Company | Berkshire Hathaway Inc. | Category | Property and Causality Insurance | Sector | Financial Institutions | Tagline/ Slogan | So easy a caveman could do it; Fifteen minutes could save you fifteen percent or more on car insurance | USP | A diversified company with major interest in GEICO, life insurance, annuity sales and sales of jewelry | STP | Segment | Enterprise and Individuals who are seeking financial help and...
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...Living on another Planet The professional organization founded by the above listed members has been deemed the Stalwart Pioneer's Association of Celestial Exploration (S.P.A.C.E. for short). SPACE, founded March 18, 2033 is on a mission to establish a human colony on the planet of Mars. With its headquarters located in the heart of Houston Texas, alongside the NASA space command center, SPACE is currently laying its plans to have the colony established in next 10 years. The program is being funded with federal assistance along with backers from billionaire investors Warren Buffet and Bill Gates, among others. Along with federal funding and heavy investor funding, SPACE is also requiring a steep membership fee of $10 million to be one of the first 50 colonists to live on the planet once the establishment is finished and deemed safe. Our group chose to do this project because we thought it would be fun to create an organization with aspirations of settling a colony on the red planet. SPACE has its sights set high. We have invited investors from all over the world to take part in this multicultural enterprise. Mars is the location of the colony, although the exact site for the colony has yet to be determined. “That site will depend on many factors, including terrain, soil and surface properties; areas of science priority; and access to and quality of local resources” (Loff, 2012). The site must also be chosen with thought to using the natural landscape to help shelter the establishment...
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...“There are worse places in the world to be in December than Trinidad,” thought Ed Dowling, as he spotted the first white beaches from his seat of the Miami-Trinidad flight. “Look, Steve, we are flying close by our plant this time,” he said to Steve Elmquist, pointing at a fairly significant landmark on the coastline below them (see Exhibit 1). Ed Dowling was executive vice president for operations at Cleveland Cliffs Inc., and Steve Elmquist was the general manager of Cliffs and Associates Ltd. (CAL), jointly owned, following a recent joint venture, by Cleveland Cliffs and the German process technology company Lurgi Metallurgie GmbH. Neither of the two had spoken much since they started their journey some eight hours ago in Cleveland, Ohio, where they had presented to the board members of Cleveland Cliffs, the status of the plant that now lay just below them. The purpose of the plant was to produce Direct Reduced Iron (DRI), a product of great importance to steel mills known as “mini-mills”. While not directly visible to the untrained observer, the plant represented a masterpiece of process engineering and technology development. It was the first commercial implementation of the Circored technology, a revolutionary approach to iron ore reduction developed by Lurgi over the previous decade. While CAL could undoubtedly pride itself on creating a scientific breakthrough that was being discussed in the steel industry around the world, the meeting in Cleveland, from which they were...
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