Suggested Questions for Warren Buffett Case 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically‚ what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? PacifiCorp had a very large amount of investors/stockholders as indicated in the footnote‚ which contributed to the large increase in Berkshire’s market value of equity
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Questions for Consideration When Preparing Cases Riley Supply 1. Use a spreadsheet program such as excel. Keep all numbers for a particular year in the same column. 2. Prepare two indirect statements of cash flows. One for 2004-2005 and one for 2005-2006. 3. Calculate common sized income statements for each year. 4. Calculate all financial ratios. Use “A Basic Set of Financial Ratios” from Desire2Learn as a guide. 5. Identify the major factors influencing Riley’s cash flow. Use the cash flow statements
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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
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Wen-hsin Hsu Questions of Cases Case 1: Accounting for the iPhone at Apple Presentation date: Oct 22 (Authors: Brochet‚ Francois;Palepu‚ Krishna G.;Barley‚ Lauren) 1. In your opinion‚ are GAAP or non-GAAP numbers most reflect the economic reality in Apple? 2. Discuss the impact on financial statements for GAAP and non-GAAP numbers. 3. Should APPLE lobby for their non-GAAP numbers to be sanctioned by FASB? 4. Does it matter if the revenue recognition rule for smartphone changes? Case 2: Bausch& Lomb
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countries” (Laudon‚ 2007‚ p. 121). Netflix launched in 1998 using a new business model and became Blockbusters biggest threat. The paradigm shift in the rental industry from having to travel to a store and rent a movie to being able to have a movie delivered to your mailbox changed the way people think about media entertainment. The next shift will be having the technology to download movies and shows directly to a television. Analysis Blockbuster and Netflix are using two different information
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the lost revenue. Also‚ with the Netflix lawsuit‚ they will lose not only money for lawyer’s fees and such‚ but also their patent rights to the business model. This costs more money and gives the public the image that Blockbuster steals other business’s ideas. Lastly‚ while the online service works for Netflix‚ it has not worked for Blockbuster. They are still losing money‚ more than predicted actually‚ and they have no where near the amount of subscribers that Netflix has. I think the only way Blockbuster
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Questions for Review Chapter 3 1.) What levels of meaning can be found in Genesis 1.1-2.4a? From Genesis 1.1-2.4a it can be discerned that God is the creator of all. He created the world and its inhabitants from a vast nothingness. The text reflects upon who God is and what His capabilities are through the act of creation. The verses allow that God is communicating with us. It is communicated what Gods will is for man and gives us a history of our beginnings. From the data provided in the
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Analysis Netflix has a wide range of customers‚ “23 million” roughly from teenagers all the way to senior citizens (Knee J.A). The primary customers are the primary users‚ but one Netflix account isn’t jut automatically for one person it could be a family who uses it‚ or even a household of college kids. Being an on-line DVD rental store‚ Netflix combines the growing Home Entertainment Market and the Internet. Unlike brick-and-mortar video rental business‚ Netflix incurs less overhead
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Written Case Analysis (15% of course grade) Case 22 – Herman Miller Inc. The Reinvention and Renewal of an Iconic Manufacturer of Office Furniture Herman Miller Inc. CEO Brian Walker has employed you as a strategic consultant to evaluate the company’s approaches to executing its strategy and to make strategy-supportive recommendations for improvement. Specifically‚ he has asked you to advise him on what policies and operating practices have worked particularly well and what changes might
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Strategic Report for Netflix‚ Inc. Hillary Carroll Alex Menenberg Ian Kwok April 20‚ 2009 Netflix‚ Inc. Table of Contents Executive Summary..........................................................................................................................3 History .............................................................................................................................................5 Business Model ............................................................
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