ORGANIZATIONAL STRUCTURE/CORPORATE MANAGEMENT CONTROLS ➢ Corporate Governance Mission Statement: o Caterpillar’s corporate governance program ensures we serve the interests of stockholders and other stakeholders with the highest standards of responsibility‚ integrity and compliance with all laws. These standards are guided by our board of directors and global management team‚ who work to oversee the company’s actions‚ performance and governance policies. ➢ ➢ Announced
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assumptions for the Balance Sheet (historical and future data)‚ Income statements and other estimated model – WACC‚ Terminal Value‚ Enterprise Value‚ Stock Price‚ etc. After estimating enterprise values in the future‚ we can find that our company is undervalued. Stock holders are supposed to add holdings of shares and gain more equity. Analysis of the Model All the statistics used in this model can be found in Google Finance‚ Yahoo Finance and Bloomberg. In calculating the ratios and forecast financials
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forecast to achieve the investment decision for her mutual fund. The forecast showed that at a 12 percent discount rate‚ Nike’s stock price was overvalued at $4.82 per share. She created a sensitivity analysis‚ which revealed that Nike’s stock was undervalued at discount rates of less than 11.7 percent. The results concluded from the sensitivity analysis made Kimi Ford unsure of her decision on Nike stock; she proceeded to ask Joanna Cohen to estimate Nike’s weighted average cost of capital. IV. Constraints
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Also‚ the risk is lower than the bond which has an increased risk that will lead to wild swings in the stock price. Analysis of issuing bond If the company wanted to issue stock it would hurt the shareholders because the Winfield’s shares are undervalued and by providing more shares would case difficulty to shareholders. Also‚ by issuing stocks it would weaken the control of Winfield family and instead be a gift to new shareholders. By issuing debt the EPS would go up to $2.51 in comparison to issuing
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has taken on risk from recent acquisitions of Palm‚ 3Com‚ 3 PAR‚ and Arc Sight. The next quarter hold minor upside potential‚ but growth in earning for the ladder of 2012 is expected. The main issue with HPQ is investor confidence because it is undervalued at $40 with comparable analysis and $60 using DCF model. Distrust is derived from upper management turmoil of 3 CEO in the past year. Once management
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rate of 5 percent and an expected return for the market portfolio of 12 percent‚ compute the expected (required) return for all the stocks. c. Plot the following estimated returns for the next year on the SML and indicate which stocks are undervalued or overvalued. * Johnson and Johnson—15% * Exxon Mobil—10% * Pfizer—13% * Microsoft—20% 4. The following are the historic returns for the Columbia Sportswear Company (COLM) and the General Index: Based on this information
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Problem Statement and Root Cause Analysis On the surface‚ it may appear that the high turnover experienced at the Lima plant was the result of morale and job dissatisfaction issues. However‚ closer analysis identifies these factors as symptoms of a larger problem. Yes‚ the high turnover is a symptom of a larger problem. The morale and job dissatisfaction are symptoms as well. One symptom influences or lead to other symptoms. For instance‚ the morale and job dissatisfaction led to the high turnover
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Though there are a few different ways to approach Kate Chopin’s "The Story of an Hour"‚ I feel that the historical critical theory serves best. Chopin lived during a difficult time for women; they were oppressed by male superiority and greatly undervalued. When this information is taken into account‚ it appears as if her character Mrs. Mallard is also burdened with these issues. She longs to feel independence. Chopin describes Mrs. Mallard as "young‚ with a fair‚ calm face‚ whose lines [bespeak]
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BLOOMBERG ASSESSMENT (BAT) SAMPLE TEST QUESTIONS I. Economics You have just been transferred to Sydney and cover Australia and New Zealand on the sovereign research desk. Australia and New Zealand operate under a free trade agreement. No barriers to trade exist‚ and both currencies float. In this environment‚ an increase in expected inflation in New Zealand would most likely cause what effect? Choose One Answer o o o An increase in exports from New Zealand to Australia An increase in
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Section A: Answer all questions. Total 42 points – each question in this section carries 3.5 points. Write the responses to ALL questions in your answer sheet. 1. A corporation has 2000 shares outstanding and 6 directors are up for election. The stock features cumulative voting. About how many shares do you have to own to guarantee electing at least yourself to one position on the board of directors (ignoring possible ties)? A) 1000. B) 333. C) 286. D) 1715. E) 343. 2. The
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