In May 2005 Warren Buffets’ Berkshire Hathaway’s subsidiary company MidAmerican Energy Holdings successfully took over the electrical utility company PacifiCorp. The company was purchased for $5.1 billion in cash plus debt assumption of $4.3 billion. The deal is the result of Buffet’s intense search‚ over several years to find an attractive acquisition. This case study evaluates the impact the acquisition has on the share price of both Berkshire Hathaway Ltd and Scottish Power. A valuation is conducted
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Summary and discussion of Richard Nolan and F. Warren McFarlan’s article “Information Technolgy and the Board of Directors” published in 2005 by Harvard Business Review. Information Technology and the Board of Directors In this article the authors show how board members can recognize their firms’ position and decide whether they should take a more aggressive stance. They illustrate the conditions under which boards should be less or more involved in IT decisions. Furthermore‚ they delineate
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Girl with a Pearl Earring Essay While wealth often brings the power that comes with social status and influence in society‚ it is not only the wealthy who acquire power in the novel Girl with a Pearl Earring. Do you agree? Contention: Wealth and money is not needed to have influence or power over the community‚ which is shown in the movie Girl with a Pearl Earring. Griet also has power as a result of her undiscovered talent of art‚ her connection with Johannes Vermeer and the help of Maria
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Warren E. Buffett‚ 2005 Case Questions: 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically‚ what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Based on the multiples for comparable regulated utilities‚ what is the range of possible values for PacifiCorp? What questions might you have about this range? Assess the bid for
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CASE 1: Warren Buffett: a) From Warren Buffett’s perspective‚ what is the intrinsic value? According to Warren Buffett’s perspective‚ the intrinsic value is defined as “the present value of future expected performance” (Bruner‚ Eades‚&Schill‚ 6th 2010). Why is it accorded such importance? It can be used to estimate the value of the business’ ongoing operations‚ not company’s stock. How is it estimated? The intrinsic value is very subjective‚ but he stated that “it is better to be approximately
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Berkshire Hathaway From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search Berkshire Hathaway Inc. Type Public (NYSE: BRKA‚ NYSE: BRKB) Founded 1839 (as Valley Falls Company) Founder Warren Buffett Headquarters Omaha‚ Nebraska Area served USA Key people Warren E. Buffett (Chairman) & (CEO) Charles T. Munger (Vice Chairman) Industry Property and casualty insurance‚ Diversified investments Products Conglomerate focused on insurance Market cap US$ 196 Billion
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Hathaway Reinsurance Group and (4) Berkshire Hathaway Primary Group. The main business of Berkshire is insurance and is the dominant driver of the company value. Utilities & Energy Berkshire owns 90% of MidAmerican Energy Holdings Company. MidAmerican has several operating units (1) PacifiCorp (2) MidAmerican Energy Company (3) Northern Natural Gas Company (4) Kern River Gas Transmission Company (5) CE Electric (6) CalEnergy (7) HomeServices of America. Burlington Northern Santa Fe railroad acquired in
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Warren Buffett Professional Career: Warren Edward Buffett is an American Investor‚ Business Magnate and Philanthropist. He is widely considered as the most successful Investor of the 20th century. Buffett is the primary Shareholder‚ Chairman and CEO of BERKSHIRE HATHAWAY and consistently ranked among the world?s wealthiest people. He was ranked as the World?s Wealthiest Person in 2008 and as the 3rd Wealthiest Person in 2011.In 2012‚ American magazine TIME named Buffett as one of the
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Running head: IMPACT OF DAMS ON ANADROMOUS FISH The Impact of Hydropower Dams on California’s Populations of Anadromous Fish: What Can be done to mitigate the Dams Effects and Restore California’s Watersheds. Russell Cole Western Governors University The Impact of Hydropower Dams on California’s Populations of Anadromous Fish: What can be done to mitigate the Dams Effects and Restore California’s Watersheds. The indigenous people of California were completely dependent on the seemingly
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Enron: The Smartest Guys in the Room is a 2005 documentary film based on the best-selling 2003 book of the same name by Fortune reporters Bethany McLean and Peter Elkind‚ a study of one of the largest business scandals in American history. McLean and Elkind are credited as writers of the film alongside the director‚ Alex Gibney. The film examines the 2001 collapse of the Enron Corporation‚ which resulted in criminal trials for several of the company’s top executives; it also shows the involvement
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