Capsim Strategies

capsim strategies
Team: Strategies
1. Broad Cost Leader
2. Broad Differentiator
3. Niche Cost Leader (Low Technology)
4. Niche Differentiator (High Technology)
5. Cost Leader with Product Lifecycle Focus
6. Differentiator with Product Lifecycle Focus
12.1 Broad Cost Leader
A Broad Cost Leader strategy maintains a presence in all segments of the market. The company will
gain a competitive advantage by keeping R&D, production and material costs to a minimum,
enabling the company to compete on the basis of price, which will be below average. Automation
levels will be increased to improve margins and to offset second shift/overtime costs.
Mission Statement
Low–priced products for the industry: Our brands offer solid value. Our stakeholders are ... Show
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Automation levels will be increased to improve margins and to offset second shift/overtime costs.
Mission Statement
Reliable products for low technology customers: Our brands offer value. Our stakeholders are
bondholders, stockholders, customers and management.
Tactics
Research & Development: We will concentrate our existing product line into the Low End and
Traditional segments. The traditional product will migrate to the Low End segment. The High
product will migrate to the Traditional segment. During the early years we will migrate (gradually)
our Performance and Size segment products to the Traditional segment. We can also introduce a new
product to work in the Traditional market.
Marketing: Initially we will attempt to keep pace with the awareness and accessibility of our
competitors ' products. After we establish our cost leadership position we will revisit our situation to
decide whether sales and promotion budgets should be reduced or if we should continue to match
our competitors. Our prices will be lower than average.
Production: We will significantly increase automation levels on our products. However, because
automation sets limits upon our ability to reposition products with R&D, we will postpone
automation for the High End and Size products until they arrive in the Traditional Segment. We will
prefer second shift/overtime to capacity expansions.
Finance: We will Finance our investments primarily through long–term bond

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Corporate Governance Essay
Corporate Governance
Corporate Governance is the relationship between the shareholders, directors, and management of a
company, as defined by the corporate character, bylaws, formal policies and rule laws. The corporate
governance system was designed to help oversee the decisions and best interest of the shareholders.
The system should works accordingly: The shareholders elect directors, who in turn hire
management to make the daily executive decisions on the owner's behalf. The company's board of
director's position is to oversee management and ensure that the shareholders interest is being
served. Corporate governance focus is with promoting enterprise, to improve efficiency, and to
address disputes of interest which can force upon ... Show more content on Helpwriting.net ...
Boardrooms are changing. Directors can no longer be passive. They must be alert, accountable and
active. The board's performance has come under more scrutiny. Shareholders, members and staff
expect more from their boards.
Individual directors of the corporate governance board should possess all of the
following characteristics:
Integrity and Accountability
Informed Judgment
Financial Literacy
Mature Confidence
High Performance
Passion
The board as a whole should possess the following core competencies, with each
member contributing knowledge, experience and skills in one or more domains.
Accounting and Finance
Business Judgment
Management
Crisis Response
Industry Knowledge
International Markets
Strategy & Vision

Companies are becoming more involved with corporate governance and they are following more
strict rules and guidelines. One major problem is how board members are being elected. Avoid
employees for the company seems to be one way to eliminate poor corporate governance
committees. They have to try to keep the chief executive officers from loading the board with
friendly directors that are close to them. The most difficult change will be electing board members.
A major

Radio Shack Stock Report
Recently Radio Shack has undergone a makeover during the last year and the result has been a
noticeable improvement in their prospects. Radio Shack has always been steady through the years.
There seems to be franchises in every mall or around the corner. As of recent, Radio Shack has
transformed their approach on the market place and is seeking new challenges. Upon reshaping their
image, Radio Shack has seen their total net sales and operating revenue for 2009 increased to $4.28
billion compared with $4.22 billion for 2008. Most of this growth has resulted from focusing on
mobility and wireless products from several different brands. Instead of providing wires and
connectors for component stereos, Radio Shack is now configuring ... Show more content on
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Companies with the most consistent earnings history or strongest growth prospects receive the
highest P/E multiples. We calculate price targets for the current and next fiscal year by applying the
stock 's current multiple to the average professional analyst 's estimate. Valuation using RadioShack
's current multiple (P/E): Fiscal Year | Est Low/High Price Range | Avg. Est. Price | % Change for
Average | 12/2010 | 24.67–29.05 | 26.28 | 11.12% | 12/2011 | 24.82–30.66 | 27.74 | 17.29% |
RadioShack current price: | 23.65 | RadioShack current multiple (P/E): | 14.60 | | RadioShack
average 12/2010 estimate: | 1.80 | | RadioShack low 12/2010 estimate: | 1.69 | | RadioShack high
12/2010 estimate: | 1.99 | RadioShack average 12/2011 estimate: | 1.90 | | RadioShack low 12/2011
estimate: | 1.70 | | RadioShack high 12/2011 estimate: | 2.10 |
What 's the best guess for the stock if it were valued like its peers?
Investors often come to believe that a stock is undervalued or overvalued compared to other stocks
in its industrial group. To calculate an alternate target price for the current and next fiscal year based
on those beliefs, investors can apply the average PE multiple for a company 's industrial group to the
average professional analyst 's earnings estimate for the company in those periods. Valuation using
the industry 's

Comvita
Accounting Report– Jessica Miller
Prepare a report for an external user that interprets the annual report of a New Zealand reporting
entity.
91407
By: J. Miller To: Lydia Paper: Accounting 91407, Annual report review
Executive summary
This report is prepared for Lydia who is considering purchasing shares in Comvita. The report aims
to provide analysis of Comvita's annual report and the viability of investing in stocks in the
company to maximise the returns on their investment in Comvita.
Comvita is an international natural health and beauty products company with a strong New Zealand
heritage. They are committed to the development of innovative ... Show more content on
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One of the main reasons for my recommendations would be the potential that Comvita's medical
segment has to take off. Although it only has a small contribution of 3.469 million now there is
potential for this to become much larger. Starting with Derma Sciences finding new uses for their
honey and Comvita, selling their products to professional and hospital markets for their special
wound dressings. This will greatly increase the amount of sales for Comvita, which will in return
generate a greater net profit for the business. This means that other financial elements in the
business will also increase which is return will be a positive for potential shareholders. Along with
this there is also the new olive tree expansion in Australia the largest of its kind in the world, this
new facility increases productivity by 50% increasing the number of olive leaf based health products
out there. Therefore this new facility shows that more products are going to be able to be produced
more efficiently which in return will mean more sales for Comvita. Overall these reasons give me
more than enough evidence to predict an increase in the medical segment of Comvita in the future
years. Another reason is the strong dividend yield that Comvita has. Comvita's yield compares well
to that of Port of Tauranga who has been on the share market for a long time and is very profitable.
This shows that Comvita is a worthwhile investment as dividend yield

Hawaiian Memories, Inc.
A. Whether a C corporation that has preferred stock and common stock with both voting and
nonvoting rights, eight shareholders among whom there are a Swedish individual and Plantation
Sugar partnership, may elect to be an S corporation, under section 1361(b)(1)(B), 1361(b)(1)(C) and
1361(b)(1)(D)?
B. Whether all the shareholders must consent to the election of S status, under section 1362(a)(2)?
C. Whether the election of S status is effective if a C corporation does not meet all the requirements
in the election year, under Reg §1.1362–6(2)(ii)(B)?
D. Whether an S corporation can keep its C corporation tax year, which ends in June 30, without
documenting any business purpose, under the provision of section 1378(b)?
E. Whether a newly ... Show more content on Helpwriting.net ...
E. For an S corporation converted from a C corporation, it shall recognize the LIFO recapture
amount, which is the excess of FMV on the first day of S year over the adjusted basis, by including
it in the gross income of the last C corporation year.
F. An S corporation has to recognize built–in gain of assets from C corporation years, which is the
least of taxable income, unrealized built–in gain minus recognized built–in gain and built–in gains
reduced by net operating losses from previous years.
G. A corporation cannot use net operating losses between C corporation years and S corporation
years, with the only exception that net operating losses from C corporation years can reduce net
recognized built–in gains from S corporation years.
List of Applicable Law:
A. §1361(a)(1); §1361(b)(1)(B); §1361(b)(1)(C); §1361(b)(1)(D); Reg §1.1361–1(I)(1)
B. §1362(a)(2)
C. §1362(b)(1); Reg §1.1362–6(2)(ii)(B)
D. §1378(b); Reg §1.1378–1(d)
E. §1363(d)(1); §1363(d)(2); §1363(d)(3)
F. §1371(b)(1); §1374(b)(2); Reg §1.1374–2(a); Reg §1.1374–1(d)
G. §1374(b)(1); Reg §1.1374–2(a)
Discussion of law:
A.
Section 1361(a)(1) provides that an S corporation is a small business corporation with an S status
election in effect. To qualify for a small business corporation, a corporation cannot have a
partnership as a shareholder according to

