...1. Should the Board of Directors of Dixon Corporation approve the purchase of the Collinsville plant from American Chemical? The plant location and sodium dioxide product is a good fit for Dixon. Dixon could use its existing infrastructure for Collinsville’s products and it fits well with Dixon’s overall strategy. However Dixon’s future success does not hinge on this deal. This deal financially is dependent on two things: the capital structure of the company and the viability / installation timing of the laminate technology. We believe the capital structure should be 10% debt to match the structure of the comparable NaCl producers like Brunswick and Southern. Without the laminate, this is not a financially sound deal. With the laminate, this is an attractive deal. The laminate development plan, however, is very aggressive and we feel there is too much risk of possible installation delays (or technology issues) which outweighs its possible financial benefits. Therefore, in summary, we would NOT recommend this purchase. 2. What is the cost of capital (WACC) for the Collinsville plant? We assumed that the target capital structure based on comparable companies is 10% debt. The calculated WACC is 16.88%. 3. What are the relevant cash flows for the Collinsville plant? Please see the attached financial analysis for FCFcap for details. We calculated EBIAT using an implied 48.7% tax rate from Dixon’s financials and added back in depreciation, Capx, and net working...
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...Dixon Ticonderoga Victim of Globalization [pic] [pic] by Tapiwa Chibota & Clay Clifton Afro American Dixon Ticonderoga – Victim of Globalization Date: Class Name: Instructor Name: Contents Executive Summary 3 Situation Analysis 4 Research 5 Strategic Alternatives 6 Recommended Strategy 8 Implementation 9 Appendix 1 10 Appendix 2 11 Work Cited 12 Executive Summary “ We are moving rapidly away from a world in which national economies were relatively self-contained entities, isolated from each other by barriers to cross-border trade and investment; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems.”(Hill, 4). The company was founded in the 1870 by Joseph Dixon as The Joseph Dixon Crucible Company. He introduced the No. 2 yellow pencil to the United Sates, and came to be the world’s largest dealer, and consumer of graphite world wide What began as a small business in Salem, Massachusetts with the discovery of graphite as a stove polish and an additive in lubricants, foundry facing, brake linings, oilless bearings, and non corrosive paint and manufactured lubricants soon expanded nation wide with annual revenues of a hundred million dollars and more. In 1982 Joseph Dixon Crucible merged with Bryn Mawr Corporation forming the Dixon Ticonderoga Company (www.dixonusa.com). However, in 1990 business was not as easy (refer to Appendix...
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...DIXON TICONDEROGA- Victim of Globalization? In today’s world, national economies are no longer self-contained with restrictions of the past whether it is by time zones, language, culture and differences in government restrictions. Dixon Ticonderoga Company being one of the oldest public companies in the United States is known predominantly for its No. 2 yellow pencil which was introduced in 1913. They were recognized as the second largest pencil manufacturer in the country at that time with annual revenues amounting to a little over $100 million dollars. (fundinguniverse.com) Within the 1990’s, Dixon was threatened with foreign competition where the Chinese began dumping pencils on the U.S market. Eventually, antidumping duties were placed on Chinese pencils, raising their prices in the process. This tactic by the American government proved futile as the Chinese produced a better product which continued to flood the US market. Trading has become much easier as barriers keep falling and businesses are now finding more opportunities internationally with the shift towards globalization. The Dixon Ticonderoga Company realized that this venture was going to improve sales and open new avenues for their slowly declining business. The company lost over $200 million dollars worth of business between the period of 1991 and 1999 leading them to explore cheaper ways in which to produce pencils, lower costs and eventually improve overall business. Steps included finding wood for production...
