"What Is The Possible Meaning Of The Changes In Stock Price For Berkshire Hathaway And Scottish Power Plc On The Day Of The Acquisition Announcement" Essays and Research Papers

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What Is The Possible Meaning Of The Changes In Stock Price For Berkshire Hathaway And Scottish Power Plc On The Day Of The Acquisition Announcement

Warren E. Buffett, 2005 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Answer: -         The possible meaning of the change of the stock is that the facts that are created in the deal had a positive effect on both the buyers ( BRK) and the sellers which...

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Berkshire Hathaway

Introduction Warren E. Buffett, the chairperson of Berkshire Hathaway (BH), is the world’s greatest investor of the current era. From 1965 to 2007, BH has compounded annual gain of 20.3% while S&P has 9.3% (Berkshire Hathaway Inc., 2009). Most investors get normal returns and believe the market is in semi strong form. However Buffett believes the market is inefficient and acts on his own investment philosophy. This report will analysis BH’s acquisition of PacifiCorp, evaluate Buffett’s performance...

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Warren Buffet 2005

Questions for: Warren Buffet 2005 1. What is the possible meaning of changes in the stock price of Scottish Power plc and Berkshire Hathaway on the day of the acquisition announcement? Specifically, what does the $2.17 billion gain in the value of Berkshire Hathaway say about the intrinsic value of PacifiCorp? The increase in the stock price of Scottish Power plc and Berkshire Hathaway indicate a market approval for the acquisition and created value for both buyers and sellers. ...

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Berkshire Hathaway

Individual Assignment BERKSHIRE HATHAWAY Assignment Report Submitted by: Sudipt Tewari G13051 ~ Submitted to Prof. A. Kanagaraj In partial completion of Investments course Date of submission –April 20th, 2014 Case Summary: Berkshire Hathaway, Inc.’s chairman and CEO Warren Buffett, is the world's third richest man. He invested in Berkshire Hathaway in 1962, and by 1963, Buffett was Berkshire’s largest shareholder. Buffett started purchasing other businesses...

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Berkshire Hathaway

Berkshire Hathaway is an American multinational conglomerate holding company that oversees and manages various subsidiary companies (Berkshire Hathaway, 2011). The current members of the Board of Directors are Warren Buffett, Charlie Munger, Walter Scott Jr., Thomas Murphy, Howard Graham Buffett, Ronald Olson, Donald Keough, Charlotte Guyman, David Gottesman, Bill Gates, Stephen Burke, and Susan Decker (Berkshire Hathaway Inc., 2011). The primary job of the Board of Directors is to see that the...

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Warren Buffet

Warren E. Buffet Analysis: 1 What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.17 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacificCorp? 2 Based on the multiples for comparable regulated utilities, what is the range of possible values for PacifiCorp? (I am looking for numbers, but they are given in the case)...

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Warren E Buffet, 2005

Warren E. Buffet, 2005 What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? The possible changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of acquisition announcement indicates the market approval for the acquisition and for both sellers value...

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A Fair Price

May 2005 Warren Buffets’ Berkshire Hathaway’s subsidiary company MidAmerican Energy Holdings successfully took over the electrical utility company PacifiCorp. The company was purchased for $5.1 billion in cash plus debt assumption of $4.3 billion. The deal is the result of Buffet’s intense search, over several years to find an attractive acquisition. This case study evaluates the impact the acquisition has on the share price of both Berkshire Hathaway Ltd and Scottish Power. A valuation is conducted...

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Warren Buffet Case Study Questions

Suggested Questions for Warren Buffett Case 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? PacifiCorp had a very large amount of investors/stockholders as indicated in the footnote, which contributed to the large increase in Berkshire’s market value of equity...

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Berkshire Hathaway

dividends distributions rather than sales of stock. Do you agree with Buffet that the substance of each of the proportionate redemptions was a dividend and not a sale of stock? In deciding how to account for an unusual or unique transaction for financial reporting purposes, should one consider the tax treatment applied to the transaction? Did Peat Marwick have a right to change its position on the proper accounting treatment for the stock redemptions? What factor or factors may have been responsible...

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