ACT 360 FINAL Essay
ACT 360 Intermediate II
Final Portfolio Project
May 31st, 2014
Portfolio Project
Module 1
1) What are the maturities on Intel's Long–term debt?
2) What are Intel's projected obligations on Long–Term Debt and Payments due by period?
3) What is the par or stated value of Intel's preference shares?
Par Value/Stated Value of Preferred Shares = $0.001
4) What is the par or stated value of Intel's ordinary shares?
Par Value/Stated Value of Common Shares = $0.001
5) What percentage of Intel's authorized ordinary shares was issued at Dec 29, 2012? in millions
Authorized Share #
10,000
Issued/Outstanding Share #
4,944
% Authorized Outstanding
49.44%
6) How many ordinary shares were outstanding at ... Show more content on Helpwriting.net ...
If so, describe the nature of the change and the year of change. n the first quarter of 2012, we
adopted amended standards that increase the prominence of items reported in other comprehensive
income.
2) What types of estimates did Intel discuss in 2012?
Our most critical accounting estimates include:

the valuation of non–marketable equity investments and the determination of other–than–temporary
impairments, which impact gains (losses) on equity investments, net when we record impairments;
the assessment of recoverability of long–lived assets (property, plant and equipment; goodwill; and
identified intangibles), which impacts gross margin or operating expenses when we record asset
impairments or accelerate their depreciation or amortization;
the recognition and measurement of current and deferred income taxes (including the measurement
of uncertain tax positions), which impact our provision for taxes;
the valuation of inventory, which impacts gross margin; and
the recognition and measurement of loss contingencies, which impact gross margin or operating
expenses when we recognize a loss contingency, revise the estimate for a loss contingency, or record
an asset impairment.
Module 7
1) Which method of computing net cash provided by operating activities does Intel use? What were
the amounts of net cash provided by operating activities for the years 2011 and

Research Essay
BLW21/MT564 MODULE QUESTIONS Study Period 1 2011 INTRODUCTION It is only possible
to cover a limited number of questions in each seminar. The questions are intended to reflect major
principles where possible, but in some weeks it has been necessary, due to limited space, to omit
questions on important issues. MODULE ONE QUESTION ONE In order to properly work with
this unit you need to become proficient in working with the Corporations Act (CA). To commence
that process please locate the following references: (a) "Auditors" in the index (b) The definition of
"financial records" under CA s9 (c) CA s117 (d) CA s124 ... Show more content on Helpwriting.net
...
Julie makes inquiries and discovers that Bob Marley is a close friend of the Indahouse chairperson
Al Gee. She also learns that the company's constitution contains a rule that provides "the
chairperson of the company may, as they see fit, order any member to transfer their shares to any
person at a fair market price". Jimmy, another shareholder, discovers that as the company requires
more funds the directors plan to issue a parcel of shares to a single investor without the members
being able to participate. Julie does not wish to sell her shares. Is she bound to observe the order she
has received? Are the directors correct in issuing the shares, as they plan? QUESTION FOUR
Spears Ltd has a constitution that does not repeal any of the replaceable rules of the CA but does
provide for two additional matters: (i) an objects clause provides that "the company's activities are
restricted to the recording and publishing of music". (ii) another clause provides: "Jackson White is
to be the company's Senior Music Producer at a salary of $200,000 pa". The directors of Spears Ltd
have decided to ignore the constitution and to carry out the following actions: to execute a contract
with Little Brother Pty Ltd for the release of films on DVD

Food Inc Rhetorical Analysis
William (Colby) Starr 10589136
Food Inc. Portrayal of Monsanto
In 2009 a movie by the name of Food Inc. was released that challenged the production of food we
eat. The movie examines everything from the science of seeds all the way through the consumption
of the food, the food's often negative effects on the body. The movie ends with the line "You can
change the world with every bite". This quote embodies the heart behind movie that change starts
with the individual, and how they make food choices. This sort of change that Food Inc. invokes
implies that top down change that the consumer can bring about change to the seed level. Food Inc.
challenges the processes that allow companies like Monsanto to feed the world. We must understand
how media like Food Inc. effects this mission to feed the world by examining the movie, the history
of Monsanto as a company, and looking at the response from both sides to these challenges made in
the public square to better combat and address issues brought forth.
While inspirational to some Food Inc. also experienced backlash from critics. To the observer Food
Inc. seems very one sided, but it mentions multiple times that it extended offers to be interviewed to
Smithfield, Monsanto, Perdue and Tyson companies (sanfran). These were among the named
companies represented in a negative light in the movie. Food Inc. was "a production of Participant
Media and River Road Entertainment, distributed by Magnolia Pictures" (PBS). According to

Socialism's Dilemma Of 2016
Socialism's dilemma
2016 is said to be "Record Breaking Year" for Chinese Investors. According to Forbes News, five
major acquisitions of U.S companies and stakes totaled up to 28.16 Billion dollars. Yet, this was
only a quarter of China's entire outward investments in 2016. Many foreign firms suppose that
China's oversea merging and investing in next decade will reach tremendous amount, but it will not
occur as they expected depending on Emma Johanningsmeier's current event reports on Wall Street
Journal about "New Chinese Regulations and wary foreign governments hamper M&A investors" in
august 2017. In the article, Some critiques , as example international law firm Linklaters, state that
"China's total outbound ... Show more content on Helpwriting.net ...
In the guideline, any investments outside China on entertainments, and raising funds aboard with
minor benefits to Chinese government are not allowed. (Foreign exchange limits of each person
decreased to ten thousand dollars maximum annually.) As a result, Chinese investors are forced to
contribute in the field of technology, science, energy etc rather than hotels, sports teams, films etc.
On the other hand, Western countries became cautious with Chinese investors too. As China's
mergers and acquisitions shift to "high–end technology and electronics", Western governments' step
in as "scrutiny" preventing Chinese companies from taking over control commercially above
nation's capability over domestic business. As a case in point, China's State Grid Corp. and Hong
Kong–based Cheung Kong Infrastructure Holding Ltd were tending to buy out the majority stock
shares of Australia's biggest electricity network in 2016. Eventually, the deal ended up intercepting
by the Australia government because it ultimately threats the national

P&G Gillette Merger
P&G–Gillette Introduction On January 28th 2005 P&G agreed to buy Gillette for $57bn
(£30). Gillette was the number 1 in razor accessories and proctor gamble was number 1 in consumer
products, a marriage of the best in their respective industries. The merger of the two companies
created "the world's largest consumer products conglomerate." Gillette was a leader in its category
of razors and batteries, merging with P&G provided it access to P&G's technology and
marketing skills. P&G added Gillette razors , Right Guard deodorant and Duracell batteries to
its more than 300 consumer brands, including Ivory Soap, Head and Shoulders shampoo, Pringles,
Crest toothpaste and Bounty paper towels. Company Background P&G ... Show more content
on Helpwriting.net ...
This acquisition helped P&G to add new products into its product line that included brands
such as Gillette razors, Duracell, Braun, and Oral–B. The European Union and the Federal Trade
Commission approved the acquisition, with conditions to a spinoff of certain overlapping brands.
P&G agreed to sell its Spin Brush battery–operated electric toothbrush business to Church
& Dwight. P&G also divested Rembrandt a Gillette 's oral–care toothpaste line. Official
merger took place on October 1, 2005. The deodorant brands Right Guard, Soft & Dri, and Dry
Idea and Liquid Paper, and Gillette 's stationery division, Paper Mate was sold to Dial Corporation
and Newell Rubbermaid respectively. In 2008, P&G branched into the record business with its
sponsorship of Tag Records, as an endorsement for TAG Body Spray. Gillette Gillette, originally
founded as American Safety Razor Company, is a world leader in men grooming products as well as
of women. It was founded by King Gillette who in 1895 came up with the idea of disposable razor
after being frustrated by dulled old razors that required professional honing. He envisioned an
inexpensive razor blade combination where blade can be clamped on the razor and once getting
dulled can be replaced. After six years of innovation and engineering finally in 1901 after joining
hands with a MIT machinist, William Nickerson, American Safety Razor Corp was born. In 1903
company was renamed as Gillette.

