...The purpose of this paper, prepared by Jessica Chan under the supervision of Robert F. Bruner is about analyzing the companies Coca Cola and Pepsi after Pepsi has announced a merger with Quaker Oats Company with a deal at around $14 billion. With this deal Pepsi would have access to 83.6% of the sport drink market and around 33% of the U.S. noncarbonated-beverage market, followed by Coke with 21%. The paper wants to answer the questions how the latest announcement of Pepsi has an effect on the two companies´ prospects for value creation by showing the company background of both companies, giving a briefly industry overview of the beverage market and competitive events and establishing a financial comparison, especially with ratio and economic profit analysis. In the world Coca Cola and Pepsi have towered as the two leading brands of beverages. In the year 2000, Coca Cola was the largest manufacturer, distributor, marketer of soft-drink concentrates and syrups in the world and its market value reached $110.01 billion. On the other side Pepsi was a $20 billion worth company in 2000, acting in the snack food, soft drink and noncarbonated beverage market. Both companies have reached worldwide expansion of their markets, which include a large product range of beverages, apparel and paraphernalia with their respective logos. Both have grown into longstanding global and social industry leaders. Coca Cola´s annual sales were $20.5 billion which were earned also through a variety of...
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...The purpose of this paper, prepared by Jessica Chan under the supervision of Robert F. Bruner is about analyzing the companies Coca Cola and Pepsi after Pepsi has announced a merger with Quaker Oats Company with a deal at around $14 billion. With this deal Pepsi would have access to 83.6% of the sport drink market and around 33% of the U.S. noncarbonated-beverage market, followed by Coke with 21%. The paper wants to answer the questions how the latest announcement of Pepsi has an effect on the two companies´ prospects for value creation by showing the company background of both companies, giving a briefly industry overview of the beverage market and competitive events and establishing a financial comparison, especially with ratio and economic profit analysis. In the world Coca Cola and Pepsi have towered as the two leading brands of beverages. In the year 2000, Coca Cola was the largest manufacturer, distributor, marketer of soft-drink concentrates and syrups in the world and its market value reached $110.01 billion. On the other side Pepsi was a $20 billion worth company in 2000, acting in the snack food, soft drink and noncarbonated beverage market. Both companies have reached worldwide expansion of their markets, which include a large product range of beverages, apparel and paraphernalia with their respective logos. Both have grown into longstanding global and social industry leaders. Coca Cola´s annual sales were $20.5 billion which were earned also through a variety of...
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...LAWS7012 | Case Studies Topic 5 Case Study 1 Are the following self-education expenses deductible under section 8-1? Provide reasons for your answer. a. Barry, a trainee accountant, is studying commerce part-time at university. Barry enrolled after he started his employment with his firm. b. Brianna, a company director, was having difficulty coping with work due to stress brought about by difficulties with her family situation. She decided to attend a four-week course in stress management to help her deal with the situation. Brianna attended the course after hours and paid for it herself. c. Kieran, a computer salesman, takes six months leave without pay to undertake a business administration course at a private provider not registered as a higher education institution. He has an agreement with his employer that, upon successful completion of the course, he will be promoted to an assistant manager position with his current employer. d. After finishing her final year of school, Sarah enrols in a full-time fashion photography course at a TAFE college. She is supported by her parents during her studies and does not receive any government assistance. She works as a casual sales assistant on weekends. e. Stuart wants to be the manager of a hotel. He enrols in a hotel management course at a TAFE college, one semester of which involves an industry placement to gain work experience. Stuart is placed with a major hotel where he gains experience in all facets...
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...Introduction Capital punishment in the United States is largely viewed as retaliation and compensation against society's most malicious criminals. The federal government rarely imposes capital punishment for crimes. The majority of capital sanctions are imposed on the state level for murder. Currently, thirty-two states have death penalty statutes. Of those thirty-two, only seven states carried out executions in 2014 (Bureau of Justice Statistics 2015). Those executions total 35 (Bureau of Justice Statistics 2015). As a result of the low number of executions carried out, experts in the United States have examined the efficiency of the death penalty. To accurately assess the economic costs of the death penalty, the difference between the costs...
