This is partly a practical decision given that we have not provided rates beyond 20 year term in the book. We use the quoted value for $250,000 policies pro-rated to the size of policy we need, and this is incorrect — policy premiums per dollar decline as the size of the policy rises, since some costs are fixed. However, it is the best we have, and the difference will not be
With a debt to equity ratio as above average as Verizon Communications’, the probability that the company will be able to pay off its’ debts if a liquidation was to occur is unlikely. Some factors that may be a contributing factor to Verizon Communications’ currently high debt to equity ratio is the acquisition of other firms, the purchase of complete ownership of Verizon Wireless, and recent deals with Netflix. However, according to macroaxis.com, Verizon Communications’ probability of going bankrupt within the next two years is “less than 46%” (2014). Verizon’s closest competitor, AT&T has about a 43% chance of going bankrupt in the next two years; many of the telecommunications industry companies are within the 43 to 50 percent range of bankruptcy within the next two year (macroaxis.com, 2014). Also, research analyst, Arie Goren, states that “Verizon will continue to benefit from the remarkable leadership of its wireless segment”; he further explains that “Verizon has compelling metrics and good earnings growth prospects”
Brazos Case Study 1. Brazos’ investment strategy focuses on the ‘lower end’ of the middle market for opportunities to buy out companies valued in between $50 million and $250 million with ‘demonstrable cash flow’, well defined niches and a quality management team throughout the nation. However, there is a strategic inclination towards firms in Texas and the Southwest region as Brazos believes that it is underserved by LBO firms which may be taken advantage of. As a first time fund, its access to two potential rounds of capital at $250 million and $200 million respectively allow Brazos to pursue its ‘low-end, middle market’ strategy. Despite scouting for smaller opportunities, a first round of $250 million funding may not be sufficient for Brazos to invest in any more than a few firms which gives them limited scope for diversification.
e. Do you expect that those notes will be called or redeemed? a. MSFT is raising money for general corporate purposes, which may include funding for working capital, capital expenditures, repurchases of stock and acquisitions. Also they choose to raise money at this time because the yields for treasury instruments are low, so Microsoft can issue in a lower rate. b. No, because the yields for treasury instruments are very low at the time, so the premium the company will add to their rate is very low, and the investors will get less money for the same level of riskiness, so the paper is not really cheap.
The reorder quantity is the amount that furnishing companies buy from the suppliers, when getting an order. (a measurement, from 0 to 500) Maximum stock level – illustrates if the company has too many resources delivered from suppliers, which can incur as heavy additional costs, and it’s a GREEN line at the top. Lead Time – is what’s between an order placement and stock arrival. Stock is different in reality though; normally there would be different rates than in diagram, so it can be only used as example of how Furnishing business or Hunters of Derby may manage their business… Normally company is not so perfect, and could have problems with stock reorder, where furnishing elements are not being made on time, or there is problem with time leading, or transport, so in reality it is difficult to describe it in one diagram. Business may also consider the price of stock, and the amount of resources in compartment with both, which has to be calculated in order to be more precise.
This calculates how much of the business is financed through private investors; it is also expressed in percentage form. Generally speaking, as a firm's debt-to-equity ratio increases, it becomes more risky because if it becomes unable to meet its debt obligations, it will be forced into bankruptcy. (Glakas) Of the three companies, Wal-Mart has the lowest total debt ratio (.62) as well as the lowest overall debt to equity ratio (1.65). Target finds itself with similar footing at .65 and 1.89 respectively, however Kroger has over 80% of its operations (.81) financed with debt and has the worst three year average when it comes to debt to equity with 4.40 times.
57). To figure out the contribution ratio one must divide the largest revenue source by the total revenues (Martin, 2001, p. 57). Valley of the Sun United Way’s largest funding source is from grants totaling 30,903,947 and the total revenue in 2012 was 63,588,104 (Ernst & Young, 2012, p. 4). The ratio is calculated at .48 which is still on the safe side. An agency should not be .5 or higher because then they would be too dependent on one source (Martin, 2001, p.
What assumptions can you use to arrive approximately at the share price of $273,000 that was estimated by the dissenting shareholders? Show how these assumptions impact your valuation. 4. What is the maximum share price at which Herbert Kohler should be willing to settle with the dissenting shareholders in order to stop the trial on April 11, 2000? Assume that (i) if the trial proceeds it is expected to last less than a month and result in two possible outcomes in terms of the price per share established in court: the $273,000 claimed by the plaintiffs, or the $55,400 being defended by Herbert Kohler; (ii) Kohler estimates the probabilities of these outcomes at 30% and 70%, respectively.
4 ‘In most countries the Internet will never be used by more than 50 per cent of the population, so its impact on businesses will be limited.’ Discuss. 5 ‘Confusion over the meaning of the terms e-commerce and e-business will limit the adoption of e-business in many businesses.’ Discuss. Self-assessment questions 1 Outline the main options for trading between businesses and consumers. 2 Explain the concepts of disintermediation and reintermediation with reference to a particular industry; what are the implications for a company operating in this industry? 3 Describe the three main alternative locations for trading within the electronic marketplace.
A marketing funnel, or sales funnel is a process through which a customer's journey through the process is charted and tracked. Building a good one will help you to create more conversions. I'd like to reveal what I've found to be the most common mistakes people make when building a sales process and marketing funnel. These mistakes cost time,