Is the use of a monthly average price a net advantage or disadvantage to J & L? Using NYMEX contracts will minimize the asset mismatch aspect of basic risk, along with a better liquidity. However, since diesel fuel is not a traded commodity, it cannot be directly hedged and J&L will suffer a certain amount of basis risk. J&L will also need to post a margin for their future contracts at NYMEX. Using product offered by Continental Bank would require a higher cost for J&L, and illiquid compared with NYMEX.
In Flores’s mind Salem Data Services could serve as competition with other computer service organizations while having non-regulatory prices. The only way for this idea to come to fruition was by making sure the monthly charges for services provided by Salem Data Services to Salem Telephone Company did not exceed the $82,000 mark. Through all of the reassessment of business for the company, three years after the reorganization, the company still was not as profitable as president Peter Flores estimated. Once the quarterly reports came in Flores called the meeting with Wu because the reports served as evidence as to how and why Salem Data Services was not driving high revenues. 1.
First is to (1) buy options to sell yens for dollars or to buy dollars with yen. However this option existed only for maturities of two years or less, which is much less than the time scale of 10 years that Walt Disney was considering. Same issue also applies for the second solution, (2) the future contracts which would allow the company to exchange yen for dollar at a pre-defined rate. Also this issue would still persist if Walt Disney would like to (3) convert its existing dollar debt into yen liability since its Eurodollar note issues matured in one to four years and an attractive rate is hard to find. Moreover this option does not provide any additional cash.
Due to the economic downturn and shrinking market, BCCC curtailed its plans of expansion. The board wishes to continue to operate only two ships and plans to reassess their strategic direction next year. They also wish to obtain international financing and thus want to adopt IFRS in 2011. Management must decrease cost or generate extra revenue while improving customer service in order to compete in the short and long-term. This can be accomplished by targeting a more lucrative customer base.
They stated that lower costs, and a world-class seaport as the reasons for the move. This emphasizes the company’s desires to reduce shipping costs and lower costs. In addition, there has been some conflict in regards to unionization. Since Washington State is a unionized State, while South Carolina is a right to work state, Boeing’s president was stated in a recorded interview saying "The overriding factor was not the business climate and it was not the wages we're paying people today. It was that we can't afford to have a work stoppage every three years."
Executive Summary Memorandum To: Source Selection Board De Havilland Inc. From: Kim Tomar Financial Analyst, Material Subject: Marton Enterprises Inc. as a Supplier for Flap Shrouds and Equipment Bay Doors. Our company has three mandates to get up to 25% discount on all parts that are on the bill of materials, to reduce our vendor base so as to gain from economies of scale and to sign five year, long term contracts with vendors. In light of this we had tried to get a price reduction from our current supplier of flap shrouds and bay doors, Dollard Plastics of Montreal, to no avail. Following an RFQ we received bids from 9 different suppliers with just as many varied prices of the final product. Out of all, Marton
Payday lending is on the verge of being outlawed in the District of Columbia, but the fact remains that consumers will still need access to short-term, emergency loans. Credit unions already are marketing what they call lower-cost alternatives to the traditional payday loans, and consumer finance firms offer products that could be attractive to consumers who have used payday lenders. Even bankers, with a nudge from the Federal Deposit Insurance Corp., might consider getting in on the action. However, there is no guarantee that they can make small-dollar loans profitably. A North Carolina credit union has made more than $800 million of "salary-advance" loans since early 2001 and is still losing money on them.
6. What specific actions should Mr. Plummer take to solve Dasher’s lead-time and quality problems? Think beyond the bottleneck and consider also dasher’s business strategy. Shouldn’t allow changes by customers after order has been made Should pick up CNC or manual drilling according to the above rules ( in question 2). Should In your analysis, assume that Dasher operates 1 shift of 8 hours per day, 5 days a week and that September had 21 days, i.e.
Question 1 What do you think of the company’s policy of not operating ships over 15 years old? In year 15 of the ship’s life, is it better to scrap the ship or continue operating it until the ship is 25 years old? | 15 year Option | 25 year Option | Without Tax (Hong Kong) | - 1,267,880.18 | 365,810.92 | With 35% Tax (US) | - 8,670,868.98 | - 7,256,252.74 | Table 1: Net Present Values for 15 year and 25 year operation times, with and without tax Comparing the Net Present Value (NPV) without tax for 15 years and 25 years, a usage time of 25 years is recommended as the NPV for this option is higher. Assumptions made: * Initial Investments: Timing | Years passed (base for the PV calculation) | Value | 01/2001 | 0 | 3,900,000.00 | 01/2002 | 1 | 3,900,000.00 | Start of 2003 | 2 | 31,200,000.00 | * 500,000 increase in Working Capital is just required when the ships starts operating in year 3, and the salvage value at the end of the project is 500,000 * No capital expenditures are required for special surveys in the last year of operations Question 2 Assume that in year 15 the company follows the optimal strategy identified in question Should Ocean Carriers purchase the new $39m capsize? Make two different calculations: a) Assume that Ocean Carriers is a U.S. firm subject to 35% taxation.
Ocean Carrier’s current fleet met the requirements of the Charterer, Mary Linn, the Vice President of Finance, had to decide whether to commission a new capsize carrier to meet the requirements of the Charterer, and whether this will be profitable in the upcoming years. Market demand conditions also were not clearly predictable due to changes in trade patterns. The daily hire rates are driven by supply and demand. The long-term forecasts of the capesizes of dry bulk industry are linked to the volume of vessel shipments of iron ore and coal. We expect the long-term prospects to grow.