California

In: Business and Management

Submitted By kevinzhang
Words 275
Pages 2
California Pizza Kitchen Assignment Questions
1. In what ways can Susan Collyns facilitate the success of CPK?
2. Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? Based on the analysis in case Exhibit 9, what is the anticipated CPK share price under each scenario? How many shares will CPK be likely to repurchase under each scenario? What role does the tax deductibility of interest play in encouraging debt financing at CPK?
3. What capital structure policy would you recommend for CPK? (Explain)

1. I think that the CFO, Susan Collyns, could facilitate success of the firm by implementing the following measures:
A. Increase the advertising spending.
According to the article that CPK spent 1% of its sales on advertising, less than the 3% to 4% of sales that casual dining competitors, such as Chili’s, Red Lobster, Olive Garden and Outback Steakhouse, spent annually.CPK is using the word of mouth advertising to attract more and more coustomers for their traffic.so advertising spending is one of most important factor for CPK success.
B. Increase leverage using debt financing by changing the existing capital structure and purchasing US treasure securities
CPK used the proceeds from its 2000 initial public offering to pay off its outstanding debt and completely avoided debt financing.
C. Repurchase the company’s stock
Becase of their recent 10 % share price decrease,it is a good change for they to repurchase their stock at a lower price. The main goal for the use of financing is to balance the return capital to shareholders with management’s goal of growing the…...

Similar Documents

California

...California Pizza Kitchen Assignment Questions 1. In what ways can Susan Collyns facilitate the success of CPK? 2. Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? Based on the analysis in case Exhibit 9, what is the anticipated CPK share price under each scenario? How many shares will CPK be likely to repurchase under each scenario? What role does the tax deductibility of interest play in encouraging debt financing at CPK? 3. What capital structure policy would you recommend for CPK? (Explain) 1. I think that the CFO, Susan Collyns, could facilitate success of the firm by implementing the following measures: A. Increase the advertising spending. According to the article that CPK spent 1% of its sales on advertising, less than the 3% to 4% of sales that casual dining competitors, such as Chili’s, Red Lobster, Olive Garden and Outback Steakhouse, spent annually.CPK is using the  word of mouth advertising to attract more and more coustomers for their traffic.so advertising spending is one of most important factor for CPK success. B. Increase leverage using debt financing by changing the existing capital structure and purchasing US treasure securities CPK used the proceeds from its 2000 initial public offering to pay off its outstanding debt and completely avoided debt financing. C. Repurchase the company’s stock Becase of their recent 10 % share price decrease,it is a good change for they to......

Words: 275 - Pages: 2

California Pe

...California Department of Education Reposted September 17, 2010 Physical Education Model Content Standards for California Public Schools Kindergarten Through Grade Twelve California Department of Education Reposted September 17, 2010 Publishing Information When the Physical Education Model Content Standards for California Public Schools, Kindergarten Through Grade Twelve was adopted by the California State Board of Education on January 12, 2005, the members of the State Board were the following: Ruth Green, President; Glee Johnson, Vice President; Ruth Bloom, Don Fisher, Ricky Gill, Reed Hastings, Joe Nuñez, Bonnie Reiss, Suzanne Tacheny, and Johnathan Williams. This publication was edited by Sheila Bruton and Faye Ong, working in cooperation with Dianne Wilson-Graham, Consultant, Professional Development and Curriculum Support Division. It was prepared for printing by the staff of CDE Press: the cover and interior design were created and prepared by Paul Lee; typesetting was done by Jeannette Reyes. It was published by the Department, 1430 N Street, Sacramento, CA 95814-5901, and was distributed under the provisions of the Library Distribution Act and Government Code Section 11096. © 2006 by the California Department of Education All rights reserved ISBN 978-0-8011-1605-6 Acknowledgments The following educators were appointed by Jack O’Connell, State Superintendent of Public Instruction, to assist in the development of the Physical Education Model...

