their market share. As a result of this competition‚ a number of cartels were formed; therefore the federal government intervened and established regulation on railroad mergers‚ infrastructure construction and divestments. On the other hand‚ the government initiated enormous investments in highway infrastructure‚ which resulted in the emerging of the trucking industry. Together with innovations in motor and tire technologies‚ the trucking industry began gaining significant market share of the freight
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INTERNAL MEMORANDUM TO: Norfolk Southern FROM: Date: October 15‚ 1996 Re: Regarding our Hostile Bid for Conrail Rail Corporation Today‚ CSX Corporation(CSX) and Consolidated Rail Corporation (Conrail) announced an $8.3 billion merger‚ the first and third largest railroads in the Eastern United States. This merger would create the second largest rail system in the United States in the United states‚ and the largest rail system east of the Mississippi river by far. This merger has huge implication
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Acquisition of Consolidated Rail Corp Part A 1.) On October 15‚ 1996‚ CSX Corporation (CSX) then ranked as the number one railroad in the Eastern United States and Consolidated Rail Corporation (Conrail) then ranked as the third largest railroad in the Eastern United States‚ announced the intent to undergo a friendly merger via a two-tiered transaction with an estimated value of $8.4 billion. During the 1980’s a trend towards the consolidation of railroad firms began as a result
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What is CSX’s motive for buying Conrail? • Synergy effect with lower cost The merged company could consolidate overlapping operations and reduce cost. CSX estimated that cost reduction would yield an additional $370 million in annual operating income by the year 2000‚ net of merger costs. • Expansion of market share by extending railroad network Railroad industry is a mature market. The only option to grow is through acquisitions. In 1995‚ Conrail owned 29.4% of the Eastern rail freight
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CHAPTER 14 DISTRIBUTIONS TO SHAREHOLDERS: DIVIDENDS AND SHARE REPURCHASES (Difficulty: E = Easy‚ M = Medium‚ and T = Tough) Multiple Choice: Conceptual Easy: Dividends versus capital gains Answer: d Diff: E [i]. Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is decreased. Their argument is based on the assumption that a. Investors are indifferent between dividends and capital gains. b. Investors
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of tender and discuss the major steps that have to be followed in the tender procedure What is a tender? Tenders are open invitation to buy or sell goods/services/contracts. Tender usually refers to the process whereby governments and or financial institutions invite bids for large projects that must be submitted within a finite deadline. Those who are interested in supplying what has been advertised can respond to a Tender & submit their best competitive offer. The best competitive offer (Lowest
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CHAPTER 14: DISTRIBUTIONS TO SHAREHOLDERS: DIVIDENDS AND SHARE REPURCHASES 1. The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm’s stock price. a. True b. False ANSWER: True 2. Other things held constant‚ the higher a firm’s target payout ratio‚ the higher its expected growth rate should be. a. True b. False ANSWER: False RATIONALE: The higher the payout ratio‚ the less of its earnings the firm reinvests in the business
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What benefits would a UWC education offer you? • UWC schools‚ colleges and programmes deliver a challenging and transformative education experience to a diverse cross section of students‚ inspiring them to create a more peaceful and sustainable future. • Students come from about 80-90 countries‚ so there is plenty of diversity. • Our student intake is deliberately diverse and each of the schools and colleges draws together students from many different nations and backgrounds
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Case Study for CSX Trisha Brown Averett University Jacksonville Florida based CSX Corporation‚ along with its subsidiaries leads as one of the top transportation providers. Services that CSX offers is traditional rail services and transportation of containers and trailers as well as trucking and logistics services. CSX was started 32 years ago as a result of the 3 major railway companies that consisted of Baltimore & Ohio (B&O)‚ Chesapeake & Ohio and Richmond‚ Fredericksburg
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100. You have been told that dormitory rooms at your university must be shared by two students. Would you rather have the university assign a student to share a room with you or would you rather choose your own roommate? Use specific reason and details to explain your answer. One of the most important parts of our life is studying. It is connecting with our future life and makes it better. Being educated person means to have information‚ which will help you in many situations. To tell the
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