...PepsiCo has expanded its operations by acquiring Quaker-Oats, Tropicana, and Gatorade brands. With sales of $66.86 billion in 2014 and with products sold in over 200 countries, PepsiCo is one of the leading food and beverage companies in the world (PepsiCo, 2014). 1.2 PepsiCo’s Industry The beverage and snack food industries are both in the mature stage in their life cycles, and companies in these industries largely depend on product innovation, brand recognition, and low prices to remain competitive. Like all companies PepsiCo faces risk of increases in operating expenses and decreases in net income due to market risk. Companies in PepsiCo’s industry have been forced to expand its product offerings into healthy foods and drinks due to an insurgent health and wellness in American culture. 1.3 PepsiCo’s Competitors PepsiCo’s top competitors consist of The Coca-Cola Company, Dr Pepper Snapple Group, and Nestle; additionally, because PepsiCo is a multinational company it must also compete with countless local snack and beverage companies across the globe. Coca-Cola has been viewed as PepsiCo’s main rival for around 100 years, and the competition between the two companies has had a cultural impact in the United States dubbed “The Cola Wars”. In 2014 the revenues from PepsiCo, Coca-Cola, and Dr Pepper Snapple Group were $66.68 billion, $45.99 billion, and $6.12 billion respectively. Graph 1 – 2014 market shares in the U.S. soft drink industry 1.4 PepsiCo’s Risks Some of the...
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...4 percent; the growth rate of real exports was 14.5 per cent, while inflation was contained at 4.7 per cent. The high level of investment and the rapid growth had been supported by large inflows of foreign capital: in the period 1987–96, annual capital inflows were on average equal to 8.7 per cent of GDP. But there are some financial shocks in the economy. They are Asian financial crisis:1997-1998, Global financial crisis and flood of 2011and political instability of Thailand. These crises were recovered successfully. On 11 August 1997, the IMF unveiled a rescue package for Thailand with more than $17 billion, subject to conditions such as passing laws relating to bankruptcy (reorganizing and restructuring) procedures and establishing strong regulation frameworks for banks and other financial institutions. The IMF approved on 20 August 1997, another bailout package of $3.9 billion. At first the exchange rate policy was strict. But after the Asian crisis policy was changed to managed float which is flexible. At the time of global financial crisis the government adopted some policies to recover this crisis. The Thai government has imposed three types of policy to rebuild confidence, gain economic recovery, and stimulate new economic growth. First, two phases...
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...There is also a Medicare Advantage Plan which is called Part C. Today there is a challenge of how to finance care to future generations without burdening the economy or taxpayers. Before we look in to the future lets revisit the past starting with the birth of Medicare. In 1965 President Harry S. Truman proposed a national health care program. He wanted health security for all regardless of residence, station, or race for everyone in the United States. The proposed plan came under scrutiny from the American Medical Association and the bill was not passed. By 1960 the government recognized there was a problem with access to health care for the senior American population. The Kerr-Mills law was enacted so states could receive federal dollars to provide health care for older poor people in the south. By 1963 only 32 states adopted the Kerr-Mills Act and the program proved ineffective because it only reached less than 1% of the senior population. This laid the foundation for Medicare. On July 30, 1965 President Lyndon B. Johnson signed Medicare into law. The principles of Medicare was to provide coverage to all people age 65 and older regardless of income and health status. It prohibited any federal interference in the practice of medicine and covered hospital and doctor visits paying providers for each service given to the patient. The Social Security Administration office saw an enrollment of one million in the first week. Medicare ended racial segregation in hospitals...
