commitment within two weeks. The contemplated transaction entailed a highly-leveraged acquisition of the target. The tasks for the student are to value the target firm and projected synergies‚ assess the credit worthiness of the target (i.e.‚ its ability to bear the high debt)‚ and critically evaluate the general design of the transaction. This case was developed to support the following teaching objectives: Profile the highly leveraged acquisition and its financial structure. The particular perspective
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INTRODUCTION Financial Services basically mean all those kinds of services provided in financial terms where the essential commodity is money. These services include: leasing‚ hire purchase‚ consumer credit‚ investment banking‚ commercial banking‚ venture capital‚ insurance‚ credit rating‚ bill discounting‚ and mutual funds ‚ stock broking‚ housing finance‚ vehicle finance‚ mortgages and car loans‚ factoring among other things. Various entities that provide these services are
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There have been six merger waves in the historical mergers. Yong Rin (2011) contends that the first four merger waves were centered in the U.S. while the fifth and the sixth involved Europe and Asia. These six merger waves shared common features that they all occurred in cyclical patterns and ended with a stock market crash. What follows is the detail of each merger wave. First wave – 1897 to 1904 The first merger wave took place after the depression of 1883‚ peaked in 1899 and lasted until 1904
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Marriott International would have only modest debt after the restructuring. The bond indenture was felt not to preclude such a transfer of assets and debt. Known as event risk to bondholders‚ there were numerous cases of this in the 1980s with the leveraged buyout movement. Bondholder wealth was expropriated in favor of equityholders‚ and the Marriott restructuring was felt to be
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Are the Dis~inc~ians be~:ween Debt and ;Equity Disappearing? An Overview Richard W. Kopcke and Eric S. Rosengren* During the 1980s‚ the proportion of business assets financed by debt exceeded that of any other period since World War II. Although much of this leverage accommodated new investment‚ during the last half of the decade corporations also replaced more than one-sixth of their outstanding stock with debt securities. Because of this surge in leverage‚ many analysts and policymakers are
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The Global Financial Crisis in 2007–2008 is considered as the worst financial crisis since the Great Depression of the 1930s. It was originally caused by the subprime credit crisis (also known as sub-prime mortgage crisis)‚ which is the surge in default by the U.S. sub-prime credit industry‚ the credit crunch began in the summer of 2007 caused by the international financial market shock‚ panic and crises. Around the world stock markets have fallen‚ large financial institutions have collapsed or been
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Death is not only a physical process‚ but a social and spiritual paradigm infused by a culture’s specific ‘beliefs‚ emotions and activities which give it its distinctive character’ (Hertz 1907‚ p. 197). Facing another culture’s beliefs around death can be confronting‚ often creating ethnocentric reactions and cultural misconceptions. Comparing American and Berawan death practices highlights how these rites‚ and the spiritual beliefs underlying them‚ can appear horrifying when viewed only from the
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Financing Change PRIVATE EQUITY DEMYSTIFIED An explanatory guide John Gilligan and Mike Wright Financing Change An initiative from the ICAEW Corporate Finance Faculty This is the first report to be published under Financing Change‚ the thought leadership programme of the ICAEW Corporate Finance Faculty. The faculty is the world’s largest network of professionals involved in corporate finance and counts accountants‚ lawyers‚ bankers‚ other practitioners and people in business among its members
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Question 1 Briefly describe the background/profile of the company. COMPANY BACKGROUND [pic] [pic][pic] DELL INC. Michael Dell founded Dell based on a simple concept of selling computers directly to their customers. Figure below showed Michael Dell has the founder‚ CEO and Chairman of Dell Inc.:- [pic] Figure 1: The founder‚ CEO and Chairman of Dell Inc He holds the record of being the longest tenured chief executive officer of the company. His concept eliminates
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Three alternatives were available for funding the purchase: debt financing‚ lease financing‚ or reliance on federal sources. The case opens in April 1999‚ with Amtrak’s Chief Financial Officer (CFO) Arlene Friner instructing her staff to review a leveraged-lease proposal that has just been submitted by BNY Capital Funding LLC (BNYCF). The objectives of the case are to: Introduce students to financial leases as a financing alternative. Explore the lease-versus-buy decision and the conditions under
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