Answer 1 The merger price at which the shareholders of Hybrid would be agreed is 68.75 per share. Total number of shares outstanding of Hybrid Golf 8 million. It means Birdie has to pay $550 million (68.75*8 million) to the shareholders of Hybrid. The market valuation of Hybrid shows that the value of the firm is equal to $1175.03 million. [pic] [pic] For the calculation of the firm value the WACC is used by considering current debt equity ration ( .50). WACC is calculated as follow
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MERGER BETWEEN AT&T AND McCAW By: Shilpa Keswani Lakhani Kashif Khan Satyameet Singh Ahuja Moin Akhtar Madhur Chaudhary With multiple valuation numbers being arrived at ranging from 5.4 billion dollars to 173 billion‚ we believe that the most appropriate value for the organization is 12 billion dollars. It has been arrived at‚ by maintaining the industry standard of pricing a potential
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Case 21 Southwest Airlines Contents Introduction 1 The Problem 1 The Analyses 2 The Alternatives 3 The Recommendations 4 Conclusions 4 References 4 Introduction Millions of people fly everyday. Southwest airlines provide low-fare travel among 58 cities in the United States. Although the airline industry suffered greatly in the aftermath of September 11‚ Southwest was able to continue to hold strong. Southwest airline continues to maintain steady sales as much of the industry
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I. Overview Over forty years ago‚ Southwest Airlines began as a small airline determined to keep things simple. They strived to provide their customers with the lowest fares‚ get them to their destinations on time and‚ most importantly‚ make sure their employees and customers were happy throughout the whole process. These practices have been upheld over the years as the airline continues to grow and prosper. Southwest Airlines has maintained their small company roots and southern hospitality
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On November 17th‚ 2004 Kmart and Sears publicly announced the impending merger of the two struggling companies to become Sears Holding Corporation. Kmart‚ for 11.5 billion dollars would be the buyer‚ however due to strong brand name recognition and history‚ Sears would be the face of the new conglomerate. At the heart of this merger was Edward Lampert‚ an extremely successful hedge fund manager who had made a name for himself by‚ purchasing companies in the red and making them profitable once again
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1.0 Summary of Southwest Airlines: Does “LUV” Last?* First time in history‚ Southwest Airlines had its “LUV” for customers questioned. The Federal Aviation Administration (FAA) levied a record $10.2 million fine on Southwest Airlines. They accuse them after missing mandatory safety checks of flying 117 planes on nearly 60‚000 flights between June 18‚ 2006‚ and March 14‚ 2007. Both the FAA and Southwest testified. FAA officials were blamed for being “too close” to the airline
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SouthWest Airlines: Balancing the Price-Value Equation. 1. Customers seek many benefits when they buy air travel tickets. Most of them look at all of the airline companies‚ and since every single airline tries to differentiate itself this can be hard. The common benefits customers seek are: - Low prices - comfortable place to sit - variety of amenities - attentive customer service SouthWest Airlines has been meeting the benefits customers want in some way. They are number 1 at low prices
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Southwest Airlines 2002: An Industry Under Siege Case Study “Discussion Format” MGMT 5113 Team 7 Dag Yemenu Sachin Gupta Michelle May Shaun Evans November 22nd 2003 Problem Overview Southwest Airlines has employed unique operational strategies‚ incorporating industry revolutionizing methodologies‚ while developing and sustaining a strong corporate culture that has allowed Southwest Airlines to be profitable for a phenomenal 30 straight years and capture the Airline Industry
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Rapid Rewards at Southwest Airlines Case Study Southwest Airlines prided themselves on their commitment to customer service and equality by offering a streamlined business model with an emphasis on simplicity and efficiency that has remained the same for the most part since the airlines’ inception in 1967. At the time of the case study‚ Southwest had been profitable for the past 28 years‚ an achievement many airlines are incapable of boasting due to the volatility of the airline industry
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June 18‚ 1971 when it started operation from the Love Field in Dallas Texas‚ Southwest Airlines stands out as a company willing to do things differently and wanting to be the best Airline in America‚ and last year it was rated America’s best airline‚ both in the quality of its flights and the being the most profitable. With such admirable past and what seemed like a future cast in success‚ one would not expect Southwest to be confronted with problems which could potentially derail it from its destination
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