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...Budget Deficits, National Saving, and Interest Rates William G. Gale and Peter R. Orszag September 2004 Brookings Institution and Tax Policy Center. This paper was prepared for the Brookings Panel on Economic Activity, September 9-10, 2004. We thank Emil Apostolov, Matt Hall, Brennan Kelly, and Melody Keung for outstanding research assistance; Alan Auerbach, William Brainard, Robert Cumby, Bill Dickens, Doug Elmendorf, Eric Engen, Laurence Kotlikoff, Thomas Laubach, Maria Perozek, George Perry, Frank Russek, Matthew Shapiro, and David Wilcox for helpful discussions; and Eric Engen, Jane Gravelle, and Thomas Laubach for sharing data. ABSTRACT This paper provides new evidence that sustained budget deficits reduce national saving and raise interest rates by economically and statistically significant quantities. Using a series of econometric specifications that nest Ricardian and non-Ricardian models, we obtain evidence of strong non-Ricardian behavior in aggregate consumption. Consistent with several recent studies, we find that projected future deficits affect longterm interest rates, but current deficits do not. Our estimates suggest that each percent-ofGDP in current deficits reduces national saving by 0.5 to 0.8 percent of GDP. Each percent-of-GDP in projected future unified deficits raises forward long-term interest rates by 25 to 35 basis points, and each percent-of-GDP in projected future primary deficits raises interest rates by 40 to 70 basis points...
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...Research Paper Number One Nathan C. Fears, Student Kaplan University Abstract The perception of the financial and the accounting field over the past decade has been very poor in the eyes of the public. Especially after many recent scandals that have more then embarrassed the industry. The overall idea behind the field of accounting is for accountants to serve the public for the greater good. Yet the public doesn’t feel that accountants can be trusted. Hence, the numerous amounts of regulations imposed by the government on the finance field. In this paper we discuss the field of finance and accounting, overall view of the public, several scandals that led to the lowly perception of the accounting profession and some of the numerous regulations imposed by the government. Are these regulations too many or too little and how do they affect the economy? Research Paper Number One The perception of the financial and the accounting field over the past decade has been very poor in the eyes of the public. Especially after the recent scandals that have more then embarrassed the industry. The overall idea behind the field of accounting is for accountants to serve the public for the greater good. Yet the public doesn’t feel that accountants can be trusted. Hence, the numerous regulations imposed by the government on the finance field. According to a recent poll done by U.S. News and World Report of the top jobs...
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...or expansion in the same line of business or liquidationmotivated takeovers, 4) why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil, and 5) why bidders and some targets tend to perform abnormally well prior to takeover. Keywords: Dividend policy, Corporate Payout Policy, Optimal Capital Structure, Optimal Debt, Reivestment Policy, Overinvestment © Copyright 1986. Michael C. Jensen. All rights reserved. American Economic Review, May 1986, Vol. 76, No. 2, pp. 323-329. You may redistribute this document freely, but please do not post the electronic file on the web. I welcome web links to this document at http://papers.ssrn.com/abstract=99580. I revise my papers regularly, and providing a link to the original ensures that readers will receive the most recent version. Thank you, Michael C. Jensen Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers Michael C. Jensen* American Economic Review, May 1986, Vol. 76, No. 2, pp. 323-329. Corporate managers are the agents of shareholders, a relationship fraught with conflicting interests. Agency theory, the analysis of such conflicts, is now a major part of the economics literature. The...
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...directly into some of the rivers and lakes we use today as recreation (Congressional Digest, 1985). These are some of the Point Sources of water pollution. These are places that can be directly identified as points of pollution like city storm and sewer drains, sewage treatment plants ("Clean water act," 1972). Then there is a non-point source which is a combination of smaller sources that collect into lakes, rivers, and streams. These can come from agriculture farms or even contaminated wash from our freeways and roads. There are almost an infinite amount of water pollutants that run off into our waterways each day. Pathogens such has salmonella, novo virus, and parasitic worms grow and thrive within our waters. Chemicals such as insecticides, herbicides run off from farms and other agriculture areas. Storm water runoff can introduce many types of fuels and oils, and heavy metals. Then there is immense amount of industrial waste like ammonia, sulfur dioxide from power plants, trash from illegal dumping (Pitt, 2001). It’s it important to ensure our fresh water resources are protected and ensured. Although in most industrialized countries access to clean water is at 100 percent; in places such as Uganda and Mozambique where only 52% of the population has access to clean water it becomes alarming. It becomes more of a reality where countries like Syria and India where millions of dollar a year are spent on defense that only 80% of the population has access to clean water (UNICEF...
