evaluation of Amoco‚ our opening exchange ratio is 0.46. For Amoco sides‚ their opening exchange ratio is 1. The big difference between our opening prices indicates this negotiating process should be tough. First‚ we checked the discount rate. For us‚ BP company‚ we use 8.83%‚ however‚ Amoco they use a higher one around 9%. The main difference to calculate the discount rate is that we use the 30-year Treasury rate as risk free rate compared to Amoco used 20-year Treasury rate. Moreover‚ we use the debt
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GROUP PROJECT- CASE STUDY | A report submitted in partial fulfillment of the course | | MODERN INVESTMENT & PORTFOLIO MANAGEMENT | INSTRUCTORS: PROF. S.K. BARUA PROF. J.R. VARMAACADEMIC ASSOCIATE: MS. VAISHALI SATTAREPORT PREPARED BYGROUP 12MEENAKSHI DEOGAM M. SHYAMNIMISHA SAXENARAGHAV YADAVROHAN ANANDDATE OF SUBMISSION: 24TH AUGUST‚ 2010 | | Effect of BP oil spill and subsequent market reaction on the assets of pension funds and
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Board of Directors Presentation Global Management Darleen Busot MGT/230 April 13‚ 2014 Patricia Ford Agenda Organizational Direction Goals and Objectives Strategic Planning Tactical Planning Operational Planning Contingency Plan Ethics and Legal Responsibilities Organizational Direction Safety First‚ striving to be a responsible corporation among the industry is our top priority. Create safety programs that will enable our employees during emergencies. Management will ensure
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cooperating and negotiating with BP on the merger issue. Based on Amoco’s stand-alone valuation‚ it was reasonable to estimate $47 million enterprise value and $41.5 million equity value‚ with a walking-away exchange ratio 0.54. Then adding synergy‚ it reached an opening exchange ratio 0.72. Through further negotiation with BP‚ both parties reached a conclusion on certain level synergy distribution and agreed to close the deal at an exchange ratio of 0.65. The merger of Amoco and BP had strategic significance
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The Transformation of BP Chapter 5-4 | Eric | Summer | Helen | Lidya | Mandy | Content • Introducing BP • Transforming BP • BP Superior performance through Knowledge Sharing • BP Building Cooperate Reputation Through facing the Public Responsibility • Conclusion and Future Consideration Introducing BP BP at a Glance BP is of one of the world’s largest energy companies‚ providing its customers with fuel for transportation
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Increasing Profit Margins Proposal for Artemis Sportswear Profit Margin is a ratio that is calculated by dividing net profits of a company by its sales. This ratio measures how much of every dollar generated by sales is retained in company’s earnings. Generally speaking‚ a higher profit margin indicates that a company is more profitable and has better control of its operational expenses. Gross profit margin can also be used to set and monitor sales goals for your company. Because the costs of
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Berge‚ Andrea MGMT 485W Spring 2013 Case Study: TNK-BP (Russia) INTRODUCTION “This case portrays the highly uncertain scenario facing BP in Russia at the end of 2007. In the midst of unraveling relations with its cooperative partner and undesirable host government practices‚ ideal strategic conditions are implausible. In order to maximize outcomes under such imperfect circumstances‚ BP ’s senior management needs to fully assess the situational risks‚ understand the dynamics and motivations
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Case Study Coca-Cola and CEO Douglas Ivester And BP and CEO Tony Hayward 1. If Douglas Ivester was so successful‚ for years‚ on the executive staff‚ why did he fail when he was given the CEO/president position? Give an overall impression‚ broad stroke explanation of why he failed. Ivester was a hardworking‚ diligent CEO‚ but he lost sight of the people side of Coca-Cola. In any business people are a very important aspect that needs to be nurtured because without them the business is
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number of complaints from students who attended or had attended for- profit schools. This has led to federal agencies taking notice of certain problems in the for-profit educational services (Staples‚ 2014). For-profit schools are drawing intense scrutiny for recruiting aggressively‚ having high prices‚ low graduation rates‚ and having its student borrow heavily while having poor job prospects (Perez-Pena‚ 2014). Several for-profit educational services are under investigation including Corinthian
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709 Sunshine Center: An Instructional Case Evaluating Internal Controls in a Small Organization Sandra K. Fleak‚ Keith E. Harrison‚ and Laurie A. Turner ABSTRACT: Management and auditors face increased responsibilities to evaluate internal control and assess the risk of fraud. This case provides the opportunity to evaluate internal controls and the possibility of fraud in a very small not-for-profit child care center‚ a setting that is easy to understand. The first goal of the case is to identify
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