...goods companies, was formed from the merger of GrandMet and Guinness. In 2000, the company announced its intention to sell its packaged food subsidiary, Pillsbury, and 20% of its Burger King subsidiary. Because of the restructuring opportunity, the company wanted to rethink its financing mix. In this case, the tradeoff between the costs and benefits of different leverage policies will be discussed. A simulation model was created by Diageo’s director of Finance and Capital Markets, Ian Simpson, and Adrian Williams, the firm’s Treasury Research Manager, to understand the tax benefits of higher gearing and the cost of financial distress. In this report, I will discuss the historical financial policies in Diageo. The actions of selling Pillsbury and spinoff of Burger King will be valued. And the tradeoff theory and Simpson and Williams’ simulation model will be studied and evaluated as well. Finally our conclusion is to choose interest coverage around 5. II. The Case Decision What recommendation would be made for Diageo’s future capital structure? Is Simpson and Williams’ simulation model reliable? III.Facts 1. Diageo was formed from the merger of Guinness and GrandMet. It was the seventh largest food and drink company in the world. 2. The firm was organized along four business segments: Spirits and wine business, Guinness Brewing, Packaged and fast food. 3. Prior to the merger, both of the two companies had quite conservative financial policies. The bonds rating of...
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...[pic] Course Syllabus Law 531 Business Law Course Start Date: 11/13/12 Course End Date: 12/24/12 Please print a copy of this syllabus for handy reference. Whenever there is a question about what assignments are due, please remember this syllabus is considered the ruling document. Copyright Copyright ©2009 by University of Phoenix. All rights reserved. University of Phoenix© is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft©, Windows©, and Windows NT© are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix© editorial standards and practices. Course Description This course prepares students to evaluate the legal risks associated with business activity. Students create proposals to manage an organization’s legal exposure. Other topics include the legal system, alternative dispute resolution, enterprise liability, product...
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...ATTACHMENT A: GENERIC TRAINING PLAN EY Zimbabwe – 2013 Instructions for completion · This is a generic training plan for ONE hypothetical trainee · All applicants must complete all the sections TRAINING PLAN Elective: Auditing & Assurance Residuals: Taxation Management Decision-Making & Control Financial Management Internal Audit, Risk Management and Governance COMPULSORY SKILLS BUSINESS ETHICS Mode through which competence will be achieved (i.e. practical experience/ simulation Competency to be achieved BE(C) Acts ethically and in accordance with the rules of professional conduct Tasks to be performed BE(C)1 Displays honesty and integrity BE(C)2 BE(C)3 BE(C)4 BE(C)5 BE(C)6 BE(C)7 BE(C)8 Carries out work with a desire to exercise due care Maintains objectivity and independence Avoids conflict of interest Protects the confidentiality of information Maintains and enhances the profession’s reputation Adheres to the rules of professional conduct, including the ICAZ Code of Professional Conduct Identifies and adequately responds to potential ethical dilemmas Examples of activities to be performed by trainees to gain exposure to this competence E&Y Firm values – Our shared values inspire our people worldwide and guide them to do the right thing, and our commitment to quality is embedded in who we are and in everything we do. Our values define who we are · · · People who demonstrate integrity, respect and teaming People with energy, enthusiasm and the courage to lead People who...
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...Simulation Review Paper Joel Chappell HCS/405 November 3, 2014 Latrina Benjamin-Frazier The simulation focused on a hospital that was called Elijah Heart Center which is a cardiac care hospital. The Elijah Heart Center has been according to their financial statement struggling, which has been caused by capital shortages, funding options and their capital expansions. In order to ensure that the overall organization will have enough funds to properly operate it is important that the heath care organization understand how to make the appropriate changes. This paper will go over and take look at the accounting data for the Elijah Heart Center to understand what changes and adjustments can be made to help the organization become more financially stable. When looking at organizations and how they may be able to cut cost, unfortunately sometimes these changes may involve reducing the number of employees or even reducing benefits to have a balanced budget. One must analyze the pros and cons of the decisions that will not only affect the budget but may also affect how the organization operates and even patient care. The recommendation along with a detailed explanation from what was discovered in the simulation are as fallowed. First focusing attention on the capital shortage within Elijah Heart Center. The corporation is unfortunately suffering capital shortage due to what the overall organization is bringing in as revenue is far...
