Lehman Brothers was an investment bank that was established over 100 years ago by Emanuel and Mayer Lehman. Over these years Lehman Brothers investment bank was one of the biggest and strongest banks. Before declaring bankruptcy in 2008, Lehman was the fourth-largest U.S. investment bank at the time of its collapse, with 25,000 employees worldwide. Before Lehman brothers collapse, real estate market looked reliable and the reason of market being so reliable was that sub-prime market mortgages. Loans issued to people with poor credit history, limited or no collateral, required no proof of income and they sold those issued loans to other investors with AAA rates.
Chaleo Yoovidhya, the self-made Thai billionaire founded T.C. Pharmaceuticals. In the 1970s, it formulated an energy drink prototype called Krathing Daeng, or Red Bull in English. It was popular among Thai truck drivers and laborers. Chaleo then co-founded a company in 1984 with an Austrian partner who helped turn Red Bull into a global brand.
CEMEX then expanded into the USA operations by acquiring a cement plant in Texas and entered Panama with the acquisition of Cemento Bayano and ended 1995 having acquired Cementos Nacionales in Dominican Republic. | 1994 | CEMEX launches its alternative fuels strategy and begins converting its plants to enable them to use petroleum coke. | 1994 | CEMEX formally establishes its ecoefficiency program, the cornerstone
Mr. Clarkson is willing to increase the amount by a new agreement with Northrup Bank. The cash flow crisis and repayments of short-term debts are the root causes of Mr. Clarkson’s need for additional financing. This report includes financial analysis and recommendation upon the request of Northrup Bank Credit Department. Analysis Using the ratio analysis, basic insights can be gathered about the financial performance of the company. For this analysis, we don’t have the ratios for the industry; thus, we will examine the trends for the years including 1993-1995.
J&L Railroad Case – Should J&L Hedge Its Fuel Costs? 1.1 What are the most important arguments for and against a corporation’s hedging this type of risk? i. Argument for hedging The most important argument for hedging this type of risk is that a corporation may limit exposure to fluctuation of commodity prices and stabilize operating margin. By doing so, a corporation may reduce commodity price affecting its share price.
I. Analyze the case and answer the following question: (a) Discuss the earnings management technique employed by the management of Enron. Enron earned profits by providing services such as wholesale trading and risk management in addition to building and maintaining electric power plants, natural gas pipelines, storage, and processing facilities. When taking on the risk of buying and selling products, merchants are allowed to report the selling price as revenues and the products 'costs as cost of goods sold. In contrast, an "agent" provides a service to the customer, but does not take on the same risks as merchants for buying and selling. Service providers, when classified as agents, are able to report trading and brokerage fees as revenue, although not for the full value of the transaction.
3. Financing Strategy : * With Enron online trading policy , Enron required more cash to secure Enron’s counter party obligations. * Enron need an investment Grade credit rating because if customer lost confidence that Enron could guarantee the liquidity of the market, customers would stop trading with Enron. * It’s important to protect Enron’s credit rating meant that the company had to limit the amount of debt. * Additional financing came from Enron’s use of SPE (Special Purpose Entity). * SPE is an
When there is an established item, L.L Beans uses the trends based on past demand to forecast future sales ; these trends being mostly seasonal and therefore generates enough information to know how much stock is needed when. On the other hand, for new items, which do not have sufficient past demand data, L.L.Beans uses the A/F ratio which is based on past behavior of individuals with the actual demand. Once this is done, LL.Beans must calculate the profitability of the item and the overstock and under stock costs which calculates the optimal amount of the item. Question 2: What item costs and revenues are relevant to the decision of how many units of that item to stock? The manufacturing cost for LL Beans and the price at which the item is sold are relevant to the decision of how many units of that item to stock because with this the profit margin of each item is calculated giving an optimal balance of how much to of the item to stock.
The Rise and Fall of Enron Introduction Enron began as the Northern Natural Gas Company, which was formed in 1932 in Nebraska. Later it turned into the InterNorth Company which was the leader in natural gas production at the time. In 1985, a separate company that separated from InterNorth Inc. later became what we now know as Enron. Former CEO of InterNorth, Kenneth Lay moved the company to Houston and began his journey as CEO of Enron. In 1990, Enron’s CFO Jeff Skilling hired a well knowledgeable businessman by the name of Andrew Fastow who was well known for his works in the deregulation of the energy market.
Summary CEMEX was founded in 1906 with the opening of Cementos Hidalgo plant in North Mexico. Eleven years later (in 1931) Cementos Hidalgo and Cementos Portland Monterrey merged and became the company that is now known as CEMEX. The company continued its development through acquisitions in Mexico (Cementos Maya’s, Cementos Guadalajara). In 1976 the company went public on the Mexican stock exchange. In 1982, Mexico experienced a severe debt crisis due to the country’s expensive policies based on import substitution and state owned industrialization.