Accounting Microline Case
Memorandum
To: Sharon Sonneborn
From:
Date: 9/9/2012
Re: Potential Acquisition of Garmin Ltd. And Subsidiaries Garmin Ltd is under consideration for
acquisition by Mega Industries. As a result, an assessment of Microline's financial condition and
assessment is necessary to evaluate the company as a suitable candidate. Our team has prepared a
memo stating Microline's earning power potential , solvency position, and to which extent the
companies financial statements reflect the true financial position and performance. We have also
included an analysis regarding each of the six questions that you requested.
Microline's profits increased significantly from 2010 to 2011 with the net income of 2011 being over
3 times the ... Show more content on Helpwriting.net ...
With regards to short term solvency Microline appears to be strong. Their current ratio rose from .94
in 2010 to 1.27 in 2011. Their quick ratio also rose from .52 in 2010 to .75 in 2011. The catalyst to
this increase comes mainly from an increase in assets and not a decrease in liabilities. A potential
reason for this increase could be due to the fact that Microline signed a ten year note with a debt
covenant stating that the company needed to maintain a current ratio of 1or the note will mature.
This could have led the company to increase their account receivables and inventory in order to
bump up their assets to meet the debt covenant. There interest coverage increased from 2010 to 2011
from 3.8 in 2010 to 5.75 in 2011. This shows an increase in solvency where the firm can cover the
interest on it loans 5.75 times. However, their solvency in terms of interest coverage comes into
question as their short term equities account for $2500 which is not a reflection of consistent cash
flow generated from sales. Without the presence of short term equities Microlines interest coverage
actually falls from 3.8 in 2010 to 3.25 in 2011.
The long term solvency of Microline in is question as the company recently issued a long term note
and reclassified a short term note to long term which accounted for $7000. The direct result of this
shows an increase in the total debt from 47% in

Pixar Merger Essay
Walt Disney has agreed on February 17th agreed to acquire Pixar, the animated film studio, in a $7.4
billion deal ($6.3 billion in stock plus $1.1 billion of the company's cash) it hopes will give new life
to its animation department and better position the company to compete in the digitalized media,
while noting that the price tag may water down Disney's profits in the near term. The deal also gives
Pixar and Jobs unprecedented access into what is perhaps the world's most renowned entertainment
brand, bringing together Disney's historic franchise of animated characters, such as Mickey, Minnie
Mouse and Donald Duck, with Pixar's stable of cartoon hits, including the two "Toy Story" films,
"Finding Nemo" and "The Incredibles."
Disney and Pixar can now collaborate without the barriers that come from two different companies
with two different sets of shareholders. Several Pixar executives will oversee Disney's animation
unit along with their own operations. Risks include: The issuance of shares of Disney common stock
to Pixar shareholders in the merger will initially have a negative impact on the earnings per share of
the combined company and will decrease the aggregate voting power of current Disney stockholders
and certain directors and executive officers of Pixar have interests in the merger that may be
different from, or in addition to, the interests of Pixar shareholders. Steve Jobs, ... Show more
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's founder, is to become Disney's biggest shareholder, and Pixar executive, Ed Catmull, will take the
position of the president of the merged studios, while Pixar's creative guru, John Lasseter will take

Loewen Case Study (Memo Format)
Mr. Loewen – After some careful consideration and examination, I recommend that we accept SCI's
bid of $43 per share. My recommendation is based upon my assessment of four things: * Our
position after the Mississippi case settlement * Our financial situation * Our business model *
SWOT and Industry Analysis First, the Mississippi case has somewhat damaged our company's
image and may portray us as a company that does not honor legal agreements. Not only was a
contract broken that brought the case originally, but so was the settlement as a number of the
"subject to" provisions were not met. If this be the case, then it could stand to reason that we may be
viewed as untrustworthy in other agreements. Being that ... Show more content on Helpwriting.net
...
These financial issues lead me to my next point; our business model and its effect on our financial
situation. While our model of leaving as much individuality of our acquisitions in place as possible;
allowing previous business arrangements, staffing levels and management to continue has been
effective in building our reputation, efficiency has suffered. By not standardizing things such as
automobile fleet usage and sharing facilities, we are incurring more administrative expense than is
really necessary. By not centralizing purchasing across the board the company is not taking full
advantage of economies of scale. As growth continues the administration of costs and the different
contracts will become nightmarish. Expenses as % of total revenue are beginning to move up and
currently stand at their highest level (18%). A move away from this model, especially after the
image issues I mentioned earlier, may further damage our reputation as being the "preferred
acquirer." To further complicate such a move is our acquisition of numerous rural homes which will
present a problem to the logistics of integrating services, etc. efficiently. Finally, SWOT and Five
Forces analysis point to an increasingly competitive industry that will be experiencing substantial
profit margin pressure as buyers gather more power due

Activision Blizzard Financial Analysis Essay
Activision Blizzard Financial Analysis July 24, 2017 Trey Russell BUS 401: Leon Daniel
Headquartered in Santa Monica, California, Activision Blizzard, Inc., is the world 's most successful
standalone interactive entertainment company. Their portfolio includes some of the biggest
franchises in all of entertainment. Their entertainment network has nearly 500 million monthly
active users in 196 countries, and we're continuing to expand our capabilities across new platforms,
genres, audiences and geographies. Their company consists of many teams: Activision develops,
distributes, and publishes deeply immersive interactive entertainment for gaming consoles, mobile
and tablet platforms, and PCs, including blockbuster franchises ... Show more content on
Helpwriting.net ...
Its revenue compared to its competitors proves that as well. World of Warcraft has been the highest
paid subscription based RPG in the world for many years, allowing Blizzard to see profits without
having to distribute physical products. According to Financial Times Article, "the consensus forecast
amongst 25 polled investment analysts covering Activision Blizzard, Inc. advises that the company
will outperform the market. This has been the consensus forecast since the sentiment of investment
analysts deteriorated on May 21, 2015. The previous consensus forecast advised investors to
purchase equity in Activision Blizzard, Inc.." (FinancialTimes, 2017) ACTIVISION BLIZZARD,
INC. AND SUBSIDIARIES

Mark Cuban and Sec
Mark Cuban was offered that the Web search engine named Mamma.com was going to offer $16.6
million worth of new shares to private institution and other qualified investors. The information
about PIPEs is material since it's not yet publicly announced and that info could affect the
shareholders' behaviors. 1. Why didn't the SEC accuse Mark Cuban of traditional illegal insider
trading, considering he was the largest, individual shareholder of Mamma.com?
Even though the information about PIPEs was material inside information, Mark Cuban was not
accused as traditional insider information. To qualify as traditional insider trading, there must
involve true insiders buying or selling the company's stock based on material inside information. ...
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SEC alleged that Mark Cuban violated misappropriate insider trading. To be qualified as
misappropriate insider trading, an individual wrongfully obtains (misappropriates) inside
information and trades on it for her or his personal benefit. In this case, Cuban actually traded his
shares based on the material inside information he was told and saved him $750,000 in losses.
Wrongful misappropriation means violation of a fiduciary duty.
The Court found that Cuban had not "misappropriated" any material non–public information
because he had not violated a "legal duty to refrain from trading. Cuban had not promised that he
would not trade after learning about a PIPE offering. The judge also said that the SEC failed to show
that Cuban undertook a legal duty to not use the information he learned from those two phone calls
with Mamma.com representatives. Mark Cuban did not have any fiduciary duty to not act upon the
information. The Mamma.com CEO asked Cuban to keep their conversation confidential. However,
that didn't prove that Cuban had a legal duty to Mamma.com that would prohibit him from selling
his shares based on what he was told. He just promised to not disclose the information to the others,
not promised to not act upon what someone told him.
Besides, there was no evidence that he actually agreed that day to keep anything confidential. He
never agreed on the phone that he would

