Floral Fragrances Case

This course applies corporate finance concepts to make management decisions. Students learn methods to evaluate financial alternatives and create financial plans. Other topics include cash flows, business valuation, working capital, capital budgets, and long-term financing.

The purpose of this paper is to advise analyze the financial statements of Dillard’s, Inc. in order to recommend whether or not my client should invest $1 million in the large retail company. I will compare the financial statements of Dillard’s, Inc. its competitor, Kohl’s Corporation. Investing in retail can be risky because a retail company’s performance is very heavily influenced by factors that have nothing to do with the actual company such as the overall performance of the economy or the weather during the holiday shopping season. There is, however, potential for profitability within the retail sector. Based on my analysis, I recommend that the client should not invest in Dillard’s, Inc. for the following reasons. First, Dillard’s has experience a decline in net income in the last three years. Second, liquidity ratios indicate that they could face possible liquidity constraints in the future. Third, long-term debt paying ability ratios indicate that the company could have trouble paying off the principal of its current debt obligations. Fourth, the profitability ratios are well below industry averages, suggesting that there are more profitable companies to invest in within the industry. And finally, Investor analysis ratios provide mixed opinion of the future performance of the company. I conclude that retail can be a profitable industry to invest in if an investor has the risk tolerance and risk capacity to withstand the uncertainty, but neither Dillard’s

After considering the operational improvements forecasted, we project Robertson’s free cash flows and compute the terminal value using the Gordon Growth Method; the implied share price is analyzed further in accordance to growth rate and discount rate.

The Corporate Finance course has helped me, as a student, gain intelligence to make informed decisions upon analyzing the details for Sunflower Nutraceuticals (SNC). These decisions will influence the company’s overall growth annually. In addition to various details of the SNC Company I have also made various decisions in each of the phases of SNC’s simulation which has an estimated values to figure out the results. This paper also explains how SNC’s decisions are influenced with regards to the working capital followed with the final step of evaluating the general affects associated with the limited

Why is the company a target of a hostile takeover attempt? The market price of Interco’s stock took a dive in the market crash in October 1987. The market condition and market participants’ perception could have depressed the stock price making the company vulnerable for takeover. In addition, Interco’s repurchasing strategy reduced outstanding shares making it easier to achieve more voting rights. Interco had shown overall consistent growth and history of recurring cash flows, despite the two underperforming groups not contributing to overall profitability. The strong financials of the company, even with the two underperforming units, sends a signal to the market that Interco could be undervalued. Thus, making Interco a viable target for a takeover and restructuring workout. Acquirer could see opportunities to improve financial performance by replacing current management and thereby eliminating agency cost, lack of operational monitoring and empire building, caused by managers also being board members. Perception could be that a break-up value of Interco is higher than the company value in current state. Higher value would be achieved through disposal of selected units as they could be worth more to a strategic acquirer, achieving synergies. In result the acquirer could focus on more profitable units which would yield higher profit margins. Interco’s conservative capital structure, low debt and high equity, could attract hostile acquirers taking

To facilitate the valuation aspect of the analysis, free-cash-flow forecasts are provided in case Exhibit 10 for Hershey as a stand-alone entity. Most students should find it easy to calculate a value for Hershey using the discounted-cash-flow (DCF) method and industry-comparable multiples, which also are provided. As with any valuation case, students must make judgments about the appropriate capital structure, the weighted average cost of capital (WACC), sales growth, and the terminal growth rate. Once students have explored the value drivers for Hershey though sensitivity analysis, they may then evaluate the bids from both Nestlé S.A.–Cadbury Schweppes PLC (NCS) and the Wm. Wrigley Jr. Company. They will want to examine whether the bids are fair from the perspective of HFC shareholders and whether the synergies assumed by the bidders in their offer prices are reasonable.

The company’s objective is to improve its competitive position in deep-discount brokerage. In order to achieve this objective, the company must grow its customer base, requiring an investment of $100 million to upgrade its technological capabilities as well as an increase of $155 million for its advertisement budget. In order to evaluate the company’s cost of capital, we used the Cost Asset Pricing Model. Since the company went public recently, it would not be an accurate assessment of the risk of

If the market value of a stock is lower than its intrinsic value, this stock is defined as “trades at a discount”. To figure out whether AGI stock is traded at a discount to comparable companies, as its management believed, we can simply apply multiple which comes from the average multiple of its comparable companies. Considering fluctuation of future after-tax earnings caused by the change in capital structure, we prefer to use TEV/EBITDA multiple in this case. Amtelecom Group consists of two lines of business which has to been taken into consideration. We separately calculate the value of both companies and their

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

In this scenario Margret Weston, received a letter. In the letter she found out that Yossarian acquired 10% of the company’s stock. This aggressive move by Yossarian was motivated by the company management not doing their job to maximize shareholders wealth. Moreover, the managers were having issues with the hurdle rate, because it is just generally accepted, but not scientifically proven. On the other hand one TV Commentators opinion about Teletech Corp. is that “there is no way to have a hostile takeover in this sector, but for the Teletech Corp. there are many reasons to try.” Teletech Corp. has two major business segments, Telecommunication Services and both Product and System Manufacturing make up the other segment we will analyze.

In the article, “The Deeper Meaning Behind Kim Kardashian West’s New Perfume Bottles”, it discusses Kim’s prior success, her most previous success with her fragrances and the reason for her success. This article is an example of the rhetorical fallacy, testimonial, which means you persuade someone by using a personal success story with a product. Testimonial is seen in the article when it states, “Not that this stopped her from launching a collection of self-titled fragrances at the time, like Kim Kardashian Glam and Kim Kardashian Gold. Fast forward 10 years and KKW has come a long way…”, exemplifying her personal success (Sasso). This is showing her great success because they are talking about her two money making fragrances that she had

A wise man once stated that “ We don't grow when things are easy, we grow when we face challenges.” We the Deebilder Hardware Corporation are now facing a huge dilemma, House Depot Inc, ( HDI) a bigger competitor has entered the market in our upstate region of New York. HDI has on average 4,000 stores around North America and giving reports states they’re spreading quickly. Their economies of scale makes it for them to buy out their competitors and truthfully they have the ability to underprice our company and any other competitor in the region. Given our current situation HDI has pitched us an offer. They suggested to buy our entire corporation for $40 million in cash and 1 million shares of their HDI stock which are valued at today's market at $30 per share. HDI has made their offer clear and stand firm in giving us the offer to sell, but we only have till midnight to consider this

The case of Angelique Flowers is very hard and tough to decide which is moral and which is not. However, I am always against any act that is done in purpose of death because of many reasons. First, I am a believer of God presence, and I believe that Allah is the most powerful in this whole world. He is the one who have created the world with all its’ creatures and details. Allah can help in curing and cans support us any needs we have. So, from my religious point of view, I think we should not do any think to ourselves that lead us to die because since God created us and give us the life without our us choosing the life, then he should be the only one who takes our lives at the best time to us. In Islam, the soul is a trust that we “the believers”

Also, talking to Bob Shaw will eliminate the tension of going thru different people in making follow-ups on the status of the products. Heather will be able to save time and effort by going directly to Bob.

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