Page 1 of 16 University of Wisconsin School of Business Financial Policy: 755 Fall 2004 Professor: E-mail: Office Hours: Dr. Toni Whited twhited@bus.wisc.edu MW 2:30-3:30 p.m. and by appointment Office: Phone: Fax: 5289 Grainger (608)262-6508 (608)265-4195 Objective: This course is designed to provide you with a general understanding of a variety of financial restructuring and reorganization techniques. Each topic that we discuss describes a transaction that restructures or reorganizes
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Chapter 1 Comparative Corporate Governance and Financial Goals End-of-Chapter Questions 1. Corporate goals: shareholder wealth maximization. Explain the assumptions and objectives of the shareholder wealth maximization pmodel. Answer: The Anglo-American markets have a philosophy that a firm’s objective should follow the shareholder wealth maximization (SWM) model. More specifically‚ the firm should strive to maximize the return to shareholders‚ as measured by the sum of capital gains and dividends
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Part I __________________________ The Mergers and Acquisitions Environment __________________________ Chapter 1: Introduction to Mergers and Acquisitions Chapter Summary and Learning Objectives The purpose of this chapter is to provide students with an understanding of the underlying dynamics of the M&A process. This includes developing a working knowledge of the relevant vocabulary‚ the role of various participants in the M&A process
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becoming more interested in therestructuring and long-term controlling of attractive assets. Hedge funds’ stakes in thesecompanies are then transformed into equity from the arising new entity. Private equity is split up intoVenture Capital and Leveraged Buyout funds‚ with a little made up of mezzanine funds. LBOcompanies buy publicly traded companies that are experiencing inefficiencies from costly regulationof being publicly traded and the incentives of managers and shareholders. The growing overlap
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FINANCIAL MANAGEMENT FOR NON-FINANCE MANAGERS Questions Exercise 1: This exercise is intended to make sure that we are all familiar with terms used debt financing. (10 points) (10) Fill the blanks by choosing the appropriate term from the following list: lease‚ funded‚ floating-rate‚ Eurobond‚ convertible‚ subordinated‚ call‚ sinking fund‚ prime rate‚ private placement‚ global bond‚ public issue‚ senior‚ unfunded‚ Eurodollar rate‚ warrant‚ debentures‚ term loan. a. Debt maturing in
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cut today’s commuting times substantially. However‚ they are facing 3 different options for funding this new acquisition. One of the options is to issue new bonds and therefore borrow the money and purchase these trains. The second option is a leveraged lease proposed by Bank of New York Capital Funding. The final option is to rely on federal funding. Some of the assumptions facing this acquiring of the asset are that they will have a useful life of 25 years. The train sets will also have a
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Corporate Restructuring: Corporate restructuring is one of the most complex and fundamental phenomena that management confronts. Each company has two opposite strategies from which to choose: to diversify or to refocus on its core business. While diversifying represents the expansion of corporate activities‚ refocus characterizes a concentration on its core business. From this perspective‚ corporate restructuring is reduction in diversification. Corporate restructuring is an episodic exercise‚
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| Brazil | 68 | Roman Abramovich | $12.1 B | 46 | steel‚ investments | Russia | 69 | Donald Bren | $12 B | 80 | real estate | United States | 69 | Jorge Paulo Lemann | $12 B | 73 | beer | Brazil | 69 | Ronald Perelman | $12 B | 69 | leveraged buyouts | United States | 72 | Len Blavatnik | $11.9 B | 55 | diversified | United States | 72 | Leonid Mikhelson | $11.9 B | 57 | gas‚ chemicals | Russia | 74 | Leonardo Del Vecchio | $11.5 B | 77 | eyewear | Italy | 75 | John Fredriksen | $11
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“The Takeover Controversy: Analysis and Evidence.” Midland Corporate Finance Journal 4‚ no Jensen‚ M. C. and Jr. Clifford Smith (1985). “Stockholder‚ Manager and Creditor Interests: Applications of Agency Theory” Lowenstein‚ L. (1985). “Management Buyouts.” Columbia Law Review 85 (May): 730784. Mueller‚ D. (1980). The Determinants and Effects of Mergers. Cambridge‚ Oelgeschlager. Murphy‚ Kevin J. (1985). “Corporate Performance and Managerial Remuneration: An Empirical Analysis.” Journal of Accounting
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factory store. This provided the customers with an ‘experience’‚ allowing them to see the doughnut factory and it’s specialized machines‚ and not just the usual taste. A turnaround was effected when the ailing enterprise was bought out in a leveraged buyout by a group of franchisers lead by Joseph McAleer. He brought back the unique doughnut recipe and the company’s traditional logo. Slowly the company improved and was eventually debt-free. In 1998‚ the company went public in a hugely successful
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