Words: 19347 - Pages: 78

California

...California Unemployment and Taxes California losing business and people because of many factors from high taxes to the high cost of living, but the state government thinks that raising taxes will help keep the states running. According to the Bureau of Labor Statistics, California, has one of the highest unemployment in the country at 9.4%. The nation’s unemployment rate is 7.5% one reason may be high taxes, bad regulations, unions, and the raise in energy costs up by 33%. Companies are moving out of California to places like Texas where the tax rate is lower and have fewer regulations. Some states like South Dakota, Texas, and Wyoming do not have corporate income tax. The big companies are not the only ones hurting. Small businesses are closing down every day. With the new heath care coming in businesses are not hiring because if they have 50 employee or more they will have to pay for their health care so they, either. They will let people go or make them part- time with fewer than 30 hours a week or have to pay a fine for each one. The costs for incorporating companies went up 800. dollars. Businesses are not the only ones moving people, are leaving too. Since the 2000 over 1.6 million people left California, for some of the same reasons, gas prices are one of the highest in the nation, the cost of living is one of the highest in the nation, some of the worst schools in the nation, political correctness, and the economy with poverty levels increasing by 30% since 2007...

Words: 857 - Pages: 4

California

...1821 Mexico gained independence from Spain and "Alta California" became a Mexican province rather than a Spanish colony. A new era began in California as ranch life flourished and American trappers began to enter the territory. The Mexican government secularized the missions in 1834 and they were eventually abandoned. In June 1846 a party of settlers occupied Sonoma Plaza and proclaimed a Republic of California and raised the bear flag in rebellion. Known as the Bear Flag Revolt, this insurrection represented one of the first aggressive actions that divided California from Mexico. In 1848 gold was discovered at Sutter's Mill and dramatically altered the course of California's history as miners rushed into the area. On September 9, 1850, California became a state. The Gold Rush brought thousands of immigrants, both foreign and domestic, to California. This and later mass migrations, combined with the state's natural riches, assured Calfornia's success as it developed its diversified agriculture and industry, fisheries, forestry, and mining industries, aircraft plants and shipyards, tourism and recreation, the film industry, and the technological sector epitomized by Silicon Valley (highlighted in another National Register itinerary: Santa Clara County: California's Historic Silicon Valley). More than 90,000 people made their way to California in the two years following the first discovery and more than 300,000 by 1854 — or one of about every 90 people then living in the...

Words: 494 - Pages: 2

The California

...the California’s gold rush OF 1849 and how it changed and shaped AMERICA’S WEST EN1320 Gold, since the beginning of civilization has been the focal point of wealth and power. The alluring power of gold stirred the untapped desires of man all though out history. Causing great changes in civilization and molding us to what we are today. The same holds true to the American gold rush in 1849 in California. How that gold rush shaped American economy and the west of the Americas in that time frame. The gold discovery that caught the eye of the world and brought attention to California happened on January 24, 1848 two week right before the peace signing negotiations between the Mexico and American governments (hittell, 1999) . In short the Mexican government gave up a huge discovery in the California’s lands that they had control over at that time. Neither the America nor the Mexican governments knew the magnitude of the discovery in California until the singing was over. The gold discovery that changed America happened in Sacramento Valley, most likely one of the most significant events to shape American history during the first half of the 19th century (The Gold Rush of 1849). As the news spread about the discovery of gold people by the thousand poured into San Francisco and the surrounding area by land and sea by the end of 1849 over 100,000 nonnatives California’s occupied the California claim lands. Before the 1849 discovery records showed that occupies was...