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...Maresca had co-written Dion's previous # 1 hit, "Runaround Sue", but originally intended "The Wanderer" to be recorded by another group, Nino and the Ebbtides. They passed on it in favour of another Maresca song, so Dion was given it as the B-side of his follow-up single, "The Majestic", a song which his record company had chosen for him. The record was turned over by radio DJs who preferred "The Wanderer", which duly entered the US charts in December 1961 and rose to # 2 in early 1962. It also reached # 10 in the UK and # 1 in Australia. The song was recorded with an uncredited background vocal group, the Del-Satins, in a rockier style than Dion's earlier hits with the Belmonts. The Del-Satins were an established doo-wop group led by Stan Ziska (later known as Stan Sommers), who at the time were also contracted to Laurie Records, and who later formed the core of Johnny Maestro & the Brooklyn Bridge. Musicians on the original recording included Bobby Gregg, Bucky Pizarelli and Johnny Falbo on guitars, Jerome Richardson on alto sax, Buddy Lucas on tenor sax, and Panama Francis and Sticks Evans on drums.[citation needed] Dion said of "The Wanderer":[2] At its roots, it's more than meets the eye. "The Wanderer" is black music filtered through an Italian neighborhood that comes out with an attitude. It's my perception of a lot of songs like "I'm A Man" by Bo Diddley or "Hoochie Coochie Man" by Muddy Waters. But you know, "The Wanderer" is really a sad song. A lot of guys...
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...Dead on Target (Hardy Boys Casefiles, Case 1) by Franklin W. Dixon Edge Of Your Seat Suspence! The Hardy Boys tangle with an international terrorist killer and a secret government agency called the Network. Personal Review: Dead on Target (Hardy Boys Casefiles, Case 1) by Franklin W. Dixon "Dead on Target" was the beginning of a new era for the Hardy Boys. This is the first volume of the new (in 1991) series "The Hardy Boys Casefiles", and it is a more adult and action packed series than the original series. This is never more evident than the first two pages of the book. Whereas the original series (started in 1927 and it is still running today) would have various plots by criminals, nobody ever seemed to get killed or nothing too serious would ever happen, but "Dead on Target" opens with the killing of Joe Hardy's girlfriend (and sister of good friend Chet) Iola Morton. For a series that has been known for its lack of actual murders of any on screen character, this was a shocking and explosive (no pun intended as it was by a bomb that killed Iola) moment. It marked the different direction that the Casefiles would take the reader, as well as the Hardys, on. A car bomb was the cause of death for Iola Morton. Frank and Joe, as well as Iola and Frank's girlfriend Callie Shaw, were at the mall preparing for a political rally. Iola ends up returning to the Hardys' car to pick up more campaign materials when it explodes, killing her. Joe blames himself because his flirting...
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...Repository. For more information, please contact jcera@law.berkeley.edu. California Law Review VOL. 57 JANUARY 1969 Copyright © 1969 by California Law Review, Inc. No. 1 The Legal Roles of Shareholders and Management in Modern Corporate Decisionmaking Melvin Aron Lisenberg* TABLE OF CONTENTS I A GENERAL THEORY ...... A. ... ............... 4 A NORMATIVE MODEL OF'VOTING RIGHTS IN PRIVATELY HELD CORPORATIONS ....... ................ A NORMATIVE MODEL OF VOTING RIGHTS IN PUBLICLY HELD ................ CORPORATIONS ....... 7 15 B. . ........ 1. Considerations of Public Policy .. (a) "Shareholder democracy ". . .. ........ ... . ......... (b) Client-group participation .. (c) Managerialism ..... ........... . ........ 2. Managerial Conflicts of Interest .. .. ........... 3. Shareholder Expectations ... ............ (a) The AT&T myth .... ... .... (b) The fallacy of "the average shareholder" (i) The proprietary principle of corporate law . (ii) Institutional investors as shareholders in publicly .......... held corporations ... (A) The magnitude of institutional shareholdings (B) The...
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...the book are contributed by scholars from different intellectual backgrounds to produce a rich and highly stimulating compilation. The book gives a vivid background of the history of entrepreneurship from the rudimentary to the modern age. It provides ideas on principles and skills involved in sustaining entrepreneurship, potentials of businesses and entrepreneurs, types of enterprises and contributions of entreprenures to local, national and global economy. 2.0 Course description The concept and scope of entrepreneurship; the nature and forms of business ownership in entreneurship; entreneurship in Nigeria: an overview; mega-entrepreneurs: a prosopographical historical study of nigerian entrepreneurship, 1850-2000; transnational corporations and...