Walt Disney Stock Share
Disney (DIS) Shares Are Significantly Undervalued
Consider Disney (DIS) Shares Following Recent Upgrades From Analysts
Is Disney (DIS) A Good Stock Buy Despite A Recent Rally?
The Walt Disney Company (NYSE:DIS) shares soared significantly in the last couple of months,
buoyed by the future projects and strong financial performance in FY2016. Although DIS stock
soared nearly 18% in the last three months to the highest level in the thirteen months, the company's
future fundamentals and lower valuations suggest further upside in the coming days.
In addition, several analysts, including Morgan Stanley and Piper Jaffray, increased their price
targets for Walt Disney's stock price. Morgan Stanley increased DIS shares to Overweight with a
price target ... Show more content on Helpwriting.net ...
Jaffray said "Based on our analysis of the upcoming projects across Parks and Resorts, the future
film slate at the Disney Studio and its impact on Consumer Products, we are raising our average
annual growth expectations by 100bps over the next four years".
In spite of a recent share price rally, DIS stock also appears undervalued considering its lower
valuation compared to the industry average. Its stock is trading around 19 times to earnings and 4
times to book ratio, when the industry average is hovering around 21 and 4.4 times, respectively.
Fiscal 2016 was its sixth successive year of record results, supported by the opening of Shanghai
Disney Resort, its Studio's record–breaking $7.5 billion in total box office and the phenomenally
successful return of Star Wars.
The company also looks in strong position to extend its strong performances in FY2017, due to its
continued investments in its brands and franchises, technological capabilities, and global presence.
On the other hand, Disney's strategy of strengthening its balance sheet and improving its cash
conversion ratio will allow it to fund growth projects. Its debt to equity ratio stands around 0.4,
when the industry average is around 1. Last year, the company generated almost $8.4 billion in free
cash flows, compared with dividend payments of $2.3 billion. Overall, DIS has several positive
catalysts that are likely to support its share price

John Freyer
"The all my life for sale," online project by John Freyer is a unique idea that I found very intrigued.
Freyer sold everything he owned, from his personal photographs to his false teeth on Ebay. After he
had sold everything, he determined to take on a journey and visit each item that he sold at their new
home. As I viewed some of the items he had sold, a particular item caught my attention; the T–4
super camera and 50 photographs. As technology advances, newer cameras become better in quality
so, eventually, the T–4 Super is going to be an antique camera. Initially, I search the T–4 Super on
Ebay, and luckily I was able to find an exact camera like the one Freyer had sold. The seller on Ebay
uses subjective description to describe the item; the seller states, "Camera is in very good condition,
clean, and is working." As I review the camera myself, the seller is honest that the camera is clean,
but I do see some minor scratches since it's a used camera. On the other hand, Freyer also uses
subject description because he doesn't mention the condition of the camera. He focused more on
how he used his camera, which was, "I have taken pictures with this camera in nearly every state in
the country, in Sweden, Norway, Canada, and nearly into Mexico." ... Show more content on
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As for Freyer, he also used a single image to imagine the shaping of his story, and he described the
item as, "It is small enough to fit in a pocket, and has a Carl Ziess lens" gives it a more visual to the
buyer. Both sellers were trying to reach out adventurous photographers, who love the outdoors or
enjoy traveling. For example, the seller on Ebay said, "It's a great camera to pack for a hike, bring
around at a party, or shoot events and portraits!" As for Freyer, he took the camera everywhere he
went and said, "I have taken thousands of photographs with

2g Scam Essay
The 2G spectrum scam in India involved the issue of 1232 licenses by the ruling Congress–led UPA
alliance[1] of the 2G spectrum to 85 companies[1] including many new telecom companies with
little or no experience in the telecom sector at a price set in the year 2001. The scam involved
allegations regarding the under pricing of the 2G spectrum by the Department of
Telecommunications which resulted in a heavy loss to the exchequer, and the illegal manipulation of
the spectrum allocation process to favour select companies The issue came to light after the auction
of airwaves for 3G services which amounted to 677,190 crore (US$151.01 billion) to the exchequer.
[2] A report submitted by the Comptroller and Auditor General based on the money ... Show more
Subramaniam alleges that Chidambaram had received kickbacks and undervalued the spectrum cost.
[17] Petitioners to 2g scam: Subramaniam Swamy, activist lawyer and politician, whose letters to
the Prime Minister demanding action and affidavits and cases in the Supreme Court brought the
issue into the public limelight. Paranjoy Guha Thakurta, a journalist who was one among the very
first to write on the irregularities in the awarding of 2G spectrum allocation by the Telecom
Ministry. He is also one of the petitioners in the 2G PIL currently being heard in the Supreme court.
[18] Prashant Bhushan, on behalf of the Centre for Public Interest Litigation. Anil Kumar, on behalf
of the civil society organisationTelecom Watchdog Others:Several eminent people like former chief
election commissioners J.M. Lyngdoh, T.S. Krishnamurthy and N. Gopalaswami and former central
vigilance commissioner (CVC) P. Shankar are also petitioners in the suits filed by civil society
groups. Loss to Exchequer: The Controller and Auditor General of India used three different
methods to assess the presumptive loss to the exchequer resulting from not auctioning 2G spectrum.
[19] The first method was based on the fact that S Tel, one of the licensees, explicitly offered to pay
significantly higher license fees for the spectrum. Based on the fees offered by S Tel, the

BFIN 300 Quiz2 solutions
BFIN 300 Financial Management FA14 Quiz 2 Solutions
Conceptual/qualitative questions:
1. The capital gains yield plus the dividend yield on a security is called the total return.
2. Unsystematic risk can be effectively eliminated through portfolio diversification.
3. The excess return required from a risky asset over that required from a risk–free asset is called the
risk premium.
4. The market risk premium is computed by subtracting the risk–free rate of return from the market
rate of return. MRP = Return of the market – Risk–free rate.
5. The Zolo Co. just declared that it is increasing its annual dividend from $1.00 per share to $1.25
per share. If the stock price remains constant, then the dividend yield will increase. This is ... Show
more content on Helpwriting.net ...
The dividend amount was $.70 a share which equated to a dividend yield of 1.5%. What was the rate
of price appreciation on the stock? 11.25% – 1.50% = 9.75%
22. Your firm offers a 10–year, zero coupon bond. The yield to maturity is 8.8%. What is the current
market price of a $1,000 face value bond?
PV
430.24
FV
1,000
PMT
0
RATE or i/y
8.8%
NPER or n
10
*note: this bond used annual compounded as was given during the exam.
23. Angelina's made two announcements concerning its common stock today. First, the company
announced that its next annual dividend has been set at $2.16 a share. Secondly, the company
announced that all future dividends will increase by 4% annually. What is the maximum amount you
should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return? This
is a constant growth or Gordon growth model problem. 24. The bonds issued by Manson & Son bear
a 6% coupon, payable semiannually. The bond matures in 8 years and has a $1,000 face value.
Currently, the bond sells at par. What is the yield to maturity?
PV
1,000

FV
1,000
PMT
6%/2
RATE or i/y
3%x2 = 6%
NPER or n
8x2
*Note: a bond selling at par value will have a yield to maturity equal to its coupon rate.
25. Eight months ago, you purchased 400 shares of Winston, Inc. stock at a price of $54.90 a share.
The company pays quarterly dividends of $.50 a share. Today, you sold all of your shares for $49.30
a share. What is your total percentage

H.J.Heinz: Estimating the Cost of Capital in Uncertain Times
For exclusive use at Institute of Management Technology – Dubai, 2015
UV5147
Rev. Nov. 15, 2013
H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
To do a common thing uncommonly well brings success.
–H. J. Heinz Founder Henry John Heinz
As a financial analyst at the H. J. Heinz Company (Heinz) in its North American
Consumer Products division, Solomon Sheppard, together with his co–workers, reviewed
investment proposals involving a wide range of food products. Most discussions in his office
focused on the potential performance of new products and reasonableness of cash flow projections.
But as the company finished its 2010 fiscal year at the end of April–with financial markets still in
turmoil from the onset ... Show more content on Helpwriting.net ...
Recognizing its importance to capital budgeting decisions in the firm, he vowed to do an
"uncommonly good" job with this analysis, gathered the most recent data readily available, and
began to grind the numbers.
This case was prepared by Associate Professor Marc L. Lipson. It was written as a basis for class
discussion rather than to illustrate effective or ineffective handling of an administrative situation.
Copyright  2010 by the University of Virginia Darden School Foundation, Charlottesville, VA. All
rights reserved. To order copies, send an e–mail to sales@dardenbusinesspublishing.com. No part of
this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or
transmitted in any form or by any means–electronic, mechanical, photocopying, recording, or
otherwise–without the permission of the Darden School Foundation.
This document is authorized for use only in Financial Management23 by Dr. Raj, at Institute of
Management Technology – Dubai from January 2015 to July 2015.
For exclusive use at Institute of Management Technology – Dubai, 2015
–2–

