factory store. This provided the customers with an ‘experience’‚ allowing them to see the doughnut factory and it’s specialized machines‚ and not just the usual taste. A turnaround was effected when the ailing enterprise was bought out in a leveraged buyout by a group of franchisers lead by Joseph McAleer. He brought back the unique doughnut recipe and the company’s traditional logo. Slowly the company improved and was eventually debt-free. In 1998‚ the company went public in a hugely successful
Premium Krispy Kreme Income statement Doughnut
“The Takeover Controversy: Analysis and Evidence.” Midland Corporate Finance Journal 4‚ no Jensen‚ M. C. and Jr. Clifford Smith (1985). “Stockholder‚ Manager and Creditor Interests: Applications of Agency Theory” Lowenstein‚ L. (1985). “Management Buyouts.” Columbia Law Review 85 (May): 730784. Mueller‚ D. (1980). The Determinants and Effects of Mergers. Cambridge‚ Oelgeschlager. Murphy‚ Kevin J. (1985). “Corporate Performance and Managerial Remuneration: An Empirical Analysis.” Journal of Accounting
Premium Corporate finance
ADVISING IN MERGERS‚ ACQUISITIONS‚ AND FINANCIAL RESTRUCTURING ADVISING Investment banks are active in mergers and acquisitions (M&A)‚ leveraged buyouts (LBOs)‚ restructuring and recapitalization of companies‚ and reorganization of bankrupt and troubled companies. They do so in one or more of the following ways: (1) identifying candidates for a merger or acquisition‚ M&A candidates; (2) advising the board of directors of acquiring companies or target companies regarding price and non-price terms
Premium Corporate finance Mergers and acquisitions Finance
CASE QUESTIONS Cash Flows and Value. Cost of Capital Case 1: Hop-In Food Stores‚ Inc. 1. Determine the correct price for this particular IPO. Use several methods to do this and compare them. 2. What extra information would you try to acquire in a real life situation? Case 2: Chem-Cal Corporation 1. How do you calculate the WACC for this firm? 2. What is the cost of capital of the debt‚ preferred stock‚ and common stock (assume the equity beta is 1.22)? 3. Calculate the WACC. How can a WACC be used
Premium Weighted average cost of capital Corporate finance Finance
2010‚ Burger King was acquired by 3G Capital Special Situations Fund II‚ L.P. (3G)‚ which is controlled by 3G Capital Partners‚ Ltd.‚ an investment firm based in New York (3G Capital). According to De La Merced (2010)‚ the deal was the largest leveraged buyout of a fast-food chain ever‚ according to the market researcher CapitalIQ‚ and the second for Burger King in the last eight years. On June 20‚ 2012‚ upon a merger with a subsidiary of Justice Holdings Limited (“Justice”)‚ Burger King changed its
Premium Burger King Fast food
Alina Rossi-Conaway Mr. Woodruff Philosophy and Composition HH December 7‚ 2012 Relation of Pain and Enjoyment to Character Rough Draft In the Callicles portion of Plato’s Gorgias‚ something was agreed upon by Socrates and Callicles during an investigative conversation that is just not true. Around 499a‚ the two men agree in passing that he who feels enjoyment is good‚ and he who feels pain is bad. These assertions are explained by saying that good men feel enjoyment because good things are
Premium Ethics Plato Aristotle
management is called a: a. tender offer. B. proxy contest. c. going-private transaction. d. leveraged buyout. e. consolidation. SECTION: 25.1 TOPIC: PROXY CONTEST TYPE: DEFINITIONS 5. A business deal in which all publicly owned stock in a firm is replaced with complete equity ownership by a private group is called a: a. tender offer. b. proxy contest. C. going-private transaction. d. leveraged buyout. e. consolidation. SECTION: 25.1 TOPIC: GOING-PRIVATE TRANSACTION TYPE: DEFINITIONS
Premium Mergers and acquisitions Corporate finance Stock
Banks are the organizations that arrangements in cash and its substitutes and give other money related administrations. The fundamental capacity of a bank is to go about as a mediator between cash surplus units (banks) and cash shortage units (borrowers). Bank likewise does the employment of a counselor or expert that assesses different cash shortfall units so that the loan specialists improve and safe returns. In spite of the fact that dependably the part of banks played in the economy is downplayed
Premium Bank Central bank Finance
has contributed to the formation of virtual corporations. Explain what “divestiture” is and how it may be accomplished. Understand what "going private" means and what factors may motivate management to take a company private. Explain what a leveraged buyout is and what risk it entails. Mergers and Other Forms of Corporate Restructuring © Pearson Education Limited 2004 Fundamentals of Financial Management‚ 12/e Created by: Gregory A. Kuhlemeyer‚ Ph.D. Carroll
Premium Corporate finance Fundamental analysis Mergers and acquisitions
Adjusted Present Value Adjusted present value is an investment appraisal technique similar to net present value method. However‚ instead of using weighted average cost of capital as the discount rate‚ ungeared cost of equity is used to discount the cash flows from a project and there is an adjustment for the tax shield provided by related debt capital. Formula Adjusted Present Value = PV of Cash Flows using Ungeared Cost of Equity + Present Value of Tax Shield Where PV stands for ’present value’
Premium Net present value Discounted cash flow