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UST is a smokeless tobacco company .What are the primary business risks associated with UST Inc.? What are the attributes of UST Inc.? Evaluate from the viewpoint of a bondholder.
As exhibit 2 shows, the total market share of UST decreased from 86.2% in 1991 to 77.2% in 1998. The company's price value market share almost maintain at zero before 1998. However, the percent of price value market share keep increasing these years at the speed of 40.5% per year. This trend shows the signal that the market share is shifting from premium market to price value market. The overall moist smokeless tobacco market is expected to continue to grow at an annual rate of 1-3%, with a large portion of the growth expected in the price-value segment. UST give the smaller players the chance of eroding the market share by cutting the price.
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Sealed Air Co. Case Study queestions. Why did Sealed Air undertake a leveraged recapitalization? Do you think that it was a good idea? For whom?
Competitors were selling them for a cheaper price. The company specifically face increasing competition in Europe as prior to the mid-1980s Sealed Air was unable to secure a strong position with patents and distributors that would allow them to take advantage of their innovative products for a much longer period of time. From employees' point of view, although in a short term it cut the expense for them, employee stock ownership was good in a long term. For investors and debt holders, it depends on the sensitive of risk.
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For Charlton Bates, the president of BatesManor Funiture, there is a two part problem in regards to budgeting for the upcoming year. First, it must be determined how much should be budgeted for overall promotion. Second, it must then be determined exact
This industry is broken down into 3 categories, these are upholstered, wood, and other. These 3 categories make up 50%, 40%, and 10 % of sales, respectively. Therefore, $12.4 Billion were the sales in 2007 for wood furniture, the specific market in which BatesManor operates (Figure 8). This market is growing with documented sales growth of 2.5% in 2007 and anticipated growth of 4% for 2008. This would result in $12.896 Billion being spent on wood furniture over the next year. For BM to achieve a 4% increase in sales, they would then have to capture 0.6% of the overall wood furniture market (less than 1%).
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This group assignment of Financial Management will assess the positions financial performances for six types of different companies which are listed on the Bursa Malaysia Berhad (Bursa Malaysia) and its based on three main sectors of business industrie
Liquidity ratios attempt to measure a company's ability to pay off its short-term debt obligations. It is essential for a company the measuring of the cash flows over the time to be aware of the liquid resources available to afford the obligations. The most used liquidity ratios are: current ratio and acid test ratio. These would examine the relationship between liquid resources held and creditors due for payment in the near future1. * Current ratio: this kind of ratio shows the size of the relationship between current assets (cash and assets which would become cash in a short time)
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While there has been lot of study done in the US and European markets to understand how the recommendations of equity analysts have performed, we were not able to find any research paper pertaining to the Indian equity markets. Hence the focus of our stud
We have considered here the one year horizon recommendations which is the most common time frame used. This study should be of interest to both investors and the analyst research houses. From investor perspective, given the fact that there are many paid subscriptions to brokerage research houses, it will help them understand if their investments based on recommendations generate real value over time. Also by dissecting the type of stocks the analysts choose for making recommendations, we try to identify the inherent biases, which can be removed to aid in making better recommendations in terms of improved predictive returns. The plan of the paper is as follows: In Stage I, we focus on the data collection methodology.
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Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Types of Liquidity Ratio: a. Current Ratio b. Quick Ratio a. Current Ratio: A liquidity ratio, that measures a company's ability to pay short-term obligations. The Current Ratio formula is: Also known as "liquidity ratio", "cash asset ratio" and "cash ratio". 2010: Current Ratio: = Current Assets / Current Liabilities = 1,888,162 / 1,746,750 = 1.02 times 2009: Current Ratio: = Current Assets / Current Liabilities = 1,173,985 / 1,095,266 = 1.07 times 2008: Current Ratio: = Current
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Forecasting Canada's GDP. This report has examined; the Decomposed time series, the Naive Trend and the Naive Rate of Change, Brown Double Exponential Smoothing Method, Holts two-parameter method and a non-seasonal ARIMA model.