UV5147
Heinz and the Food Industry
In 1869, Henry John Heinz launched a food company by making horseradish from his mother's
recipe. As the story goes, Heinz was traveling on a train when he saw a sign advertising
21 styles of shoes, which he thought was clever. Since 57 was his lucky number,

Essay about Fi516 Final Exam Study Guide
WK 8 FINAL EXAM STUDY GUIDE The exam is comprehensive and covers Chapters 8, 14, 15,
17–23, 25, and 26; Weeks 1–7 content; and all course TCOs. 1. (TCO B) Which of the following
statements concerning the MM extension with growth is NOT CORRECT? (a) The tax shields
should be discounted at the unlevered cost of equity. (b) The value of a growing tax shield is greater
than the value of a constant tax shield. (c) For a given D/S, the levered cost of equity is greater than
the levered cost of equity under MM's original (with tax) assumptions. (d) For a given D/S, the
WACC is greater than the WACC under MM's original (with tax) assumptions. (e) The total value of
the firm is independent of ... Show more content on Helpwriting.net ...
(TCO F) Warren Corporation's stock sells for $42 per share. The company wants to sell some 20–
year, annual interest, $1,000 par value bonds. Each bond would have 75 warrants attached to it, each
exercisable into one share of stock at an exercise price of $47. The firm's straight bonds yield 10%.
Each warrant is expected to have a market value of $2.00 given that the stock sells for $42. What
coupon interest rate must the company set on the bonds in order to sell the bonds–with–warrants at
par? (a) 7.83%
(b) 8.24%
(c) 8.65%
(d) 9.08%
(e) 9.54% (Points : 20)
3. (TCO B) Reynolds Resorts is currently 100% equity financed. The CFO is considering a
recapitalization plan under which the firm would issue long–term debt with a yield of 9% and use
the proceeds to repurchase common stock. The recapitalization would not change the company's
total assets, nor would it affect the firm's basic earning power, which is currently 15%. The CFO
believes that this recapitalization would reduce the WACC and increase stock price. Which of the
following would also be likely to occur

Air France Financial Analysis
Introduction to Finance
Air France – KLM Financial Analysis.
Before reading I chose Air France as a company to analyze it financially–speaking. But, as my
major is in economy in ENPC, I will also include strategic information in this report. I based the
financial accounting on the data provided by Yahoo! Finance, which are the three statements, back
to March 31, 2007 for the oldest report base. I also reviewed some of other companies in the same
business line, especially for main indicators (EBIT, ROC, ROA, P/E...). It will be mentioned when
done so.
1. Introduction Air France–KLM is one of the major airline companies, and results of the merge of
Air France and KLM in 2005. As for any ... Show more content on Helpwriting.net ...
We can expect better |
| | | |afterwards. |
|3.Fin. Structure |Debt Ratio |0.85 |Pretty good, valuable assets |
| |Debt–to–Equity |171.1% |Seems bad, but normal for business line, |
| |Total Liabilities/Total Assets |77.6% |(high needs). |
|4. Asset Mgmt |Inventory Turnover |34.2% |Good. Shows previous good management. |
| |Total Assets Turnover |0.9 | |
|5. Various |EBITDA Margin |6.17% |Acceptable. |
| |Return On Assets |–0.29% |Compared to 2007 years, low, but in this |
| |Return On

Wall Street Essay
How is the audience positioned to see Gordon Gekko in 'Wall Street: Money Never Sleeps?'
The film 'Wall Street: Money Never Sleeps' follows the story of Jacob Moore, his partner Winnie
Gekko, and her estranged father Gordon Gekko. Director Oliver Stone uses not only characterisation
but also film techniques and symbolism to position the audience to see a certain character. The film
is set in New York in the year 2008 and is set out so it will connect with the audience of today. The
storyline of the film is based around Gordon Gekko, his family and his criminal history. Gekko is a
stock broker who had previously been sent to prison for eight years after being accused of securities
fraud and insider trading. Seven years later he releases a ... Show more content on Helpwriting.net ...
The camera is positioned behind Gordon and in his reflection you can see that he is thoughtful about
his decision. He then changes his mind about Jacob's proposition and asks Winnie for forgiveness,
which leads to a change in their relationship.
In the film 'Wall Street: Money Never Sleeps' (2010), director Oliver Stone has positioned the
audience to see Gordon Gekko as a wealthy and very powerful character but also a character with
the desire to change who he is to have a positive future. When Gordon is talking to Jacob and the
university students he is seen to be very powerful and a strong character but when Winnie is talking
to Gordon they are seen to be of the same power. Over the course of the movie, the theme of change
is portrayed when the relationship between Winnie and Gordon is mended. Stone also used film
techniques to show the changing behaviour in Gordon when he sees his unborn

Wolf Of Wall Street Sociology
The Wolf of Wall Street, directed by Martin Scorsese, takes the audience through the life of Jordan
Belfort, showing the realities of crime, rampant corruption and fraud on Wall Street and the effects
of it. He has everything and he knows it too. He didn't have to convince the average person that they
wanted to be rich. Belfort didn't start out this way, he was just like the average person, barely
making enough money to satisfy himself. He was always money hungry so he went to Wall Street,
the financial capital of the world, to become a Wall Street stockbroker. Unfortunately, after Black
Monday in 1987, he was fired from his job and forced to go to another brokerage firm on Long
Island that focused primarily on penny stocks. After his huge ... Show more content on
Helpwriting.net ...
Belfort constantly flaunts how much money he has to other characters in the film, including the FBI
agents that visit him. Even during an infomercial, he states that being rich allows you to have access
to everything you could ever want, including what could be considered a "perfect woman". There
was "no nobility in poverty" as Belfort said to his co–workers. Belfort's mentality shared a lot of
resemblance to Friedrich Nietzsche's on the idea of the "will to power" and the "master morality".
The "will to power" can be referred to man's ability to achieve, build and live to their fullest
potential. In The Wolf of Wall Street, power would be in the hands of anyone that had the most
money. Nietzsche believed that "life itself is essentially appropriation, injury, overpowering of what
is alien and weaker; suppression, hardness, imposition of one's own forms, incorporation and at
least, at its mildest, exploitation" (Nietzsche, 224). This in itself leads to the idea of the "master
morality" which was considered the noblest and favorable idea to adopt. If you had the master
morality it meant that you could have anything; Belfort was just that. Anyone with the "slave
morality" was seen as ones to be ruled over; investors in the film would be the ones with the slave
morality, with suspicion and pessimism towards their fellow man. And because of the exploitation,
the FBI steps in to take care of the investors and successfully arrest Jordan Belfort, who Nietzsche
would consider a noble man for living his life to the

Week 13 Solutions
Week 13 Solutions
Chapter 19
14. WACC – Table 19.4 shows a simplified balance sheet for Rensselaer Felt. Calculate this
company's weighted–average cost of capital. The debt has just been refinanced at an interest rate of
6% (short term) and 8% (long term). The expected rate of return on the company's shares is 15%.
There are 7.46 million shares outstanding, and the shares are trading at $46. The tax rate is 35%.
We make three adjustments to the balance sheet:
Ignore deferred taxes; this is an accounting entry and represents neither a liability nor a source of
funds.
"Net out" accounts payable against current assets.
Use the market value of equity (7.46 million x $46).
Now the right–hand side of the balance sheet (in thousands) is: ... Show more content on
Helpwriting.net ...
The immediate source of funds (i.e., both the proportion borrowed and the expected return on the
stocks sold) is irrelevant. The project would not be any more valuable if the university sold stocks
offering a lower return. If borrowing is a zero–NPV activity for a tax–exempt university, then base–
case NPV equals APV, and the adjusted cost of capital r* equals the opportunity cost of capital with
all–equity financing. Here, base–case NPV is negative; the university should not invest.
21. Issue cost and APV – The Bunsen Chemical Company is currently at its target debt ratio of 40%.
It is contemplating a $1 million expansion of its existing business. This expansion is expected to
produce a cash inflow of $130,000 a year in perpetuity.
The company is uncertain whether to undertake this expansion and how to finance it. The two
options are a $1 million issue of common stock or a $1 million issue of 20–year debt. The flotation
costs of a stock issue would be around 5% of the amount raised, and the flotation costs of a debt
issue would be around 1½%.
Bunsen's financial manager, Ms. Polly Ethylene, estimates that the required return on the company's
equity is 14%, but she argues that the flotation costs increase the cost of new equity to 19%. On this
basis, the project does not appear viable.