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...1. INTRODUCTION The term “Exchange rate” is referred to as the value of the money of one country compared to the money of another country exchange rate movement is therefore the fluctuation in the value of a country’s currency when compared to another country at particular time period. The importance of foreign exchange rate on inflow of foreign private investment has been traced by Obadan (1994) who noted that its importance as the center pieces of the investment environment derives from the argument that a sustained exchange rate misalignment in terms of over-valuation or under-valuation is a major source of macro economics disequilibrium which spells danger for investment. A stable exchange rate encourages, foreign and local investor into such an economy. This is because, an over-valued exchange rate discourage export and negatively affect the foreign private investment Salako (2004). Further state that there is a long run equilibrium relationship between investment inflow to Nigeria and variables such as nominal effective exchange rate. A high foreign exchange rate increase the prices of goods and services and discourage exportation while at the sometime encourages importation of goods which are cheaper. This has negative effect on the investment and with such factors investors withdraw their money from such an economy (Solomon, 2012). It is therefore imperative to state that foreign exchange rate is a significant factor that determines investment in...
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...Enron Corporation: THE RISE AND FALL; ACCOUNTING SCANDAL Submitted To: Professor Bill Bristol Submitted By: Kenneth Rhodes, Jr. Metropolitan College of New York (MCNY) TABLE OF CONTENTS I. ABSTRACT...............................................................................................................................2 II. purpose and service....................................................................................................3 III. HistorY............................................................................................................................3-5 IV. The Downfall..............................................................................................................5-6 V. Accounting Scandal................................................................................................6-7 VI. Accounting Practices...........................................................................................7-8 VII. Files’ for Bankruptcy.............................................................................................9 VIII. Auditing.....................................................................................................................9-10 IX. Conclusion: THE AFTERMATH..........................................................................10-11 XI. BIBLIOGRAPHY................................................................................................................12 I. ABSTRACT ...
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...Demand for the company’s unreserved auction services increased which led Ritchie Bros. to expand across North America. The company opened its first office outside Canada in 1969 in Washington State. The company’s first United States auction was held in 1970. Ritchie Bros.’ unreserved auctions were well received in the U.S. market. By 1985 the company had sold more than one billion dollars of equipment and in 1998 the company’s annual gross auction proceeds exceeded one billion dollars (http://www.rbauction.com/web/rba/aboutus/history). Ritchie Bros. began to expand internationally in the late 1980’s. The company conducted its first auctions in Europe in 1987. Auctions in Australia, Asia, Mexico, the Middle East and Africa would follow. Ritchie Bros. is now headquartered in Vancouver, British Columbia and has over 110 locations worldwide. The company was purchased by Ira Hopmeyer and Stephen Ranger in 1995 (Brooks & Dunn, 2012, p. 539). Ritchie Bros. went public in 1998, and is listed on the New York and Toronto stock exchanges under the trading symbol RBA. Ritchie Bros.’ annual gross auction proceeds exceeded three billion dollars within a decade of going public (http://www.rbauction.com/web/rba/aboutus/history). In September,...
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...would shatter the false sense of security regarding Valhalla. An ensuing investigation by Arthur Andersen, an accounting firm employed by Enron, failed to produce concrete evidence of misappropriation within Valhalla. Questionable practices were identified, but Enron failed to react appropriately to this information. CEO Lay was able to persuade key executives within Enron and the board of directors to keep running Valhalla offices, with minor changes in personnel. Mick Seidl, unhappy with Lay’s influence over the board, called Mike Muckelroy to investigate Valhalla. Muckelroy’s investigation would become the tipping point regarding Valhalla. With a secret set of books discovered, fraudulent trading entities identified and $1 billion of hidden debt revealed, this obscure office of 40 employees almost bankrupt the giant Enron Corporation. After the collapse of Enron in 2001, denial was identified as Enron’s modus operandi. This paper will examine the warning signs of Enron Oil Trading prior to the fall of Enron, highlight the inconsistencies and demonstrate and unwillingness of Enron to learn from their...