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...the defendant is Chow Ltd. Plaintiff wish to sue for compensation of her illness. In addition, plaintiff would like to hold defendant liable for losses incurred. Defendant would argue that plaintiff was not directly employed by them. They are not liable for her illness. They would also argue that since they are only the holding company, liabilities should be claimed from the primary blame (Shiba Ltd). 2) Rules: a) S119 Corporations Act (2001): A company comes into existence as a body corporate when it registered with the Australian Securities Investments Commission (ASIC). Company is separate legal entity and it’s separate from its members. [Salomon v Salomon (1897)]. A company is an artificial person who can be sued or sue someone. Therefore, the person who manage the company is not liable for the company liabilities. This create a “corporate veil” between the company and members. In this case, Chow Ltd would argue that Shiba Pty Ltd is separate legal entity which they need not to compensate for Gigi illness. b) S516 Corporations Act (2001): The principle of legal limited liability. Company liabilities are separate from personal assets which are limited by shares. On the facts, plaintiff was trying to ask Chow Ltd for compensation as Shiba Ltd is owned by Chow Ltd. On the facts, holding company have to pay the compensation fee under tort of negligence. 3) Application: a) Duty of care to employees: Defendant is the directing mind and will of the...
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...enterprise, and are also affected by it. 2. According to Porter, what determines the level of competitive intensity in an industry? According to Porter, the level of competitive intensity is determined by 5 basic competitive forces namely: (1) Threat of new entrants to a market (2) Bargaining power of suppliers (3) Bargaining power of customers or buyers (4) Threat of substitute products and (5) Degree of competitive rivalry 3. What should be scanned in the task environment? There should be an analysis of relevant elements in the task environment such as: (1) Competitors (2) Suppliers (3) Regulators (4) Strategic Partners (5) Labor and (6) Customers. 4. Discuss how a development in a corporation’s societal environment can affect the corporation through its task environment. 5. How can managers identify external strategic factors? a. Environmental uncertainty b. Issues priority matrix c. New entrants d. Entry barriers e. Rivalry f. Substitute products g. Bargaining power of buyers and suppliers h. Bargaining power of other...
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...Unit VIII Article Critique Columbia Southern University DBA 7553 1. Introduction of the Article This article is found in the Directors and Boards magazine. It is written by Donald P. Delves who “is president of the Delves Group, a compensation and corporate governance consulting firm that advises boards of directors” (Delves, 2012). The article is titled “What about everyone else? The problem may not be that executives are paid too much, but that employees are paid too little.” 2. Statement of the Problem Studied In this article, Mr. Delves examined why people complain about executive pay, how companies used to inflate employee earnings, and how companies can increase employee wages now. 3. Significance of the Problem Studied With sky rocketing pay for many executives over the last few decades, many employees have wondered why their pay has not also increased. In the past companies have used stock options to provide incentive for employees and to use these as a pathway to increase employee pay. However with the economic recession and many of the changes in accounting practices, companies could no longer use this incentive to increase wages for employees. Thus Mr. Delves presents the question, “what do we do about [increasing employee incentives]?” (Delves, 2012). If this question can be answered, it has the potential to not only increase employee productivity but also to provide them with increased opportunities. ...
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...1) Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy? Starbuck is a known corporation local and international for their freshly brewed coffee and other products that are offered. Social responsibility helps the company image, to care about the community and the environment, these are positive stand points that define the company self portrait. It's important how you look on the outside, in the end it's all about sales. As mention in the text “people first and profit last” once a corporation can fulfill its duties that benefit the consumer and the parties involve then there is no need to worry about the business profit. 2) Is Starbucks unique in being able to provide a high level of benefits to its employees? The text mention “it is better for a company to take some short-term loses than to lose sight of its core values in the long term “yes Starbucks is unique because not many restaurant offer the kind of benefits as Starbuck. The employees are important to the business and it helps to retain them. Offering health insurance, paid time off, and other perks are ways to keep employees happy which lead to great work effort and a successful business. It also helps to lower the business employment turnover rate and save the corporation money because they do not spend much money and recruiting new employees and to train them. 3) Do you think that Starbucks has grown rapidly because of its ethical and socially responsible...