14 Equation 6: Simplest Naive Model 19 Equation 7: Naive Trend Model 20 Equation 8: Naive Rate of Change 20 Equation 9: Naive Seasonal Model 20 Equation 10: Naive Trend and Seasonal Model 20 Equation 11: The Exponentially Smoothed Series 32 Equation 12: The Trend Estimate 32 Equation 13:p-step ahead forecast 32 Equation 14: Autoregressive Equation 41 Equation 15: Moving Average Equation 41 Equation 16: Sample Mean 44 Equation 17: Sample Variance 44 Equation 18: Sample Covariance 45 Equation 19: First Differencing Equation 46 Figure 1: Canada's GDP Whole Realisation 9 Figure 2: Decomposition of Realisation 17 Figure 3: Decomposition
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Financial Analysis of Bank Alfalah Limited. Bank Alfalah is the 5th largest bank of Pakistan in terms of its assets that are 6% of the total banking sector assets. The banking sector has expanded rapidly in Pakistan along with the fast paced economic grow
The result has been increased profitability of all banks. ================================================================= Current share Price 11 Profit after Tax 1.301 Billion (CY 07: 3.506 billion) ROA 0.37% ROE 7.63% BRIEF HISTORY OF THE ORGANIZATION (BAL) Bank Alfalah Limited was incorporated on June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962. The Bank is currently operating through 279 branches, with the registered office at B.A.Building, I.I.Chundrigar, Karachi Pakistan.
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Working capital analysis of Videocon. The Videocon Group boasts of an annual turnover of more than USD 2 billion and is engaged in the manufacturing of a range of products from consumer electronics to home appliances. The group has numerous manufacturing
whereas a negative working capital reflects the companies inability to meet its short term obligations with the help of its current assets. Furthermore, a negative working capital can have serious consequences and can even result in bankruptcy of a firm. A declining net working capital over the years poses a threat to the company and requires serious analysis so as to find out the reason behind it. 1 CALCULATION OF WORKING CAPITAL OF VIDEOCON GROSS WORKING CAPITAL = TOTAL CURRENT ASSETS CURRENT ASSETS 2009 (Rs.
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Microfinance. Research into How far the agricultural finance has succeeded in ameliorating the conditions of farmers in the states of UP, Haryana & Bihar in India.
The total number of respondents we examined was 60, in the 10 villages of 3 states. After gathering the responses we carried out the statistical analysis using frequency analysis and cross tabulation. After having examined in the light of the above research , we find that the proper and funneled source of agricultural finance lending to the farmers have ameliorated their condition which gets reflected in the various parameters on their life like , monthly household expenses increased, children going to school , medical expenses etc.
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We did not find any combined report on the financial position of mills. This is an effort to give a comprehensive view of this sector. Significance and Implication of Financial Ratios: A Literature Review Financial Ratios are derived from financial reports of the firms. There is certain objectivity behind calculating the ratios. These ratios indicate financial health and strength of the firms. There is a long list of financial ratios. Sometimes, such long list can create some sort of confusion. The user needs to array all available ratios and then has to group them under various heads.
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Personal Finance Case - Praveena has just completed her degree in Physics and has found a job as an employee in a nanotechnology research laboratory. She is thinking of moving out of her parents house into a rented one-bedroom flat in the city centre t
200 Decorating flat 300 Loan repayment TOTAL EXPENDITURE 1020 SURPLUS/DEFICIT 262 1282 455 100 80 320 200 25 35 1215 67 Parents' loan is an additional cash inflow. Some errors in expenditure. Yearly First month Monthly average Income Net earnings 15,379 1,282 1,282 Parents' loan 420 420 35 Total 15,799 1,702 1,317 Expenditure Council tax 1,200 120 100 Bills 960 240 80 Food 3840 320 320 Leisure 2400 200 200 Rent 6240 520 520 HH items 300 300 25 Total 14,940 1,700 1,245 Surplus/deficit 859 2 72 a)
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The case of Ben & Jerrys Homemade, Inc. focuses on how an organization manages to create value. The concern of the board focuses on Ben & Jerrys mission and sense of social responsibility. The stockholders have bought into a company that has a lon
It is a balancing act of all stakeholder interests. Clientele Effect The concept of the clientele effect states that people invest in companies according to the similarities in their preferences and policies. For example, those investors who are environmentally conscious tend to invest in companies that are environmentally responsible such as Ben & Jerry's, Patagonia, Odwalla and The Body Shop. Therefore, if these companies changed their policies to cut back in their environmental philanthropies, investors would sell their stocks and refocus their investments toward other green stocks.
