Case Study 3 “Diageo, Plc.” Introduction บริษัท Diageo ถูกก่อตั้งขึ้นในปี 1997 จากการควบรวมกิจการระหว่างบริษัท Grand Metropolitan plc. กับบริษัท Guinness จนกลายเป็นบริษัทอาหารและเครื่องดื่มที่ใหญ่เป็นอันดับ 7 ของโลก หลังจากการควบรวมกันเป็นบริษัท Diageo ต้องการจะเน้นไปที่เครื่องดื่มแอลกอฮอล์เพียงอย่างเดียว จึงตัดสินใจที่จะขายธุรกิจอาหารไป ได้แก่ Pillsbury โดยขายให้กับ General Mills และต้องการจะออกจากธุรกิจ fast food โดยการออกขายหุ้น IPO ของ Burger King นอกจากนี้ บริษัท Diageo ยังเข้าซื้อกิจการประเภทแอลกอฮอล์
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money in return (Entrepreneur.com, 2013). Depending on how the equity capital is raised it is possible to bow out anywhere from 25-75% of the business. An example of equity financing is venture capital which is the most common financing used to finance high risk and high returned businesses. Examples of venture capital are individual venture capitalists which are investors that prefer to invest in industries that are similar to the investors industry. The other type is private venture capitalists
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Flash Memory The forecast income statement (Exhibit 1) shows the profit projections for Flash Memory assuming they do not invest in the new product line. In summary, they maintain their 2009 Operating Margin of 5.5%. Net Income increases from $2,509 in 2009 to $4,096 by 2012 (a 17.8% CAGR over the three year period). All assumptions were provided in the case, but we did assume a reduction in the interest rate back to the 7.25% for the current loan in 2012, when the Notes Payable to Accounts
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acquire capital easily Correct! Unlimited liability for stockholders is not a characteristic of a corporation. Stockholders may normally lose only up to the cost of their investment. 5. Which of the following is a disadvantage of the corporate business form? A. No income taxes B. Government regulation C. Continuous life D. Easy acquisition of capital Correct! Because a corporation is a separate legal entity and because of the government's desire to protect stockholders
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625 1.1 Sources of Financing There are basically two types of financing; debt and equity financing. Equity financing means trading a share of ownership ofbusiness for a financial investment in the organization or company. Investment in the equity results in sharing of company’s profit and loss. Equity financing represents permanent investment in an organization and cannot be paid back at later stage. Equity financing is done by the investment throughpersonal savings, life insurance policies
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disadvantages of each option. I will summarize the advice that I will give the client on selecting an investment banker to assist the business in raising capital. I will discuss the historical relationships between risk and return for common stock versus corporate bonds. I will explain the manner in which diversification helps in risk reduction in portfolio. I will support my response with actual data and concept learn from class. As financial advisor to a business I will give my client advice on raising
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A set of financial statements for a company includes three related accounting reports. These reports are called; Statement of Financial Position, Income Statement, and Statement of Cash Flows. A statement of financial position, also known as a balance sheet, displays the financial position of a company at any given date/time. It consists of three key categories: assets, equity, and liabilities. Statement of financial position aids the users of these statements in evaluating the financial reliability
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1. (TCO D) Which of the following statements is most correct? (a) If new debt is used to refund old debt, the correct discount rate to use in the refunding analysis is the before-tax cost of new debt. (b)The key benefits associated with refunding debt are the reduction in the firm's debt ratio and the creation of more reserve borrowing capacity. (c)The mechanics of finding the NPV of a refunding decision are fairly straightforward. However, the decision of when to refund is not always clear
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Case #1: Butler Lumber Company Questions 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would
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When I was enrolled in the University of Nottingham Ningbo, I did not know I would foster such a strong interest in finance. From financial statements to financial instruments, great delight was evidenced in my study. Reviewing the past three years, my understanding towards classic financial theories was raised from vivid case studies and seminar discussions. Thanks to the advanced British concept of education, I was trained to think critically and allowed much time to be spent on the topics I am
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