During 2009: The reserve is reduced by payment, but no addition; Higher mesothelioma settlement amounts (Est. 29k vs Act.34K); Higher legal expenses due to: 1. More aggressive approach and use of experts (many + verdicts); 2. martin, Smith, and Jones claims; 3. higher-than-normal volume of trial activity (over 15 trails); 3. Appeal costs for Smith and Jones claims; 4. Appeal costs for certain cases (through favorable outcomes).
E.I. Du Pont is a chemical manufacturer, which have achieved the leading position in chemicals and fibers, and created significant profitability as well as technical leadership. One thing that differentiates Du Pont from their competitors is the policy of extreme financial conservatism in the past two decades. Du Pont have adopted the conservative financial policy for a long time. However, competitive conditions in the industry began to exert pressure on their policy in the late 1960s.
Within the years 1949-1962, Mao implemented two “Five Year Plans,” both of which altered the industrial status of China. These industrial reforms focused specifically on developing China’s best assets for instance coal and textile manufacturing. They also targeted other main industries as well, such as transport and steel. The events that took place during this period undoubtedly resulted in various adjustments to Chinese industry. However, whether or not China’s industry experienced a process of profound and radical change between 1949 and 1962 is a debatable topic, which can be argued either way.
The first being an analysis of past events (the last 5 years), corresponding to the historical financial analysis. The last two time periods deal with the future. In order to predict the future accurately, the analysis is divided into the short run and the long run. Lastly, the factors will be quantified on a scale from 1 to 5 (1 being the most favorable for BMW). This should simplify the comparison between factors and further make past and future events comparable (Appendix 5).
The Future of Corrections No one can be sure where the future of the correction system will go, but we can speculate about the direction it may head. Seiter (2011) discussed the five goals of punishment in the correction system which include “punishment, deterrence, incapacitation, rehabilitation, and restitution” (p. 533). Throughout the years, the corrections system has changed which one of these five goals is the most important. In the last twenty years, offender accountability has developed great importance which has increased the amount of determinate sentences. Determinate sentences involve sentences that have a fixed or flat time (Jirard, 2009).
Results are wide - ranging from $6.6 Billion (Exhibit 4) to $16.41 Billion (Exhibit 3) using multiples. The multiples methods suggest relatively higher valuations, but NPV calculations do not result in valuations equal to Quaker’s market price - $11.1B. The two critical assumptions in NPV estimates are: * Beta: Historically, Quaker has had a Beta of 0.4, although Value Line projects a Beta of .65 going forward. This is likely due to the increased share Gatorade (a riskier product group) will make of the total portfolio. A beta of .4 vs .65
With an estimated annual savings of $40-$50 million dollars, the $64 million dollar Delta III project began in 1993, their goal, to use technology to increase their efficiency. After considerable research and product evaluation, FoxMeyer chose SAP R/3 and Pinnacle’s warehouse-automation. Andersen Consulting was chosen implement and integrate the two systems (Scott, 1999). There are always risks involved when implementing new technologies. A phased implementation would have been less risky and would have given the implementation team a chance to test transactions more thoroughly.
Specifically, US Pioneer was facing waning support from its dealers, some of which had resorted to “disparagement of Pioneer products and ‘bait and switch’ advertising.” Three major factors contributing to the deteriorating value network were US Pioneer’s strategic decisions concerning: (1) their distribution channels to the expanding market, (2) the change from Fare Trade practices to Free Market practices, and (3) the increased competition from “house brands” as well as compacts and consoles. As the stereo market expanded in the US, US Pioneer strengthened its distribution network by adding independent sales representative offices (In 1972 they had 6, but by 1975 they had added 10 independent and 4 company owned). These new representatives increased the number of dealers from 500 in 1970 to almost 3,600 in 1977 – a 72x increase in the amount of dealers selling US Pioneer products. The net effect of this was that it created increased competition between dealers, harming their profit margins. Furthermore, after US Pioneer signed a “consent decree” with the Federal Trade Commission (FTC) in 1975, they replaced their fair trade price sheet with one that listed an “approximate nationally
On the other hand, the developed countries are expected to be saturated and will show only little growth rates within the next years, while the Asian market will be subject to extraordinary growth (cf. Baigorri: 2009). Additionally, competition within the US market and Europe faces a high level of concentration and big players determine the market. As regards the United States, The Gap is a very strong player, with its US home market accounting for 87% of sales and a narrow geographic portfolio the company is likely to maintain its focus on this market and has dwarfed H&M and Inditex combined. At the same time, the European market does not seem to be less competitive, as concentration is also quite high.
Case 1.5 The Leslie Fay Companies February 10, 2014 1. After reviewing Leslie Fay’s financial statements, BDO Seidman should have taken a particular interest in several of the company’s financial statement items and associated ratios. Specific items of interest likely would have included net sales and other income statement accounts with large increases over the five-year period. Net sales displayed a dramatic 44 percent increase over the five-year period, even as Leslie Fay’s industry competitors were experiencing a declining sales trend during the late 1980’s and early 1990’s. In addition to the industry’s struggles, these changes should have been of significant interest to the auditors given Donald Kenia’s tendency to “pre-record” orders from customers.