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This case discusses the situation in which management at Ben & Jerrys Homemade, Inc. found itself in the late 1990s, with a modest but steady financial growth that was below the markets expectations, which in turn attracted several take over offe
With the goal of making "ice cream for the people" Ben & Jerry's founders wanted to provide "... great quality products for everybody - not some elitist treat..."1 From its humbling beginning, community involvement and environmental consciousness was at the forefront of all management decisions at Ben & Jerry's. After more than twenty years, as their ice cream flavors were famous and their stores spread across the country and even internationally, management was faced with a tough decision. Their products' popularity continued to expand along with their brand name and corporate image. The company had a history of steady growth in sales, but due to management's lack of focus on increasing profits, their stock price didn't reflect it.
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Prudential Plc. The aim of this paper is to make a research of an annual report of the company, together with the market research and to try to advise the directions for short and long-term periods towards the financing of foreign operations and foreign i
We provide a comprehensive range of savings, protection and investment products that are specifically designed to meet the needs of customers in each of our local markets. Prudential's asset management business in Asia has retail operations in 10 markets and independently manages assets on behalf of a wide range of retail and institutional investors across the region. Jackson National Life Insurance Company Jackson is one of the largest life insurance companies in the US, providing retirement savings and income solutions to more than 2.8 million customers.
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Preparing Financial Forecasts. This report is for management of Tricol plc, and the report should take consideration of discuss the possible reasons for variances, which should include recommendations and flex the budget figures, as well as calculate the
108,600 4,400 A 2.0 Calculate the Variances 2.1 Direct Material Total Variance = (stanard units of actual production * standard price)-(actual quantity * actual price) = 4kg/unit*�10/kg*1,600units-�61,600 = �2,400 F The rate for direct material total variances is �2,400/ �64,000 * 100%= 3.75% 2.2 Direct Material Usage Variance = standard price*(standard units of actual production-actual units) = �10/kg*(4kg/unit*1,600units-5,600kg) = �10*(6,400kg-5,600kg) = �8,000 F The rate for direct material usage variances is 12.5% 2.3 Direct Material Price Variance = actual quantity*(standard price-actual price = 5,600kg*[�10/kg-(�61,600kg/5,600kg)] = 5,600kg*(�10/kg-�11/kg)
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Business Risk & Financial Risk. Report on the assessment between business risk and financial risk and the relationship between the nature of business and the level of gearing.
Ordinary shareholders will probably expect higher return from their shares to compensate for a higher financial risk.  The assets of a business must be financed somehow, and when a business is growing, the additional assets must be financed by additional capital. Nevertheless, the higher the debt, the higher the financial risk. 2.0 Assessment of business risk and financial risk 2.1 Business risk In order to assess business risk, we may use the ratio analysis to find out. If there is a high percentage of operating gearing, then the company is exposed to a relatively high degree of business risk.
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Components of Market Risk The exposure to market risk arises principally from exchange rate risk. Interest rate risk was the other component of their market risk. These factors are discussed in the following paragraphs. * Exchange rate risk: Exchange rate risk primarily arises from foreign currency revenues, receivables and payables, and foreign currency debt. Their evaluate net exchange rate exposure arising from these transactions and hedge such exposure based on approved risk management policies. These policies require hedging a significant portion of net exposure.
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Advanced Corporate Finance Case: Galveston Fishing Company. Based on calculations we recommend Galveston should enter the shrimp processing business. The project generates a positive NPV of its investment.