On the other hand, she points out that the company can raise new debt on a 7% yield, which would
make the cost of new debt 8½%. She therefore

Work Help
The future value of an investment will increase when
| | |the number of years increases. |
| | |the interest rate increases. |
| | |both a and b. |
| | |none of above. |
Question 2
When the compounding frequency increases (interest is paid more often), the future value of the
investment will
| | |increase. |
| | ... Show more content on Helpwriting.net ...
|
| | |the company's inventory is somewhat obsolete. |
| | |the company's inventory is more liquid. |
| | |the company's sales are higher. |
Question 9 The current ratio of a firm would equal its quick ratio whenever:
| | |the firm has negative liquidity. |
| | |the firm has zero debt. |
| | |the firm has zero inventory. |
| | |the ratios are calculated in such a way that they can never be equal. |
Question 10 Rollin's Corporation has a before– tax cost of debt of 12%, its beta is 1.2, the risk– free
rate is 10 percent, and the market return is 15 percent. The marginal tax rate of the company is 40%.
What is the cost of debt for Rollin's

Flash Memory
CORPORATE FINANCE
Case 1: Flash Memory, Inc.
Section B1 Group 1A
Executive Summary
As sales of Flash Memory Inc. (Flash) increases rapidly in the first few months of 2010, additional
working capital is required to ensure smooth operations and maintain their current growth rate.
However, Flash currently has almost reached its notes payable limit of 70% accounts receivables
with its current commercial bank and thus, need to look for various alternative financing means to
provide the required amount of funds it needs to finance its forecasted sales for year 2010 onwards.
This report is written to provide an insight to Flash's financial position for the following 3 years
(2010 till 2012) through the use of pro–forma income ... Show more content on Helpwriting.net ...
| 2010 | 2011 | 2012 | Cash | $3,960 | $4,752 | $4,752 | Accounts receivable | $19,726 | $23,671 |
$23,671 | Inventories | $13,865 | $16,638 | $16,638 | Prepaid expenses | $480 | $576 | $576 | Total
current assets | $38,031 | $45,637 | $45,637 | | | | | Property, plant & equipment at cost | $8,182 |
$9,082 | $9,982 | Less: Accumulated depreciation | $2,179 | $2,793 | $3,474 | Net property, plant
& equipment | $6,003 | $6,289 | $6,508 | | | | | Total assets | $44,034 | $51,926 | $52,145 | | | | |
Accounts payable | $4,799 | $5,759 | $5,759 | Notes payable | $14,176 | $16,784 | $13,188 | Accrued
expenses | $876 | $1,051 | $1,051 | Income taxes payable | $235 | $265 | $255 | Other current
liabilities | $744 | $893 | $893 | Total current liabilities | $20,830 | $24,752 | $21,146 | | | | | Common
stock at par value | $15 | $15 | $15 | Paid in capital in excess of par value | $7,980 | $7,980 | $7,980 |
Retained earnings | $15,209 | $19,179 | $23,004 | Total shareholders' equity | $23,204 | $27,174 |
$30,999 | | | | | Total liabilities & shareholders' equity | $44,034 | $51,926 | $52,145 | | | | |
Number of shares outstanding | 1,491,662 | 1,491,662 | 1,491,662 |
Additional Financing Required
Additional Financing required is calculated as the plug variable for Notes Payable using the
percentage of sales approach by varying all other accounts that change according to sales,

Coleco Case
STRATEGIC FINANCE
COLECO CASE
TOY STORY
Coleco INC. Profile
Name – Coleco Industries Time – the end of 1980s Industry – toys Market – USA Market share –
the fifth–largest manufacturer in the USA Head quarter – West HartFord, Connecticut Production
line – Cabbage Patch Kids
Plush Alf dolls and puppets Couch Potato Pals Play sets (The Flintstones,Sesame Street, Sylvanian
Families)
Company`s issue – annual sales were behind expectations negative equity position of $84 million
The challenge – to determine whether the company's capital could be restructured in a way that
would satisfy its creditors without diluting the stock any further than was necessary
Product line
Economy and Industry Analysis ... Show more content on Helpwriting.net ...
625 10.125 8.125 10.000 9.875 10.250 9.750 9.125 8.500 4.250 4.375 3.625 3.125 2.625 Close
12.125 16.000 8.375 10.375 10.500 10.625 9.750 9.375 9.125 5.500 4.625 3.875 3.500 3.000 2.500
167.24 211.28 242.17 288.36 290.10 304.00 318.66 329.80 321.83 251.79 230.3 247.08 257.07
267.82 266.37 S&P 500 Closing Bond Prices 11.13% $81.875 82.000 77.750 76.000 94.000 75.625
76.125 72.000 55.250 50.000 41.500 41.750 27.000 14.38% $90.125 101.875 100.875 99.500
96.500 95.000 95.000 98.625 96.000 94.375 68.875 63.500 50.000 54.125 34.250 S&P longterm
gov bond 40.29 48.93 58.04 60.69 51.55 52.42 51.89 50.40 47.39 47.17 50.31 49.89 51.28 53.67
52.50
"Debts" Approach
Coleco is dependent on debt through years (also successful ones) The company has a huge amount
of total liabilities (in 1987 about $ 620 mln) No resources to pay debts (Negative equity, Assets are
generally composed of Accounts receivables) Company by the moment already does not comply

with the creditors requirements
inappropriate decision
"Disengagement" Approach
The first reason for liquidation
700 600 500 400 300 Stock based insolvency
200
100 0 –100 –200 Debt Assets

Chipotle Shares: A Case Study
At the beginning of the project, I did some research and decided upon several different companies to
diversify my stock. Initially, I purchased shares with nine different companies. I purchased 18 shares
of Google at $1,090.83 each. I chose this stock because Google is a popular website, and it
encompasses other companies such as YouTube. I purchased 65 shares of Chipotle at 302.81 each,
because it was performing the best in the category of food at the start of the project. I purchased 279
shares of Michael Kors at $63.50 each, because it is a popular clothing and accessory brand. I
purchased 187 shares of Disney at 106.42, because not only is Disney popular for its movies and
parks, but also it sells merchandise. I bought 644 shares of H&R Block at $27.95 each, because it is
tax season and I assumed their value would increase due to more use. I bought 2 shares of Dollar
Tree at $105.33 each. I bought 10 ... Show more content on Helpwriting.net ...
Chipotle started off as a great investment, but slowly began to deteriorate. With the money I
received from selling my shares in Chipotle, I decided to purchase shares of Netflix, because it had
been performing well. I purchased 60 shares of Netflix at $325.33 each. I also purchased 105 more
stocks in Arcos Dorados Holdings because it was a great performer. A few weeks passed, and I
noticed that instead of going up, my portfolio was continuing to go down. On March 22, I took note
that Michael Kors stock had continuously been a "poor" performer, so I decided to sell my 279
shares for $17,434.71 total. With the money I gained from selling my shares of Michael Kors, I
invested it into 8 more stocks of Amazon for $1,550.02 each. With my remaining cash, I decided to
purchase 260 shares of American Eagle for $19.77 each, because it was the best performing retailer
at that time. I held onto all my other existing stocks in hopes that they would reclaim themselves
within the allotted time

Management Cisco Systems
Case Assignment, Chapter 6 (Short Answer)
Management
What Would You Do?
Cisco Systems, Palo Alto, California.
Your board of directors wants to know: How should Cisco grow? Your response was, "Well, the way
we've grown in the past is. . . ." "No. That's not the question. Looking backward is easy. How should
we grow in the future? Should we build or buy?" And with the next board meeting in only 3 months,
you don't have much time to come up with the answer. Cisco started in 1984 as the plumbers of the
Internet by making the switches and routers that direct data traffic over corporate networks and then
later, the Internet. Its products weren't sexy, but every company with an expanding network needed
them. So Cisco became the ... Show more content on Helpwriting.net ...
Should we focus on products that businesses buy? After all, that's who we sell to now. Or, should we
take our expertise in routers and switches and focus on consumer products? Finally, while Cisco is
growing 15 percent per year, that's down significantly from the 40 percent growth that we've had
since inception, save for 2001. So we need to identify high–growth markets and products that we
could design and build.
If we grow by purchasing technology firms with already established products or services, should we
stick to our knitting by buying firms with products and services closely related to our existing
business? Or should we diversify by buying firms that are very different from our basic business,
routers and switches? For instance, Cisco has the opportunity to acquire a firm that specializes in
technology security (spam, viruses, malware, and other Internet threats), an area in which it has no
experience. What's more likely to work and be less risky, buying firms with similar products or
services (like Cisco's) or buying firms with different products or services? Basically, should Cisco
move beyond its core business? Finally, if we do decide to buy firms with already established
products or services, how can we make sure those acquisitions work? Study after study shows that
most mergers and acquisitions have no better than a 50–50 shot of working. In other words, buy
another firm, try to merge its products and services and culture and