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...EFFECT OF GLOBALIZATION ON INDIA’S ECONOMIC GROWTH Kishore G. Kulkarni, Ph.D., Professor of Economics, And Editor, Indian Journal of Economics and Business (visit: www.ijeb.com) Metropolitan State College of Denver, Campus Box 77. P. O. Box 173362, Denver, CO 80217-3362, USA. First draft of this paper was presented in the Oxford Roundtable Conference held in Oxford University, UK, in July 2005. Author thanks School of Business, MSCD for financial assistance, and Profs. John Cochran, Alex Padilla and Steven Call for their valuable input in completing this paper. Abstract of “Effect of Globalization on India’s Economic Growth” The wave of globalization appeared on India’s shores only in 1991, much after China’s and some other Southeast Asian countries such as Malaysia, Singapore and Hong Kong. Moreover the intensity of opening country’s borders is much higher in other countries than in India where democratic political forces delay decision making significantly. Nonetheless the Indian economy has broken the shackles of protectionism with great vigor which has led to some positive developments. The paper is an attempt to summarize the difference between policy making before and after the realization of gains from trade. In economic terms, one can undoubtedly prove that there are benefits realized .and the Indian economy is on a smooth sail partly because of the gains form trade. Of course any economy’s...
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...committed in the business or professional setting (white collar versus blue collar jobs) to achieve financial gain. Crimes that do not involve physical violence, and that relate largely to financial matters, are often called white collar crimes. Corporate corruption is out of control for two main reasons. First, big companies are now multinational, while governments remain national. Big companies are so financially powerful that governments are afraid to take them on. It is very important to study the cause and the possible solution for the increase in numbers of white collar crime; our focus needs to shift from Blue Collar Crimes to White Collar Crimes. U.S.A spends nearly $50 billion on fighting Blue Collar Crimes, not even quarter of that amount is spent on fighting White Collar Crimes. Hardly a day passes without a new story of malfeasance. Every Wall Street firm has paid significant fines during the past decade for phony accounting, insider trading, securities fraud, Ponzi schemes, or outright embezzlement by CEOs. A massive insider-trading ring is currently on trial in New York, and has implicated some leading financial-industry figures. And it follows a series of fines paid by America’s biggest investment banks to settle charges of various securities violations. They are essentially "paper crimes" in which the perpetrator uses deceit to obtain money, property or some professional advantage. White collar crime encompasses a number of offenses including mail fraud,...
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...Steve Jobs The Co- Founder of Apple Inc. Embry Riddle Aeronautical University JR Barnes Management Information 7/22/2013 In the early days. Steven Paul Jobs was born in San Francisco California on 24 February, 1955, and as a newborn infant Steven was adopted by Paul and Clara Jobs. Clara took a job as an accountant and Paul was a machinist serving in the Coast Guard. Steve and his newly adopted parents live in Mountain View situated in the Silicon Valley inside the San Francisco Bay Area. Steve and his father would work on electronics together inside their garage. As a hobby Steve’s father Paul would show him how to take electronics apart and then reconstructed them. So this was the beginning that stirred the younger Steve Jobs interest and began to build his confidence, ability and superior talent. Intelligent and innovative, Steve tested so well that the school administrators wanted to advance him through to high school. However, his parents had declined the proposal. Steve did eventually enroll into Homestead High School in 1971 where he ended up meeting his future partner Steve Wozniak, Wozniak, was already attending the University of Michigan. In 2007 during an interview with ABC News, Wozniak spoke highly of Steve Jobs and how they became friends and advocates of electronics. After graduation high school in 1972, Steve enrolled into the Reed College in Portland, Oregon. Reed College was expensive for Paul and Clara and Steve soon realized and dropped out...
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...by searching what was available and in stock and place their orders. Benzo then made the decision and sacrifice to leave his job in New York and move to Seattle where he could have ready access to the books wholesalers Ingram and the access to the computer talent that he would need for his new enterprise (Spiro, 2009). He opened his business out of his garage in his Seattle home which Nick Hanauer who believed in Benzo’s idea invested $40,000; Benzo then asked 300 friends and associates to help him test the site. Once the site was up and running, on July 16, 1995, Benzo told his 300 beta testers to spread the word around. With no press and just word of mouth, Amazon.com sold books in all of the 50 states and in 45 foreign countries in 30 days. Within two months his sales was up to $20,000 a week....
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