Case2: Leveraged Recapitalization Client: Sealed Air Corporation I.Executive Summary Founded in 1960‚ Sealed Air grew rapidly during its first twenty-five years because many products had strong patent protection. By the mid-1980s‚ the patent of air cellular had run out and competition was getting fiercer. The managers started to pay attention to manufacturing. Therefore‚ the Sealed Air launched World Class Manufacturing to promote manufacturing performance. After a year
Premium Corporate finance Money Free cash flow
Case 1 – Debt Policy at UST Inc. 1) UST is the dominant producer of moist smokeless tobacco‚ or moist snuff‚ controlling approximately 77% of the market. UST has been one of the most profitable companies in corporate America with low debt compared to other companies in the tobacco industry and the company has been recognized by Forbes in terms of profitability by achieving return of capital of 92.1%. Price elasticity of its products is also important while evaluating. Smokeless tobacco industry
Premium Tobacco Stock Debt
it’s uncertain that future research result will jeopardize the tobacco industry. E. There is a chance of a cultural shift against tobacco‚ and UST is unlikely to expand to international market. 2. Why is UST Inc. considering a leveraged recapitalization after such a long history of conservative debt policy? (Your answer should be more qualitative than quantitative!) A. UST wants to increase the
Premium Dividend yield Dividend Tobacco
dividend reduces stock price‚ thereby reducing MVE as well. OCF can also use debt for equity swap thereby increasing leverage very fast. A key feature of recapitalization is also that the target company may issue more stock to its management there by giving them more control after recapitalization. Analysis of the Issue Leveraged recapitalization is the easiest way to change the capital structure of the company if the company can ensure the interest payments of the debts. Although value flows from
Premium Stock Stock market Corporate finance
Economic Crisis Impact on Auto Industry’s Costs and Sales B.W. Strayer University Abstract The 2008 economic crisis negatively impacted the U.S. domestic automobile industry. GM‚ Chrysler and Ford reported annual operating costs and sales revenues that mimicked the movement of the overall economy from 2005-2010. Until 2009‚ all three companies displayed a downward trend in operating costs and sales revenues. These two aspects of automobile manufacturers are directly
Premium Economics Inflation Macroeconomics
March 11‚ 2014 Ladies and Gentlemen of the Board: In my experience‚ I have seen a steady decline in the use of debt financing. Upon closer inspection‚ I have noticed that your company uses no debt at all. As an experienced hedge fund manager‚ I am concerned that your management is missing valuable opportunities by excluding debt from your capital structure. My partner‚ Susan Chandler‚ and I have done extensive research on how undergoing a capital reconstruction process can benefit you in the
Premium Stock market Finance Stock
FIN 5204 MANAGING CORPORATE CAPITAL INVESTMENT AND CAPITAL STRUCTURE FALL 2007 DEBT POLICY AT UST INC. 1. WHAT ARE THE PRIMARY BUSINESS RISKS ASSOCIATED WITH UST INC.? WHAT ARE THE ATTRIBUTES OF UST INC.? EVALUATE FROM THE VIEWPOINT OF THE BONDHOLDER. Over the years‚ UST has been a dominant producer in the tobacco industry‚ specifically the moist tobacco industry. Even though the past strategy with UST has entailed raising the prices of its products on a regular basis‚ the company still shows
Premium Dividend yield Revenue Finance
Debt Policy at UST Inc. Name: Siqi Han Student ID: 104116968 Professor: Yunbi An 1. Frame the issue. Briefly describe that UST is planning to reverse a long-standing conservative financial policy. In the 1990s‚ UST is a major manufacturer of moist smokeless tobacco‚ controlling 77 percent of the market. Smokeless tobacco products both snuff (dry and wet) and chewing tobacco (loose leaf‚ plug and twist / volume) categories
Premium Tobacco
Financial Control framework with the aim of strengthening the managerial accountability of the managers of public sector organizations and further develop independent internal audit. Actually the Ministry of Finance is completing the legal framework for FMC and IA in compliance with the EU requirements. Now‚ we have prepared and approved “The Law on Financial Management and Control”‚ Law “On Public Financial Inspection” and amendments in the existing Law “On Internal Audit in Public Sector”. Such laws
Premium Internal control Internal audit Management
Accuride Corporation Accuride International Adaptec ADC Adobe Systems Advanced Energy Industries Aetna Affiliated Computer Services AFS Technologies A.G. Edwards Agere Systems Agilent Technologies AIG Alamo Rent A Car Albany International Corp. Albertson’s Alcoa Alcoa Fujikura Allen Systems Group Alliance Semiconductor Allstate Alpha Thought Global Altria Group Amazon.com AMD Americ Disc American Dawn American Express American Greetings American Household American Management
Premium Oracle Corporation Manufacturing Industry