The purchase price for the Aircraft is (a) $21 million, consisting of: i. $16 million, $300,000 of which comes from the release of funds in the Escrow Account; and ii. the principal amount of the Note; plus (b) the Buyer’s assumption of the Assumed Liabilities. 2.3 Time and Place of Closing. The Closing is to take place on November 25, 20XX at the offices of Workhard & Playlittle, 1133 Avenue of the Americas, New York, New York, 10:00 A.M. Eastern Standard Time, or at such other time and date as to which the parties may agree (the time and date of the Closing, the “Closing Date”).
You may use a number of sources, but we recommend Morningstar. Find the YTM of one 15 or 20 year bond with the highest possible creditworthiness. You may assume that new bonds issued by AirJet Best Parts, Inc. are of similar risk and will require the same return. (5 pts) b. What is the after-tax cost of debt if the tax rate is 34%?
Easy jet is the largest air line in terms of passengers volume – ‘59 million’ (Easy Jet corporate media file, p.3) in UK and internationally across 30 countries with flight scheduled services of ‘600 routes’ as well as the fourth largest short-haul carrier in Europe with a market share of ‘8%’ (Easy jet annual report, 2012, p.12). In order to promote efficient service to customers, they introduce speed boarding that gives passenger’s greater choice over their seat arrangements. Furthermore, the volumes of passenger’s turnover have increased their financial performance to ‘£317 million’ (p.9) profit before tax and after tax of ‘£255 million’ (p.19). Their annual report can be assess at http://2012annualreport.easyjet.com/downloads/PDFs/Full_Annual_Report_2012.pdf and http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/content/press-info-kit.pdf a. Table: The vocabulary of strategy in Easy jet airline (2012 annual report) Term Definition Example (including why chosen and evidence Mission Overriding purpose in line with values or expectations of stakeholders Their mission statement is to ‘leverage cost advantage, leading market position, and brand to deliver point-to-point low fares with operational
The Wasala Corporation leases an airplane on January 1, Year One for eight years for payments of $20,000 per year beginning immediately. The plane has an expected life of 10 years. The prime rate of interest is 6 percent but Wasala has an incremental borrowing rate of 8 percent. The present value of an ordinary annuity of $1 at 6 percent for 8 years is 6.22 and the present value of an ordinary annuity of $1 at 8 percent for 8 years is 5.75. The present value of an annuity due of $1 at 6 percent for 8 years is 6.58 and the present value of an annuity due of $1 at 8 percent for 8 years is 6.19.
The Boeing Company “Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined”(“Boeing: About Us, August 2011). The “Boeing: About Us” indicated that the Boeing, one of the largest the United States (U.S.) exporters provides numerous products and services for military and airline in 150 countries. Also Boeing employed more than 165,000 people across the U.S. and in 70 countries (August 2011). This paper will focus on a recent legal settlement and improvement of management-union relations through a case study of the Boeing. Litigation The National Labor Relations Board (NLRB), responsible for election of labor union representation and prosecuting unfair labor issues,
• Net Carrying value of nonrecourse debt is $4.0 million. • $0.1 million of net working capital (carried at fair value) directly attributed to the cruise ship. • Discount rate According to Smooth Sailing is 7%. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31, 2010? Before we can define the asset group for the purpose of the recoverability test we need to recognize and measure the impairment of our long-lived asset and to do so there is some guidance according to FASB.
AIRCRAFT PURCHASE AGREEMENT AIRCRAFT PURCHASE AGREEMENT dated November 5, 2013, between Supersonic Wings Corp., a Delaware corporation (the "Seller"), and Fly-by-Night Aviation, Inc., a New York corporation (the "Buyer"). WHEREAS, the Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller, the Aircraft (as defined in Section 1.1); This Agreement provides for the sale of the Seller’s Gulfstream Aerospace Corporation G550 jet to the Buyer. Accordingly, the parties agree as follows: Article 1. Definitions 1.1 Defined Terms. As used in this Agreement, terms defined in the preamble of this Agreement have their assigned meanings, and the following terms have the meanings set forth below: "Agreement" means this Aircraft Purchase Agreement and all Schedules and Exhibits, as each may be amended from time to time.
. Patrick , Ranfranz, "Charles Lindbergh: An America n Aviator." [ 7 ]. . Patrick , Ranfranz, "Charles Lindbergh: An America n Aviator."
Allegiant Air Strategic Summary Robert Eckert Ke lu Mu Luan David Martin Yuqi Xin Allegiant Air Strategic Summary Robert Eckert Ke lu Mu Luan David Martin Yuqi Xin Contents Introduction to Allegiant Airlines 3 Company Background and History 3 Management Profile 4 Situation Analysis 5 Internal Strengths 5 Internal Weaknesses 6 External Opportunities 7 Bargaining Power of Customers 7 Bargaining Power of Suppliers 8 Competitive Rivalry 9 External Threats 10 Threat of New Entrants 10 Threat of Substitutes 11 Recognized Problems 13 Financial Position 13 Financial Performance Compared To Earlier Years 13 Financial Performance Comparing to a Competitor 17 Strategies and Strategic Choices 17 Business-Level Strategy 17 Corporate-Level Strategy 19 Global Expansion Strategy 19 Strategic Change 20 Implementation 21 Current Events 21 Corporate Reputation 22 Overall Summary 22 Recommendations 22 Relatively Improve Technology and Service. 22 Reduce Cost of Short-Distance Flights 23 Set Up a Frequent Flier to Keep Customer Loyalty 23 Add Scheduled Services to International Markets 23 Conclusion 23 Works Cited 25 Introduction to Allegiant Airlines Company Background and History Allegiant Airlines had its humble beginning in Fresno, California, in 1997 when it was incorporated as WestJet Express. Before WestJet Express could get their certification from the FAA they had to settle disputes with two other airlines, West Jet Air Center of Rapid City, South Dakota, and with WestJet Airlines of Calgary, Alberta, Canada. WestJet Express took on the name of Allegiant Airlines settling the disputes and received their transport certificate in 1998 ("Allegiant Air Information"). Allegiant began their first scheduled flight on October 15, 1999 with service between Las Vegas and Fresno, California
Questions 1. Using the financial statements provided for S&S Air, calculate each of the ratios listed in the table for the light aircraft industry. Current ratio=current assets \current liabilities 1,561,800\2,085,000=0.74 times Quick ratio=current assets-depreciation\current liabilities 1,561,800-976,200\2,085,000=0.28 times Cash ratio= cash\current liabilities 315,000\1,561,800=0.20 times Total assets turnover=Sales\total assets 21,785,300\13,077,800=1.66 times Inventory turnover=cost of goods sold\inventory 15,874,700\740,800=21.4 times Receivable turnover=Sales\accounts receivable 21,785,300\506,000=43.05 times Total debt ratio=total assets-total equity\total assets ( 13,077,800-7,192,800)\13,077,800=0.44 times Debt-equity ratio=total debt\total equity (13,077,800-7,192,800)\7,192,800= 0.81 times Equity multiplier= Total assets\total equity 13,077,800\7,192,800=1.81 times Times interest earned=EBIT\Interest 2,171,900\341,600=6.3 times Cash coverage ratio=EBIT+Depreciation \Interest 2,171,900+976,200\341,600=9.2 times Profit margin=Net income\sales 1,098,180\21,785,300=0.05 times Return on assets=Net income \total assets 1,098,180\13,077,800=0.08 times Return on equity=Net income \total equity 1,098,180\7,192,800=0.15 times 2. Mark and Todd agree that a ratio analysis can provide a measure of the company’s performance. They have chosen Boeing as an aspirant company.