Predicting a Firm’s Financial Distress: The Merrill Lynch Co. Richard Hamilton Mike Rakes Brandon Sather Teresa Sexton Narrative: Merrill Lynch is financing the business through Cash provided by financing activities – the operating activities loss is offset by increases in long-term borrowings. 1. Evaluate the cash position at year-end Report Date 12/28/2007 12/29/2006 12/30/2005 Cash & cash equivalents 41‚346‚000 32‚109‚000 14‚586‚000 The cash position
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How did the corporate culture of Enron contribute to its Bankruptcy? Once a sound company listed in fortune 500‚ Enron‚ lead to downfall because of deceptive accounting system incorporated within the organization. Enron’s dubicious finance finally collapsed in Dec 2‚ 2001 as it filed Bankruptcy in New York Bankruptcy court. The corporate culture of Enron focused on financial performance neglecting the stakeholder’s value .The relentless emphasis on the importance of the shareholder’s value created
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EXECUTIVE SUMMARY In 2006‚ Merrill Lynch become the lead book runner for a $5 billion convertible bond issue for MoGen‚ Inc.‚ which was the single-largest convertible bond issuance in history. Merrill Lynch’s Equity Derivatives Group needed to convince MoGen’s management of the best coupon rate and conversion premium for MoGen and the potential investors in the issue. BACKGROUND MoGen‚ Inc was one of the leading company in the biotechnology industry. MoGen (Molecular Genetics) emerged with
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Zappos’ culture is one that we all dream about‚ one that promotes friendship‚ equality‚ and happiness. Bauer and Erdogan define culture as an organization’s personality‚ which refers to a system of shared assumptions‚ values‚ and beliefs that show employees what is appropriate and inappropriate behavior. Zappos’ culture was considered an outlier to say the least‚ one that was driven off of “inspiration rather than motivation” according to CEO Tony Hseih. It was the goal of the organization to empower
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164 4. The Security Risk Evaluation book published by Merrill Lynch relies on the __________ most recent monthly observations to calculate regression parameters. A 12 B 36 C 60 D 120 E none of the above Answer: C Difficulty: Easy Rationale: Most published betas and other regression parameters including those published by Merrill Lynch are based on five years of monthly return data. 5. The Security Risk Evaluation book published by Merrill Lynch uses the __________ as a proxy for the market portfolio
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There was a vast number of ethical issues raised in the movie “Enron-the Smartest Guys in the Room” but the four I am going to focus on are listed below. Art Anderson‚ Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. The bottom line was that each and every one of them acted out of greed for the almighty dollar. 1- Encouraging employees to invest and buy stock in Enron when they knew
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led to Edward Jones’ success when the company first started; however‚ it is also the catalyst for the issues of the firm that were present in 2006. Edward Jones’ three main issues were the cannibalization of its business by bigger firms such as Merrill Lynch‚ customers leaving Edward Jones to manage their own money via online platforms such as E-Trade (MITR‚ 2014)‚ and the lack of ability to manage high net worth funds that are typically present with institutional funds such as pensions. Edward
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with sufficient available data‚ the first metric I used to identify comparable firms was the proportion of revenue attributable to brokerage income. I sought firms with a percentage similar to Ameritrade’s at 65%. I determined that Bear Stearns‚ Merrill Lynch‚ A.G. Edwards‚ Paine Webber‚ and
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(Boswell & Cannon‚ 2009). According to Hart (1999) literature review is the use of ideas in the literature to justify the particular approach to the topic‚ the selection of methods‚ and demonstration which contributes to something new to the study. While Leary‚ (2004) explains literature review as one piece of research that builds on another or creates a firm foundation for advancing knowledge. So it can be deduced that a literature review is an evaluative report of studies found in the literature related
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In the SWOT analysis for Bank of America one I performed a SWOT analysis for the Bank of America. I assumed the role of a mutual fund manager work for First Investment Inc Investment Inc. With the information I gathered in part one of my paper I made the decision to invest in Bank of America. In part two of these papers I will further explain why I chose to invest in Bank of America. This paper will address the financial health of Bank of America by reviewing the banks income statement‚ balance
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