Anticipated effect of changing the capital structure on CPKs stock price (p.6-7) Our recommendation (p.7) In order to explore whether or not California Pizza Kitchen should change their capital structure‚ we must first look at the brief history of the firm to get a better idea of the corporate culture and the firms appetite for risk. California Pizza Kitchen started in 1985 and they have been rather successful given that 95 of all restaurants fail in the first two years. They did not fail and even
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California Pizza Kitchen Summary California Pizza Kitchen is an upscale pizza parlor based out of California. It was founded in 1985 by defense attorneys Larry Flax and Rick Rosenfield in Beverly Hills‚ California. The company has 213 stores with approximately 41% of the stores located in California‚ 6 in foreign counties and the rest scattered throughout 27 other states in the U.S. It derives its revenues from three different sources: sales at company owned restaurants‚ royalties from franchised
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Executive Summary California Pizza Kitchen (CPK) was founded in 1985 by Larry Flax and Rick Rosenfield with a vision of offering customers designer pizza at reasonable prices. CPK’s target market is geared towards affluent customers making $75‚000 annually‚ and over the span of 2 decades the business was able to grow from a single location into 213 locations across 28 states and 6 foreign countries. CPK generates revenue from 3 main sources: company restaurants‚ franchises‚ and royalties. CPK stands
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California Pizza Kitchen California Pizza Kitchen was first created in 1985 in Beverly Hills‚ California. By 2007 there were 213 locations throughout 28 states and 6 countries. Although 41% of the stores were based in California‚ keeping with the restaurants theme‚ the dining model flourished throughout the United States. For the second quarter of 2007‚ although they were faced with industry challenges such as raised commodity‚ labor and energy costs‚ they were still expected to break quarterly
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1. Discuss whether or not CPAs who provide accounting‚ taxation‚ and related services to small businesses have a responsibility to serve as the “moral conscience” of their clients. Yes‚ CPAs have the responsibility to serve as the “moral conscience” of their clients. This is especially important during the times when clients may try to “test the waters” so to speak‚ when advising the CPA to make questionable changes or alterations to clients’ financial documents. The AICPA Principles of Professional
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1. How could a grocery store use inventory to increase the responsiveness of the company’s supply chain? The logistical driver of inventory encompasses all raw materials‚ work in process‚ and finished goods within a supply chain. A grocery store can be more responsive if it offers a broader variety. A grocery store should use products that can last for a significant amount of time and does not hold a high demand in its current time. 2. How could an auto manufacturer use transportation to
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Wittenburg University Case Study Case Study 2 – Mastering Teacher Leadership Business Research Methods 1 This case presents a situation that is quite common in the education field and addresses the responses by institutions to new legislation imposed upon them. As is often the case‚ the legislators do not address the impacts to organizations‚ leaving the actual implementation to the end user (i.e.‚ public and private schools). In this particular case‚ Wittenburg University (WU) is faced with the
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Tyrells Pizza Delivering Store It has been two years and the business has been running smoothly and is successful. In order to buy two more vehicles you would need to search and find ways of financing. A way to purchase the two cars is to going into a Smart showroom and asking about their finance deals. There are different options when it comes down to financing a vehicle. One type of financing is Hire Purchase. This is where you pay a deposit for the vehicles and then pay a monthly fee with
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Case 4.1 Creve Couer Pizza 1.) In regard to CPA’s having “moral conscience” to those they serve I would say yes however when or if they are asked to do an illegal act that is the defining point. Any illegal act contrary to what is required by GAAP‚ FASAB‚ or IRS would then implicate the CPA themselves if they continue support or represent that client. The CPA should never disclose any of the clients personal information
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Questions 1. Do CPAs who provide accounting‚ taxation‚ and related services to small businesses have a responsibility to serve as the “moral conscience” of those clients? Explain. Yes‚ CPAs who provide these types of services to small businesses should have the responsibility to serve as the “moral conscience” at times when they discover something is not proper or if the client wants to do something improper the CPA should consult with them and explain that it is fraudulent. The whole purpose
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