Words: 1087 - Pages: 5

Hotel California

...The Eagles have produced many popular musical hits within the century. One of their most popular and recognized songs is “Hotel California.” However, there is still much stir today over what the song is actually intended to mean. There have been many speculations as to the meaning of the song, such as a trip to jail and the American dream. I disagree with these interpretations and argue that Hotel California is about the trials and tribulations of a drug addict. In the opening stanza, Don Henley, the lead singer of The Eagles, describes his path as “dark” with cold wind running through his hair. This road lay through the desert during the evening. As he is walking on this road, he can smell the “warm smell of colitas” in the air when suddenly he can see a shimmering light at the other end of the road. Since Henley had been walking down this “dark” road for an extended period of time, he feels he must rest and decides to spend the night at a hotel. It is here where he meets a young woman. This young woman both intrigues and ignites something inside of him. Still unsure if running away with this woman is a good or bad idea, he decides to follow her where she is leading him. A dark road is often referred to in the song Hotel California. The pathway is seen as dark because it was Henley's life before he dabbled into drugs. This was a long and lonely road insinuated by the way he describes the road as it lays in the desert. This period was the time he was in...

Words: 1290 - Pages: 6

California Trail

...The California Trail carried over 250,000 gold-seekers and farmers to the gold fields and rich farmlands of the Golden State during the 1840s and 1850s, the greatest mass migration in American history. The general route began at various jumping off points along the Missouri River and stretched to various points in California Oregon, and the Sierra Nevada. The specific route that emigrants and forty-niners used depended on their starting point in Missouri, their final destination in California, the condition of their wagons and livestock, and yearly changes in water and forage along the different routes. The trail passes through the states of Missouri, Kansas Nebraska, Colorado, Wyoming, Idaho, Utah, Nevada, Oregon, and California. Before the trail was blazed, the Great Basin region had only been partially explored during the days of Spanish and Mexican rule. However, that changed in 1832 when Benjamin Bonneville, a United States Army officer, requested a leave of absence to pursue an expedition to the west. The expedition was financed by John Jacob Astor, a rival of the Hudson Bay company. While Bonneville was exploring the Snake River in Wyoming, he sent a party of men under Joseph Walker to explore the Great Salt Lake and find an overland route to California. Early settlers began to use the trail in the 1840's, the first of which was John Bidwell, who led the 1841 Bidwell-Bartleson Party. In 1842, a member of the Bidwell-Bartleson Party returned to Missouri on the...

Words: 4471 - Pages: 18

California Hoa

...Running Head: HOA Interferes with Businesses 1 HOA Interferes with Businesses Jeremiah Boshard COMM/215 Monte Gast January 9, 2015 HOA INTEREF !2 HOA Interferes with Businesses Home owner associations have been around for years for the sole purpose of regulating the housing communities by what the homeowner can and can not do. It seems that the HOA’s in California have become more governed as the years go on; specify what homeowners are allowed to do at their place of residents. When this type of control starts to interfere with the means of support for each household, it tears down the hard working individuals that purchased the home in the community. While the Home Owner Associations want to provide safety and curiosity to all residents, they should not regulate their residents work vehicles from parking in front of their own home. They should not dictate the type of work vehicle that is allowed to be stationary in front of the residents homes. Upon doing so the residents will be fined a large sum. This includes those that have lumber racks, more than one attached tool box and painted advertisements or company logo’s on their vehicles. These vehicles that the HOA’s are regulating are more than likely the income that pays the dues each month. First of all the Home Owners Associations should not regulate residents work vehicles from parking within the community. They should not dictate the type of work vehicle that is allowed to park in front of residents...

Words: 1072 - Pages: 5

California Proposition

...Now,more and more people care about animal rights. In the U.S, some state have issued legal to protect them and give them some basic rights. States like Florida, Arizona, and Oregon have passed successful propositions which have hindered safe livestock husbandry. In addition, Colorado has automatically agreed to die out veal crates and gestation crates to avoid having to place the issue on a ballot. On August 9, 2007, animal rights groups go on to propose livestock housing legislation by filing another state petition. This law suit legislation regulating livestock production in California , including the “Treatment of Farm Animals Statute” on the November 2008 general election ballot. Proposition 2 which is includes limits on minimum space requirements for the confinement of veal calves, gestating sows, and laying hens. That is the California proposition2 comes from. Even though,the eggs price increase but consider the chicken they would have a good cote to laying hens.Do you know how much space do they have before the chicken cage size law come out? They just have 116 square inches of space, how do you think? What a horrible things! That's less than a one-foot by one-foot space that a chicken has to live in all its life. I'm not rich, but I want to pay extra for free range because I don't like to eat food from tortured animals if I can avoid it. It also made me care about the eggs’ health, foot by foot space for chicken’s live would like a incubator,thousands and thousands...

