Diageo Case 1. How has Diageo historically managed its capital structure? Diageo sought to maintain the low-debt (conservative) financial policies of the Guinness and Grand Met with goals to keep * its interest coverage ratio (EBITDA / Interest Payments) between 5 and 8 and * its EBITDA / Total Debt around 30-35% Although not quite as conservative as other UK firms (with Equity/Assets ratios of 42%)‚ it was successful in achieving these goals and retaining a credit rating of A+ (a
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Genera2013 Case Study 1: General Mills Inc. Understanding Financial Statements Group 5 Summary This case overall probes into 3 basic financial statements of the company and management’s view as well as auditors comments on it. It teaches about how business ethics and corporate governance works. Case study encouraged us to closely probe into each statements and line items and make us understand it. Few highlighted learning’s are preparation of common-size financial statements‚ understanding
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organization founded in 1856 by Illinois Congressman Robert Smith which leased power rights to mills operating along Saint Anthony Falls on the Mississippi River. Cadwallader C. Washburn acquired the company shortly after its founding and hired his brother‚ William D. Washburn to assist in the company’s development. In 1866‚ the Washburns got into the business themselves‚ building the Washburn "B" Mill at the falls. At the time‚ the building was considered to be so large and output so vast that it
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General Mills Annual Report 2012 Generating Balanced Growth Generating Balanced Growth Our brands compete in large and growing food categories that are on-trend with consumer tastes around the world. We’re investing in our established brands while also developing new products. And we’re building our business in developed markets while increasing our presence in emerging markets worldwide. Our goal is to generate balanced‚ long-term growth. General Mills at a Glance U.S. Retail Net Sales
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Executive Summary Diageo‚ which is a London based company‚ has the production and distribution of Spirits and Wine‚ with highly recognized brands all around the world such as Johnny Walker and J&B‚ as its main business activity. Furthermore‚ the firm is engaged in the package food and fast food industry with Pillsbury and Burger King respectively. The corporation was formed in 1997 through the merger of Guinness Plc. and Grand Metropolitan. Diageo follows the norm of British Corporations
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Indian homes is freshly ground in a local mill or chakki. Housewives believe that atta ground in front of them is unadulterated and retains the goodness of wheat. This is the reason why branded flour has had an uphill fight and accounts for‚ even now‚ no more than 2% of the total market. In this one fact is opportunity. But the challenge is to convince the housewife that convenience apart‚ she is also getting a nocompromise product manufactured from selected high-quality grains using the
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Table of Content 1. Introduction 1 2. The decisions to sell Pillsbury and list Burger King 1 2.1 Volatility of cash flows 2 2.2 Probability of financial distress 3 2.3 Increased valuation of Diageo 3 2.3.1 Comparables 3 2.3.2 Cash flow 4 2.3.3 Increased leverage 4 2.3.4 Acquisitions 4 3. Implicit assumptions of the Monte Carlo simulation 4 3.1 Capital expenditure 5 3.2 Investment in intangibles 5 3.3. Working Capital 5 3.4 Consistency between implicit and explicit assumptions 5 4. Description of
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Diageo Case Report Scott Johnsson BMGT495 March 11‚ 2008 Strategic Issues In 2001‚ the conglomeration known as Diageo PLC became the world’s largest spirits and wine holding company in the world. This was the outcome of an intense acquisition of Seagram Company’s beverage assets for $8.15 billion. The resulting conglomerate faced complicated strategic issues concerning how it wished to move forward in its beer‚ wine‚ and spirits divisions. The subject of their inquiries focused mostly on
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a) General Mills is a leading producer of packaged consumer foods. According to the financial statements‚ General Mills makes most of the money from sales. They have 3 segments: US Retail‚ International and Bakeries and Food Services. b) 1) The following are the financial statements that are commonly prepared for external reporting purposes: * Balance Sheet * Income Statement * Statement of cash flows * Statement of Stockholder’s equity 2) General Mills gives
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Diageo Diageo is a British multinational alcoholic beverages company headquartered in London‚ UK. Diageo is the worlds leading premium drinks company with a large range of beverage alcohol across the collection of spirits‚ wine and beer. Diageo’s beverage brands include: * Smirnoff * Baileys * Johnnie Walker * Captain Morgan * J&B The word Diageo comes from the Latin for day (dia) and the Greek for world (geo). We take this to mean every day‚ everywhere‚ people celebrate
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