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...to maximize a firms [sp] profit potential, a corporation should match its greatest strengths, with external factors to create opportunities. When assessing opportunities to acquire a new business unit, firms should only seek to acquire units that have strengths that match, enhance or can be combined with the firms established strengths. The article [which? there is no list of references -- you’re supposed to discuss an issue from class before discussing the article] is about how firms are purchasing business units that do not align with their strengths or the vision/mission of the parent corporation. Once the business unit is acquired the viable option is to sell if off in pieces because it is not contributing to the corporations strengths. We agree with the author [sp] premise that diversification should not be pursued unless it will help a parent corporation achieve its already established mission. Corporations should avoid acquiring firms that possess strengths or missions not aligned with the parent corporation. A firm should not see purchasing business units as strength [clumsy]; a corporation’s strength is not an action. A corporation should see the reason why they have accumulated the financial resources necessary to purchase additional business units as their strength. Once that strength is identified the corporation should be pursing business units that have underlining strengths that will enhance the parent corporations [sp] ability to pursue their mission and maximize...
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...Introduction and Course Philosophy: This course covers accounting theory and practice for business combinations, segment and interim reporting, foreign exchange and partnerships. Business combinations cover most forms of mergers and acquisitions, which are common among business entities. Segment reporting is how management disaggregates financial results into meaningful business performance. Foreign exchange covers the basics of currency transactions and translation including hedging, which are common in the global economy. Finally, in partnerships we cover more extensively the formation, operation and dissolution of general partnerships, the most prevalent form of business in the United States. In my career in financial services, I was personally involved in 3 large business combination involving aspects of mergers, segment reporting and foreign exchange that we will discuss in class. You will be exposed to the authoritative accounting literature covering each area and get hands on experience in solving typical problems faced by accounting practitioners. We will complete the entire syllabus. Required Text: Advanced Accounting---11th edition, Hoyle, Schaefer and Doupnik McGraw Hill/Irwin 2013. A separate loose leaf edition, with only the chapters we cover will be available exclusively at the Queens College bookstore. The ISBN for the looseleaf edition is 9780077772932. Acquiring the loose leaf edition gives you the convenience of being able to bring only the chapters...
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...LEGAL FORM OF BUSSINESS In this paper we will compare and discuss different forms of business and their advantages and disadvantages. Following are the different type of business formed to conduct work: 1. Sole proprietorship. 2. Partnership. 3. Limited liability partnership. 4. Limited liability company. 5. S corporation. 6. Franchise. 7. Corporate. 1. Sole proprietorship, The sole proprietorship is a type of business entity that is owned and run by one individual. All the decisions of the business are made by that individual and there is no legal distinction between that individual and the business. Following are the advantages and disadvantages of Sole proprietorship Advantages They have the ability to raise capital either publicly or privately. To limit the personal liability of the officers and managers. Limit risk to investors. Sole proprietorships have the least government rules and regulations affecting it. Owners have complete control over all the aspects of his or her business. The owner can take any managerial decisions that he/ she wants to take. Disadvantages Raising capital for a proprietorship is more difficult because an unrelated investor has less peace of mind concerning the use and security of his or her investment . The investment is more difficult to formalize other types of business entities have more documentation. The enterprise may be crippled or terminated if the owner becomes ill. The business is the same legal entity...
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...Anthony and Karen were partners doing business as the Petite Garment Company. Leroy owned a dye plant that did much of the processing for the company. Anthony and Karen decided to offer Leroy an interest in their company, in consideration for which Leroy would contribute his dye plant to the partnership. Leroy accepted the offer and was duly admitted as a partner. At the time he was admitted as a partner, Leroy did no know that the partnership was on the verge of insolvency. About three months after Leroy was admitted to the partnership, a textile firm obtained a judgment against the partnership in the amount of 50,000. This debt represented an unpaid balance that had existed before Leroy was admitted as a partner. The textile firm brought an action to subject the partnership property, including the dye plant, to the satisfaction of its judgment. The complaint also requested that, in the event the judgment was unsatisfied by sale of partnership property, Leroy’s home be sold and the proceeds applied to the balance of the judgment. Anthony and Karen own nothing but their interest in the partnership property. What should be the result: With regard to the dye plant- With regard to Leroy’s home- Since Leroy was admitted before the judgment was actually brought upon the partners It would make him liable to subsequent debts of the partnership along with Anthony and Karen, since the dye plant was part of the deal when Leroy entered the partnership it would be considered...
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