Jenny Yu, the owner of the Honey Coffee Shop chain, has decided to expand her operations. Her 2007 financial statements follow. Jenny can buy two additional coffeehouses for $3 million, and she has the choice of completely financing these new coffeehouses with either a 10 percent (annual interest) loan or the issuance of new com
Integrative Problems and Virtual Organization Strategy Paper Resources: Financial Management: Principles and Applications, student Web site, Electronic Reserve Readings, Internet Prepare response to the following problem: Integrative Problem Memo Questions 1-4 (Ch. 22) of Financial Management: Principles and Applicatio
The merger between Oracle and Sun would definitely add shareholder value to both corporations. Since the merger, profitability has increased 25%, the merger has far exceeded the expectations of the company's shareholders. Collectively, Oracle and Sun's merger offers "customers unmatched benefits, including excellent system availability, scalability, energy efficiency, powerful performance, and low cost of ownership." (Oracle, 2010). The impact of Sun shareholders was a negative one because Sun was de-listed from NASDAQ and stock holders were forced to receive cash payouts via USPS. The merger will allow Oracle to combine resources with Sun thus creating a stronger brand in the competition. "For Oracle shareholders, the acquisition of Sun gives Oracle key resources for long-term growth. Sun is the world's No. 4 server maker and has a number of the most high quality and recognizable brands in the tech business. Oracle now owns the coveted JAVA programming language, Solaris operating systems, SPARC processors and MySQL database, all of which will strengthen its portfolio of middleware and business applications." (Scott, 2010).
He merger between Oracle and Sun would definitely add shareholder value to both corporations. Since the merger, profitability has increased 25%, the merger has far exceeded the expectations of the company's shareholders. Collectively, Oracle and Sun's merger offers "customers unmatched benefits, including excellent system avai
Analysis of Delta Airlines and Southwest Airlines which includes ratio analysis and price comparison chart.
(a) Select two competing companies (publicly traded) to analyze for the most recent year financial data is available. (b) Compute the following liquidity ratios for each of the companies, and comment on the relative liquidity of the two competitors. i) Current ratio. ii) Receivables turnover. iii) Average collection period.
Can you help me get started with this assignment? 1. List and define three types of M&As. Explain how they work. 2. Provide two different theoretical explanations for how value can be created through M&As. Provide one theoretical explanation for how value can be destroyed through an M&A. 3. Describe the main steps in th
> Discuss reasons why an M&A fails, such as technical and legal insolvency, and bankruptcy. > Consider what happens to the stakeholders, company image, price-per-share, market share, company assets, industry position, goodwill, and service capability. Once the failure of an M&A occurs, what happens to assets of both companies?
Verizon sought to acquire Alltel, by joining forces however; Verizon has agreed to pay $5.9 billion in addition to assuming an insurmountable debt of about $22.2 billion. The upward side to the acquisition is the wide array of consumers Verizon will acquire as a result, thus creating one of the world's largest and most successful wireless carriers in the country. The acquisition is thought of (by Verizon executives) as a means to generate substantial revenue, increased ROI (Return-On-Investment), expand globally, and acquire new consumers while retaining current consumers. The acquisition could not have come at a more crucial time for Alltel, seeing as though the company was dealing with financial troubles as a result of a buy out from TPG Capital and GS Capital Partners (subdivisions of Goldman Sachs). Consequently, the company was having trouble with selling the debt they accumulated (as a result of the buyout aforementioned) in order to finance the acquisition. Alltel, sought assistance from various banks and were unsuccessful in their efforts, nevertheless, Verizon intercepted Alltel's search for financing and decided to pay $5.9 billion and acquire the remaining debt balance. Although, the acquisition, at first glance appeared to be more of a liability than an asset, the acquisition turned out to be a win/win for all parties involved. Alltel was able to reposition themselves in the marketplace by glomming onto a telecommunications giant in the wireless industry. Their efforts to combine forces and exchange resources allowed Verizon to strengthen their marketability and improve their status within their wireless industry.
Verizon sought to acquire Alltel, by joining forces however; Verizon has agreed to pay $5.9 billion in addition to assuming an insurmountable debt of about $22.2 billion. The upward side to the acquisition is the wide array of consumers Verizon will acquire as a result, thus creating one of the world's largest and most successf
Assets 1 and 2 These assets were purchased as a lump sum of $104,000 cash. The following information was gathered. Desc: Intial cost of depre. to date Book Value on Appraised Value sellers books on seller's book Seller's books Machinery $100,000 $50,000
Analyze risks associated with the M&A strategy my company is the merge of The Walt Disney company/Miramax. Address the following: I am just having problems with these two questions o Were there any contingency plans or options that should have been anticipated or used for this strategy? If there are any, what would you have
Whether an individual is new to the world of leadership or an experienced leader, it is a fair assessment to assume that managers old and new must work towards perfecting and honing their skills through a management training program. In today's corporate world where the competition is razor sharp and an individual's ability to succeed in corporate America is predicated upon a managers performance, measure of productivity, competency and level of leadership skills. As changes occur, management repositions themselves in the marketplace in order to meet consumer demands, gradually adjusting to a rapidly changing industry. Change is defined as pervasive influence, where all aspects are subject to continual change of one form or another. Piderit, S.K. (2005) argues that, change is an inescapable part of both social and organizational life. The concept of organizational change is in regard to organizational-wide change, as opposed to smaller changes such as adding a new person, modifying a program, and the like. Examples of organization-wide change might include a change in mission, restructuring operations (e.g. restructuring of self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, and rightsizing.
