California Choppers HB case 806N22 Income Statement Sales COGS Gross profit Selling‚ admin Depr expense Operating profit Interest Earnings before taxes Taxes Net income 2000 287.14 209.69 77.45 57.34 7.53 12.58 9.41 3.17 1.01 2.16 2001 299.45 210.45 89.00 60.06 13.54 15.40 12.53 2.87 0.92 1.95 2002 725.45 506.91 218.54 104.14 21.54 92.86 35.51 57.35 18.35 39.00 2003 793.34 559.53 233.81 125.53 20.89 87.39 24.67 62.72 20.07 42.65 2004 814.55 595.34 219.21 136.57 21.22 61.42 17.96 43.46 13.91 29.55
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Memo To: California Choppers Advisory Board From: Date: Re: Operations Review The California Chopper’s financial position is in fairly good standing. Although‚ there are some concerns in certain areas‚ which will be discussed below. Attached to the memo is an excel spreadsheet that can be used for referencing. Liquidity California Choppers (CC) appears to be acceptable in terms of their liquidity. Their current ratio seems to be right around the industry average for the past
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CALIFORNIA BEARING RATIO • CALIFORNIA BEARING RATIO •EQUIPMENTS CALIFORNIA BEARING RATIO • CALIFORNIA BEARING RATIO - CBR EQUIPMENT - COMPACTION RAMMER - EXPANSION MEASURING APPARATUS - SURCHARGE WEIGHTS - COMPRESSION MACHINE • CALIFORNIA BEARING RATIO • CALIFORNIA BEARING RATIO •NOTES • CALIFORNIA BEARING RATIO • Developed by the California Division of Highways in 1929 • is a penetration test for evaluation of the mechanical strength of road subgrades and
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Thoma Bravo – Citect Corporation (HBS 9-209-022) Study Questions 1. Do you think TB or Schneider would create more value as the owner of Citect? 2. TB would assume what risks if they are the winning bidder? 3. Should TB continue to bid on Citect and at what price? Are the expected ROIs and IRRs to TB sufficient at your revised bid amount? (* note: a detailed evaluation model will be constructed during the class session *) Study Questions 1. Is Newell just another conglomerate? How
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Case: Land Securities Group (A): Choosing Cost or Fair Value on Adoption of IFRS Case Number: 9-105-014 Topic: Financial Reporting and Control Description: A U.K. real estate firm‚ required to adopt international accounting standards (IAS) by 2005‚ must change the reporting of its primary asset (investment property) from the revaluation model under U.K. GAAP to either the cost or fair-value model under IAS. This would have a number of effects on European investment property firms‚ including
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HBS Case Report: Shenzhen Development Bank Contents Executive Summary This report provides an analysis and evaluation of Newbridge’s proposed investment into Shenzhen Development Bank. Methods of analysis include an assessment of the bank’s financial performance‚ examining factors such as its asset quality‚ earning capability and capital adequacy. It also provides an in-depth analysis into the appropriateness of the price Newbridge must pay for the
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FINS5530 HBS Case Assignment Semester 2‚ 2013 Instructor: Lixiong Guo Readings: 1. Note on Bank Loans. 2. US Bank of Washington case. Assignment: Please prepare a Credit Proposal Memo similar to the one shown in Exhibit 1 of “Note on Bank Loans”. Given the limited information you have from the case‚ you are not expected to include all components of Exhibit 1. The following is a suggested structure of your report: Purpose of the credit extension o Keep this part short
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HBS 9-501-050 Customer Value Measurement at Nortel Networks ’’ Optical Networks Division Nortel Networks was a global player in telephony‚ data and wireless and wireline Internet solutions. Maureen Conroy and Nathalie Sauve‚ members of the Customer Value Management (CVM) Team at Nortel Networks Optical Networks‚ must recommend one of three customer value measurement methodologies to ON President Greg Mumford. In December of 1997‚ ON took a “right-angle turn” ’’ innovative cultural‚ operational
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Midland’s Total Market Value = V = E + D = $213‚622 million Weight for the cost of debt = D/V = 0.3722= 37.22% Weight for the cost of equity = E/V = 0.6278= ^2.78% The 2006 corporate tax rate for Midland is calculated as 38.58% from taking the ratio of Taxes ($30‚447 million) to the Income Before Taxes ($11‚747
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S&P500 and LT US Gov Bonds‚ 1926-87 Same 5 Tax Rate Estimated from data in exhibit 1‚ from ratio between income before tax and net income for year 1987 Same 6 Beta of Equity (βE)‚ Unlevered βE Levered can be found in Exhibit 3 for the current debt load. Using the current leverage ratio (Step 3)‚ we calculate the unlevered βE. Having found unlevered equity betas of comparables from their leverage ratio and levered βE (Exhibit 3)‚ we averaged the unlevered βE to get the unlevered βE for each Marriott
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