Mini Case

1. Executive Summary This report presents an analysis of The Body Shop PLC’s pro forma financials from 2002-2004 and insights into financial requirements for the company as it moves forward with their new strategies for achieving operational efficiencies and reclaim its brand image as a top manufacturer-retailer in the beauty and personal care industry.

a. Why is corporate finance important to all managers? Corporate finance is important to all managers because it allows a manager to be able to predict the funds the company will need for their upcoming projects and think about ways to organize and acquire those funds.

1. Consider Dunlap’s statement on page 3 of the case: “Stakeholders! Every time I hear the word, I ask how much did they pay for their stake? There is only one constituency I am concerned about and that is the shareholder primacy? Do you agree or disagree with Dunlap’s view of shareholder primacy? Explain

Mini Cases in Movement Disorders Mona Dalzon Case 1 Kenny Kenny is a teenager who has experienced uncontrollable bodily and facial movements, various uncontrolled vocalizations, and other compulsions such as excessive hand washing and wringing. He has been treated with Clonidine, Haldol, pimozide and buspirone. This patient was diagnosed with Tourette’s Syndrome. Clonidine is a vasodilator that allows for blood to flow more easily to the brain. This lowers blood pressure and helps treat the tics the patient experiences(1). Haldol and Pimozide are antipsychotics that blocks dopamine receptors in the brain. This would help treat the compulsive behaviors (2). Buspirone is used to treat anxiety disorders. It binds to serotonin receptors in

INTRODUCTION: This case involves a male and female Hispanic, entering TJ Maxx during business hours, and concealing various items in their bags. The suspects attempted to leave the store without paying for the items. Loss Prevention Agent Sergio Castro made contact with the suspects at the front entrance and retrieved all

Mike Stephan is a first-year staff auditor at Willis and Adams. Mike recently graduated with his undergraduate degree in accounting and was excited about his new job at Willis and Adams. Mike came from a smaller school that typically does not get a lot of attention from campus recruiters. Mike was pleased to get an interview and then an offer from Willis and Adams. From the beginning, Mike was impressed with the firm’s culture and he felt that it would be a great fit for him professionally. Throughout his junior year, he worked hard to reach out to the firm’s recruiters to demonstrate a sincere interest in the firm. In the end, Mike was one of only two students that Willis and Adams hired from his school. Mike believed that his school’s

Decisions Day 50: Given that a machine cost us the same price on day 50 of the simulation as it did on day 217, and the fact that buying each machine represents a tradeoff of gaining higher potential for profits in the future (through the fact that more machines afford us greater utilization at each station) for a lower cash balance in the present, we felt it was best to try to determine how many machines we would need and purchase them at the beginning of day 51.

a. Should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? Should the company be interested in incremental cash flows, incremental profits, total free cash flows, or total profits?

1. Borrower’s Insolvency 1.1 If the Borrower: (a) being a natural person – is made bankrupt or dies, or (b) being a company – is placed into liquidation or some form of administration, the Lender can make a claim on the Borrower’s estate for the guaranteed debt. 1.2 If the Lender receives money as a result of making such a

Delrawn Small was a victim of racial police brutality last year which proves that the law enforcement is racially biased. Mr.Small was unarmed and killed for no reason by a police officer in front of his family. New York Times stated that Mr.Small’s girlfriend testified during trial. Mr. Isaacs, an

MIS589_WK4_Mini-case-MegaCorp_PC Questions: MegaCorp is a large manufacturing firm that operates 5 factories in Dallas, 4 factories in Los Angeles, and 5 factories in Albany, New York. It operates a tightly connected order management system that coordinates orders, raw materials, and inventory across all 14 factories. What type of WAN architecture and WAN service would you recommend? Why?

Statement of Problem Bed, Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash and issuing debt. This could allow BBBY to improve their return on equity and raise earnings per share. Given the low interest rates available it seems like the perfect time for BBBY to add debt to its capital structure. Until now they

Question 1 Current Ratio = Current assets/current liabilities = $1,561,800/$2,085,000 = 0.75 Quick (or acid-test) Ratio = (Current Assets – Inventory)/Current liabilities = ($1,561,800 - 740,800) /$2,085,000 = 0.39 Cash Ratio = Cash + Cash equivalents/Current Liabilities =

The keys to the company’s future value and growth are profitability (ROE) and the reinvestment of retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15% for the five years from 2006 to 2010. If Reeby Sports will lose its competitive edge by 2011, then it cannot continue earning more than its 10% cost of capital. Therefore ROE is reduced to 10% starting in 2011.

CoolBurst TABLE OF CONTENTS INTRODUCTION……………………………………………………………………………….5 What about the company is stifling creativity at CoolBurst?............5 Structure………………………………………………………………………………………6 Features…………………………………………………………………………………….....6 Polices…………………………………………………………………………………...........6 Practices / Reward System…………………………………………………………………...7 Culture………………………………………………………………………………………..7 Management Style…………………………………………………………………………....8 What Changes are needed to make CoolBurst a learning and innovative organization?............................................................................................9 Culture……………………………………………………………………………………… 9 Practices / Reward There are several areas CoolBurst must focus on to encourage creativity and innovation which will propel the company forward including company structure, features, policies, practices, reward systems, culture, and management style. While Luisa cannot focus on all of these areas simultaneously, her campaign for change should start with making changes to the corporate culture and CoolBurst management. These two areas build the foundation for change within the company and will help move CoolBurst towards increased innovation and future company success.