In 1968‚ Kennecott Copper Corporation made a hasty decision when it purchased Peabody Coal Company. In the years preceding the acquisition‚ Kennecott had experienced wide swings in its profitability‚ which it was looking to offset by diversification. Investing in another company in a different industry was an intelligent decision; however‚ Peabody was the wrong company to do this with. Although Peabody had been profitable and stable over the past few years leading up to the acquisition‚ the internal
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Calculate the value of Carborundum (on an aggregate and per share basis) using both the Free Cash Flow to Capital (FCFcap) and Free Cash Flow to Equity (FCFeq) methods. Use the following assumptions: Note: Rf=5.6%; MRP=8.8%‚ Carborundum’s levered beta (prior to deal)=1.16 FCFeq=Net Income + Non Cash Deductions-Capital Expenditures-Change in Net Working Capital-Debt Repayment+ Debt Issuances + Miscellaneous Extras Answer: Value of Kennecott using FCFcap is: $53.8 Value of Kennecott using FCFeq is:
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KENNECOTT COPPER CORPORATION CASE REPORT 1. Analyze the economic rationale of the Carborundum acquisition. Under what conditions an acquisition would be expected to add to shareholder value in general? Do any of these reasons apply to Carborundum acquisition? Prior to the consideration of Carborundum as an acquisition target‚ Kennecott‚ a copper company‚ pursued an acquisition of Peabody‚ a coal company‚ for $285 million in cash in 1968. There are two main rationales behind the acquisition of
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Carborundum Universal Limited Annual Report 2010 - 2011 Contents Year’s Summary Striking Gold i Chairman’s Statement xiii Financial Statements Consolidated Financial Statements & Auditor’s Report Standalone Financial Statements & Auditor’s Report Director’s Report 2 23 50 Financial Track Record 87 General Shareholder Information Corporate Governance Corporate Governance & Auditor’s Certificate 90 95 2+1 STRIKING GOLD… Record Sales. A growth graph climbing a new high
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3 col des MM march 2003 10/4/03 12:12 Page 20 Core advantage Tim Dobush and Troy Wilson* suggest a way for preserving and enhancing the value of exploration data E very year explorationists‚ industrywide‚ collect billions of dollars worth of data. Yet‚ when it comes time for geologists to extract value from their information‚ they often find that value has been lost through poor practices in data management. There is no reliable record of the data that has been collected or data is
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TEL-AVIV UNIVERSITY Faculty of Management – Recanati Business School 1231.3340 Financial Management Prof. Shmuel Kandel Spring 2004 Course Description and Outline The objective of this course is to develop decision-making ability based on Corporate Finance theory. Hence‚ it combines lectures with case analysis. The course and the cases deal with selected topics in Corporate Finance such as valuation‚ capital budgeting‚ cost of capital‚ mergers and acquisitions‚ capital structure
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work setting. The first article involves a United States company named Kennecott during the 1960’s in hopes of a contract renegotiation with the Chilean government. The second case discusses the free trade agreement between Canada and the U.S in 1987. Both cases will reflect a comparison to my personal work setting negotiation agreement as an internet marketing consultant. During the 1960’s a United States company named Kennecott was beginning to move into renegotiation agreements regarding the contract
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work setting. The first article involves a United States company named Kennecott during the 1960’s in hopes of a contract renegotiation with the Chilean government. The second case discusses the free trade agreement between Canada and the U.S in 1987. Both cases will reflect a comparison to my personal work setting negotiation agreement as an internet marketing consultant. During the 1960’s a United States company named Kennecott was beginning to move into renegotiation agreements regarding the contract
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Carborundum Universal Ltd Abrasives Ceramics Electrominerals ACE of Abrasives! We initiate coverage on Carborundum Universal Ltd (CUMI)‚ a part of Rs42bn‚ Murugappa group with a Long Term Buy recommendation at Rs241. Market leadership‚ quality management‚ growth in end user-industries and economic revival coupled with attractive valuations makes this company a very good play on the overall growth in Indian economy. Analyst Ajay Shethiya+(91 22) 2685 0101 (shethiya@indiainfoline.com) December
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"For the first time since the plantation days artists began to touch new material‚ to understand new tools and to accept eagerly the challenge of Black poetry‚ Black song and Black scholarship."1 By 1934 the economic destruction wreaked by the Great Depression had put between eleven and fifteen million people out of work. Ten thousand of these jobless citizens were artists. A year earlier‚ Franklin D. Roosevelt‚ the newly elected president‚ had signed into legislation the Federal Emergency Relief
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