KENNECOTT COPPER CORPORATION CASE REPORT 1. Analyze the economic rationale of the Carborundum acquisition. Under what conditions an acquisition would be expected to add to shareholder value in general? Do any of these reasons apply to Carborundum acquisition? Prior to the consideration of Carborundum as an acquisition target‚ Kennecott‚ a copper company‚ pursued an acquisition of Peabody‚ a coal company‚ for $285 million in cash in 1968. There are two main rationales behind the acquisition of
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MRP=8.8%‚ Carborundum’s levered beta (prior to deal)=1.16 FCFeq=Net Income + Non Cash Deductions-Capital Expenditures-Change in Net Working Capital-Debt Repayment+ Debt Issuances + Miscellaneous Extras Answer: Value of Kennecott using FCFcap is: $53.8 Value of Kennecott using FCFeq is: $49.91 Steps using FCFcap: Step 1: FCF_cap=EBIT(1-t)+depreciation+ amortization -Capex-change of NWC =NI+Interest(1-t) - Change of Net PPE - Change of NWC Step 2: WACC calculation: WACC=%Equity * Re + %Debt*Rd*(1-t)
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3 col des MM march 2003 10/4/03 12:12 Page 20 Core advantage Tim Dobush and Troy Wilson* suggest a way for preserving and enhancing the value of exploration data E very year explorationists‚ industrywide‚ collect billions of dollars worth of data. Yet‚ when it comes time for geologists to extract value from their information‚ they often find that value has been lost through poor practices in data management. There is no reliable record of the data that has been collected or data is
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explore the cycle of copper through many chemical reactions. What we are going to do is take a piece of copper metal put it through a series of reactions that change it¡¦s state of matter and chemical formula‚ but in the end‚ we will return it to it¡¦s normal solid state. Determine the percentage yield (quantitative). Define what happen at level of electron for oxidation/reduction‚ double replacement‚ neutralization and decomposition. There are five reactions that the copper will go through. 1
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Key facts Copper pharmaceuticals‚ Inc were a major manufacturer for prescription drugs for medical and dental professions. Sales are done mainly with the detailers who were pharmacy school graduates and had couple years of experience as registered pharmacists in drugstores. Bob Marsh‚ with CPI for 12 years‚ married and had two children Marsh’s initial salary was $35‚000 and been raised to over $60‚000 throughout his time with CPI Marsh has 6 different field supervisor throughout the
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The Copper A. In the text “the Copper” Glenn Gavin tells about his experience and viewpoints 20 months after he joined the Metropolitan Police. In the text are different subjects discussed. Glenn Gavin talks about his upraise inside the family and at school‚ the role of rules‚ his choice of carrier‚ and attitude toward politics. When Gavin was a kid his parents gave him a “guiding kick up the backside every now and then” (p. 1 l. 2). For example when he “came in late” (p. 1 l.3) or if he “was
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Environmental effects of copper Copper can be released into the environment by both natural sources and human actions. Examples of natural sources are wind-blown dust‚ decaying vegetation‚ forest fires and sea spray. Other examples are mining‚ metal production‚ wood production and phosphate fertilizer production. Because copper is released both naturally and through human activity it is very widespread in the environment. Copper is often found near mines‚ industrial settings‚ landfills and waste
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In 1968‚ Kennecott Copper Corporation made a hasty decision when it purchased Peabody Coal Company. In the years preceding the acquisition‚ Kennecott had experienced wide swings in its profitability‚ which it was looking to offset by diversification. Investing in another company in a different industry was an intelligent decision; however‚ Peabody was the wrong company to do this with. Although Peabody had been profitable and stable over the past few years leading up to the acquisition‚ the internal
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------------------------------------------------- ABSTRACT ------------------------------------------------- The copper reaction experiment was demonstrated by adding the reagents like 16M HNO3‚ Distilled water‚ 6M NaOH‚ 6M H2SO4‚ Acetone‚ Zinc metal and Methanol into the beaker with the copper wire. The experiment was also demonstrated to observe how copper reacts while different reagents were being added. It was also demonstrated to practice the common laboratory techniques such as methods
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There are four major factors that often contribute to the formation of hydrothermal copper porphyry: 1) readily available mineralizing fluid solutions that dissolve and transport metals‚ 2) openings in rocks which allow permeable flow of hydrothermal fluids and the metals that they transport in solution‚ 3) available sites within the fractured rocks which allow for deposition of the minerals from solution‚ and 4) the requisite chemical reactions that contribute to that deposition (Bateman‚ 1967)
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