Mercury Athletic Footwear Case Assignment Questions: 1. Is Mercury a good target for AGI? Discuss strategic fit of brands‚ products‚ customers‚ and distribution. Identify specific sources of value. Discuss AGI’s strengths/weaknesses compared with other bidders. I think Mercury is a good target for AGI: The brands--the AGI brands and logos are associated with a lifestyle that was prosperous‚ active and fashion-conscious. The Mercury brands are athletic and casual footwear. The products--AGI focused
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A Case of Pharyngitis by David F. Dean‚ Department of Biology‚ Spring Hill College Case Presentation Jason Hornbuckle is not a happy little boy. For the past hours he has complained of pain when he swallows‚ has a headache‚ and has vomited twice. His mother decides to take the seven-year-old to his pediatrician. Upon examining Jason‚ the doctor finds that Jason’s pharynx‚ tonsils‚ and uvula are swollen and erythematous (red) and his tonsils are studded with white areas of exudate. He is
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Corporate Finance Nike‚ INC: Cost of capital 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? Definition of WACC (Weighted Average Cost of Capital): WACC is basically the average of the cost of finance (debt and equity). Since a company’s assets can be financed by debt or equity‚ WACC can show the averages of the costs involved in the sources of financing. These costs are then weighted
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INTRODUCTION * Wrigley has a one sided capital structure * Their interest rates has been at their lowest in 50 years * However‚ they have the leading market share in a stale low technology business * Blanka Dobrynin‚ the managing partner of Aurora Borealis LLC (a company who used a hedge fund to invest in companies who are in distress‚ merger arbitrage‚ change-of-control transactions‚ and recapitalization) wanted to investigate a potential investment of $3B in Wrigley * Wrigley
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Mary has no idea what Beta means and how it is related to the required rate of return of the stocks. Explain how you would help her understand these concepts. The beta measures the sensitivity of a stock’s price to market movements. Stocks with betas greater than 1‚ show a more intense version of the market behavior. Stocks with betas between 0 and 1 move in the same direction with the market. Since the market is the portfolio of all the stocks‚ the average stock has a beta of 1. Q3. How should
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Question 1: Is Congoleum a good LBO candidate? In other words‚ does this company have a lot of debt capacity? To judge if a company is a good LBO candidate the following are very important factors: low levels of debt in the target‚ stable cash flows‚ excess cash on-hand‚ assets that can be used as collateral to raise debt and no major capital requirements to keep the business running on an on-going basis. Congoleum is an ideal LBO candidate because: 1. Low level of debt – estimated long term debt
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Finance Case Study Dilemma of Asian Bags Asia Paper Bag has since 1990 operated as a manufacturer of plastic carrier bags supplying them on a contract-manufacturing basis to well-known supermarket chains‚ fast-food outlets‚ pharmacies and department stores. Lately‚ Asia Paper Bag exports customized plastic carrier bags to Marks n Spencer and Boots Pharmacy in the United Kingdom. During the Asian financial crisis‚ Asia Paper Bag had
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Feng Manyu BA462 Live case Key Questions What is the risk profile of your company? (How much overall risk is there in this firm? Where is this risk coming from [market‚ firm‚ industry‚ or currency]? How is the risk profile changing?) What is the performance profile of an investment in this company? What return would you have earned investing in this company’s stock? Would you have under or performed the market? How much of the performance can be attributed to management? How risky is this company’s
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attached Excel spreadsheet and the data is taken from the Airbus 3XX case study. Demand Dynamics Airbus was predicting that the market for very large aircraft (VLA) would exceed 1500 aircraft over the next 20 years and would generate sales in excess of $350 billion. According to Airbus‚ it needed to sell 250 aircraft to break even on an un-discounted cash flow basis‚ and could sell as many as 750 aircraft over the next 20 years. Boeing‚ however‚ was predicting that the VLA market would be less than
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In the Airbus case we are faced with a capital budgeting decision. It is the planning process used to determine whether a firm’s long term investments such as new machinery‚ replacement machinery‚ new plants‚ new products‚ and research development projects are worth pursuing. It is budget for major capital‚ or investment‚ expenditures. Capital budgeting decisions are crucial to a firm’s success for several reasons. First‚ capital expenditures typically require large outlays of funds. Second‚ firms
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