Blaine Kitchenware represents 10% of the U.S market share of the industry (market = $2.3bn) but is also present in foreign market. The company’s recent strategy moves include increasing its presence on the foreign market, growing its beverage preparation appliance segment and competing in higher-end segment with higher price point. Despite the company’s profitability (net income of $53.6m on revenue of $342m), the company lacks of organic growth and all of its recent growth is due to acquisition. When comparing the ROE of the industry, one can observe that Blaine Kitchenware (11%) is significantly below the average (25.9%). In recent years, the company increased its number of outstanding share to finance its acquisitions, which raised the payout ratio to more than 50% in 2006.
Case: AXA MONY Question 1: Why is AXA bidding for MONY? Does the deal make sense for AXA; for MONY shareholders; for mgmt? As a MONY shareholder, what are your concerns about the deal? For AXA • Growth: Horizontal merger, AXA’s sales force in US by 25% → hard to achieve organically • Cross-marketing → Distribution systems complementary, and products (AXA strong in the variable annuity marketplace and having some new life products that could be offered by MONY’s sales force) • Bidder share price increased following the announcement; looks like the market is positive as well. For MONY • Poor performance in 01-02, ROE of 1% compared to industry of 10%, valid argument?
Under pressure from the financial markets to abandon the company's oft-stated goal of sacrificing short-term profits for building long-term growth, market share, and increased shareholder value, Bezos proved that his online retail business model could produce operating profits. Now that Bezos had that issue taken care of, there were a number of new ones that needed to be addressed. Outside the overall economic malaise of the U.S. and world economies, the Internet Tax Moratorium law was up for renewal in November, with no assurance of its being extended, and online stalwarts eBay and Yahoo! were expanding into Amazon.com's markets. Bezos was faced with the task of developing an effective differentiating enterprisewide strategy if Amazon.com was to survive and prosper against aggressive competition over the intermediate and long-term futures.
Running head: Dollar General 1 Dollar General Columbia College RUNNING HEAD: Dollar General 2 Dollar General Dollar General is the leader when it comes to discount dollar stores with an annual profit of more than $12.73 billion a year. The major competition in the dollar discount stores for Dollar General in order are Family Dollar and the Dollar Tree. Another key player in discount stores is Walmart, although not a dollar discount store Walmart dominates all markets with $419.24 billion in revenue. 2011 brought on a year of expansion for Dollar General with plans to open up 650 new stores and remodel another 550 creating 6.000 new jobs in additional employees. Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General.
The net present value of taking up job after MBA will increase as he will have more income for the additional number of years he works. Ans 2. Apart from the financial constraints, Ben’s decision to get an MBA can be affected by non-quantifiable factors like : a) His personality traits like risk taking attitude or risk aversion attitude. b) His confidence in getting a good job offer after finishing his degree. c) His inclination towards getting a post-graduate degree in other fields rather than business administration.
Mr. Fastow generated companies that were designed to absorb any of Enron’s financial losses. This allowed Enron to appear to be doing much better financially than it really was (Madsen & Vance, 2009). By August of 2000 Enron’s stock was trading at $90.00 per share. This was an all time high for the company. However, by November of 2001 Enron’s stock had plunged to $1.00 per share.
J&L Railroad Case – Should J&L Hedge Its Fuel Costs? 1.1 What are the most important arguments for and against a corporation’s hedging this type of risk? i. Argument for hedging The most important argument for hedging this type of risk is that a corporation may limit exposure to fluctuation of commodity prices and stabilize operating margin. By doing so, a corporation may reduce commodity price affecting its share price.
Historically, December sales represented only 3% of yearly sales, but this year they mushroomed to over 25% of yearly sales. CCL would like to defer the profit on what they consider to be "excess" sales generated as the result of the looming price increase. CCL believes that 2001 sales will be lower because of the bottlers' overstocking to beat the January price increase. Management of CCL is convinced that bottlers are overstocking due to the frank and open discussions that they have had with the bottlers. If deferring this revenue will not be acceptable to the company's auditors, management would prefer to treat these "excess" sales as consignment sales, with the recognition of revenue taking place in 2001 or when the bottler eventually sells this product.
With 10% holding for more than six months could allow a shareholder to inspect a company’s accounting records and to apply to a court to appoint a special auditor for this purpose. 3. Besides board representation, T. Boone Pickens demanded higher dividend payouts. Were his demands justified? Provide quantitative evidence to back your answer.
LOS ANGELES, California (AP) -- The Walt Disney Co. said Tuesday that the weak U.S. dollar kept domestic vacationers closer to home, boosting theme park revenue while growth in the company's film studios and media networks also helped push second-quarter net profit 22 percent higher. Disney said it earned $1.13 billion, or 58 cents per share, in the quarter ended March 29, compared with $931 million, or 44 cents per share, a year earlier. Revenue for the period grew 10 percent to $8.71 billion. Analysts expected earnings of 51 cents per share on $8.47 billion in revenue, according to Thomson Financial. Disney shares jumped 84 cents, or 2.5 percent, to $34.57 in after-hours trading.