Brown

7) What was the effect on 1988 earnings per share, of the non-recurring items: area development

The Problem(s). Manson and Associates was doing a research to determine market potential of a Coors beer distributorship for a two-county area in southern Delaware on behalf of Larry Brownlow so Larry could find the answer for the following question:

The state of Kentucky has long been known for its versatility in alcohol, and bourbon is no exception. Popularity in all types of bourbon is on the rise across the United States, and this directly impacts the state of Kentucky in part due to ninety-five percent of all bourbon being produced here in the state (Dickson, 2011). However, with the current economic boom, the bourbon industry is seeing trends it has never seen before. One of the most popular brands in bourbon currently is Woodford Reserve. Woodford Reserve Distillery is located in Versailles, Kentucky and has become one of the most widely known bourbons from this alcohol crazed state. They even have their own club called the Woodford Reserve Club and is located in

The situation facing Mr. Larry Brownlow is a tough one. He is young with minimal money to work with. This shows that he must be careful and research all of his investing activities closely. The problem that faces him is deciding if opening a Coors Beer brewery in his area of Delaware is a profitable investment. The beer is obviously not widely carried in the area so that makes the situation that much harder. He has less information to work with. This is why he contacted the Manson Research Firm. That presents the second problem. The firm will do the research to help do a feasibility analysis, but the information is not cheap. Larry is working with about two weeks until the deadline to submit an application for distributorship. He

Larry Brownlow, a young entrepreneur, wanted to operate his own business after completing graduate school. He agreed to a distributorship opportunity with Coors. The brewery company was looking at expanding their market potential of a Coors beer distributorship to a two-county area in southern Delaware. Brownlow used his resources to find and contact Manson and Associates, a research company,

of them. For this assignment I selected one product that was featured on the NYSE landing page

Why is Brown Forman considering buying Southern Comfort? In your answer consider the strategic motives of Brown and the arguments in favor of and against the acquisition (7 marks / total 20 marks).

in our calculations, as this company exhibited dramatic value differences to others in the sample, (likely to skew our results and prove misleading). Using the average of the revised sample field for each ratio, we inserted Torrington’s values where appropriate to generate an entity value. The findings generated two values for Torrington, 606 million and 398 million. Taking the average of these two numbers, Torrington exhibited a relative value of 502.41 million. Because of the lack of related information given in the case, and the often large differences in measures amongst competitors, different capital structures, internal management strategies, there remained many unknowns in our model. We decided it would be best to use this valuation to reaffirm our assumptions in our DCF valuation. (Please see exhibits)

George Garvin Brown, a pharmaceutical salesman who had the idea to serve bourbon in sealable glass bottles, originally founded company in 1870. The brand that George started was originally known as Old Forester Kentucky Straight Bourbon Whiskey, which became America’s first bottled bourbons, remains one of the best selling brands 140 years later. The company has expanded however; the Brown’s have stayed with the firm for five generations, as George Garvin Brown IV serves as the Presiding Chairman of the Board.

$10,644,800 / $2,271,400 = 4.69 Times Return on Common Stockholders’ Equity (2002) $647,645 / $1,928,960 = 33.58% Return

With a valuation of $67,03 per share, City Capital will provide a premium of slightly more than 4%, lower than the 17,9% they were willing to pay as a premium one day prior to stock price based on 27 July 1988 and the more common 30% takeover premium. Scenario 1 included a decrease of 1% in cost of capital which increased the valuation per share even more. The share price increased to $84,30 per share, higher than the takeover bid of $70,00.

The use of the Market approach has shown that the value of the company varies greatly depending on the comparable companies. If Masco (which is the largest comparable company) is included, the value goes to nearly $3.7 B and excluding it causes the value to go down to $1.2 B. Moreover, depending of the discount for lack of liquidity and control, the value of the company could decrease considerably. Then, in the market approach there are two variables

Acquisitions and mergers is the growth strategy of many companies today. Sometime a company may decide to buy shares in another company while other times a company may decide to acquire the whole company. This paper discusses how Dow Chemical could benefit from the acquisition of DuPont. It will also cover the various accounting methods used.

Unilever is willing to pay 36$ per share which is the highest bid, I believe that they gave the highest offer because they will restrict the social commitments an interests which is totally against the believes of B & J. however, Unilever rewarding that by integrating B & J into its frozen desserts division.

With the shares vesting in the future, Blackstone expected to face deferred cost approximated $13 billion. It may record significant net losses for a number of years following without paying any interests or dividends hereafter. As a result, Blackstone developed a metric called “economic net income,” which excluded the impact of income taxes, noncash charges related to the vesting of equity-based compensation, and amortization of intangible assets. By using the economic net income metric, the Blackstone‘s executive team argued that this metric was justified, as the future noncash charges reflected an extraordinary situation, incurred only because of the one-time event of the firm’s listing. Moreover, the stream of income against which these expenses would be offset was uncertain but highly likely to be more than enough to cover these costs. Furthermore, the management team also thought that this $13 billion expenses was based on the extreme assumption that all the employees would not leave their jobs in the coming eight years. If they left the firm before their vesting