Group Case 3: MCI Communications Corp.‚ 1983 Executive Summary Assumptions The following are the assumptions we made through the whole analysis. The predicted revenues from 1983 to 1990 were assumed to follow the pattern in Exhibit 9A‚ despite the uncertainty of the higher access charge and competition increase. The marginal tax rate is 30% during that period. The firm must keep minimal cash balance of $100 million to support its operating activities. However
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its CEO. The company name was changed to LDDS WorldCom in 1995 and later just known as WorldCom. MCI‚ Inc. was a telecommunications company that was headquartered in Ashburn‚ Virginia. This was a result of the merger of WorldCom and MCI Communications. They used the name MCI WorldCom but officially became WorldCom on April 14‚ 2003 “as part of the corporation’s emergence from bankruptcy.” (MCI Inc) MCI had a history of acquiring companies that led to the breakup of the AT & T monopoly. WorldCom on
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that the board of directors at MCI was divided between two possible solutions. Should the company finance the repurchase by increasing MCI’s debt financing by at least doubling the current debt-equity ration that stood at 36% at that time (MCI)? Conversely‚ would a more conservative approach of using an open-market purchase program‚ announcing its intentions to repurchase its stock from "time to time" but only as corporate funds become available‚ be more appropriate (MCI)? The answer to this question
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MCI Communications Corp. was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and ushered in the competitive long-distance telephone industry. It was headquartered in Washington‚ D.C.[1] Founded in 1963‚ it grew to be the second-largest long-distance provider in the U.S. It was purchased by WorldCom in 1998 and became MCI WorldCom‚ with the name afterwards being shortened to WorldCom
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For the exclusive use of Y. LI Harvard Business School 9-284-057 Rev. June 1‚ 1998 MCI Communications Corp.‚ 1983 In April 1983 Wayne English‚ chief financial officer of MCI Communications Corp.‚ faced the problem of setting financial policy in an environment characterized by a large potential demand for external funding and great uncertainty concerning MCI’s future. MCI‚ which provided long distance telecommunications services in competition with AT&T‚ had seen its revenues grow from almost nothing
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approximately $3.8B over the next four years (1984-1987) of which $3.3B will need to come from external sources. As capital expenditures outstrip funds from operations‚ undoubtedly the company will need to seek further capital from the financial markets (Exhibit 1). However‚ these external financing needs could vary considerably. For one‚ as the antitrust settlement between AT&T and the U.S. Department of Justice mandates the breakup of AT&T by early 1984‚ both growth opportunities and cost uncertainties
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Advanced Communications Corp (1992)‚ Metromedia Communication Corp. (1993)‚ Reurgens Communications Group (1993)‚ IDB Communications Group‚ Inc. (1994)‚ Williams Technology Group‚ Inc. (1995)‚ and MFS Communications Company (1996). The MFS acquisition included UUNet Technologies‚ Inc. In February‚ 1998 WorldCom purchased CompuServe‚ kept its Network Services Division‚ sold its online service to America Online and acquired AOL’s network division. On November 10‚ 1997 WorldCom merged with MCI Communications
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WorldCom’s business success by promoting business practices that provide greater opportunity for a diverse supplier base." Throughout WorldCom’s lively years‚ it had great growth through the buying out of other telecommunication companies‚ such as MCI Communications‚ Tier 1 ISP UUNET‚ and had a major part of the internet backbone. On November 10‚ 1997‚ this powerful company announced their 37 billion dollar merger‚ making it the largest in US history. WorldCom had almost become the nation’s top telecommunications
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majority of the video is an interview with Walt Pavlo of MCI Worldcom. He explains his case and the steps that lead him to take the actions that landed him in prison. While he is telling his story two gentalmen describe how Walt’s story relates to the world of auditing as a whole and what steps a company and auditors need to take to avoid cases of fraud. 1. What were the three major fraud factors that led Walt Pavlo to commit fraud at MCI Worldcom? * Meeting Analysts’ Expectations *
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MCI CASE ANALYSIS: PRESENTED: THURSDAY JUNE 15‚ 2006 MCI CASE ANALYSIS INTRODUCTION MCI is at a critical point in their company history. After going public in 1972 they experienced several years of operating losses. Then in 1974 the FCC ordered MCI ’s largest competitor AT&T to supply interconnection to MCI and the rest of the long distance market. With a more even playing field the opportunities to increase market share and revenue were significant. In order to maximize this opportunity
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