Mergers & Acquisitions Questions Q.3 The following are the details on two potential merger candidates‚ Northrop and Grumman‚ in 1993: Northrop Grumman Revenues $4‚400.00 $3‚125.00 Cost of Goods Sold (w/o Depreciation) 87.50% 89.00% Depreciation $200.00 $74.00 Tax Rate 35.00% 35.00% Working Capital 10% of Revenue 10% of Revenue Market Value of Equity $2‚000.00 $1‚300.00 Outstanding Debt $160.00 $250.00 Both firms are in steady state and are expected to grow 5% a year in the long term. Capital spending
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accounts payable increased very much. And we can may be assume that there are also gains from the company’s activities. Thus‚ accounts receivable slightly increased‚ in parallel with the company’s activities we can also assume that company sales increased. Company is not in trouble with receivables. ANSWER 3: Retained Earnings didn’t increase by the amount of net income for the month because‚ Diane Maynard got a dividend of 11.700 USD which she then used to repay her loan. Thus Retained
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Is prison always the best solution? Some people think that the best way to reduce crime is to give longer prison sentences. Others‚ however‚ believe there is better alternative ways of reducing crime. Nowadays‚ the number of crime is rapidly increasing. Many people indicate that all the lawbreakers should be sent into jail. First‚ it is essential to base on the seriousness of crimes in order to give appropriate punishments. Because it is society’s money to build and manage prisons‚ governments
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operating income |$ 500 | 7-18 This order will require 500 (= (10‚000/100)*5) machine hours. Since there is excess capacity of 800 (= 4‚000*(100%-80%)) machine hours per month‚ Shorewood Shoes Company can accept this order without expanding its capacity. Therefore‚ Shorewood should charge at least as much as the incremental variable costs for this order. Direct material $6.00 Direct labor $4.00 Variable manufacturing support $2
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3M Company (NYSE: MMM)‚ formerly known as the Minnesota Mining and Manufacturing Company‚ is an American multinational conglomerate corporation based in Maplewood‚ Minnesota‚ a suburb of St. Paul. With over 76‚000 employees‚ they produce over 55‚000 products‚ including: adhesives‚ abrasives‚ laminates‚ passive fire protection‚ dental products‚ electronic materials‚ medical products electronic circuits and optical films. 3M has operations in more than 60 countries – 29 international companies with
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Best Buy – Case Analysis #1 MGT 575 – 01 Christopher J. O’Connor July 17‚ 2013 Major Issues/Concerns/Problems Best Buy has a myriad of issues it is facing as it struggles for viability and‚ in the eyes of some‚ literal survival. The primary challenges for the company include financial concerns‚ overly aggressive expansion into the European market‚ and a questionable strategic decision to focus more on large
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INSTRUCTIONS 1. Answer All Questions. 2. All questions carry equal marks QUESTION ONE Bahati and three of his friends recently retired from the civil service under the voluntary retirement scheme. They intend taking advantage of the on-going structured adjustment programmes (SAPS) by going into business. a) Advise them on the procedures they have to follow in order to register a public company limited by shares. (8 Marks) b) Explain how the procedures
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Carter Cleaning Company: Introduction Q.1. Jennifer asks that you make a list of five specific HR problems you think Carter Cleaning will have to grapple with. Answer: In my opinion‚ the carter Cleaning Company will have to face the following specific HR related problems. a) High Turnovers: One of the HR issues that the case deals with is high employees’ turnover rate. As mentioned in the case‚ the nature of job does not require higher skills and therefore most of the employees are unskilled. These
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End-of-Chapter Question Solutions 1 ____________________________________________________________ ________________________________ CHAPTER 5: FOREIGN CURRENCY DERIVATIVES 1. Options versus Futures. Explain the difference between foreign currency options and futures and when either might be most appropriately used. An option is a contract giving the buyer the right but not the obligation to buy or sell a given amount of foreign exchange at a fixed price for a specified time period. A future
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The competition is steep for any company seeking to become one of the Best‚ and certainly for any company that shows up in the #1 slot. Yet Google chose a great role model to help them create the special culture that has supported their success. While definitely creating and following their own path‚ leaders at Google also turned to Genentech (#1 on the Best Companies list in 2006) as a source of ideas and wisdom to guide their growth as a company. And they have grown well‚ with confidence that their
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