Whether an individual is new to the world of leadership or an experienced leader, it is a fair assessment to assume that managers old and new must work towards perfecting and honing their skills through a management training program. In today's corporate world where the competition is razor sharp and an individual's ability to
What are three reasons for failure of pursuing a specific M&A strategy? Provide an example. What was the financial effect on the stakeholders of the failed M&A?
The project is on The Walt Disney Company / Miramax Films I just need help with part 7 5. Discuss the M&A's strategies along with pros and cons, detailing why it was used, opposed to another strategy. As an example, why would a spin-off make more sense for the company, as opposed to a divestiture? 6. Describe th
1. Indicate and justify your choice of 5 (five) of the Strongest rationale for acquisitions. 2. Indicate and justify your choice of 5 (five) of the Weakest rationale for acquisitions. 3. Give 3 (three) examples of real-world acquisitions that were Successful because they used strong rationale (Must Indicate compani
Pauly Corporation purchased for cas 6,000 shares of voting common stock of Stapleton Corporation for $16 per share on July 1, 2006. On this date, Stapleton's equity consisted of $100,000 of $10 par capital stock, $20,000 retained earnings from prio periods, and $10,000 current earnings (for one-half of 2006). Stapleton's inc
Use various internet search engines such as news.google.com for the latest news on this merger. Look at the webpages for Yahoo and Microsoft. Then write a five page paper answering the following question: Do you think a merger between Oracle and SUN would add value to the shareholders of both corporations? In your answe
1. Bank Mergers There has recently been a wave of mergers between banks such as JP Morgan and Washington Mutual, Wells Fargo and Wachovia, etc. What difficulties do you think the acquiring banks will face in the next few years trying to make these mergers work? 2. Organizations as Political Systems There's a body of li
See the attached file for the full problem: I need explanation only in number 17. 17. Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1,2009, Abernethy's land had a fair value of $90,000, its buildings were valued at $160,000, and its equipment was appraised at $180,000. Ch
See attached files. Imagine you are a midlevel sales manager at InterClean, Inc. with three first-level managers under your responsibility. In response to a merger that is about to take place with EnviroTech, you have been instructed to draft a memo to your supervisory team about the importance of the behavior exhibited by ma
See attached file. Prepare adjusted income/retained earnings amounts for the beginning of the period, 2007, and show changes to get to the end of period. Prepare the statement of changes in owner's equity. Include required note disclosures for the owner's equity section. · Review the following
Harrod's PLC market value of £600 million and 30 million shares outstanding. Selfridge Department Store has market value £200 million and 20 million shares outstanding. Harrod's is contemplating acquiring Selfridge. Harrod's CFO concludes that the combined firm with synergy will be worth £1 billion, and Selfridge can be acqui
Assume you were just promoted to be the VP in charge of corporate strategy of a company listed on the NASDAQ with annual revenues of approximately $250 million. You received an increase in salary, received a bonus, and special grant of stock. Your bonuses were equal to your annual salary and you received restricted shares equal
Mini Case: Valuing ConocoPhillips' acquisition of Burlington Resources a) Using the method of multiples based on enetrprise value to EBITDAX, the P/E ratio and the enterprise value to EBITDA ratio, what should the acquisition price be for Burlington Resources shares? Use the following companies as comparables for your an
When a company acquires another company, when divisions merge, or when corporations merge, what are some of the potential problems will they encounter with the management and integration of their respective technology and data processing systems?
Tax Investments, Inc., is considering a cash acquisition of Bubba Brewing Co. for $202 million. Bubba Brewing will provide the following pattern of cash inflows and synergistic benefits for the next 20 years. There is no tax loss carry-forward. Years 1-5 6-15 16-20 Cash inflow (aftertax)
Acquisition Costs of Realty - The following expenditures and receipts are related to land, land improvements,
E10-1 (Acquisition Costs of Realty) the following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(275,000) (b) Payment for construction from note p
See attached files. 4-32 Father, Inc., buys 80 percent of the outstanding common stock of Sam Corporation on January 1, 2009, for $680,000 cash. At the acquisition date, Sam's total fair value was assessed at $850,000 although Sam's book value was only $600,000. Also, several individual items on Sam's financial records had fa
See attached files. 3-26 Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2013. Several of Mergaronite's accounts have been omitted. Credit balances are indicated by parenthesis. Mergaronite Hill Revenues............................................ (600,000) (250,000) Cost of
True or False. Please include a sentence or two of explanation. 1. The more widely held is the stock of a company the more likely is entrenched management to maximize its own self-interest rather than that of shareholders. 2. As the percentage of stock held by institutional investors increases, maximization of profit is
Moon Co. Inc., made several purchases of long-term assets in 2009. The details of each purchase are presented here. New Office Equipment 1. List price: $60,000; terms: 2/10 n/30; paid within discount period. 2. Transportation-in: $1,600 3. Installation: $2,200 4. Cost to repair damage during unloading: $1,000 5. Routine
The Chocolate Ice Cream Co. and the Vanilla Ice Cream Co. have agreed to merge and form the Fudge Swirl Consolidated. Both companies are exactly alike except that they are located in different towns. The end-of-period value of each firm is determined by the weather, as shown below. There will be no synergy to the merger. S