I. Statement of Financial Problem Should Continental Carriers‚ Inc. use debt or equity to finance the acquisition of Midland Freight in 1988‚ either by selling $50 million in bonds at a 10% interest rate to a California insurance company with a maturity of 15 years‚ or by issuing 3 million in common stock at $17.75 per share with a dividend rate of $1.50 per share? II. Financial Framework The outcomes of various financial alternatives can be examined through an EPS-EBIT analysis‚ where EPS
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Company Overview Continental Carriers is a general commodity motor carrier and has been since 1952‚ and they recently experienced successful growth since Mr. Evans focused on improving service‚ as well as an extensive marketing effort to boost their revenues in their already existing routes. He also implemented a way to reduce costs through computerization of operations as well as an improvement in terminal facilities to improve the company’s structure. This has since made CCI become a much larger
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Introduction Continental Carriers Inc is a trucking company which specialises in transporting general commodities. Since its establishment in 1952 the company operates within the district of the Pacific Coast and from Chicago to various points in Texas. It was noted that the company maintains an overall low debt policy‚ whereby they obtain infrequent short term loans and avoid long term debt. Furthermore with the appointment of Mr. Evans as president‚ the company became more profitable and experienced
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Continental Carriers‚ Inc. Advanced Financial Management Continental Carriers‚ Inc. (CCI) should take on the long-term debt to finance the acquisition of Midland Freight‚ Inc. for a few reasons. The company is heavy on assets‚ the debt ratio will only grow to 0.40 with the added $50M in debt. Also‚ the firm will benefit from an added $2M in a tax shield and be able to return $12.7M a year to its stockholders and investors‚ instead of $8.9M if equity is raised to finance the acquisition
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HBR Case Study BY EDWARD E. LAWLER III COMMENTARY BY ANNA PRINGLE‚ F. LEIGH BRANHAM‚ JIM CORNELIUS‚ AND JEAN MARTIN Why Are We Losing All Our Good People? Sambian Partners has prided itself on being a great place to work‚ but now talented employees are leaving. What’s going on? MARY DONILLO‚ the head of human resources at Sambian Partners‚ motioned Tom Forsythe‚ Sambian’s assistant director of commercial design‚ to a comfortable chair in her office. It was late on a Thursday afternoon‚ and the
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HBR Case Study Why Are We Losing All Our Good People? This is all about a very common trend prevailing in most of the companies‚ Attrition of employees. Very often employees leave a company when they find a better job or some other career option. This is the case of a company named Sambian Partners‚ where Mary‚ the head of HR and Helen‚ the CEO face a lot of problem when Tom‚ one of their trusted employees quits their company and joins J&N which is supposed to be their competitor. Then the
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Continental Airlines Inc. Analysis Strategic Management Vision Statement Continental Airlines Inc. seeks to lead its industry in superior customer service‚ innovative technology‚ employee satisfaction‚ and environmental advances‚ at home and abroad. Mission Statement At Continental Airlines Inc.‚ we strive to obtain excellent customer service and satisfaction through technological advances in on-line bookings and e-ticket purchases. We have strict security measures to ensure our
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Cases in Financial Reporting Continental Airlines‚ Inc - Leases Anderson‚ John Armanini‚ Nathan Avery‚ Sarah Hacker‚ Matthew Adkins‚ Lindsay To: Larry Tomassini From: Group 6 Subject: Case Study #3 – Continental Airlines‚ Inc. - Leases Date: February 22‚ 2011 This memo contains a lease analysis of the case titled: Continental Airlines‚ Inc - Leases. All numbers contained in this memo are in millions. D. i. Rental Expense (Aircraft Equipment) $896 Rental
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Continental Carriers Inc is a trucking company which focuses in carrying generalcommodities. From the start of its operation in 1952‚ the company manages within thedistrict of the Pacific Coast and from Chicago to various places in Texas. They attainedfew short term loans resulting from a low debt policy and evading long term debt. The company obtained its profitability and internal growth from the time that Mr. John Evanswas appointed as President of the company. He focused on rigorous marketing
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Case Study: Hotel Continental Prepared by: William Andrew G. Bulaqueña Ricci A. Tilos Nympha Marie R. Rubin Sheila Mae N. Chua Tristram A. Gamo John Paul T. Antiquiera Safie Jane M. Ayco MGT 12-G Prepared for: Asst. Prof. Dina Wong – Remoto HOTEL CONTINENTAL In July 1989‚ Mr. Oscar Mendoza‚ owner of Triumph Tours read in the newspapers an advertisement for the leasing of Hotel Continental’s facilities. During the last six months‚ Oscar Mendoza has been seriously thinking about
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