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...A PROPOSAL ON HOW TO APPLY THE BALANCED SCORECARD TO THE COLLECTIVE INVESTMENT MANAGERIAL FIRMS. Muñoz Colomina, Clara I. Urquía Grande, Elena Sevillano Martín, Fco. Javier (Universidad Complutense de Madrid) PAPER FINANCED BY THE PROJECT PR1/03-11669 OF THE UNIVERSITY COMPLUTENSE OF MADRID A PROPOSAL ON HOW TO APPLY THE BALANCED SCORECARD TO THE COLLECTIVE INVESTMENT MANAGERIAL FIRMS. Muñoz Colomina, Clara I. Urquía Grande, Elena Sevillano Martín, Fco. Javier (Universidad Complutense de Madrid) Collective investment companies, as other institutions in the financial sector, are actually going through moments of great volatility. Consequently these firms need to reformulate their strategic forecast for the next years. This need arises, among other factors, from the collapse of global financial markets, progressive liberalizations in tax and company regulation and the evolution in information technology. Collective investments are very appealing for small investors, as they allow them to benefit from the skills of a professional management, as well as to spread different risks with a diversified portfolio in the different mutual funds. Nevertheless in moments of crisis such as the world is experiencing now, the great volatility of markets and capital losses clearly offset the attractiveness of the portfolio management. The starting point is to take into account the new scenario now developing in collective investment management firms: increasing competence, less captive...
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...protection became stricter, but with an increase of up to 11% in the United States and United Kingdom, where unions became less powerful and (in the United States) minimum wages fell. W age inequality is substantially lower in continental European countries than in the United States and United Kingdom, and its evolution over time has differed greatly across countries. The same holds true for the skill (or education) wage premium. Changes in the supply of and demand for skills are unlikely to fully account for these marked differences (Acemoglu 2003). A substantial amount of research on wage inequality has examined the forces that may shift the relative demand for skills, such as changing trade patterns and skill-biased technical change. However, since developed economies operate in the same global environment, with integrated trade and equal access to technology, *Winfried Koeniger is Senior Research Associate at IZA, University of Bonn; Marco Leonardi is Assistant...
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...both to re-finance debt that is maturing in the next six to twelve months and to finance its intended growth into the Asian (especially Chinese) markets Alternative Solutions: #1) IPO: (Initial Public Offering) Cons: High tax and pricing "We received little demand from our (retail) clients for the (Prada) shares. It might be the 12.5 percent tax that scared them away and the pricing itself was expensive when it compared with its peers," said Alfred Chan, chief dealer at Cheer Pearl Investment. "Unlike institutions, our retail clients hold the shares for a much shorter term," he added. "Consumers are willing to pay a very high premium chasing after brands, but it's not the case for investors. Investors are concerned about reasonable valuation and pricing" -Conita Hung, head of equity - research of Delta Asia Financial. Prada warned in its IPO prospectus that Hong Kong residents would be liable to a withholding tax on dividends on top of the capital gains tax. Hong Kong is known for its low-tax regime, with no capital gains taxes, no sales tax or value added tax (VAT) and has among the smallest income taxes on salaries. Apart from the tax issues, retail appetite for Prada may have been reduced due to volatile global markets in recent weeks “There’s going to be quite a lot of pressure on Prada,” said Espinasse, the author of IPO: A Global Guide. “The fact that retail investors...
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...Working Capital Simulation Student’s Name Institutional Affiliation Management of working capital is a tough task, though essential for the growth and sustainability of any business. For simplicity in working capital management, managers are required to effectively allocate and fund the required working capital. Effective capital management will enable the management take care of the needs of the business and in appropriate time (Sagner, 2011). It would therefore be very important that the CEO of a company keenly examines and make use of the best and most appropriate working capital for the business. In this paper, I will evaluate the case of the case of working capital simulation as SNC brings in new customers. Phase 1- Decisions a. Selection of an option that will lower working capital requirement thereby reducing the short term debt well. b. Adoption of an option that lowers the cycle of cash conversion. c. Strategizing on an option that would set free the capital locked in inventories and receivables. d. Adoption of an option that would eventually lead to the minimal working capital policy in the long term. The above laid decisions will affect SNC from the below explained perspectives. Sales: A keen evaluation of SNC reveals that their sales have been increasing by $4 million each year and this sale is quite admirable sale given that the company only started...
