Case 20: Aurora Textile Company GROUP QUESTIONS Learning Objectives: 1. The basics of incremental-cash-flow analysis: identifying the cash flows relevant to a capital-investment decision 2. The construction of a side-by-side discounted-cash-flow analysis for a replacement decision 3. How to adapt the NPV decision rule to a troubled industry 4. The recognition that a reduced investment horizon is a significant consequence of financial distress 5. The importance of sensitivity analysis
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Liquidity Liquidity is vital to the survival of a business for there to be sufficient liquid resources available to meet maturing obligations. Liquidity refers to the ease with which assets can be converted to cash in the normal course of business. The current ratio compares the ‘liquid’ assets of a business with the current liabilities. The higher the ratio‚ the more liquid the business is considered to be. Some people seem to suggest there is an ‘ideal’ current ratio (usually 2:1) for all
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Short-term Liquidity Current ratio: Coke’s current ratio have growth constantly during the period (2014 - 2016). In 2016‚ the current ratio is 1.28 which is higher than the previous year ratio‚ 1.24. It means that Coke has more $1.28 current assets to cover every dollar of its short-term debt. In this year‚ the current asset in the total assets increases 1.84%. The factor that contributes to the increase of Coke’s current asset is the significant increase of the Cash and cash equivalent account which
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NIKE - Organisational Changes NIKE‚ Inc. (NYSE: NKE) announced today that Charlie Denson‚ NIKE Brand President since 2006 and a 34-year veteran of the brand‚ will retire in January 2014. In conjunction with Denson’s decision to retire‚ the Company also announced strategic changes in its executive management team as part of the Company’s long-term organizational strategy to align the business to continue to drive growth. The changes reflect the Company’s focus on the consumer by accelerating innovation
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GSBA521B Term III‚ Fall 2012 Professor Ku Case—Blaine Kitchenware‚ Inc.: Capital Structure Assignment: Your team’s task is to recommend to the Board of Blaine Kitchenware (BKI) whether the firm should undertake the leveraged recap. In doing so‚ please address the four questions below. Teams 1-6: your task is to recommend for a leveraged recap with quantitative and qualitative support Teams 7-13: your task is to recommend against a leveraged recap with quantitative and qualitative support
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Ford Motor Company Chapter 5 Case Study This case outlines 4 strategic options Ford is pursuing to increase its profitability. Describe each of the four options. For each option list 2 criteria you would use to evaluate the option. The first option is to close down older plants in an effort to realign production and sales. The criterion to evaluate that option would be to make sure that the costs of that plant shutdown are offset by the increased profitability that is expected. In order for
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Investigating Bottling Company Case Study T.P University Statistics Mat 300 Mr. Thevar December 01‚ 2013 Investigating Bottling Company Case Study The case study that is being investigated is for a bottling company producing less soda than what is advertised. Customers have complained that the sodas in the bottles contain less than the advertised sixteen ounces. The employees at the company have measured the amount of soda contained in each bottle. There are thirty bottles that have
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Even if the company reports high profit it is always looking for areas of growth. Last year the Luxottica Group’s Oakley brand and Intel published their collaboration for the launch of Radar Pace to travel-retail‚ an innovative and smart eyewear which coach in real time all the types of athletes with training programs‚ track performances and authentic feedbacks. All this with a hands-free interface powered by Intel Real Speech. Being currently leader in the global market‚ today‚ the company’s main
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Case Report Worksheet Case name including citation? Fisher V Bell [1961] 1 QB 394‚ [1960] 3 WLR 919‚ [1960] 3 All ER 731‚ HKSAR V Chow Kwong Chun (unrep.‚ HCMA No 836 of 2001) and HKSAR V Wan Hon Sik [2001] 3 HKLRD 283 were cited in the judgeme Is it a civil case or criminal case? It is a criminal case as Yu Wai Chuen was charged by HKSAR. Who are the parties? The plaintiff (prosecutor) was HKSAR and defendant was Yu Wai Chuen. This was an appeal by Yu Wai Chuen against HKSAR (respondent).
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The Vega Food Company March 16‚ 2014 The Vega Food Company case is about the Valle family. Franciso Valle Sr. was the entrepreneur-owner of Industrias La Vega‚ he was married to Isabel and had they had six kids. Five of their kids are girls Rosa‚ 47; Ana‚ 42; Maria‚ 38; Tere‚ 33; and Mari‚ 27 one son Franciso Jr.‚ 45. Franciso Sr. died in 1994 and left Franciso Jr.‚ as his successor. Before Franciso Sr. passed‚ Franciso Jr. was the President of the company. Franciso Jr
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