Purchase Solution

Capital Mortgage Insurance Corporation

Not what you're looking for?

Ask Custom Question

Dear OTA,
I am asking for your assistance again with a case study. I hope you can assist. I need 2 or 3 pages answering the following questions to complete my assignment.
THANK YOU (Sorry same doc attached 2x's )

1. Analyzed and explained what CMI and CTS bring to the negotiation table.

2. Analyzed and described the personalities and the expected styles of the key negotiators.

3. Evaluated CMI's preparation and determined whether it has enough room to ake concessions.

4. Analyzed and explained how well CMI had prepared itself and if there was anything they left out.

5. Determined and described CTS's possible reaction to the offer.

Thank you so much! Case study attached

Attachments
Purchase this Solution
Solution Summary

Capital Mortgage Insurance Corporation is discussed in great detail in this solution.

Solution Preview

Step 1
CMI and CTS bring to the table their respective offer and the value of their firm. Specifically, CMI brings to the table an offer of $820,000. CTS brings to the table a book value of $420,000, and the goodwill of the firm. The CMI bid is for 100 percent of the ownership of the company. In addition, the $2 million in outstanding notes will pass through to the new company owned by CMI. Further, CMI will agree to retain Tom Winder as CTS' general manager. Finally, CTS will be moved to the office of CMI in Philadelphia.

Step 2
The personalities of Randall and Nolan are such that they have carefully analyzed the exact position of CTS. They have considered its financial position. They have found that CTS was not performing in accordance with the expectations of its shareholders. It was not performing to the liking of its key personnel. The negotiation strategy that will be used by CMI will be a collaborative negotiation(a). The style will enable CTS to get a fair deal and at the same time CMI will be able to takeover CTS by paying a reasonable premium for ...

Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Taxable gain/loss for sale of various types of assets

    The boat is stolen and Nina receives insurance proceeds of $12,500. 34. Alton owns stock in Dove Corporation. His adjusted basis for the stock is $85,000.

  • subprime mortgage crisis

    The financial institutions were compelled to lower the value of their mortgage backed securities and get extra capital to maintain capital ratios. To get this extra capital the financial institutions raised capital by issuing shares.

  • Eagle Sales Company owns a warehouse that burns down ...

    Separately, Eagle and First National obtain insurance policies from Good Hands Insurance, Inc., to cover the warehouse. Later, Eagle sells the property to Interstate Distribution Corporation but keeps the insurance policy.

  • Accounting Review Questions

    What is Gerald Germain's basis in an S corporation assuming he is the sole shareholder and his capital account has a balance of $15,000, the corporation has $5,000 in liabilities, $2,000 in previously taxed income, and $1,000 in accumulated earnings and

  • Comfort Corporation

    First-Mortgage bonds can be sold at a pretax cost of 14%. The firm's marginal tax rate is 40 percent. Calculate the cost of capital for the funds needed to meet the expansion goal.

  • Financial Accounting

    Insurance Expense 3. Supplies 4. Common Stock 5. Accounts Payable 6. Salaries Payable 7. Dividends 8. Accounts Receivable 9. Prepaid Insurance 10. Mortgage Payable PART V ?

  • Reducing risk through insurance

    (including extending to directors and officers), merger & acquisition insurance, mortgage guaranty, and many others.

  • Roger Grocery Inc - Measure Liquidity

    Sales $1,880.00 Accumulated depreciation: equipment 370,000 Notes payable (due in 90 days) 70,000 Retained earnings 241.32 Cash 67,600 Capital stock 150,000 Marketable securities 175,040 Accounts payable 127,500 Mortgage payable (due in 15 days

  • Comfort Corporation

    First mortgage bonds can be sold at a pretax cost of 14 percent. The firm's marginal tax rate is 40 percent. Calculate the cost of capital for the fund needed to meet the expansion goal. Cost of capital 10.

  • Computing Taxable Income and Tax Due or Refund

    is $30,000) sold for 14,000 Life insurance proceeds received on the death of her mother 100,000 Expenses: Home mortgage interest 6,000 Property taxes on home 2,000 Charitable contributions 7,000 Qualifying child care expense 3,700 Federal income

View More Related Solutions