| Group Assignment 1 | UST Case Study | 2/19/2013 | | | | Question 1: In order to calculate the impact of the leverage recapitalization on UST’s value‚ we used the WACC and APV methods to calculate its value before and after the recapitalization. WACC Method Using the WACC method‚ we first derived UST’s return on assets (rA). Since we are given the firm’s market capitalization‚ debt and cash‚ we calculated the current Enterprive Value of UST. We were then able to derive
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1. What are the primary business risks associated with UST Inc.? What are the attributes of UST Inc.? Evaluate from the viewpoint of credit analyst or bond holder. UST Inc. is a smokeless tobacco company with a long tradition and a recognizable brand name. A strong brand name can have lots of associations with high quality‚ revenues‚ soundness‚ growth‚ etc. But‚ this is one of the characteristics that can be like two edged sward. On one side‚ company with long tradition is expected to
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VISIT TO UST MUSEUM Date of Submission: December 14‚ 2011 As a Thomasian‚ it is just appropriate to visit the UST Museum where it showcases its rich collection of artifacts and important figures that defines our history. Here’s an historical background of the museum. The UST Museum is the oldest museum in the Philippines featuring a rich natural history collection‚ with a diorama of selected Philippine fauna. Other exhibits include the ethnography collection (cultural artifacts)‚ the oriental
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considered. Required debt rate and pro forma income statement Risk determinants Credit rating agencies take a wide range of factors – debt raising purpose‚ industry outlook‚ corporate profile and financial measures into account when performing corporate bond rating service. Debt is raised to repurchase shares rather than the normal case of capturing expansion opportunities to strengthen cash flow. This is not going to be regarded favorable to debt holders since the debt coverage ability in terms
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“UST Inc” case study The primary business risks associated with UST are as follows: First‚ legal challenges will cause litigation expenses‚ lawsuits expenses and settlement payments‚ which will decrease the operating income and cash flow and will increase the risks of debt default. From the industry level‚ the smokeless tobacco manufactures have faced less exposure to health related lawsuits than cigarette manufactures because the scientific evidence linking smokeless tobacco to cancer is less
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Medical Studies at the UST After graduating from Ateneo‚ he had to go to UST for higher studies. His mother opposed at first she knew what happened to GOMBURZA ‚ she said “Don’t send him to Manila again‚ he knows enough. If he gets to know more‚ the Spaniards will cut off his head”. He enrolled in UST taking up Philosophy and Letter for 2 reasons: His father liked it. He was still uncertain as to what career to pursue (he asked the advised of Fr. Pablo Ramon (Rector of Ateneo) but it was late
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A 17- STORY hospital tower with a helipad‚ 1000 doctors trained in multi-disciplinary healthcare and four new health institutes‚ the UST Hospital (USTH) seems not only to have recovered financially‚ but is eager to reach for the stars. But is its P3 billion expansion plan simply too starry-eyed for comfort? Is it too ambitious? Yes‚ according to Dr. Cenon Alfonso‚ president and chief executive officer of USTH. He said that the P3 billion financing for the expansion came from a fixed-term‚ syndicated
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Fiscal Policy‚ Debt and Budget deficits in Thailand The size of Thailand government debt To judge the size of Thailand government debt is to compare it to the debt of other countries and to the debt that Thailand has had during the own past. Table 1 shows the amount of government debt for 34 countries express as a percentage of each country’s GDP in year 2009 and year 2010.On the top of the list are the heavily indebted countries of Japan and Italy‚ which have accumulated a debt that exceed
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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 and less likely to verge on bankruptcy‚ and thus may consider using more debt in
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Debt and equity financing Debt and equity financing is the sources of funding can provide you with all the cash you need to start or grow your business. Debt financing Debt financing means borrowing money from an outside source with the promise of paying back the borrowed amount‚ plus the agreed-upon interest‚ at a later date. When a firm raises money for working capital or capital expenditures by selling bonds‚ bills‚ or notes to individual and/or institutional investors can be considered as debt
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