Acquisition Analysis : Radio Network Essay

In the short story by John Cheever called "The Enormous Radio" it begins with Jim and Irene Westcotts appearing like the perfect American family. Cheever describes them as "the kind of people who seem to strike that satisfactory average of income, endeavor, and respectability" (Cheever 1). What is ironic about this story is the Westcotts are far from being the perfect family and the community they try to conform to is just as imperfect as the Westcotts themselves. A way the Westcotts try to live up to their society is by keeping secret the fact that they listen to the radio and attend musical events. This is because these activities were not something members of their community did. For example, Cheever says the "Westcotts differed

Because we have not been notified of any substantial changes within the company’s financing agenda or asset acquisition goals, we find it safe to assume that Telus will continue to use the same financing weights in the near future. Another thing that we believe Telus should consider is avoiding the issuance of Preferred Stock in the future. Although this type of stock is less restricted, it can considerably affect the company’s overall cost of capital based on a higher after-tax cost and given that this type of stock is not tax

December to January REG saw a significant increase in price, when AMP became a substantial shareholder, combined with the acquisition of a 194 bed RAC in Cairns, whereas in December JHC’s saw a drop in share price, due to loss of faith of shareholders after the announcement of A$5 million in unpaid overtime loading, discovered in a payroll review, a rapid recovery was achieved with the purchase of two new sites.

Andrea Winfield considered issuing bonds was not a good option for financing the acquisition. She was particularly concerned about the increasing long-term debt and annual cash layout of $ 6.25 million for 15 years. We believe that her concerns are justified, because the Company had already significant amount of debt that could result in higher risks and stock price

The movie “Radio” is the tale of a young African-American man who suffers from severe mental retardness and his journey to fame from football in the small South Carolinian town of Anderson. James “Radio” Kennedy is befriended by the T. L. Hanna High School head football coach, Coach Jones, and begins to help as an “assistant coach” of some sort. Eventually, James begins to attend Hanna High as an eleventh grade student due to the persistent efforts of Coach Jones.

As a key objective of the “Fairfax of the Future” program, the company is attempting to reduce its debt in order to strengthen its balance sheet. To achieve this, Fairfax Media has sold 59.4 million “Trade Me" shares to reduce its interest from 66% to 51%.as well agricultural businesses based in the United States. This has enabled Fairfax Media to reduce its debt by $760 million.

We assume that Telus maintains a fixed debt to equity ratio and hence, the calculation will include preferred shares. 5.00 percent of cost in the past cannot be used towards final calculation

   John Cheever’s "The Enormous Radio" represents the enormous amount of hidden truths in American society of the 1940s. The problems with society during this time were hidden behind a facade of goodness; however, this false innocence becomes visible through the radio owned by the Westcotts. The radio causes the Westcotts to evolve from an innocent, naive pair who believe that everything they see is real, into individuals who realize that appearances are deceiving.

    Many authors use the personification of inanimate objects to symbolize the feelings and expressions of their characters. One example of this is in John Cheever’s short story, "The Enormous Radio." Although critics argue that the characteristics of the radio are the opposite of those of Jim and Irene Westcott, the radio actually reflects the couple’s life.

Current market prices: Both McCaw and AT&T’s common shares are publicly traded. The market value of the equity can be summed with the book value of debt to give a rough estimate of the firm’s current value. The calculation that follows suggests a value for McCaw’s assets of about $10.5 billion. McCaw’s shares may be trading at a minority discount, because the CEO holds a controlling block of shares. To purchase a partial

Analysts estimate that the $80 million in cost saving could be realized after the acquisition , however certain other costs associated with the integration approximately $130 million would occur .Hence, I take these cost savings and integration costs into consideration for the with-synergies valuation. Incorporating the effects of 80million cost savings for the merged firm (to be achieved by end of 2007 and assumed to incur in perpetuity then on) and 130 million integration costs (half of this accounted at the beginning years) in the estimated EBITs for Torrington, a new horizon value is estimated, the new FCF is discounted by acquiring company’s WACC 8.39%. Torrington company’s with- synergies valuation $1386.38 million exceeds the value as a stand-alone entity by approximately $286 million. sheet2: With-synergies Valuation of Torrington-DCF Method.

From the part 2 calculated, we can see that the value of company is about $130.01 million, and Berkshire’s offer is about $142 million higher than the value of company. The offer’s Credit Agreement can cover the current debts of company, and its Asset Purchase part also provide $142 million cash which can make the company has a better operation and reduce the managers’ pressure. So the managers of Media General can accept this offer.

above, how much should CSX be willing to pay for Conrail? Support your answer with appropriate analysis. According to operating income gains we can value a firm’s market price as its pre-merger value and the present value of gains in operating income. Let’s assume that value of Conrail before the merger is equal to its market cap. Then taking Conrail share price as $71.94 (average of year end and high stock price) and number of shares outstanding as 90.5 million shares (Exhibit 6) we get Conrail market value equal to $6,510.57 million ($71.94 x 90.5 million). We assume G =3%, MRP = 7%. We take risk free as 30-year maturity US Bonds rate, which is 6.83% (Exhibit 8); merged CSX-Conrail equity beta as average of CSX and Conrail equity betas, which is 1.33. rE = rf + MRP βE = 6.83% + 7% x 1.33 = 16.11% Now we can find Conrail’s synergy value as present value of gains in operating income. 1997 Total Gain in Operating Income Total Gain in OI after 40% Tax Gain in OI (discounted @ rE) $ $ $ 1998 $ 88 $ 12.80 $ 7.15 $ $ $ 1999 396 237.60 176.26 $ $ $ 2000 550 330.00 210.84 2001 $ 567 $ 340.20 $ 187.21

In this report, we will outline the capital structure of SKY, policies and theories used to support their financial activities. We use SKY’s financial data collected from their financial reports over 5 years period and from NZX to calculate their capital structure components such as WACC, beta, debt to equity ratio, and capital risk management. The data will then be analyzed and used to justify SKY’s implemented capital structure policies.

We performed a DCF Analysis for two scenarios: 1) assuming the purchase of the residual equity of LIN Broadcasting; and 2) assuming the sale of the residual equity of LIN Broadcasting (See Exhibits 1 & 2). The most critical assumptions impacting value were: 1) discount rate and 2) terminal growth rate. We relied on discount rates between