Address his issues point by point: 1. Outright purchase of Smithon stock: a. Should Mr. Jones purchase the stock of Smith outright, leaving Smithon intact? What about issuing debt in his Johnson Services company to pay for the Smith Company-would that raise debt to equity
This will achieve the goals of the company by increasing occupancy rates and business travellers. The constraints placed on the company will be achieved. Return on Investment is greater than 15% and operating profit % of revenue will be greater than 11%. GR has a good reputation and skilled management team which will make this a smooth transition. The current locations are great to make this move as they reside by the airport and will target the business travellers.
Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity. Alcoa would report the purchase of the treasury stock by debiting treasury stock and crediting cash for the charge of the purchase. The treasury stock ought to be disclosed independently in the shareholders' equity area of Alcoa’s balance sheet as an unallocated cut of shareholders' equity. These shares are treated as issued although not part of common stock outstanding. If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost.
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
Answer a. employee actions; customers and creditors b. employee actions; customers, vendors, and regulators c. management actions; all corporate constituents d. employee actions; all corporate constituents On its 2010 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year. Assuming that no earnings restatements were issued, which of the following statements is CORRECT? Answer a. If the company lost money in 2010, they must have paid dividends. b.
WestJet Vacations scored higher than the other vacation companies for overall satisfaction, likelihood to recommend and customer service. Canadian travel agents have also voted the WestJet Vacations website the best among approximately 20 tour operators. WestJet continues to grow its airline partnerships and currently has 27 alliance relationships with airlines around the globe. These partnerships bring additional guest traffic to the airline and have also made it easier for WestJet guests to reach an expanded network. So for now, Westjet is one of the leading airlines in Canada and is among top six airlines over the
Jones decides to buy Smithon Corporation he should buy it with the exchange in stocks instead of buying the Corporation outright. This will lower his acquisition cost and in return lower his taxable income since there is no recognition of a gain or loss on an acquisition company with a stock-for-stock exchange. If he decides to buy Smithon Manufacturing he will be able to change it to and S Corp and follow the fiscal year ending on December 31st. By changing it to an S corporation he will have the profits go directly to his personal income and avoid double taxation. A merger would best be used in this situation since it will help lower his taxable income and he can improve his operations and competitiveness.
Wells Fargo mission and vision statement is understandable. However, to add clarity to the vision to reach a wider variety of individuals, included should be that the company will build a lasting rapport with customers and diligently works to help all customers’ succeed financially. Wells Fargo develops the best people; know the numbers, and most of all know the clients. Wells Fargo mission and vision statement will assist the company in reaching its desired outcome by continuously putting their customers first. Knowing what the customer’s needs even if the customer does not know will help the company succeed.
The increasingly global nature of commerce makes it imperative to have employees who understand various cultures, said Joyce Tucker, vice president of global diversity for Boeing Co. The aerospace giant is America's biggest exporter, selling about 70 percent of its passenger jets to foreign
Jones should use Johnson's stock to acquire Smithon. This would be a stock for stock transaction. In the context of mergers and acquisitions, the exchange of an acquiring company's stock for the stock of the acquired company at a predetermined rate. Here, in this acquisition Shareholder's of corporation give up their stock solely in exchange for the voting stock acquiring corporation or its parent. The acquiring company's basis in the stock of the acquired company is equal to the basis that the shareholder's had in their stock.