STRATEGY & FINANCE MID-SEMESTER ASSIGNMENT Dr. John Heptonstall Bao Chau Nguyen Xuan May 2011 I/ Summary of FVC & RSE’s business activities 1. Flinder Valves and Controls Inc. Flinder Valves and Controls Inc. is a small company located in Southern California‚ manufactured specialty valves & heat exchangers. This company realized an outgrowth in 1980s of previous century from a small company for engineering on an experimental heat-exchanger product. After 7 years‚ it acquired the properties of
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Case Name: Pacific Healthcare TLMT313: Supply Management 15 June 2014 I. Major Facts A. Pacific Healthcare is the largest healthcare provider in Santa Barbara County. B. The institution consists of three hospitals: Pacific Memorial (415 beds)‚ Pacific Cabrillo (250 beds)‚ and Pacific Isla Vista (300 beds). C. Barney Rubble is the corporate director of supply management for Pacific and he is in charge of procuring supplies for all Pacific Healthcare subsidiaries
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| American Home Products Corporation | Case Study | | Table of Contents Introduction 3 Background 3 Culture of the Business 3 Stages of Development 3 Core problem 4 analysis and options 4 Risk analysis 5 First: The Business Risk 5 Second: The Financial Risk 6 Other kinds of risk: 7 Financial Analysis 7 The WAAC 7 Ratio Analysis 11 Recommendations: 12 References: 12 Introduction Background In 1981‚ AHP had reached sales of more than $4 billion by producing
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Case # 10: The Boeing 7E7 Presenting Date: October 24th‚ 2012 Course Number: Fire 417 Cases in Financial Management Section: 901 Instructor: Dr. Manu Gupta Group Number: 4 Group members: Peter Lee‚ Siravuth Punyataweekul and Stephen Woolard. Case Summary: 1.) In early 2003‚ Boeing announced plans to design and sell an airliner named the 7E7. Boeing aimed for the 7E7 to be more fuel efficient‚ carry between 200 and 250 passengers‚ able to accomplish both domestic and international
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Pinkerton case - General Create NPV “Be Big” • Check out case instructions on bspace & begin working with your group Historical case – CPP’s bid to acquire Pinkerton security guard firm in the late 1980s Provide executive summary & detailed analysis of value of acquisition Email your group’s bid to GSI before 6 p.m. evening before discussion Be prepared to discuss the case in class (your answers‚ your analysis‚ etc.) 1 Valuation - Use NPV approach How to make investment decisions:
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caused by the change in capital structure‚ we prefer to use TEV/EBITDA multiple in this case. Amtelecom Group consists of two lines of business which has to been taken into consideration. We separately calculate the value of both companies and their summation. In this way‚ we get a relative conservative outcome which indicates the Enterprise Value of AGI is 56.9 million (Note 1). As it is mentioned in the case that AGI’s current stock price implied a TEV of 53.7 million‚ the stock is really traded
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What type of investments would you value using Marriott’s WACC? The weighted average cost of capital measures the average risk inherent in the corporation and overall capital structure of the entire firm. Noting that low asset betas for less cyclical industries such as utilities and household products‚ versus the much higher asset betas of high-tech firms and luxury retailers‚ we can’t deal with the varied businesses in the same way when doing the valuation since that different lines of businesses
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Percentage of; Calculation Weight by % Bonds Additional bond 50 million / 1‚120 million 45 million / 1‚120 million 4.46 4.02 Preferred stock 1‚000 million / 1‚120 million 89.29 Common stock 25 million / 1‚120 million 2.23 Total 100 iv) New WACC calculation WACC = (% of debt) (After-tax cost of debt) + (% of preferred stock) (cost of preferred stock) + (% of common stock) (cost of common
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A. METHODOLOGIES: 1. The Weighted Average Cost of Capital (WACC) Approach: This method offers a wide range of advantages. For instance‚ the Capital Assets Pricing Model (CAPM) is employed in the calculation of the Cost of Equity. Thus‚ the discounted rate of 7.58 percent used in figure 1.12 Appendix is likely to be precise. The total value of the firm is $4.73 billion. Nonetheless‚ in view of the probabilities of forecasting errors in the estimation of cash flows‚ the degree of precision does
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Espinosa (1996) Model 19 4 Determining the Cost of Debt 20 5 Calculating WACC 20 6 Calculating the Present Value of Paginas Amarelas 21 6.1 Valuing the Argentinean Operations 21 6.2 Valuing the Brazilian Operations 22 6.3 Valuing the Chilean Operations 22 6.4 The Present Value of the Operations of Paginas Amarelas 23 7 Conclusion 25 8 Appendix A 27 9 Appendix B 28 10 References: 29 1 Introduction The aim of this case study is to determine the value of Paginas Amarlas‚ and advise Brasil Investimentos
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