Inside Job Analytical Report
INSIDE JOB. " Was the 2008 MELTDOWN avoidable?"
Memorandum of Transmittal
To: Sir Azmat Ahmad Ansari From: Syeda Benazir Burhan Date: 28/2/2013 Subject: Analytical
Report on the Documentary 'Inside Job' In response to your request of 14/2/2013, I have analyzed
the documentary Inside job. I'm pleased to present enclosed report, which summarizes the financial
break down in the year 2008, described in the documentary. Based on my analysis, the subject of
Inside Job is the global financial crisis of 2008. It features research and extensive interviews with
financiers, politicians, journalists, and academics. The film follows a narrative that is split into five
parts. The film focuses on changes in the financial industry in the decade ... Show more content on
Helpwriting.net ...
It was when hundreds of S & L companies failed. The tax payers paid the cost– 124 billion for the
crisis and some, all their life's savings. Thousands of S & L execs went to jail, including Keating.
Even after what happened to S & L, Greenspan went on to become chairman of The Federal Reserve
and was reappointed by Clinton and Bush Jr. While under the supremacy of Clinton, deregulation
continued. Treasury Sec. Robert Rubin (Goldman Sachs CEO) and Larry Summers (Harvard
economics professor) were the key players of that time.
1990's

Beginning in the 1990's Financial sectors were consolidated into a few gigantic firms that were so
large, their failure threatened the whole system. On the contrary, Clinton Administration helped
them grow even larger. Deregulation and advances in technology led to an explosion of complex
financial products called "derivatives". Economists and bankers claimed that they'd make markets
safer, but in reality, they caused more instability. The Cold War ended, high tech turned to financial
markets to work with investment firms (weapons of mass financial destruction).
Many regulators, politicians, and business people "poo poo" the threat, financial innovation poses
to the industry. But the reaction was really indifferent. While by using derivatives, bankers started
gambling on virtually anything.
   
–the rise and fall of oil prices –the

Managing Strategy
ZAMBIA CENTER OF ACCOUNTANCY STUDIES Programme: Bachelor of Arts in Business
Studies Name: Mwaka Masiye Student No: 000754791 Subject: Managing Strategy (BUSI 1484)
Lecturer: M Chanakira Business Strategy Game Report (Club Zed)
Word count:2,279
INTRODUCTION Club Zed Inc. is an athletic footwear company which operates globally and is
specialized in manufacturing, distributing and marketing athletic footwear. It has its operations in
four geographic market regions namely; Europe–Africa, Asia–Pacific, Latin America and North
America.
STRATEGY In our five year plan we decided to use the Differentiation strategy, Differentiation
involves providing a product or service with higher perceived value than its competitors (Scholes el
al, ... Show more content on Helpwriting.net ...
Appendix 1 and 3 show the summary of the decisions we made in year 12. Based on our decision
our return on equity rose from 7.60%(year 11) to 25.40% in year 12, our stock price increased from
16% to 78% and also our image rating went up to 83 from 63 not forgetting our earnings per share
which increased from $1.20 to $4.77 in year 12, see appendix 1 and appendix 4 for summary of the
company performances. We managed to increase our net revenues in year 12 from $215 to 318, see
appendix 2 for the net revenues. As shown below:
Revenue 318, Roe 25.40%, Esp. $4.77, Stock price 78, Credit rating A, Image rating 83
In year 12 our company was matching up, our revenues increased, our credit rating increased, we
were now above our investors' expectations which was a good start for the company. See appendix 1
and 4.
YEAR 13 In year 13, I and my co–managers were clearer and focused having had more experience
and hence, ready to take up differentiation. I and my co–managers further made an increment on the
S/Q rating which increased to 7%. We channeled more resources into marketing this lead to an
increase from year 11 from 35–38–39%. We

Free Cash Flow and Corporate Valuation Model
Assignment Chapter 15
True/False
Indicate whether the statement is true or false.
_F___ 1. The corporate valuation model cannot be used unless a company doesn 't pay dividends.
_T___ 2. Free cash flows should be discounted at the firm 's weighted average cost of capital to find
the value of its operations.
_F___ 3. Value–based management focuses on sales growth, profitability, capital requirements, the
weighted average cost of capital, and the dividend growth rate.
_F___ 4. Two important issues in corporate governance are (1) the rules that cover the board 's
ability to fire the CEO and (2) the rules that cover the CEO 's ability to remove members of the
board.
_F___ 5. If a company 's expected return on ... Show more content on Helpwriting.net ...
If the weighted average cost of capital is 15%, what is the firm 's value of operations, in millions? a.
| $948 | b. | $998 | c. | $1,050 | d. | $1,103 | e. | $1,158 |
____ 16. Suppose Leonard, Nixon, & Shull Corporation 's projected free cash flow for next
year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company 's weighted
average cost of capital is 11%, what is the value of its operations? a. | $1,714,750 | b. | $1,805,000 |
c. | $1,900,000 | d. | $2,000,000 | e. | $2,100,000 |
____ 17. Zhdanov Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be –$10
million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant
rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm 's value of
operations, in millions? a. | $158 | b. | $167 | c. | $175 | d. | $184 | e. | $193 |
____ 18. Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average
cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0
value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and
beyond (and do not make any half–year adjustments).

Year: | 1 | 2 | Free cash flow: | –$50 | $100 |
a. | $1,456 | b. | $1,529 | c. | $1,606 | d. | $1,686 | e. | $1,770 |
____ 19. A

Stereotypes Of Stock Characters In Film And Modern Family
A stock character is a fictional character in literature, film, theatre or television that is based on a
stereotype that is familiar to many people. Stock characters rely heavily on cultural types, manner of
speech, and other characteristics. They are an important component of any play or story because it
provides relationships and interactions that people will recognize immediately. People can
summarize the characters' role in the story in a sentence or less and people will know exactly what
you are talking about. They vary from widely known cultural types and mannerisms, and every
culture has its own set of stock characters. An example of a stock character is a Jewish Mother. She
nags, is overprotective and is a controlling figure.
Stock ... Show more content on Helpwriting.net ...
One reason is because all the characters are stock characters.
The audience can be very entertained by "The Soldier "in Roman comedy because he is not bright
and easily misled by flattery, which makes his character pretty hilarious to watch. He is always
chasing after women, even if they are married, he thinks he is extremely handsome, and believes
that all of the women are in love with him. This character is very amusing to watch because he is so
"airheaded" that he could never actually be a real and respected soldier in an army.
The Slave in Roman comedy also plays a very large part in the humor aspect of the show. He may
not seem like a stock character in this present style of sitcoms, but back then the slave was a very
popular character. He is very smart, clever, always up to some scheme, and he is always plotting to
be made free. I find this very ironic because the slave should be the character who is dumb and
stupid but instead, he portrays himself as the one with the higher status rather than lower status
because he knows that he is smarter than the soldier and he always succeeds when he tricks the
Soldier into doing

Fedex Corp. vs United Parcel Service, Inc Case Study
I. Executive Summary
In this report we focus on the two main competitors in the package delivery industry: Federal
Express Corporation (FedEx) and United Parcel Service of America, Inc.
Studying FedEx, UPS and their competitive relationship in the decade from mid – 80's to mid – 90's
gives a good insight for the companies' and industry's future. The two companies have different
strategic goals and are operating in the same industry but in different main markets: FedEx is
working on "producing outstanding financial returns" and focuses on the overnight air market while
UPS is looking for "earning reasonable profit" and its core business is the two–day ground delivery.
However, by 1981, the two companies started to have a strong sense ... Show more content on
Helpwriting.net ...
In addition to that, FedEx came up with new services such as Saturday deliveries, delivery by 10:30
A.M., customer interfaces (drop boxes, drive through stations and express delivery stores) and same
day pickup of order. This is to distinguish its services. More on that, FedEx's philosophy of "People–
Service–Profit" was successful in insuring a union free workforce devoted to customer focus. In
1978, deregulation in transportation helped FedEx to acquire larger planes therefore achieve lower
cost. Trade deregulation in Asia–Pacific enabled FedEx to expand further. The acquisition of Gelco
express, Tiger International, and establishment of Airport Hub in Brussels expanded FedEx
internationally. Inflation and rising global competitiveness generated the need for "just–in–time"
supply model, which was the advantage supported by FedEx advanced technologies.
Some inhibiting factors were the competition that has heavily evolved as a number of competitors
(e.g. Emery, USPS, and UPS) entered the overnight delivery market as well as imitate other FedEx
new services. More on that, they were able to acquire similar IT solutions with lower costs and as a
result presented these services with cheaper prices. Moreover, in the attempt to expand
internationally, some acquisitions were over–priced and revealed insufficient market studying.
Europe low demand that resulted in the shutting down of Brussels hub as well as Tiger international
operations caused a loss of $1 billion