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...| Marriott Corporation | Case Study – Write Up | Hitesh Gupta & Swapnil Deshpande 2-5-2015 | Q1 what is overall WACC for Marriott Corporation? Ans :- For calculating WACC we need cost of equity for the firm(ke) ,cost of debt(kd) capital structure of the firm and tax rate (t). To calculate cost of debt we chose the long term interest rate on U.S. government bond and added debt rate premium (From Table A debt premium = 1.3%) for Marriott Corporation to it. We chose long term US govt bond rate (Rf = 8.95%) majorly because of their lodging business which contributes more than 50% of the profit and has assets of a very long useful lives The target capital structure is provided in Table A of the case study which is 60% debt and 40% equity. We will use the same while calculating WACC. From exhibit 1 of case study the Tax rate in the year 1987 for unlevered beta = 44% = (Income tax / Income before income tax)*100% To Calculate cost of equity we have followed the below process (See Appendix for calculations): 1) Calculated unlevered beta (βu) using the given debt to equity ratio and given equity beta from Exhibit 3 of case study βu= βl(1+1-t*DE) 2) Levered the βu with the targeted capital structure and tax rate = 35% βl = βu*(1+1-t*DE) 3) To determine the risk premium (Rm – Rf) we have used 1926 -87 Spread between S&P 500 composite return and long term U.S. govt bond return (Exhibit 5 of the case study) to have a reasonable measure of long...
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...Capital Punishment Katrina Maxwell ITT Technical Institute Capital punishment has been described as an eye for an eye and a tooth for a tooth. Society is saying it is alright to use violence against violence and to use capital punishment as a means for retribution. Then questions come to mind of whether all the violence is necessary and whether it has the end results one claims it to have. In the 1960’s the appellate courts started applying the Bill of Rights to capital cases (G.R) Prohibition of cruel and unusual punishment and the requirements for due process and equal protection of the law was hugely expanded upon and the public demanded for the end of capital punishment. Today society has had the different tune of vengeance and retribution for violent criminals (Grant, 25). Robert Grant tells of different kinds of justices such as restoration and retributive. Restorative justice he explains as the elimination of violence from the community and heals the harm done to the extent possible. As best put by Martin Luther King Jr., returning violence for violence only multiplies violence, adding deeper darkness to a night already devoid of stars. Darkness cannot drive out hate; only love can do that. Restorative seeks to eliminate the culture of violence and replace it with a caring culture. Retributive justice is quite the opposite, calling for the criminal to pay for the crime, that will balance the scale of justice. The debates have been all made for and against capital...
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...McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond Chemicals PLC (A): The Merseyside Project 20. Diamond Chemicals PLC (B): Merseyside and Rotterdam Projects VI. Management of the Corporate Capital Structure 29. Structuring Corporate Financial...
