FORD MOTORS CORP - VALUE ENHANCEMENT PLAN 1. Does Ford have too much cash? • Liquidity Analysis: Quick Ratio and Current Ratio. Find the industry standard and compare! • Opportunity Cost of holding cash versus Capital Gain for spending that idle cash! • Solvency to understand the risks incurred by the firm and verifies it against an optimal capital structure. • Ford has made past acquisitions and has exhausted that list by purchasing Jaguar Cars, Volvo Cars, and Land
Words: 539 - Pages: 3
Post-Merger Analysis HAS/525 Evangeline Hampton Debra Beazley May 28, 2014 Introduction There are a number of financial drivers that would likely cause health care organizations to merge, meaning the main motives behind why two firms would assume that they are more financially sound as compared to being alone. These kinds of firms are more concerned in innovation based offerings and are always considering ways through which they could take a leap forward. The new phenomena driving the healthcare
Words: 668 - Pages: 3
Executive Summary This report explains the major tasks accomplished by me during my internship period with CreedCap Asia Advisors. CreedCap Asia Advisors is a boutique investment banking firm that provides start-ups and small and medium enterprises with financial advisory services such as capital syndication. My internship experience with CreedCap Asia Advisors gave me firsthand experience on deal transactions. I worked on live equity and debt deal transactions. I learnt how to create financial
Words: 277 - Pages: 2
Laurentian Bakeries Instruction: You need to analyze the case and come up with the recommendation with regards to the capital budgeting decision. Assumption: Inflation rate is 4% Discussion Guideline: 1. What is the dilemma faced by the management of Laurentian Bakeries? 2. Comment on the Laurentian Bakeries’ ‘Project Review Process’. Is it a sound process? 3. What are the alternative investment opportunities? Why are those alternatives not chosen? 4. Comment on the expected
Words: 302 - Pages: 2
Stephenson Real Estate Recapitalization 1. I would recommend issuing debt to finance the land if they want to maximize their total market value. This is because the debt involves interest payments that are tax deductible. Increasing the weight of debt in the capital structure will decrease the company’s taxable income due to a larger amount of interest payment being made. This creates a tax shield that will increase the overall value of the firm. 2. Market value balance sheet – before
Words: 323 - Pages: 2
California Pizza Kitchen Company Background: White-collar criminal defense attorneys Larry Flax and Rick Rosenfield in Beverly Hills, California created California Pizza Kitchen in 1985. Famously known for its hearth-baked barbecue-chicken pizza, the “designer pizza at off-the-rack prices” concept thrived. Over the last twenty years, the company has expanded into 213 locations in 28 states and 6 foreign countries. Although approximately 41% of the U.S. stores are located in California the business
Words: 666 - Pages: 3
Dan Cohrs, vice president of finance at the Marriott Corporation has to prepare his annual recommendations for the hurdle rates for the firm’s three major lines of business – lodging, contract services and restaurants. He recognizes that the hurdle rates are going to have a significant impact on the firm’s financial and operational strategies. If hurdle rates increased, Marriott’s growth would be reduced as once profitable projects wouldn’t remain so. While on the other hand, decease in hurdle rates
Words: 753 - Pages: 4
DUKE UNIVERSITY Fuqua School of Business FINANCE 351 - CORPORATE FINANCE Sampa Video, Inc. Prof. Simon Gervais Fall 2011 – Term 2 In this case, you have to assess the viability of the home-del ivery project that Sampa Video is considering. You are asked to do your analysis using WACC, an d then using APV. In both cases, you can use the data in Exhibit 2 to calculate the free cash flow s of the project. Assume that these free cash flows will grow at 5% per year in perpetuity followin
Words: 338 - Pages: 2
competing against giants such as Samsung and Intel. This market is, due to its fast growth and continuous technological change, highly competitive, which requires companies to be ever more careful in choosing which projects to pursue and how to finance these projects. In this order of thought, Flash Memory currently holds an investment opportunity and, in case they decide to undertake the project, need to decide on the optimal way of financing it. In order to state if the company should invest in
Words: 4332 - Pages: 18
a) Why is corporate finance important to all managers? Corporate finance provides the skills managers need to identify and select the corporate strategies and individual projects that add value to their firm. It also helps to avoid costly mistakes. It also helps in forecasting the funding requirements of their company and to figure out how to acquire necessary funding. b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages
Words: 996 - Pages: 4
