The Wallace Group; Laurence J. Stybel | | | Case 2 The Wallace Group‚ Inc. I. CASE ABSTRACT Harold Wallace‚ founder‚ serves as Chairman and President of the Wallace Group. He owns 45 percent of the outstanding stock. The company consists of three operating groups?Electronics‚ Plastics‚ and Chemicals‚ which generate sales of $70 million. Mr. Wallace continues direct operational control over the Electronics Group. Several years ago‚ Wallace and the Board embarked on a strategy
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its customers. 2. What would you recommend with respect to changing current operations?
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PCC must tackle in its ‘corned beef venture’; 1) where should PCC get its raw materials? (beef) and 2) Where does PCC source its debt? When it comes to the outsourcing of beef‚ PCC is considering Argentina‚ Australia‚ and/ or India. There are a number of concerns that must be addressed when it comes to importing raw materials from any one of these countries: 1) Political and Legal Considerations 2) Economic Performance and Management 3) Government Protectionist Policies The matter of sourcing
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of inventory. Account affected would be cost of goods sold and inventory. 3. Related party transaction that could be material to the transaction valuation and needs to be disclosed as a related party transaction. Accounts affected would be equipment. 4. Employees performing work during idle time to save costs is a non-routine transaction that may end in materials‚ labor and overhead being incorrectly used on accounts. Account affected would be inventory‚ cost of goods sold. 5. Outstanding receivable
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Read the case “Zychol Chemicals Corporation” given below and concisely answer the questions that follow at the end of the case study. As a general guideline‚ please try to limit your answers to a paragraph or two for each of the questions. Bob Richards‚ the production manager of Zychol Chemicals‚ in Houston‚ Texas‚ is preparing his quarterly report‚ which is to include a productivity analysis for his department. One of the inputs is production data prepared by Sharon Walford‚ his operations
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1. The “crisis of confidence” on the public accounting profession was not something that happened overnight and it is not the fault of one group of people or individuals. The accounting profession is partly to blame for this crisis‚ as the necessary rules‚ regulations and guidelines were not in place to hold companies and accounting firms responsible for their actions. The lack of regulations also allowed companies to partake in misleading transactions. These transactions were perfectly legal
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1. EXECUTIVE SUMMARY ..5 2. BACKGROUND OF THE CASE STUDY .6 3. ANALYSIS & IMPLICATIONS OF PORTER’S FIVE COMPETITIVE PRESSURES ..7-17 3.1. The Potential Entry of New Competitors 3.2. Competitive Pressures from Substitutes Products 3.3. Bargaining Power of Buyers 3.4. Bargaining Power of Suppliers 3.5. The Rivalry among Competing Sellers 4. ANALYSIS OF THE STRATEGIC GROUP MAPPING .18-20 5. KEY SUCCESS FACTORS OF THE WINE INDUSTRY 21-23 5.1. World famous
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David Durand‚ “The Cost of Capital‚ Corporation Finance‚ and the Theory of Investment: Comment”‚ American Economic Association‚ Vol. 49‚ No. 4 (Sep.‚ 1959)‚ pp. 639-655. Purpose of the paper The focus of this paper is to contradict the results of [Franco Modigliani; Merton H. Miller‚ “The Cost of Capital‚ Corporation Finance‚ and the Theory of Investment: Comment”‚ American Economic Review‚ June 1958‚ 48‚261-97] (hereafter MM) assumptions in related to cost of capital theory. Foundations This
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Capital Budgeting Assignment #2 Breana N. Rainge 23. Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plan that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12% to evaluate this project. Based on extensive research‚ it has prepared the following incremental free cash flow projections (in millions of dollars): | Year 0 | Year 1-9 | Year 10 | Revenues | | 100.0 | 100.0 | -Manufacturing expenses (other
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Chapter 5 Case -- Stem Corporation (A)* On December 31‚ 2006‚ before the yearly financial statements were prepared‚ the controller of the Stem Corporation reviewed certain transactions that affected accounts receivable and the allowance for doubtful accounts. The controller first examined the December 31‚ 2005‚ balance sheet (Exhibit 1). A subsequent review of the year’s transactions applicable to accounts receivable revealed the items listed below: 1. Sales on account during 2006 amounted to $9
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