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...Performance Case Study FIN 320 Week 2 DQ 1 FIN 320 Week 2 DQ 2 FIN 320 Week 3 Assignments from the Readings FIN 320 Week 3 Individual Assignment Working Capital Management Paper FIN 320 Week 3 DQ 1 FIN 320 Week 3 DQ 2 FIN 320 Week 4 Team Assignment Working Capital Case Study FIN 320 Week 4 Individual Assignment Utilizing the TVM Simulation Summary FIN 320 Week 4 Team Assignment Cost of Capital Memo FIN 320 Week 4 DQ 1 FIN 320 Week 4 DQ 2 FIN 320 Week 5 Individual Assignment International Risk Paper FIN 320 Week 5 Individual Assignment Financial Intermediaries Paper FIN 320 Week 5 Team Assignment Capital Investment Decisions Case Study and Presentation FIN 320 Week 5 DQ 1 FIN 320 Week 5 DQ 2 Activity mode aims to provide quality study notes and tutorials to the students of FIN 320 Entire Course in order to ace their studies. FIN 320 ENTIRE COURSE To purchase this Click here: http://www.activitymode.com/product/fin-320-entire-course/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 320 ENTIRE COURSE FIN 320 Week 1 Individual Assignment Ethics Article Analysis FIN 320 Week 1 DQ 1 FIN 320 Week 1 DQ 2 FIN 320 Week 2 Assignments from the Readings FIN 320 Week 2 Team Assignment Financial Performance Case Study FIN 320 Week 2 DQ 1 FIN 320 Week 2 DQ 2 FIN 320 Week 3 Assignments from the Readings FIN 320 Week 3 Individual Assignment Working Capital Management Paper FIN 320 Week 3 DQ 1 FIN 320 Week 3 DQ 2 FIN 320 Week 4 Team Assignment Working Capital Case Study ...
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... This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the case provides an engaging context to discuss the “pizza graphs” that are commonly used in corporate finance curriculum to illustrate the wealth effects of capital structure decisions. The case serves to motivate the following teaching objectives: • Introduce the Modigliani-Miller intuition of capital structure irrelevance; • Establish how the cost of equity is affected by capital structure decisions by defining financial risk and introducing the levered-beta capital asset pricing model (CAPM) equation; • Discuss interest tax deductibility and the valuation tax shields; • Explore the importance of debt capacity in a growing business. Suggestion for Advance Assignment to Students Students may consider the following study 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? What about the cost of capital? In assessing the effect of leverage on the cost of capital, you may...
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...statements prepared in accordance with US GAAP, however differences between US GAAP and IFRS will be outlined and examined. The class will be taught using a combination of lectures, class discussions and real-world case studies. In order to maximize our time together, students are expected to read the assigned chapters and complete the case studies on time. Given the brevity of the course and lecture time, students are encouraged to email me directly with questions at any time. Required Materials Textbook: Financial Statement Analysis & Valuation, (3rd Edition), By Easton, McAnally, Sommers & Zhang, Cambridge Business Publishers, 2013. ISBN: 978-1-61853-009-7 Case studies will be provided on TLE. Grading Schedule Class Participation/Case Work: Individual Project: Mid-Term/Exam 1: Final Exam: 20% 30% 20% 30% Grading Expectations Class Participation/Case Work: Each student should be prepared to discuss the required readings. To satisfy the requirements of class participation, students will be required to answer direct questions from the instructor and must actively participate in group discussions. 1|Page Case Work assignments must be turned in by the due-dates listed below. Late assignments will not be accepted. Please bring two copies of the completed cases to class (one for discussion, one to turn in). Individual Project: The specific requirements for the individual project will be outlined in greater detail on TLE. Students must select a non-financial, non-biotechnology...
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...McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond Chemicals PLC (A): The Merseyside Project 20. Diamond Chemicals PLC (B): Merseyside and Rotterdam Projects VI. Management of the Corporate Capital Structure 29. Structuring Corporate Financial...
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...The use of capital punishment in America stems from Britain influence and began early on in the settlement of the European colonies. The earliest recorded execution dates back to 1608 (Death Penalty Information Center, 2011) . However, the use of capital punishment in the United States centuries later has been very controversial. Thirty-four states still use the death penalty as a punishment while 16 states have abolished its use (Death Penalty Information Center, 2011) . The constitutionality of capital punishment is in question and is constantly interpreted. The death penalty requires arbitrary decisions to be made by jurors. The studies on race in death penalty cases, the exonerations of those individuals on death row, and the cost of the death penalty are reasons to abolish capital punishment in the United States. Recent studies on the death penalty show surprising facts about the race of defendant and victim. In North Carolina it was found that the odds of receiving the death penalty rose by 3.5 for defendants whose victims were white. A California study found that defendants who murdered Whites were three times more likely to receive the death penalty than those who murdered Blacks and four times more likely than those who murdered Latinos. Race-of-victim and race-of-defendant discrimination has been found in 96 percent of the states in which death penalty and race studies have taken place (Death Penalty Information Center, 2011) . The exonerations of those on death row...
