FNCE 201 Corporate Finance Prof. Fu Fangjian Due: the class in 4th week (10-14 Sep) UST Inc. is considering a debt-for-equity recapitalization. In the deal‚ UST will issue $1 billion debt to buy back stocks. In class we argue that an important determinant of a firm’s debt policy is the tradeoff between the tax benefits of debt and the costs of financial distress and bankruptcy. Mature firms generating positive and stable operating income are more likely to take advantage of the debt tax shields
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1. If you were Mr. Cizik of Cooper Industries‚ would you try to acquire Nicholson File Company in May 1972? Why? If I were Mr. Cizik of Cooper Industries‚ my decision would be trying to acquire Nicholson File Company. Why? For 3 reasons: 1. Nicholson File Company is a company that is financially healthy. With increase in sales in the last 5 years. Today is a very liquid company. Their liabilities are very well controlled. Opportunity cost reduction due to the merger and thus increases margins
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Case 1: Will Cooper Will Cooper had spent a total of sixteen years as a successful oil company service station lessee-operator1 in Halifax. In the fall of 1988‚ he was approached by the owner of another service station who wanted to sell his operation to Cooper. Cooper rejected the offer‚ but the owner persisted. Cooper eventually agreed to consider the matter seriously‚ committing himself to a decision by early January 1989. This was a genuine opportunity for Cooper to become the owner of his
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COOPER CASE STUDY SUMMARY Nicholson Early in 1972 Nicholson dad to fend off a take over attempt by H.K. Porter Company Inc.‚ which controlled 30.5% of the company ’s stock. Porter made a cash tender offer to stockholders. However‚ Porter did not get enough stock to take over Nicholson. In trying to fight the takeover Nicholson made several merger overtures to other companies like VLN Corp. A few years back‚ it had rejected an offer from Cooper Industries. Cooper Industries & Nicholson Cooper
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Activity-Based Systems: Measuring the Costs of Resource Usage Robin Cooper and Robert S. Kaplan Robin Cooper is a Professor at the Claremont Graduate School and Robert S. Kaplan is a Professor at the Harvard Business School. This paper describes the conceptual basis for the design and use of newly emerging activity-based cost (ABC) systems. TVaditional cost systems use volume-driven allocation bases‚ such as direct labor dollars‚ machine hours‚ and sales dollars‚ to assign organizational expenses
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Sonnet 116 Let me not to the marriage of true minds Admit impediments. Love is not love Which alters when it alteration finds‚ Or bends with the remover to remove: O no! it is an ever-fixed mark That looks on tempests and is never shaken; It is the star to every wandering bark‚ Whose worth’s unknown‚ although his height be taken. Love’s not Time’s fool‚ though rosy lips and cheeks Within his bending sickle’s compass come: Love alters not with his brief hours and weeks‚ But bears it out
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Math 116 - Chapter 6 review Name___________________________________ Provide an appropriate response. 1) Two random variables are normally distributed with the same mean. One has a standard deviation of 10 while the other has a standard deviation of 15. How will the graphs of the two variables differ and how will they be alike? 2) Which is larger‚ the area under the standard normal curve between -1 and 1‚ or the area under the standard normal curve between 0 and 2? Explain your reasoning
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Question 1) Why was McNeil’s new product proposal rejected? Should it have been? Explain. McNeils’ proposal was rejected because it did not meet the target return 15%‚ which was decided by Hubbard. However‚ the EVA is unfavorable under 15% return. Hubbard also states that a company like Enager should have a 12% return on EBIT. With this being said‚ McNeil’s proposal demonstrates a return of 13% (ROA = EBIT/Assets = $390‚000/$3‚000‚000)‚ and a favorable EVA will be provided under this return figure
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Sonnet 116 Sonnet 116 is a poem written hundreds of years ago by William Shakespeare. It has bee used to presents a beautiful and optimistic view of real love. The features of a sonnet include 14 lines consisting of three quatrains and a rhyming couplet. Each quatrain have a rhyme pattern abab‚ cdcd‚ efef and gg.The quatrains all discuss the same idea of love being unchanging different circumstances. Shakespeare uses enjambment throughout his sommet. Sonnet 116 follows strict rules to keep the ideas
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Cooper Pharmaceuticals Inc BMKT 436: Sales and Sales Management Shaye Murphy 10/12/2013 Executive Summary Goals Cooper Pharmaceuticals Inc (CPI) is a major manufacturer for the dental and medical practices in the United States. Their ultimate goal is to remain the largest drug manufacturer and meet the sales quotas. CPI has strong ethical policies that they want to keep that have shaped the companies’ reputation. In hiring Bob Marsh‚ they were meeting their goals
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