operating independently. b. Estimate the value of Northrop‚ operating independently. c. Estimate the value of the combined firm‚ with no synergy. d. Estimate the value of the combined firm‚ with synergy. e. How much is the operating synergy worth? Solution: Synergy Gain = $7‚479 - $5‚879 = $1‚600 (Firm Value = FCFF1/(WACC - g) Q.4. In the Grumman-Northrop example‚ described in the previous example‚ the combined firm did not take on additional debt after the acquisition. Assume that‚ as a result of
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Proposed solutions[edit] Several solutions have been put forward to both increase the amount of legally available organs and staunch the flow of illegal trafficking around the globe. Policies of presumed consent have been successful in various countries such as Brazil‚ the United States‚ and several nations of Europe. These policies can be either opt-in or opt-out. In a nation with an opt-out policy‚ consent for organ donation is presumed upon death‚ although one can choose not to donate by submitting
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the governments . As a result people would have proper qualifications for types of jobs available. Furthermore‚ the states ought to take care of those who are out of employment and do not leave them alone‚ especially do not let them let go. A good solution would be to create a kind of groups of support that could have a motivating and supervisory function at the same time. People would feel more confident‚ motivated and they would share with each other their problems‚ hopes and ideas. One final suggestion
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This is a case analysis with the help of my good friend Jewel Kristian Taino of DLSU-MBA taking Strategic HR. Background and Facts of the Case ARISE is a Destination-for-a-day spa that provides service with an emphasis on the health benefits of a spa treatment‚ fitness and well-being. The spa opened in May 11‚ 2009 which was founded by Kristen Chambers‚ a devotee of spa treatments herself. The business originated from a company named ABROAD‚ an international travel company in 1999 which was then
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Solutions – Chapter 5 Chapter 5 Financial Analysis Question 1. Which of the following types of firms do you expect to have particularly high or low asset turnover? Explain why. Supermarket—High asset turnover. Supermarkets tend to be high volume businesses. Many of the food products in supermarkets are perishable‚ and freshness is often used to differentiate products‚ forcing a certain amount of inventories turnover. The typical consumer buys groceries on a regular basis‚ guaranteeing grocery
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a teen parent. The country’s birth rate for teens is nine times higher than most developed countries‚ but within the past 20 years‚ teen birth rates have dropped by 40% (cdc.gov). Even though the rate of teen births has dropped‚ there has to be a solution to lower the risk of teen pregnancy and ultimately solve this problem. The reason for teen pregnancy is the lack of education and communication from adults to teenagers. Sexual education classes given in the schools around this country mainly
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the dams‚ it could not solve drought problems forever. Severe drought brings greatest impact on agricultural activities because water scarcity account for 70% of potential yield loses worldwide (Boyer‚ 1982). Biotechnology could be a permanent solution for this problem with the development of drought-tolerant crops. Plant genes that are related to stress tolerance have been isolated initially from Arabidopsis and introduced to several crop plants through genetic engineering. For example‚ ERA1 gene
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1. Factors that cause Difficulty in Searching for Missing Aircraft (MH370) 1.1 Unknown Flight Path To locate the location of the missing aircraft MH370‚ there is a need to first know the routes that the plane had flown. The Malaysian military radar had tracked that the plane had turn west off its intended flight route after the final radio message made by the pilot in the cockpit. This change of direction‚ turning west‚ made it much more difficult to track the location of the plane especially when
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Solution to Problem IS1: Long-term Construction Contract Part 1 20A 20B 20C Previous Cost Incurred 0 2‚700‚000 7‚020‚000 Costs incurred current year 2‚700‚000 4‚320‚000 4‚480‚000 Estimated costs to complete 9‚300‚000 5‚980‚000 3‚600‚000 Estimated total costs (ETC) 12‚000‚000 13‚000‚000 15‚100‚000 Estimated Profit: Contract Revenue 15‚000‚000 15‚000‚000 15‚000‚000 Estimated total costs (12‚000‚000) (13‚000‚000) (15‚100‚000) Total estimated profit(loss) 3‚000‚000 2‚000‚000 (100
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FNCE 370 Overview of Corporate Finance Sample Examination (Solutions) Part I: Multiple Choice 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. c b b e a c d b b d d d c c a c b b c e c d b e a FNCE 370 Sample Examination (Solutions) 1/8 May 2006 Part II: Written Response 26. Agency problems are said to be inherent in the corporate form of an organization. Why do you think this is the case? Do you think agency problems arise in a sole proprietorship
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