Case Study on RELE-Rouen: Language Immersion in Normandy Executive Summary Maxime is the co-founder of RELE-Rouen‚ a franchise language school under RELE at Rouen‚ France. The business took a downturn during the economic crisis from 2009 to 2011 and it has been losing money for three consecutive years. The franchise contract with RELE is due for renewal in two month. At this time‚ Maxime is presented with three options: 1. Renew franchise contract with RELE 2. Switch to OILT programs 3. Sell
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X. Weighted average cost of capital (WACC) The valuation of Abercrombie & Fitch Co. is based discounting future cash flows and economic profit‚ for that the weighted average cost of capital is needed. The WACC is the opportunity cost when investing in Abercrombie & Fitch Co. opposed to other investments with a similar risk. Investors want their return to excess the WACC before it can be considered a good investment; since people in general are risk averse‚ they want compensation for taking on risk
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The Fund of Funds: Valuation of Investments 1. Arthur Andersen did not rely on competent and sufficient audit evidence in auditing the valuation assertion related to FOF’s natural resources assets. According to Paragraphs .21 of AU Section 326‚ to be competent‚ evidence must be both valid and relevant. Evidential matter obtained from independent sources outside an entity provides greater assurance of reliability for the purposes of an independent audit. However‚ many aspects of the National Resources
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Seagate Technology Buyout Hard disk drives make up the largest sector of the information storage industry in 1999. The hard disk drive market can be classified into three separate categories‚ desktop‚ enterprise‚ and mobile. The mobile and desktop markets are expected to converge in the long run. While the desktop market represents approximately 58% of the $25 billion total hard disk drive market‚ enterprise margins were nearly double the margins in the desktop sector (10-15%). Since 1997‚ the number
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Synthesis Strategic Intellectual Asset Management for Emerging Enterprises Capacity Building for Successful Entry To the Global Supply Chain Prepared by Buenaventura Canto Professor Asian Institute of Management (AIM) and Etsu Inaba Director Human Resource Development Department Institute for International Studies and Training (IIST) 2 Synthesis Background Strong intellectual property rights (IPR) protection and enforcement are recognized as important conditions for
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The Acquisition of Consolidated Rail Corporation (A) CASE 4 Group 3: Antonio Carlos Teles Caleia #1028 Federica Carcani #2258 Edoardo Covicchio #2259 Leandro José Pereira Domingues #1023 Francesca Romana Gambini #2260 Mergers‚ Acquisition and Restructuring (TB) Prof. Josè Neves de Almeida Q1. The rationale behind the intention of CSX to buy Conrail is mainly to anticipate a proposal from the other big player in the market Norfolk Southern. Both CSX and Norfolk Southern have basically the same
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When attempting to determine the valuation of LinkedIn it helps to understand some of the issues involved. The most accurate way to value a stock’s price is using discounted cash flows. The problem with this approach is that it is nearly impossible to predict with any accuracy what the long-term cash flows are for a given company; especially a company that is young or that might be using an innovative and new business model. Additionally‚ knowing what long-term cash flows look like requires knowledge
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1) Objectives of the case: To understand and evaluate the dramatic rise and fall of the stock prices of the Web consultants‚ along with many others in the Internet sector‚ during the dot come bubble of 2000. It was question that boggled minds‚ as to how this could have happened in a relatively sophisticated capital market like that of the United States. To discuss the role of capital market intermediaries in the dot-com of 2000 and to check whether their incentives were properly aligned with their
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INTEGRATIVE CASE 2.1 STARBUCKS ACCT218 a. Assuming that Starbucks had no significant permanent differences between book income and taxable income‚ did income before taxes for financial reporting exceed or fall short of taxable income for 2012? Explain. Taxable income before income tax is $2‚059 million‚ and taxable income should minus $674.4 million. So income before taxes exceeds taxable income. b. Will the adjustment to net income for deferred taxes to compute cash flow from operations in
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Christopher Johansen Yelena Nicole FIN 465 Amtrak Case Introduction Amtrak was formed in 1970 by the U.S. Congress in order to ensure that rail service would remain an “integral part of the national transportation system.” Amtrak has become the main provider of all passenger rail services in the U.S. and as of 2002 Amtrak has become completely self sufficient and is no longer allowed to use federal subsidies to cover their operating expenses. In order to become self sufficient Amtrak has
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