Lester week 5 mba 540 Essay

Lester Electronics Inc Financing Alternative Benchmarking
Introduction
There are many companies that do battle in the economic industrial war zone called the market place. Sometimes instead of fighting one another it is better to turn their attention to joining one another to face other adversaries as a larger combined force. In the scenario Lester Electronics Inc reviews an option to merge with Shang-Wa. Mergers and acquisitions have conducted for centuries, but businesses really been reap the benefits. Learning Team D’s paper will look at how three companies have benefited from the acquisition of another organization. CVS acquisition of Caremark to compete with larger chains of drugs stores; GTE acquisition by Verizon which brought great products and new ideas to the business world, and finally Capital One’s acquisition of Chevy Chase Bank to expand it’s business into new territories. Benchmarking can provide decision makers with a vision of where the greatest potential lies in management choices. With close attention to the company mergers listed in the synopses below, an understanding will be gained as to how this process can increase internal and external growth; as well as creating a more strategic position in the market, and overall growth benefits. We will also explore the importance of financing alternatives. Understanding the importance of wealth maximization strategies, equity residual methods, after tax weighted average cost of capital, Arditti-Levy Weighted Average Cost of Capital, Adjusted Present Value Method, Operating exposure, bond concepts, the corporate firm, growth opportunities, as well as risk analysis and dividend policy is paramount to the success of these comanies.
Synopses – n
CVS/Caremark
Over the years as the pharmaceutical industry becomes more competitive, leading companies that were financially capable of acquiring or merging with other companies did so to stay stronger in the industry. CVS is one of the oldest pharmacy chains...