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...IMF reiterates need for PHL to scale up critical infrastructure build-up by Bianca Cuaresma - March 1, 2016 The International Monetary Fund (IMF) said while the Philippines has yet to catch up with peers in the region in both quality and quantity of infrastructure, the $285-billion economy should benefit later on from on-going projects and programs meant to bridge the gaping infrastructure gap. In a paper published on Tuesday, the IMF stressed the need for the Philippines to scale up lacklustre investments for public infrastructures long understood to have hobbled its potential to expand over a long horizon and on sustainable basis. “This paper studied the macroeconomic implications of public investment scale up in the Philippines. After benchmarking the Philippines, relative to its neighbours in terms of level of public capital and quality of public infrastructure and public investment efficiency, it uses model simulations to assess the macroeconomic implications of raising public investment and improving public investment efficiency,” the IMF said. The state of public infrastructures at present, the IMF said, is clearly inferior to that found in neighbouring jurisdictions. “Persistently low public investment in the Philippines has resulted in a low public-capital stock, relative to its neighbours. Survey-based indicators also paint an unfavourable picture on the current state of public infrastructure in the Philippines,” the IMF said. “Public-investment efficiency has...
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...J Happiness Stud (2011) 12:323–341 DOI 10.1007/s10902-010-9190-1 RESEARCH PAPER A Different Rationale for Redistribution: Pursuit of Happiness in the European Union John Cullis • John Hudson • Philip Jones Published online: 3 March 2010 Ó Springer Science+Business Media B.V. 2010 Abstract This paper considers the role of redistribution in the light of recent research findings on self reported happiness. The analysis and empirical work reported here tries to relate this to a representative actor ‘homo realitus’ and the ‘pursuit of happiness’ rather than the traditional ‘homo economicus’. Econometrically estimating the determinants of happiness in the European Union (EU) using Eurobarometer data and the construction of an ‘Index of Happiness’ facilitates policy simulations. Such simulations find that in terms of average happiness there is little advantage to redistributing income within a country, but more from redistributing income between countries. The importance for happiness of relative income, average standard of living, marital status and age are confirmed. The theoretical rationale for redistribution is also examined. Keywords Happiness Á Income redistribution Á EU 1 Introduction Beveridge (1942) stated that: ‘‘The object of government in peace and in war is not the glory of rulers or of races, but the happiness of the common man’’.1 As Director of the London School of Economics he was the author of the report that inspired the extension of the UK welfare state...
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...CHAPTER ONE INTRODUCTION 1.1 Background to the Study Since the 1960s to date, small and medium sized enterprises (SMEs) have been given due recognitions especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies (Yitzhaki, 2006). They make-up the largest proportion of businesses all over the world and play tremendous roles in employment generation, provision of goods and services, creating a better standard of living, as well as immensely contributing to the gross domestic products (GDPs) of many countries (OECD, 2000).Over the last few decades, the contributions of the SMEs sector, the development of the largest economies in the world have beamed the searchlight on the uniqueness of the SMEs; and this have succeeded in overruling previously held views that SMEs were only ―miniature versions‖ of larger companies (Al-Shaikh 1998; Gaskill et al. 1993). And although Small and Medium Enterprises have been at the center of the policy debate for quite some time in both developed and developing countries, little analytical work has been undertaken in this area.The dearth information that exists among researchers on Small and Medium Enterprises however provides a sense of how important this sector is for sustainable development in emerging economies (Medina, 2001). For instance, recent studies conducted by United Nations Industrial Development Organization (UNIDO) concur that SMEs...
