assets? If so‚ how‚ if not‚ why not? On the one hand‚ the circumstances of the sale make me less willing to buy. In particular‚ both Universal and the federal government think that American’s acquisition creates antitrust issues. If this is the case‚ American could use its market power to change the nature of the market and make Dixon’s new plant unprofitable by setting lower prices for sodium chlorate in its other plants. On the other hand‚ the circumstances make me more willing to buy the assets
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FIN 680 Case 43: Flinder Valves & Controls (FVC) Group 3 Pengfei Yang An Wan Zhiyu Rhen Ricardo Reilova Case 43: Flinder Valves & Controls Inc. Case Summary: I. Developments so far… Bill Fender‚ president of Flinder Valves & Controls Inc. (FVC) and Tom Eliot‚ CEO of RSE International are trying to determine final details on RSE acquisition of FVC. Formal conversation have been going-on for approximately 3 months. During this time they and their respective advisors have: Discussed broad
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HARVARD EXTENSION SCHOOL Mergers and Acquisitions MGMT E-2720 Spring 2014 Midterm Case – Sterling Household Products Company Contents a.How much business risk is associated with Sterling’s proposed acquisition of the germicidal‚ sanitation‚ and antiseptic products unit of Montagne Medical? 3 What is the cost of equity capital appropriate for evaluating the free cash flow associated with this investment? 4 What is the correct capital structure and weighted average cost of capital for
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Facts: The Negro plaintiffs in these cases were denied admission schools attended by the white children under the laws requiring or permitting segregation according to race. All the court adhered to the “separate but equal” doctrine and held that the plaintiffs were not admitted to the white schools (except for the plaintiff in the Delaware case). In the instant cases‚ the plaintiffs contend that segregated public schools are not “equal” and they are deprived of the equal protection of the laws.
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Weighted average cost of capital for Marriott Corp. The WACC is calculated using the formula: This uses the underlying assumption that the debt-equity ratio for the firm remains constant. In Marriott’s case the corporation’s target leverage ratio based on interest coverage target is set at 60% as taken from Table A. The WACC for the whole firm represents the average cost of capital of the firm’s underlying operating structure. To use this WACC it must be assumed that the cost of capital of the
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rP os t HKU978 NIKHIL CELLY op yo HAIER IN INDIA: BUILDING PRESENCE IN A MASS MARKET BEYOND CHINA In a short 25 years‚ Haier Inc had emerged from being a small refrigerator factory in northeast China to becoming the world’s biggest appliance seller by retail volume. It had exported to developed markets in the 1990s‚ set up factories overseas and created a global retail chain that made it an unmatched success in China. This company that made its name by exporting refrigerators
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Pepsi Cola Products Philippines‚ Inc. (petitioner) v. Honorable Secretary of Labor (respondents) 1. Facts: a. June 1990: The Pepsi-Cola Employees Organization-UOEF (Union) filed a petition for certification election with the Med-Arbiter seeking to be the exclusive bargaining agent of supervisors of Pepsi-Cola Philippines‚ Inc. (PEPSI). i. Med-Arbiter granted this stating that PCEU-UOEF was an affiliate of Union de Obreros Estivadores de Filipinas (or the Federation) with two (2) rank and file
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Operating profit x (1-0‚35) II. Terminal value operating profit AT: 967‚85/(0‚076-0‚04) III. PV of total Synergies AT assuming WACC is 7‚6%‚ for example for 2001: 118‚5/1‚076^1=110‚10301 IV. PV terminal value: 26884‚72/1‚076^6 1c. Cost of debt = 7% Cost of equity= 5‚5 % + 1‚1 * 7‚7% = 13‚97% New WACC: 0‚05 * 7% + 0‚95 * 13‚97% = 13‚62% Calculations according a new WACC of 13‚62% 2000E 2001E 2002E 2003E 2004E 2005E 2006E 2004c Operating profit AT 0 58‚5 159‚9 447‚2 639‚6 793‚65 967‚85
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components of Marriott’s Financial Strategy consistent with its growth objective? Marriott’s sales grew up by 24% and its return on equity stood at 22% in the year 1987‚ the sales and earnings per share has doubled over the previous year as stated in the case study. The company operates in three divisions: lodging‚ contract services and restaurants which represents 41%‚ 46% and 13% of sales in 1987 respectively. Marriott is determined to develop and to enhance its position in each division and remain a
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Case #4 Fighting Grime (Clorox Company) This is a fun case in that it involves branded products that students will recognize yet probably do not associate with Clorox. A good way to introduce the case could be to bring in product samples or show the brand names of their many products and ask students what they have in common? The case is short and vivid and can be assigned ahead or simply read in class. It is an easy case to grasp quickly yet provides some very clear examples of strategic
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