0.42 0.83 Beta of Company (levered)(target) 0.60 1.12 1- Tax Rate 65% 65% Total Debt 5,171 10,600 Equity 5,105 11,530 Debt/Equity 1.013 0.919 Debt/Value 0.503 0.479 [1+ (1-T)*D/E] 1.658 1.598 Target D/E = 0.3/0.7 0.429 0.429 Target [1 + (1-T)*D/E] 1.279 1.279 Beta of Company (unlevered) 0.254624603 0.521804184 Average Industry unlevered Beta 0.388214393 0.388214393 2. Estimate the required rate of return on assets (required rate of return of unlevered equity) for the shrimp processing business. rf 7% 7% rm-rf 8% 8% ra = rf +B(U)*(rm-rf)
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Executive Summary Advanced Medical Corporation is experiencing significant growth; however, large expenditures in R&D and poor inventory and accounts receivables management process have resulted in negative earnings. By reducing the companys spending,
There are few aspects of the current operations AMT employs which are undeniably the key factors to its unprofitability. Concentrating on market share by spending tremendous amounts of capital on R&D and SG&A does not prove to be beneficial at this time. Analysis To understand how AMT's increasing growth is continuing to result in negative net earnings a chart has been created to examine the company's current expenditures. As seen in Figure 1, the analysis reveals that in 1984 AMT's sales increased by 64%. The rapid growth is the result of significant increase in SG&A and R&D expenses. However, inadequate inventory management resulted in a decreasing inventory turnover ratio.
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Additionally, Biogen has developed a competitively priced generator concept design using proven equipment supplied by reliable manufacturers. 2.1 The Service Biogen offers industry leading expertise in conducting due diligence, ensuring that the projects placed in their portfolio are the most viable and profitable. A key differentiation is Biogen's ability to identify and then conduct extensive feasibility and operational & scientific studies of potential renewable energy generation facilities. Research is led by a team possessing a wealth of knowledge in the energy sector.
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However, by the end of 1986 Kraft had returned to a food-focused strategy. Philip Morris is a company that has had huge success in the tobacco industry. Most of Philip Morris' income comes from its Marlboro, Benson & Hedges, and Virginia Slim cigarette brands. Though tobacco sales have increased by 15 percent in 1987, Philip Morris has been aiming to diversify away from tobacco products, as evident through their acquisition of Miller Brewing Company in 1969, as well as their acquisition of Seven-Up and General Foods in 1978 and 1985 respectively.
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The $250,000,000 raised in funding will be used to support the growth opportunities of carsales.com These values are based on implied market valuations of carsales.com using discounted cash flow (DCF) and Ratio of industry and historical analysis. The financial projections of carsales show strong earnings growth and positive cash generation. The projections show that the company is healthy and financially reliable, although based on assumptions carsales will require new equity funding of $171.9 million, while the remaining $78.1 million will be financed through debt.
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M1 and M2 monthly historical data and Growth rate computation Table 1: M1 and M2 growth rates (2005-2010 monthly) Date M1: Currency, traveler's checks, demand deposits and other checkable deposits M1 GROWTH RATE M2: M1 plus retail MMMFs,savings, and small time deposits M2 GROWTH RATE Dec 2004 1401,0 6437,9 Jan 2005 1361,1 -2,85% 6394,9 -0,67% Feb 2005 1354,6 -0,48% 6395,0 0,00% Mar 2005 1381,4 1,98% 6455,6 0,95% Apr 2005 1368,9 -0,90% 6500,1 0,69% May 2005 1369,0 0,01% 6449,3 -0,78% Jun 2005 1383,9 1,09% 6501,9 0,82% Jul 2005 1364,9 -1,37% 6521,7 0,30% Aug 2005 1376,4 0,84% 6544,9 0,36% Sep 2005
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The Time Value of Money. Financial managers use time value of money techniques when assessing the value of the expected cash flow streams associated with decision alternatives. Alternatives can be assessed either compounding to find future value or discou
The future value technique uses compounding to find the future value of each cash flow at the end of the investment's life and then sums those values to find the investment's future value. Alternatively, the present value technique uses discounting to find the present value of each cash flow at time zero and then sums these values to find the investment's value today. Future Value of a Single Amount Compound interest is the amount of interest earned on a given deposit has become part of the principal at the end of a specified period.
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