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...Indiana University Kelley School of Business Indianapolis BUS A375 18265 Internal Auditing: Process Controls BUPA A575 18579 Internal Auditing and Corporate Governance Fall 2011 Meetings: 6:00- 8:40 W, August 24 – December 14, 2011, Room BS2007 Required Textbook: Internal Auditing: Assurance and Consulting Services 2nd Edition, Reding et al., © 2009, The IIA Research Foundation, ISBN-13: 978-0-89413-643-6. Optional Materials: Gleim CIA Review Manual, 14th edition, Part I and Part II. The CIA materials are available in the third floor computing lab. Instructor: James Reinhard, MS, CPA, CIA, CISA Adjunct Faculty Office: BS4032R Voice: (317) 753-9663 E-mail: jareinha@iupui.edu Office Hours: 5-5:45 the day of class, and by appointment COURSE OUTCOMES Overall Learning Outcome The overall learning Outcome is to obtain a fundamental knowledge and a sense of skills related to internal auditing. Specific Learning Outcomes After completion of this course, the student should achieve the following outcomes: * Given a business process, students will be able to perform the 3 steps of an audit process (planning, fieldwork and reporting) by applying the International Professional Practice Framework (IPPF), the International Standards for the Professional Practice of Internal Auditing (Standards) and guidance to the practice of internal auditing, and COSO framework. (PUL 1, 2 ;PBL 1, 3; MSA Goal 3, 4) * Students will...
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...eBusiness Research Paper The content regulation of the Internet has become the fore of public debate as an issue that both government and Net users are concerned about. Many companies have benefited from the use of e-Business in terms of revenue, capturing its marketing mix and driving shareholder value. However, governmental regulation can have a major effect on both the strategy and financial survival of e-Business. As technology continue to evolve at a rapid pace, governmental regulation struggles to keep up with its pace (McGraw-Hill). This paper will outline legal and regulatory issues with E-Business. Ethical issues such as invasion of privacy and deceptive advertising will be addressed. An e-Business failure and “Managing a Retail Website” simulation will be discussed that will include challenges that was faced and offering recommendations to overcome those challenges. In the beginning of the Internet era, there was no kind of regulation in place. As the internet and e-Business started to expand rapidly, government struggled in determining how rules and regulations would a key role in online business practices. In our text, its states new technology and the lack of physical borders associated with the Internet are changing the way societies are looking at laws (McGraw-Hill). Because of hacking and cyber crime which continue to become more common and complicated, it is necessary to set standards in order for business to continue to thrive. There are several key regulatory...
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...Jessica Knott Simulation Review Paper June 09, 2011 Diana Schilling UOP Simulation Paper Review In life we have to make decision short term and long term decisions. Ever decision you make in life will always affect your future and can affect your well being. This is the same view that you can look at when dealing with financial situation which it is personal use, business, or organization. The decision that we make financially can be economic decisions and not always have to be personal in nature. When making decision for a company or organization you have to sometimes be transparent and look from every view and aspect, because this decision is not only going to affect you it can affect a small or large group of people and even a community just depending on what type of business and services are being offered. In this stimulation review paper I will be review the Cardiac’s Care Hospital’s financial accounting account. The hospital is experiencing some difficulties with accounting matters, capital shortage, capital expansion and funding options. During this review we will discuss some of there methods of accounting and see if it is some ideas or other tools that can be used to help them to better there financial issues. Capital shortage is a huge factor when running any type of business. Capital is the amount of current assets minus the amount of current liability as of a specific date. These amounts are obtained from the company’s balance sheet reports that. To give...
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...Project Number: DZT0517 Stock Market Trading An Interactive Qualifying Project Report Submitted to the faculty of the Worcester Polytechnic Institute in partial fulfillment of the requirements for the Degree of Bachelor of Science by ___________________________________________ Meng-Yu Ni Date: August 2006 Approved by: __________________________ Professor Dalin Tang Project Advisor 1 Abstract Using the information from the internet and published books, a general understanding about stock market and trading strategies was obtained. The knowledge and trading strategies were applied in the market in a stock market simulation to get real-time trading experience. Experiences learned from using trading methods in this simulation will help me to become a better investor in the future. 2 Acknowledgement First, I want to thank my parents who gave me the opportunity to study at Worcester Polytechnic Institute in USA. Second, I would like to thank my advisor, Dalin Tang, who gave me advices, and help me during this whole project time. Thirdly, I want to thank Worcester Polytechnic Institute for giving me opportunity to do this project, which made me to learn more things from outside of classes by myself. Finally, I would like to thank all the people who gave me some help when I needed it. 3 Table of contents Abstract ........................................................................................................................... 2 Acknowledgement...
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