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...Journal of International Business and Cultural Studies Human resource accounting and international developments: implications for measurement of human capital Maria L. Bullen Clayton State University Kel-Ann Eyler Wesleyan College Abstract Human Resource Accounting (HRA) involves accounting for expenditures related to human resources as assets as opposed to traditional accounting which treats these costs as expenses that reduce profit. Interest and contributions to growth in HRA have been evident in a number of countries. The strong growth of international financial reporting standards (IFRS) is an indication that the environment for international financial accounting is one that potentially encourages the consideration of alternative measurement and reporting standards and lends support to the possibility that future financial reports may include nontraditional measurements such as the value of human resources using HRA methods. Keywords: Human Resource Accounting, Human Capital, Intellectual Capital, International Accounting, International Financial Reporting, International Financial Reporting Standards Human Resource Accounting, Page 1 Journal of International Business and Cultural Studies Introduction Human Resource Accounting (HRA) involves accounting for the company’s management and employees as human capital that provides future benefits. In the HRA approach, expenditures related to human resources are reported as assets on the balance sheet as opposed to the...
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...Sarmas www.csupomona.edu/~psarmas CATALOG DESCRIPTION: A seminar course in finance utilizing comprehensive cases to simulate the role of the financial manager. 3 seminar-discussion. Prerequisite: GBA 546, all required 500-level courses, and microcomputer proficiency. Concurrent enrollment in GBA 646. Unconditional standing requirement. EXPANDED DESCRIPTION OF THE COURSE AND INSTRUCTIONAL METHODS: A. Expanded Description of the Course: This course reinforces the basic concepts of financial management. The course provides an in-depth discussion of key topics that are critical to financial management: (1) the goals of the firms, (2) financial statement analysis, planning, and forecasting, (3) working capital policy and management, (4) capital budgeting techniques without and with risk, (5) capital structure theory and application, (5) the cost of capital estimation, and (6) long-term financing decisions. In addition, the course examines issues such as lease financing, merger and acquisition, and international financial management. B. Instructional Methods: The delivery system throughout this course will be a combination of class discussion and case analysis. The case analysis will be both in a written format and oral presentation. The amount of lecture will be limited to detailed coverage of concepts pertaining to each individual case. REQUIRED BACKGROUND OR EXPERIENCE: A. Prerequisites: Fundamental of Financial Management (GBA 546), all required...
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...| | Coke vs PepsiWeek 5 Case Study | | | | | | | | | | | | | | | | | | | | | | | | Artesia Stivison, Robert Higdem & Rocky Edmondson | Coke vs Pepsi Week 5 Case Study Question #1 Question #2 Question #3 Question #4 Can you make poor investment decisions and be profitable? What evidence do you see from the companies’ results that indicate how well they made investment decisions (capital budgeting). A company can make poor investment decisions and still remain profitable, but only for a time. A company cannot continually make poor investment decisions and remain profitable forever. When looking at the Coke vs Pepsi case study, we find that Doug Ivester, then CEO of Coke, made a bad investment decision when he chose to increase the rate charged for syrup to franchisers. As a result, bottlers raised prices to improve profitability, and in turn there was a decrease in overall sales volume. During the time Ivester was CEO, the net income for Coke fell 41% and he ended up without a job. Had this been a trend that continued, Coke would have been out of business, but they rebounded and remain profitable. This example shows that a company can make a bad decision and continue to be profitable in the long run. But, repeat bad investment decisions and a company will go broke. Question #5 How does WACC change over time? What do you think might drive the changes? WACC is the opportunity cost of investing in a company...
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