Words: 519 - Pages: 3

California Culture

...Weiner 1 Jacob Weiner Daniel McClure California Culture October 1, 2014 California Sunshine and Noir California, the Golden State, where the sun is always shining, the waves are always crashing, and dreams are coming true. Right? Well, not exactly. It hasn’t always been sunshine and smiles for the great state of California. The state has gone through a variety of stages both economically, and politically. Throughout these phases, there have been a fair amount of themes that have helped build the foundation of California culture. Of course, there is the notion that anyone can move to California and strike it rich. This dream that is still very alive today has contributed in the past and present with massive booms in immigration into California. This popular conception is warm and welcoming, but it does not tell the entire story of California. When looking into the past and understanding how this state came to be, there is a dark and iniquitous aura that suggests that California isn’t really that enchanting, glamorous place that it is made out to be. The California Dream all started in 1848 when discovery of gold sparked a rapid movement known as the California Gold Rush. Word quickly spread when John Marshall first made his discovery in the American River. As Albert L. Hurtado explains in his paper, “Sex, Gender, Culture, and a Great Event: The California Gold Rush, ‘It is impossible to give more than rough estimates for the number of hopeful people who poured into...

Words: 1459 - Pages: 6

California Water

... California’s Water Problem Introduction: Water Sources in California In her book entitled Managing Water: Avoiding Crisis in California, the ecologist and historian Dorothy Green describes the complicated and intricate California water system (University of California Press, October 9, 2007). Green’s description and analysis becomes more important to the people of California with every week that passes/ This is because California is now in the fourth year of drought in which no rain, snow, or hail has fallen (“California Drought”, CA.gov. Online at: http://ca.gov/drought/). In her work on the topic, Dorothy Green describes very carefully the system by which the rain, snow, and hail that fall in northern California move downwards in a flow of water that serves the entire state thanks to the power of gravity. The river systems of California include Colorado River and the Sacramento River. These great river systems move the water southwards, (to Los Angeles) and westwards (to San Francisco), respectively. In addition to these well known rivers to the system of rivers in California includes more than thirty rivers including the Klamath, the American, the Tolumne, the Merced, the Yuba, the Kern, the Russian, the Tule, and right here in Los Angeles the Los Angeles River which runs right through the industrial section of downtown Los Angeles in a cement channel : In addition to the river systems of California, Green describes a network of dam release channels...

Words: 1507 - Pages: 7

California Chopper

...To: California Choppers From: Hewlit & Partners Date: Wednesday, November 11, 2015 Subject: Financial Condition of California Choppers As per our agreement, Hewlit & Partners has been asked to come on board to help review California Choppers operations and make recommendations. In the following memo, we will detail our findings about the Company’s liquidity, asset management, long-term debt paying ability, profitability, and recommendations. Liquidity The current ratio of 2005 is 1.04, which is much lower than the industry average of 1.25. This is concerning, because the current ratio has been declining significantly since 2003. In addition, California Choppers’ agreement with the bank requires the Company to maintain a current ratio of 1.25 for the loans used for purchases of land, plant and equipment. Although the bank has been lenient in the past due to a strong relationship with Arlen Doakes, this relationship is not something that should be relied on completely. We cannot assume that the bank will take the violation of the debt covenant lightly. Current assets have been increasing largely due to Inventory, and current liabilities have been increasing due to Accounts Payable. The cash ratio has also been declining since 2003. This may cause California Choppers to run into difficulties in trying to pay off current liabilities. Asset Management The inventory turnover has been decreasing from 2001 to 2005, from 83.93 to 37.46. This is less than the...

