division and company. Only project with positive NPV discounted by hurdle rate will be invested‚ and the total return of Marriott up to all projects invested. Though there are many subjective aspects in estimation of WACC‚ common view and accepted formula will be adopted to calculate WACC‚ discretion if prudent used. Key factors 1. Key factors of debt a) Tax rate Tax rate is based on state policy and net income of the company. Since tax rate of 1988 is not expected to change‚ tax rate of 1987 is
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CASE#1 ENRON CORPORATION 1. Different parties were responsible for the occurrence of Enron crisis. Listed below are some of the parties who were responsible for the Enron fraud. a. The Enron Management: There is no doubt that the Enron management staged the fraud. The management was responsible for the misrepresentation of financial statement/ documents and wrong accounting practice. In Early 2002‚ their abusive accounting and financial reporting practices surfaced. Moreover‚ the management influenced
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San Fabian Supply Company Case Study Points of View San Fabian has been in the supply and distribution industry for almost three decades. They made its name through the quality line products that the company carried for over 67 firms. But during the early years of the company‚ 95% of its sales came from imports‚ however‚ because of the government’s control on import and somehow to patronize the locally manufactured products San Fabian became the distributor of products that are locally made in
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Metropolitan PLC was a multinational holdings company that faced a hostile takeover threat in the late 1980’s and early 1990’s. The company specialized in wine and spirits. The headquarters for operation was in London‚ England at the time of this case. The major dilemma at hand is avoiding a takeover. The economy was bad at the time‚ and the company’s stock price was thought to be undervalued‚ as their low P/E ratio of 13.3 indicated. Management needs to find out why their stock price is
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Glaxo Italia S.p.A. is introducing the new drug‚ Zinnat‚ into the market. Glaxo has the option to directly sell or co-market the pharmaceutical. If the company were to sell the product directly‚ Glaxo’s sales force would be the sole distributors of the drug. Using co-marketing‚ Glaxo would allow another company to sell the same product under a different brand name for a fee. We have compared the two options to determine which marketing strategy would be in the best interest of Glaxo Italia in terms
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A Delima Mustapa Kamal Mohd Razali AiniAman AzbirAbu Bakar Yasmiza Long It was July‚ 2006 when Encik Zayed engaged the extemal Auditor Aziz & Co (Chartered Accountant)‚ introduced by his friend to perform the statutory audit for the period 2003 to 2006.That was the first audit experience for Encik Zayed and Puan Hashimah and it was a difficult leaming experience. The Auditors expressed their intention to qualiff the Financial Statements due to several unresolved issues. However‚ Encik Zayed
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whereby to succeed depends on both internal and external factors. Boeing enjoyed the global market leadership of the aerospace industry for several decades. As it is common for most market leaders‚ Boeing fell victim of organizational inertia. The company failed to improve its production processes and come up with new and creative products. Although Airbus faced challenges at its entry‚ within two decades it became a major competitor of Boeing. As a new company‚ Airbus never rested but continually introduced
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TOKYO DISNEYLAND AND THE DISNEY SEA PARK: CORPORATE GOVERNANCE AND DIFFERENCES IN THE CAPITAL BUDGETING CONCEPTS AND METHODS BETWEEN AMERICAN AND JAPANESE COMPANIES. 1.What are the industry differences in US Corporate Governance and Japanese Corporate Governance? JAPANIES CORPORATE GOVERNANCE US CORPORATE GOVERNANCE Stakeholders of organiztions: Japanies system believs in the wealth maximization of stake holders‚ including managers‚ labour‚ suppliers‚ crediters etc American syatem always emphasized
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Case: Zimbra Zooms ahead With One View 2. List And Describe Zimbra S Requirements For A New Market Software. If you are preparing the RFP for Zimbra’s new system‚ what questions would you ask? ANS: Zimbra needed a marketing software package which was highly effective and costefficient. Their new software had to be more streamlined than the old one from Eloqua. Itneeded to focus on lead generation‚ e-mail marketing‚ and Web analytics. Providing acomprehensive sales and marketing automation solution
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MODEL CASE STUDY WITH SUGGESTED ANSWERS SUBJECT: MANAGEMENT PRINCIPLES FOR LOGISTICIANS The Marketing manager of AMK Enterprises‚ Roopali Deshmukh (Deshmukh) stepped out of the conference hall in a pensive mood after an important meeting called by the CEO. The meeting was attended by the heads of various departments in the company and was convened to discuss the targets for the coming assessment year. Deshmukh had a formidable sales target to achieve and wondered how she would be able to meet those
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