I don’t know what to say, and I have no idea what the US economy was to do. The stimulus package seems like a good idea, but no president seems to use it correctly. If the government just stands back, then less people would use banks much less when the government is so far in debt. As they say in the end: “The government can save the banks, but who will save the
Part A: Analysis Business Model Seagate and Deal Rationale #1: Why is Seagate undertaking this transaction? How suitable is an LBO for a technology firm like Seagate, and what are the potential sources of value creation in the transaction? Motivate your answer. The Seagate management believes that the company needs heavy and intensive that are not feasible if Seagate Inc. remains a public company. Other capital re-organizations alternatives involve significant tax liability and considering the present state with Seagate being a public company, tax liability will result in loss of wealth for the shareholders since it involves corporate taxes as well as personal tax liability.
In previous years, the United States believed that paper money was a percentage of the public debt, however in current times the paper money is referred to as a certain type of obligation. It is called an obligation because the paper money is not able to be paid with silver, gold, or any other definite objects of important significance. The government of a country has the responsibility for the public debt. Even though citizens have the obligation as taxpayers to pay funds for compensation of interest and principal, these individuals property cannot be attached to meet the requirement if the government is unsuccessful in doing so. On the same note, property owned by the government is not usually able to be taken to meet these obligations.
With Mr. Parker being clearly motivated to merge, I would like to consider motivations for Mr. Baily to oppose the merger. When Mr. Bailey was initially approached regarding a merger with USO he expressed concern regarding the financial stability of the UOC versus the financial stability of the USO. The UOC is financially stable due to a reserve fund that is in place due to their current business model. These funds allow the UOC to be flexible and maintain stability if they only cut projects that do not meet their fund-raising goals. The USO does not have this flexibility and could not operate within their current successful business model.
2) The sales budget calculates how much the company will spend to produce the required number of units. The president should do further consideration in terms of capital and labor costs. Does company have an adequate capital to produce the required number of units? And if the answer is no, they should look for other alternatives such as borrowing and others. 3) The sales budget is to estimate the profitability.
The new CEO would rather operate the company without interference of the “money man.” Even though, this maybe a gamble due to corrupt the thinking that would affect Beltway’s public credit. Beltway Investments could not allow it to become
An example of this would be when a customer is not able to pay their bill because due to a downturn in the economy, money may be tight if they have been laid off from their jobs or faced with unexpected hospital bills. Under the direct write-off method, companies record bad debts expense in a period that is different from the period in which they record the revenue. The method does not attempt to match bad debts expense to sales revenues in the income statement. The direct write-off method show accounts receivable in the balance sheet at the amount the company actually expects to receive. Unfortunately, unless bad debt losses are insignificant to the company, the direct write-off method is not acceptable for financial reporting
It cause overstate inventory and understate the cost. Therefore, this has become the key factor of inherent risk. (2) The first risk is Company does not set internal oversight Institutions. In this case, shareholders did not set the relevant oversight institutes, but they firmly believe CEO (Hebding) decision, which led to the failure of internal control environment, in this case, Hebding can create different fictional accounts, aimed at the data meet the requirements of shareholders, but his aim is to deceive shareholders, and to reap more benefits. For example, Hebding instructed his employee to make false account such as understate expense, overstate equipment and inventory and so on.
Also CHB was prepared to invest about $5 million in Spyder and was willing to accept a minority stake, the company was intent on arranging a deal which would yield a minimum 30% return. Both sides agreed to deal that CHB investing a total of $4.5 million in two stages. Upon the completion of the deal, the firm would put in $2.5 million in exchange for preferred stock convertible into 22% of Spyder common stock. Later CHB have the option to invest an additional $2 million – half of which would be a cash payment to be split by Jacobs and his partners. If CHB elected to invest at both stages, it’s stake would increase to 37.9% of common stock.
Klain (2013) stated, “The government is hurting the [economy] recovery, and badly. But it’s not because it’s spending too much, or because of concerns over future policy. It’s because government, at all levels, is spending and investing too little.” (Grounds) 4. Opposition I: Government should not give Financial Aid to Mexicans. Mexicans might leave the country later.