Jones Electrical Case

Issuing additional debt to finance the company expansion would worsen the company’s debt ratio as it is already more than average. The company envisions to be profitable by raising capital from existing stockholders by issuing common stock through rights offering.

FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.

The bank at some point received negative attention for issuing credit to arms companies, including companies like Boeing, Lockheed Martin, General Dynamics, Textron, Colbun, BAE Systems and EADS. Some companies within the bank’s portfolio have also been involved in environmental and labor rights violations scandals, for instance Wal-Mart and Total USA. This negative attention may lead to loss of investor confidence in the bank.

1. Key success factors & company performance…………………………………………………..3 2. Bank perspective regarding the performance…………………………………………………..7 3. Bank financing perspective at the end of 1998……………………………………………….10 4. Management perspective regarding the bank financing………………………………….13 5. Exhibit 1 – Annual Income Statements (1994-1997)………………………………………17 6. Exhibit 2 – Annual Balance Sheets (1994-1997)……………………………………………..18 7. Exhibit 3 – Quarterly Income Statements 1997……………………………………………….19 8. Exhibit 4 – Quarterly Balance Sheets 1997………………………………………………………20 9. Exhibit 5 – Forecasting………………………………………………………………………………………21 10. Exhibit 6 – Annual Ratios………………………………………………………………………………….22 11. Exhibit 7 –

The company position is strong enough so its better that company should use debt financing instead of equity financing.

The nonrecourse debt being $4 mm, which is greater than the ship’s fair value of $3 mm, will be extinguished because the lender can only seize the collateral – which is the cruise ship.

You have recently been hired as the HR manager responsible for two separate Ontario locations belonging to Wilson Brothers Limited. You have been asked by the HR Director at the head office in Brandon, Manitoba, to quickly provide a report on any initial HR issues related to Recruitment and Selection, Compensation and Benefits, Health and Safety, Training and Development and Labour and Employee Relations that are affecting or will affect the Cambridge operation and the new plant in Scarborough. The HR Director has made it very clear that Wilson Brothers would like both the Cambridge location and the new plant in Scarborough to remain union-free and are willing to offer very competitive wages and benefits

There are two chief participants in this case study, Paul Mackay and Jackie Patrick. Mackay, a sole proprietor of Lawsons (a general merchandising retail site in Riverdale, Ontario), has approached the Commercial Bank of Ontario in order to acquire an additional $194, 000 bank loan and a $26,000 line of Credit. Patrick, a first time loans officer, has been appointed to Mackay’s request. As such

This report is dealing with the case of ACME Electronics vs. Otto Gunter. Gunter purchased a computer from ACME Electronics in 2002. In 2004, the hard drive crashed and he brought it in to ACME Electronics to have it replaced, as well

The amount of extra sales that would be required to cover this cost of 300,000 would be

A potential problem with this strategy is with a large, non targeted marketing push, 75% of audience the company would be targeting is not purchasing paint. Based on the company’s standard of recovering the costs within a year, if the company doubles its advertising costs, sales should show a significant increase and there is no guarantee of this.

The reason why Butler Lumber Co. is considering finding a different line of credit is because they’ve nearly exhausted all their usable credit with Suburban National Bank, using up $247,000 of the $250,000 of the credit limit. To compile this issue, the bank is wishing to secure the loan with some of Butler’s property. Considering the company’s large debt ratios, they have decided to check with Northrop National Bank’s offer to extend their line of credit by $215,000.

The case is set in the context of RJR’s 1985 financing of its $4.9 billion acquisition of Nabisco Brands Inc. To finance the acquisition, RJR was proposing the issue of $1.2 billion of 12 year notes and the same amount in preferred stock. It had already funded $1.5 billion of the acquisition leaving $1 billion more to finance.

As Star River is a private company and has not issued stock, we need to make several assumptions when calculating market value of equity and price of equity. Analysis of similar companies reveals that Wintronics, Inc. and STOR-Max Corp. are the most similar firms in the market. To calculate Star River’s market value of equity I used market to book value method. I found M/B for Wintronics to be 4.4 (market price per share/book value per share) and 3.9 for STOR-Max. an average M/B ratio is 4.15, so multiplying Star River’s book value of equity of 47004 by 4.15 I found Star River’s market value of equity to be SGD195,066.6M. Average beta of these two companies is 1.615. The global equity market premium is 6%, and I use 10 year Singapore T-bond yield of 3.6% as my risk free rate.

Since Goodrich has BBB- credit rating it could raise capital at a fixed rate probably at 12.5% for 7-10 years.