1. EXECUTIVE SUMMARY Stock Pick: Michael Kors (MK) is a global luxury lifestyle brand of consumer products‚ which range from American luxury sportswear to accessories‚ footwear and apparel. The company operates in three business segments – retail‚ wholesale and licensing. MK is traded on the New York Stock Exchange. Although MK was established 30 years ago as a luxury brand‚ its initial public offering was only on December 2011. (MK Annual Report 2013) 2. KEY HIGHLIGHTS Rapid Revenue Growth:
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decision making process. |group consensus. | | |liability for the firm’s debts and |Profits are only taxed once. |The owner’s entire wealth is | | |other legal obligations. Income flows | |exposed to risk. | | |through to the proprietor (owner) who | |The business may cease to exist | | |pays taxes on it
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accounting have examined corporate capital budgeting practices. Many of these articles survey corporate managers and report the frequency with which various evaluation methods‚ such as payback‚ internal rate of return (IRR)‚ net present value (NPV)‚ discounted payback‚ profitability index (PI)‚ or average return on book value are used. The best known field studies about the practices of corporate finance are Gitman and Forrester’s (1977) study of Capital Budgeting Techniques Used by Major U.S. Firms
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Marketing Strategy for Investment Bankers I. Overview This paper sets out to explain how the concepts underlying marketing strategy‚ which is may be seen as applicable only to industries that provide tangible goods‚ such as iPads or pharmaceutical drugs‚ are nevertheless relevant to a service-based industry like investment banking. First‚ I will define marketing strategy and briefly describe its various elements. Next‚ I will define investment banking and give a brief description of the various
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established for the firm * Current shareholders can diversify personal portfolios | * SEC requires public disclosure of financial information (transparency) * IPO expenses | * Liquidity of stock increases | * Owner restricted to immediate cash-out | * Easier to raise capital in the future | * Sharing of future earnings with outsiders | | * Legal liability | Exhibit A in the appendix outlines some additional key advantages and disadvantages of going public through the IPO process
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amount. The carrying amount of the asset shall be reduced to its recoverable amount. That reduction is an impairment loss.” (IAS 36-59). In order to see if this IFRS is present we must first determine the recoverable amount‚ which is the higher of a cash-generating unit’s fair value less costs to sell and its value in use (IAS 36-18). Therefore recoverable amount would take the highest of the $900‚000 value in use and the $800‚000 fair market value less costs to sell. Then IFRS can determine if there
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BF322: Advanced Corporate Finance Case Study – Arundel Partners: The Sequel Project Group Members: Chen Yanheng Loon Shu Juan Melissa Ong Joseline Tan Hui Kiow Fundamental Analysis Arundel Partners is an investment group‚ set up to purchase sequel rights associated with films produced by one or more major U.S. major studios. By owning such rights‚ Arundel will be able to wait and see if the movie was successful‚ before deciding whether to exercise its right and produce a second
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SOLUTION TO ANDREW–CARTER‚ INC.‚ CASE This case presents some of the basic concepts of aggregate planning by the transportation method. The case involves solving a rather complex set of transportation problems. Four different configurations of operating plants have to be tested. The solutions‚ although requiring relatively few iterations to optimality‚ involve degeneracy if solved manually. The costs are: [pic] The lowest weekly total cost‚ operating plants 1 and 3 with 2 closed‚ is
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EM and Presentation Guidance Questions BW/IP 1. Was Borg-Warner’s Industrial Products Group a good candidate for a leveraged buyout in 1987? Evaluate the price paid and the structure of the deal that closed in May 1987. Are you optimistic about BW/IP’s prospects? 2. Do you favor the proposed acquisition of UCP? What are the primary sources of value in such a transaction? Is the proposed price reasonable? 3. How do the various features of the BW/IP buyout affect the company’s decisions about long-horizon
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company and markets its products under the brand name XX in the XX region of India. Business valuation summary of XYZ Multiple used EV/tonne method Equity value Rs mn Value per share (Rs) Rs 5‚809 per tonne EV/EBITDA method 4.5x Discounted Cash Flow method NA Book value (FY10) NA Equity value of Rs 100 based on EV/tonne metric The XX industry is inherently cyclical in nature and the most preferred valuation method for this industry is EV/tonne. As XYZ is a regional XX player
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