Biography of Allen Pinkerton Heather Smith CJS/250 08/02/12 Denise Mowder Allen Pinkerton was a man that people automatically respected. He was a man that had a sight for security and many different companies looked to him for help with their security problems and to make sure that their businesses were safe. He could also do things and go places that the public police could not. In 1855‚ he was asked by six Midwestern railroad companies to establish a railroad police agency‚ and at this time
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the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and justify your assumptions. 3. Calculate the costs of equity using CAPM‚ the dividend discount model‚ and the earnings capitalization ratio. What are the advantages and disadvantages of each method? 4. What should Kimi Ford recommend regarding an investment in Nike? 2 Case Overview
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1. Why do think Larry Stone wants to estimate the firm’s hurdle rate? Is it justifiable to use the firm’s weighted average cost of capital as the divisional cost of capital? Please explain. (10% weighting) Answer The hurdle rate is the rate of return a firm has to offer finance providers to induce them to buy and hold financial security. (Arnold‚2007). This is also known as cost of capital or weighted average cost of capital. The returns offered by alternative securities with the same risk
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Marriot Case Marriot use the Weighted Average Cost of Capital to estimate the cost of capital for the corporation as a whole and for each division‚ and the hurdle rate is updated annually.(WACC = (1-Tc) * (D/A) * R[D] + (E/A) * R[E]) Marriot’s Tax Bracket = 175.9/398.9 = 44% Division’s asset weight to the corporation: Lodging = 2777.4/4582.7 = 0.59 Contract = 1237.7/4582.7 = 0.28 Restaurant = 567.6/4582.7 = 0.13 Risk free rate is 30 years T-Bond = 8.95% (Lodging use long-term debt)
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Allan Pinkerton was born 1n 1819 in Glasgow Scotland. Pinkerton immigrated to the US in 1842 and settled in Chicago Ill. He opened a barrel making shop just outside of Chicago. Pinkerton was an avid fan of Abraham Lincoln. Like Lincoln he was an abolitionist. He used his small shop as part of an underground railroad for assisting slaves who were moving north for freedom. His first adventure in detective work was a mere coincidence. While Pinkerton was gathering wood for his shop he discovered counterfeiters
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weighted average cost of capital (WACC) to be 8.3%. I find error in this calculation as a result of the following points of disagreement: a) Weighting of Capital Structure: Use of book values of capital rather than the market values b) Cost of Debt Calculation: Incorrect method for calculating debt c) Tax Rate: Use of a tax rate derived from the summation of state and statutory taxes instead of the firm’s marginal tax rate 2. Revised Calculation of WACC: WACC reflects the weighted average
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Coughlin Allan Pinkerton Scottish emigrant and abolitionist Allan Pinkerton founded America’s first detective agency and successfully brought down some of the country’s most ruthless criminals. However‚ in 1874‚ he tried to take on the James brothers‚ and he failed. The man dubbed America’s first "private eye" was born near Glasgow‚ Scotland‚ on July 21‚ 1819. Involved as a young man in radical politics‚ he was forced to immigrate to America in 1842. Pinkerton and his wife settled
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Pinkerton (A) Assignment The assignment is twofold. First‚ to advise Tom Wathen as to whether he should buy Pinkerton for the asking price of $100 million. Second‚ regardless of your answer to #1‚ assuming that Wathen does buy Pinkerton‚ should he finance the purchase with Financing Alternative #1 (debt and equity financing from an investment firm) or Alternative #2 (all debt financing from a bank). The financing alternatives are discussed on page 4 of the case. You should do the discounted
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acquisition of Pinkerton in an effort to determine whether bids of $85 million to $100 million is value enhancing for CPP’s shareholders. Additionally‚ Wathen must choose between two financing options: (1) raising $100 Million via a $75 million debt structure at 11.5% interest rate together with a $25 million equity investment for a 45% stake in the combined company and (2) a $100 million debt facility at 13.5% interest rate. General Assumption. We assumed that Wackenhut is comparable to Pinkerton‚ and
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Biography of Allan Pinkerton CJS/250 November 30‚ 2011 Sean Wilson Biography of Allan Pinkerton Introduction Allan Pinkerton was very influential regarding private security. Pinkerton presented ideas as well as actually demonstrated the benefits for private security in comparison to public policing. This paper will not only introduce Allan Pinkerton but will also briefly describe the impact of his ideas on private security. The Beginning Allan Pinkerton was born August 25‚ 1819‚ in Glasgow
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