FIN-516 – WEEK 2 – MINI – CASE ASSIGNMENT 1. What is the name of the company? What is the industry sector? General Electric Industrial Goods 2. What are the operating risks of the company? 3. What is the financial risk of the company (the LT debt to total capitalization ratio)? Debt to equity = Total debt ÷ GE shareowners’ equity = 11‚589 ÷ 116‚438 = 0.10 4. Does the company have any preferred stock? (shares/book value/market price and value) GE does not have any preferred
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Case Study Case 1-4. X-Philes Data Management Corporation: RFP matters Question 1 We think that the future additional contract with another customer can cause an overload of workers who already have to work long hours and weekends completing Scully and Mulder projects. It can lead to decrease of quality of work and delays of projects completion‚ which in turn will be a reason of lost of the bonus and probable penalties in the work with Scully project. Question 2 The crisis facing Yrisket will
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Mergers and Acquisitions “Mergers and Acquisitions” or “M&A” is a general business term‚ which refers to transactions that result in the consolidation of companies. A merger is a combination of two companies to form a new company‚ whilst an acquisition occurs when one company purchases another‚ therefore does not form a new company. By its nature‚ a merger suggests the combination of two businesses under a mutual accord. The decision to merge is made by the management / board of each company
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Alternatives To do nothing Continue using printed ads‚ promotional events and direct marketing. Since there is a great success experience in printed ads and direct marketing in prior 4 years‚ this may continue helping MINI USA succeed. Pros: -Prior success experience - Easy to touch “right” consumer - Can recall or hold the information of ads because people can read it anytime‚ such as slogan‚ website links - Easy to change information‚ such as promotion offer‚ sales price Cons: -Subscribers
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actually benefit from this‚ earning a higher return would allow them to invest on their own in financial markets. Shareholders want the companies to invest only in projects for which the return on capital is at least as great as the cost of capital. 2. What questions do the financial ratios suggest that Ms. Platt and Mr. Green need to address during their meeting with HH Management. Some questions Ms. Platt and Mr. Green need to address during their meeting with HH management is the asset turnover
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Why has Wal-Mart viewed international expansion as a critical part of its strategy? Wal-Mart has viewed international expansion as a critical part of its strategy because of a number of reasons. First‚ Wal-Mart saw the potential for increased profits and sales in new markets.“After rapid expansion during the 1980s and 1990s‚ Wal-Mart faces limits to growth in its home market and has been forced to look internationally for opportunities”(Ball‚ 2007). Second‚ Wal-Mart saw the need “to protect their
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The keys to the company’s future value and growth are profitability (ROE) and the reinvestment of retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15% for the five years from 2006 to 2010. If Reeby Sports will lose its competitive edge by 2011‚ then it cannot continue earning more than its 10% cost of capital. Therefore ROE is reduced to 10% starting in 2011. The payout ratio is set at .30 from 2006 onwards. Notice that the long-term growth rate
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Chapter 6 (11ed. Ch.)4 Risk and Return: The Basics MINI CASE Assume that you recently graduated with a major in finance‚ and you just landed a job as a financial planner with Barney Smith Inc.‚ a large financial services corporation. Your first assignment is to invest $100‚000 for a client. Because the funds are to be invested in a business at the end of one year‚ you have been instructed to plan for a one-year holding period. Further‚ your boss has restricted you to the following investment
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strategy‚ along with their strategic‚ organizational‚ and technical issues in management and use of IT. Topics include IT and business strategy alignment‚ IT-enabled business process reengineering‚ IT outsourcing‚ e-commerce technology and management‚ big data analtics and IT project management. Emphasis of the course is on how IT can contribute to organizational effectiveness. Particpants are expected to understand impacts of information technologies on organizations‚ grasp how to achieve competitive
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MINI-CASES I. Belmont State Bank Belmont State Bank is a large bank with hundreds of branches that are connected to a central computer system. Some branches are connected over dedicated circuits and others use the dial-up telephone network. Each branch has a variety of client computers and ATMs connected to a server. The server stores the branch’s daily transaction data and transmits it several times during the day to the central computer system. Tellers at each branch use a four-digit numeric
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