Words: 627 - Pages: 3

California Marketplace

... accomplished had been attempted by democratic presidents for the last 75 years. The way was finally paved when the Supreme Court upheld most provisions of the health care law in June 2012. The U.S. healthcare is undergoing a major transformation and the implementation of this Act will hopefully aid in cost control in the spending on healthcare and in the long run impact patient outcomes for the better. One of the successful implementation of the healthcare marketplace is called “Covered California” it’s the name for the first state to approved health insurance exchange under the Affordable Care Act. An online website that allow consumers to buy coverage. “There were 1,405,102 people in California that signed up for commercial health insurance according to the U.S Department of Health and Human Services in the final 2014 enrollment report” (Norris, L., 2015). Preceding the Affordable Care ACT (ACA), California had the largest number of uninsured of any state in the country and also accounted for 14% of all uninsured people nationwide. The major reason why these numbers are so high is because California is the one state with the greatest number of undocumented immigrants in the country (Garfield, Majerol, Young, 2015). The growth of the multicultural and Hispanic population is changing the face of this country. “The U.S. Census projects that by 2050, The U.S. Census projects that by 2050, the Hispanic and Asian population will both triple, the black population will almost......

Words: 1404 - Pages: 6

California

...On its own sunny path The article talks about how the state of California in USA is going about executing its plans of using alternative sources of energy to as large an extent as possible to meet the coastal state’s energy needs. As the governor of California in 1970s, Jerry Brown started propagating the option of solar power as a major source of energy for California, this idea was however unwelcome at that time & was rather shot down without any considerations to the merits it could offer. This however changed with time as people realized the importance of renewable resources of energy. California having a sunny climate for most of the year, along with a long coast line also helped in generating interest & confidence in the scheme of things planned for alternative source energy generation in California. The governor of California, Arnold Schwarzenegger set a goal in 2006 to reduce its greenhouse-gas emissions to 1990 levels by 2020, and this goal was recently transformed into a law by Mr. Brown who has become the governor of California once again. The law includes a controversial but crucial component: a cap-and-trade system A cap-and-trade system limits the emissions of dirty industries and puts a price on their remaining pollution, in theory, provide an incentive for reductions. As per the law, starting in 2013 the government will “cap” the amount of gases (such as carbon dioxide) that industry may emit, and gradually lower that cap. It will also issue permits...

Words: 626 - Pages: 3

California Clinics

...California Clinics Lakisha Fields Strayer University Instructor: Laura Forbes HSA 525 February 12, 2012 California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm’s dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock. Hint: consult pages 396-397 of your text book for correct formula. Please consult your syllabi for assignment grading criteria. 1. What is the stock’s value? In order to determine the stock’s value. I used the formula in the text E(P0)= D0 x [1 + E(g)] / R(Re) – E(g). In which D0 represents the most recent dividend, which has already been paid = $, E(g) represents the expected growth rate in dividends in the future=5%, and R(Re) represents the expected rate of return on the stock=15%. Therefore the formula is as follows: E(P0)= $2.00 x [1 + .05] / .15 - .05= E(P0)=$2.00 x 1.05 / .10= E(P0)= $2.10 / .10= $21.00 The stock’s value is $21.00 2. Suppose the riskiness of the stock decreases, which causes the required rate of return to fall to 13%. Under these conditions, what is the stock’s value? The formula used above would again be used in this situation, however the R(Re) which represents the expected rate of return on the stock now=13%. Therefore the formula is now as follows: E(P0)= $2.00 x [1 + .05] / .13 - .05= E(P0)=$2.00 x 1.05 / .08 E(P0)= $2.10 / .08= $26.25 The stock’s value is $26.25 3...

Words: 989 - Pages: 4