Week Two Questions Working Capital Management and Short-Term Finance Butler Lumber Assume you are a credit analyst working in the credit department of the Northrup National Bank and George Dodge asked you to analyze whether the bank should extend the requested $465,000 loan to Butler Lumber. Using the 5Cs of credit analysis format, prepare a report for Mr. Dodge. Here is some guidance: CAPACITY/CASH FLOW: 1. How has Mr. Butler met the financing needs of the company during the period 1988
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Repsol’s Acquisition of YPF Individual assignment 1. How significant are the synergies and the restructuring effects? Please estimate their value. Synergies Cost savings after tax: * Cost savings would rise from $80 million in 1999 to estimated $300-$350 million by end of 2000, and might even reach $500 million by 2002. Capital expenditure reduction: * Combination of the two entities would reduce the capital expenditure from $15.6 billion to $13.6 billion. Cutting capital expenditure
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organization’s strategic plan. It sets out how the organization plans to finance its overall operations to meet its objectives now and in the future. Hutchison, like other large firms in Hong Kong, relied heavily on internally generated funds to fuel growth. Having reserves of 67,994m (more than twiceof operating expenses in 1996), it is stable enough to continue without external funding, indicating a conservative financing strategy. Debt ratios for 1995 & 1996 are 46% and 42% respectively, showing HWL’s relatively
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BOULTON & PAUL LIMITED- INVESTMENT REPORT By (Student’s Name) Course Instructor Institution City, State Date 1. Introduction Boulton & Paul has been an icon in the world of metallic and wood manufacturing all over the world from its inception in the 19th century. Having began as an ironmonger’s shop by William Moore in 1797 in Norwich, the firm has grown steadily to become one of the greatest steel manufacturers of all times with numerous products that have been exported throughout
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Structuring Corporate Financial Policy: Diagnosis of Problems and Evaluation of Strategies This note is talking about finding a way to think about corporate financial policies. They depend in the first place on creativity and careful judgment. There are three good elements to achieve this goal and they are mentioned in the paper, they are: description, diagnosis and prescription. The first element is to define the financial policies of an organization. The second element is to design or create
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Analysis, Analysis of Equity Investments: Valuation, and Managing Investment Portfolios: A Dynamic Process. Ackerman, Carl, Richard McEnally, and David Ravenscraft. 1999. “The Performance of Hedge Funds: Risk, Return, and Incentives.” Journal of Finance. Vol. 54, No. 3: 833–874. ACLI Survey. 2003. The American Council of Life Insurers. Agarwal, Vikas and Narayan Naik. 2000. “Performance Evaluation of Hedge Funds with OptionBased and Buy-and-Hold Strategies.” Working Paper, London Business School
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proposals? Why? Ashar Corporation: First of all, I am going to discuss the Ashar Business Credit Proposal. In this proposal, Ashar Industries Company, which is one of the largest steel companies worldwide, is asking for a $850 M credit in order to finance their acquisition of Zellmont SA, which would actually create the largest steel producer company of the world. This acquisition has not been recommended by the Zellmont board, and therefore it could be regarded as a hostile takeover at the moment
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creditworthiness of deficit units 5. They diversify their loans among numerous deficit units and therefore can absorb defaulted loans better than individual surplus units could (Commercial Banks, Savings Institutions, Credit Unions) (Finance Co, MF, Security Firms, Insurance Co, Pension Funds) - The various types of risk and ways to manage risk Systemic Risk- The spread of financial problems among financial institutions and across financial markets that could cause a collapse
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Introduction: BEXIMCO Group is the largest private sector industrial conglomerate in Bangladesh engaged in diverse business areas. BEXIMCO comprises of five publicly listed companies and sixteen private companies. The Group turnover in 2008 was BDT 18.5 billion. BEXIMCO employs 35,000 people and has 230,000 shareholders. BEXIMCO’s shares constitute 4.84% of the market capitalization of DSE. History of BEXIMCO: Since independence Bangladesh has come a long way, and the Beximco Group of Companies is
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optimize capital structure, and repurchase undervalued shares. To achieve these goals, Midland must calculate an appropriate cost of capital that will allow reasonable valuations of their strategies. Janet Mortensen, the senior vice president of project finance for Midland Energy Resources, has been asked to calculate the weighted average cost of capital (WACC) for the company as a whole, as well as each of its three divisions as part of the annual budgeting process. Cost of Capital, WACC, CAPM Cost
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