What is CSX’s motive for buying Conrail? • Synergy effect with lower cost The merged company could consolidate overlapping operations and reduce cost. CSX estimated that cost reduction would yield an additional $370 million in annual operating income by the year 2000‚ net of merger costs. • Expansion of market share by extending railroad network Railroad industry is a mature market. The only option to grow is through acquisitions. In 1995‚ Conrail owned 29.4% of the Eastern rail freight
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1. Why does CSX want to buy Conrail? How much should CSX be willing to pay? After passing the Stagger’s Rail Act of 1980‚ railroad companies had possibility to close the unprofitable lines‚ determine the price and make mergers with other companies. Right after these drastic alterations‚ key measure of profitability analysis‚ which is operating ratio‚ decreased significantly from 93.3% to 80.0 %. Overall‚ efficiency in this sector increased‚ and railroads again turned to be competitive against the
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Acquisition of Consolidated Rail Corporation (A) CASE 4 Group 3: Antonio Carlos Teles Caleia #1028 Federica Carcani #2258 Edoardo Covicchio #2259 Leandro José Pereira Domingues #1023 Francesca Romana Gambini #2260 Mergers‚ Acquisition and Restructuring (TB) Prof. Josè Neves de Almeida Q1. The rationale behind the intention of CSX to buy Conrail is mainly to anticipate a proposal from the other big player in the market Norfolk Southern. Both CSX and Norfolk Southern have basically the same routes
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CASE QUESTIONS Cash Flows and Value. Cost of Capital Case 1: Hop-In Food Stores‚ Inc. 1. Determine the correct price for this particular IPO. Use several methods to do this and compare them. 2. What extra information would you try to acquire in a real life situation? Case 2: Chem-Cal Corporation 1. How do you calculate the WACC for this firm? 2. What is the cost of capital of the debt‚ preferred stock‚ and common stock (assume the equity beta is 1.22)? 3. Calculate the WACC. How can a WACC be used
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acquisition? 3. What businesses should Newell be in? Should it acquire Sanford or Levelor? Acquisition of Consolidated Rail (A) (HBS 9-298-006) Study Questions 1. Why does CSX want to buy Conrail? How much should CSX be willing to pay per share? 2. Analyze the structure of CSX’s offer for Conrail a. Why did CSX make a two-tiered offer? What effect does this structure have on the transaction? b. What are the economic rationales for the various provisions of the merger agreement (no-talk
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VALUE AND RETURN ON MARKETING CASE SOLUTION AND ANALYSIS A Case Study Presented to Mr. Dexter C. Velez Management Department‚ School of Management and Accountancy Ateneo de Zamboanga University In Partial Fulfillment of the Requirements for Marketing 100 – Principles of Marketing First Semester‚ Academic Year 2014 – 2015 By John Reymund B. Ramirez BSAc 3-B Mktg 100 - B October 2014 Case Study: CONROY’S ACURA: CUSTOMER LIFETIME VALUE AND RETURN ON MARKETING I. CASE SUMMARY Terrence Conroy‚ owner
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[Cite as Pusey v. Bator‚ 94 Ohio St.3d 275‚ 2002-Ohio-795.] PUSEY‚ EXR.‚ APPELLANT‚ v. BATOR ET AL.; GREIF BROTHERS CORPORATION‚ APPELLEE. [Cite as Pusey v. Bator (2002)‚ 94 Ohio St.3d 275.] Torts — Wrongful death — Employer hires independent contractor to provide armed security guards to protect property — Inherently dangerous work exception — If someone is injured by weapon as a result of a guard’s negligence‚ employer is vicariously liable even though guard responsible is an employee of the
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Amtrak case study Ethical issues and concerns In the wreck of Amtrak’s sunset limited 1993‚ the decision makers would have been North American passenger corporation (Amtrak)‚ National transportation safety board (NTSB)‚ CSX‚ WGN‚ the U.S. coast guard‚ the tow boat captain‚ the pilot and Alabama emergency response network. I believe that these responsible parties could have avoided or reduced injury and deaths if all responded appropriately. affected by the lack of response and decisions made
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Facts: The Negro plaintiffs in these cases were denied admission schools attended by the white children under the laws requiring or permitting segregation according to race. All the court adhered to the “separate but equal” doctrine and held that the plaintiffs were not admitted to the white schools (except for the plaintiff in the Delaware case). In the instant cases‚ the plaintiffs contend that segregated public schools are not “equal” and they are deprived of the equal protection of the laws.
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Pepsi Cola Products Philippines‚ Inc. (petitioner) v. Honorable Secretary of Labor (respondents) 1. Facts: a. June 1990: The Pepsi-Cola Employees Organization-UOEF (Union) filed a petition for certification election with the Med-Arbiter seeking to be the exclusive bargaining agent of supervisors of Pepsi-Cola Philippines‚ Inc. (PEPSI). i. Med-Arbiter granted this stating that PCEU-UOEF was an affiliate of Union de Obreros Estivadores de Filipinas (or the Federation) with two (2) rank and file
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