6. How does Chem-Med 's retum -on- equity ratio (ROE) compare to Pharmacia 's and the industry for 2003? Using the Du Pont method, compare the positions of Chem-Med and Pharmacia. Compute ROE for each company using the following formula:
Critically evaluate the assumptions on which your forecasts are based. What developments could alter your results? Is Mr. Cowins correct in his belief that Hampton can repay the loan in December?
4. Based on your analysis in (1) – (3) above, what is your overall conclusion regarding the
This is an electronics company that has been in play since 1976. The name for the company was changed two times from Apple Computer, Inc. in 1976 to Apple, Inc. in 2009. This company knew that they were not the only ones in the industry, therefore they needed bright minds to work for them. The founders of this company were Steve Jobs, Steve Wozniak and Ronald Wayne. As sellers of consumer electronics they innovated the way to look at technology. They created computers, laptops, cellular phones, I-pads and I-pods. What made this company unique is that their teamwork had in a sense a well knowledge of paradoxical thinking. What do I mean by saying this? As the technologies advance their way of doing things must change as well. This is when paradoxical thinking comes in to action. As competitors they must use different ways of manufacturing their products, they must know what the competency is up to so they can come up with something different and unique. As the author K. R. Ravi states, “write that companies that survive are those, among other things ,that do not oppress themselves with the ‘tyranny of the OR’—the rational view that cannot easily accept paradox, that cannot live with two seemingly contradictory forces at the same time” (p.3). This is when they start thinking out of their box and not only go and with what competitors are creating, but instead use their minds to create a new device that has
3. SciTronics had a total of $112, 000 (75,000+20,000+7,000+10,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) 16,000 (26,000-10,000)
3. Conduct an analysis of Williams’ sources and uses of funds during the first half of 2002. How do you expect these numbers to evolve over the second half of 2002? What is the problem facing Williams? How did it get into this situation? How has it tried to address the problem it is facing?
2. Based on Mr. Martin’s prediction for 1996 sales of $28,206,000, and for 1997 sales of $33,847,000 and relying on the other assumptions provided in the Tire City case, prepare complete pro forma forecasts of TCI’s 1996 and 1997 income statements and year-end balance sheets. As a preliminary assumption, assume any new financing required will be in the form of bank debt. Assume all debt (i.e., existing debt and any new bank debt) bears interest at the same rate of 10%.
Airbus had a reputation for innovative design and technology. All Airbus planes employed “fly-by-wire” technology that substituted computerized control for mechanical linkages between the pilot and the aircraft’s control surfaces. This technology combined with a common cockpit design permitted “cross crew qualification” (CCQ) whereby pilots were certified to fly similar aircrafts, thus offering flexible scheduling in flight crews on various models, leading to better pilot utilization and lower training costs. These features helped explain why Airbus had received over half of the total large aircraft orders for the first time in 1999. However, despite the gains in market share, Airbus still did not have a product to compete with the monopoly of Boeing’s 747 in the VLA market.
B) How well has Berkshire Hathaway performed? In the aggregate? In its investment in Scott & Fetzer? In its investments in earlier purchases of GEICO stock? In its investments in convertible preferred securities?