Hearing Co. | Case Analysis | | Yijing Zhou | 2013/3/26 | | Issue Burns and Irvine need $28.3 million to purchase Harmonic from its founder and complete and launch the new hearing aid. They have to determine the costs and benefits of different financing alternatives and‚ finally‚ select the optimal financing package in terms of expense‚ expected return to investment and financial flexibility. Analytical approach Unlevered free cash flows to the firm ROI analysis NPV analysis
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comparable firms No leverage Forecasts are positive 2. What are the benefits of debt in UST’s case? Debt tax shield: increase in debt results in lower taxable income and thus less taxes Reduction in agency costs: higher interest payments reduce the free cash flow available to firm’s management Consequently less money can be ‘overspent’ in investments with positive utility for management‚ but negative NPV for shareholders Tightening of free cash flow margin may induce management to increase financial
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1. How and where are platelets produced in the body? Platelets are known as thrombocytes and are produced in red bone marrow. They are stimulated when a blood vessel becomes injured and breaks. Platelets are responsible for clotting a vessel to stop the body from losing all of its blood. 2. Describe the role played by platelets in hemostasis. Hemostatis involves constriction of blood vessels‚ activity of platelets‚ and activity of blood clotting factors. Platelets work together with other blood
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NSE 481 Fall 2017 Homework: #1 Date Due: October 5‚ 2017 1) Summary The study by Yajima et al. (2015) details estimations of individual doses for returnees who were previously evacuated from the Fukushima Nuclear Disaster. Individual estimates were made for different categories of evacuees who were meant to return to three designated Iitate Village‚ Kawauchi Village‚ and Tamura City in Fukushima. The data required for the estimates was obtained from measurements of individual doses and ambient external
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In this scenario the recent policy implemented by Anytown’s department of job and family services to remove the child from the home and placed into child state custody due to child endangerment in my opinion is one that should be enforced in every state “although violent crime rates declined in recent years for most age groups‚ victim data revel that young people face a much greater victimization risk than older persons. (Siegel‚ 5th edition) One major ethical issue that comes to mind is “what is
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Case#1 Stock Valuation at Ragan Engines Ans. 1 EPS= $5.08 No. of shares= 300‚000 r=20% ROE=25% DPS=Total dividend/No. of shares=640000/300000=$2.13 Net income = EPS*No. of shares =5.08*300000 =1524000 g=Retention ratio*ROE =[1-(640000/1524000)*0.25 = (1-0.42)*0.25 =0.58*0.25=0.145=14.5% Po=D1/r-g =Do (1+g)/r-g =2.13(1+0.145)/0.20-0.145 =2.43885/0.055 = $44.34 Ans. 2 Industry growth rate g = Retention ratio*ROE
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Whirlpool Europe: Case 2 Whirlpool Europe’s implementation of an enterprise resource planning (ERP) system is a positive business investment. One of the biggest challenges that Whirlpool Europe faces is a disconnect in the information systems. This disconnect has led to a decrease in product availability‚ loss in sales‚ and an unreasonably high inventory. A new system will allow Whirlpool Europe to improve operating effectiveness and efficiency. The cost of implementation of the ERP is quite
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CASE STUDIES IN FINANCE CASE 3: TELETECH CORPORATION 2005 Q1. Teletech has two divisions- Telecommunications and Products & Services. For the purpose of investment and performance analysis at the firm‚ there is an applied hurdle rate of 9.30% for both divisions. Based on the firms’ WACC‚ this rate represents the cost of capital‚ and essentially‚ the opportunity cost of money. Teletech Corporation uses this hurdle rate to assess the performance of its two divisions; however there is argument
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SABANCI UNIVERSITY FACULTY OF MANAGEMENT FIN524 Mergers and Acquisitions CASE #1: Flinder Valves and Controls Inc Submitted to: Ast.Prof. Dr. Serif Aziz Simsir Prepared by Polat Sen Chaimae Mabrouk Strengths and Weaknesses of FVC and RSE FVC has a good top-management team‚ skilled workers‚ and had a reputation for engineering excellence. This strong reputation allowed the company to do prime contract work on high engineering devices for the government
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whether to repair one of its’ steam boats or replacing it with a new diesel-powered vessel. After evaluating the different scenarios presented in the case‚ it is our recommendation that ESC should rent a diesel-powered boat. This decision was based on a Net Present Value (NPV) analysis on six different scenarios. Each scenario and its respective NPV is summarized below: Scenario 1. Rehabilitation of Cynthia - selling existing parts & converting to stoker firer 1950 2. Rehabilitation of Cynthia - using
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