D'Leon Case
D' Leon Inc., Case part I
Jayline Benitez
Alexander J. Uribe
MGM 6620 Managerial Finances
Juan M. Ramirez
Polytechnic University of Puerto Rico
Abstract – Donna Jamison, a 1995 graduate of the University of Florida with four years of banking
experience, was recently brought in as an assistance to the Chairman of the board of D'Leon Inc., a
small food producer that operates in north Florida and whose specialty high–quality pecan and other
nut product sold in the snack–food market. D'Leon's president, Al Watkins, decided in 1999 to
undertake a major expansion and to "go national" in competition with Frito–Lay, Eagle, and other
major snack–food companies. Watkins felt that D'Leon's products were of a higher quality than the
... Show more content on Helpwriting.net ...
It can be concluded that the expansion has decreased MVA because one can see the reduction in the
stock price by over 73%.
% of decrease or increase = ($8.50 – $2.25) / $8.50 = 73.53%
d) D' Leon purchases material on 30–day terms, meaning that it is supposed to pay for purchase
within 30 days of receipt. Judging from its 2005 balance sheet, do you think D' Leon pays suppliers
on time? Explain. If not, what problems might this lead to?
The Company records indicate that they did not pay their suppliers on time. Also the accounts
payable balance swelled by 260% from yester annum, however the sales managed to pull up only
76%. The company is jeopardizing its relationship with the suppliers, this can lead the suppliers to
cut off the company and put it into bankruptcy against the Company if the company continues with
late the payments.
e) D' Leon spends money for labor, materials, and fixed assets (depreciation) to make products, and
still more money to sell those products. Then, it makes sales that result is receivables, which
eventually result in cash inflows. Does it appear that D' Leon's sales price exceeds its cost per unit
sold? How does this affect the cash balance?

No, it does not appear that D' Leon's sales price exceeds its cost

Essay on Stock Market and Paramount
Case Study Questions –Paramount Communications Inc. 1993–
Why a paramount is a takeover target?
Several Strategic Reasons
– Cost reduction: through combinations of similar business and economy of scales
– Sales increase: a) cross–promotions of each company's brand and utilization of each company's
channels, and b) cooperation in international businesses.
2. Which of the two firms (Viacom or QVC) would make a better fit with Paramount?
–Viacom: Overlap in the business creates synergies regarding cost and revenue. However,
cannibalisation may happen in the near future.
–QVC: Small rooms for synergies (cost reductions may be limited to non–business section.).
Volatility may high regarding the realisation of ... Show more content on Helpwriting.net ...
5. What is Paramount worth to Viacom?
– Theme park (cross–selling)
– Film Library/Film Distribution Business
6. What is Paramount worth to QVC?
– New business opportunities in Entertainment
– Film Library/Film Distribution Business
7. Compare your valuation with Smith Barney's. What assumptions do you have to make to get the
terminal value EBITDA multiples used by Smith Barney. Is there any benefit of their method
relative to FCF method?
Smith Barney is using EBITDA of 14 to 16X. Since EBITDA multiple tends to revert to a certain
level over the year, we need to assume that the market will keep pricing the company at the same
level of 1993.
The merits of EBITDA multiples:
–They don't need to assume the perpetual growth rate which is hard to calibrate but has substantial
impact on pricing.

–They can ignore the capital structure change
–Easier to understand (it is "market consensus")
8. What doe 30% premium suggest? Is it reasonable?
30% of premium over the market price may be reasonable given;
a) control premium
b) the nature of takeover (it can be considered as "Insider Trading", and to avoid litigation by
shareholders, an acquirer may need to pay premium)
c) consideration of synergies through a takeover.
9. How should Redstone proceed? What price should he offer? Should the offer be a cash offer, a
stock offer, or

JORDAN BELFORT Biography
JORDAN BELFORT Biography / Background
Nicknamed "the Wolf of Wall Street," Jordan Belfort made millions in the 1990s through his
investment company, Stratton Oakmont. His memoir is the basis for the 2013 Martin Scorsese film
The Wolf of Wall Street, starring Leonardo Dicapro.
Born in Queens, New York, on July 9, 1962, Jordan Belfort had a natural talent as a salesman at an
early age, operating a meat and seafood business in the 1980s. After that company went bust, Belfort
began selling stocks in 1987. He was running his own investment operation, Stratton Oakmont, by
1989. The company made millions illegally, defrauding its investors. The Securities Exchange
Commission began efforts to stop the company's errant ways in 1992. In 1999, ... Show more
Life After Prison
In 2008, Jodran Belfort published his memoir, The Wolf of Wall Street, using one of his nicknames
as the title. The book explored his meteoric rise and explosive crash in the financial world. The
following year, Belfort released a second memoir, Catching the Wolf of Wall Street, which detailed
his life after his arrest. In 2013, a film adaptation of The Wolf of Wall Street, directed by Martin
Scorsese and starring Leonardo DiCaprio as Belfort, hit the big screen.
These days, Belfort lives in Los Angeles, California, to be close to his two children, Chandler and
Carter, from his second marriage. He now operates his own company, which provides sales training
and markets Straight Line training programs aimed at building wealth. Belfort claims to have
straightened up his act. In an interview with the Daily Mail, he explained, "I'm a wolf who became a
more benevolent character." Belfort has reportedly paid $14 million of the $110 million fine against
him.
JORDAN BELFORT Considered as a Leader
JORDAN BELFORT was a born entrepreneur. When he was eight years old he had a newspaper
round where he was knocking on people's door and making money and building that up and then he
sold that when he was 10. When he was 12 years old he was shovelling snow in driveways and
making 20 bucks per person – they had a lot of snow in the winter and he made a few hundred bucks
out of that.
When he was 16 he hit it big for the first

Mid Term Securities Analysis Essay
Grading Summary These are the automatically computed results of your exam. Grades for essay
questions, and comments from your instructor, are in the "Details" section below. | Date Taken: |
5/25/2012 | Time Spent: | 2 h , 45 secs | Points Received: | 161 / 210 (76.7%) | | Question Type: | #
Of Questions: | # Correct: | Multiple Choice | 8 | 7 | Essay | 5 | N/A | | |
Grade Details |
1. | Question : | (TCO D) Find the current dividend on a stock, given that the required return is 8
percent, the dividend growth rate is 5 percent, and the stock price is $50 per share. | | | Student
Answer: | $1.75 | | | $2.00 | | | $1.25 | | | $1.43 | | | | Comments: | | | | 2. | ... Show more content on
Helpwriting.net ...
The annual dividend growth rate is 6.93 percent, and the required rate of return on the stock is 10.25
percent. Calculate the current price of the stock. Do not use a financial calculator or an online
calculator. You must show your work. | | | Student Answer: | | To calculate the current price of a stock
we use the following formula P=D1/k–g P=4.66/(.1025–.0693)= $140.36 | | | | Comments: | | | | 11. |
Question : | (TCO D) Company XYZ is expected to grow at 10% annually forever, and its dividend
in the next 12 months is expected to be $2.50, and its required rate of return is 17.5%.
a. What is its intrinsic value?.
b. If the current price is equal to its intrinsic value, what is next year's expected price?.
c. Assume you buy the stock now and sell it after receiving the $2.50 dividend one year from now.
What would be your anticipated capital gain in percentage terms? .
What is the dividend yield and the holding period return?. | | | Student Answer: | | a) V0= D1/k–g =
2.50/(.175–.10) = 33.33 b) The dividend in year 2 will be D2= 2.50(1.10)=$2.75, therefore P1=
2.75/(.175– .10)= $36.67 c) 36.67–33.33=3.34, capital gain percentage will be 3.34/33.33= 10.02%,
the dividend yield will be 2.50/33.33=7.5% | | | | Comments: | | | | 12. | Question : | (TCO E) In the
past 10 years, Behavioral Finance has begun to explain the qualitative side of market movements
and investor decisions. Explain the concept and

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