TO: Professor Simon FROM: DATE: May 19th, 2014 OBJECT: Equity Contribution for Pilgrim Assurance Building On behalf of David Bailey, there have been individuals looking into the property located at 795 Atlantic Avenue. As an investor, Bailey is interested in making an offer on the property however he is trying to make his offer look more attractive than the competitors. With thorough research, he has found ways that would improve the building and in turn generate a larger yearly cash flow while still being able to improve the building. Bailey was also considering converting the current office space building into condominium units but that was strictly dependent on the revenue that could be generated from doing so. …show more content…
III. POSSIBLE SOLUTIONS If Bailey were to outbid the competitors and successfully purchase the building there are a variety of options that Bailey could engage in in order to improve the building. The first option would be to keep Pilgrim as a tenant in the building. By doing this he would secure 100,000 square feet of space at $26 /sq. ft generating about $2,600,000 in rental income just from Pilgrim. Also with keeping the space as office space, Bailey found that he would be able to fill in two out of the four floors of the atrium adding an additional 10,000 in rentable square footage. This was something that none of the other competitors had noticed. Bailey also noticed that he would be able to renovate all 20 bathrooms within the building but that his renovation would be about 15,000 cheaper than his competitors. Continuing with the renovations, Bailey saw that the atrium would need to be upgraded and instead of it costing him around $200,000, which would be the cost to his competitors, he had the ability to save $50,000 by reusing the marble in the bathrooms as the floor and walls of the atrium. Taking into consideration all of the upgrades and renovations, as well as the fact that Bailey would be able to manage the building at 0.50/ sq ft compared to his competitors which were managing at $1.25/ sq ft, the value at which Bailey would place on keeping the building an office space would be $3,433,649.13 (see
The following information is provided for adjustments prior to closing the books. Lopez and Knepp ask you to enter the adjustments into the spreadsheet, in the two columns to the right of the unadjusted trial balance. (CM2 uses a perpetual inventory system.)
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
On September 6, 1620, 102 men, women and children from England boarded a small cargo boat called the Mayflower and set sail for the New World. The passengers left their homes in England in search of religious freedom from the King of England. Today they are known as "pilgrims."
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
The court deciphering between criminal negligence and recklessness. Criminal negligence being a person failing to perceive a substantial and unjustifiable risk that the result will occur or that the circumstance exists. The risk must be of such nature and degree that the failure to perceive it constitutes a gross deviation from the standard of care that a reasonable person would observe in the situation.
IgG – funtions in neutralizing, opsonation, compliment activation, antibody dependent cell-mediated cytocity, neonatal immunity, and feedback inhibition of B-cells and found in the blood.
As mentioned in the introduction of the mini case, Hobby Horse Company, Inc. (HH) experienced a tough year in 2011. HH opened up a number of new stores but experienced a poor Christmas season. Christmas season is the biggest sale period for retail stores. As a result, bad Christmas sales performance played a big part of HH’s loss for year 2011. As we computed the financial ratios for HH, we can see the effects from new stores openings and poor sales performance.
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
Read Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61 and post a draft case study to the discussion board. Identify the Facts, Issue, Holding, Reasoning and Disposition. Case study #1 will be due week 3. This exercise will help you work through the reading a case prior to receiving a grade. Use the LEXIS NEXIS database through the Webster library to access the case.
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
The Puritans’ pilgrimage to Salem to escape persecution is ironic because in Salem, their community begins to collapses even after escaping the states that try to get rid of them. Miller shows the irony in the quote, “It is still impossible for man to organize his social life without repressions, and balance has yet to be struck between order and freedom” (7). He shows that even after finding a safe place to practice their religion, a lack of order continues to devour the community. This is because of another irony which was the sole reason of the Puritans’ movement to Salem. The Puritans escape to Salem with the hopes of having more religious freedom, however, Salem is deficient in freedom of expression. The people of Salem aren't able to
Pilgrim Assurance is a case that involves a sealed bid auction. Therefore, the auctioneers will need to sell the building to the highest bidder involved at a minimum bid of $15 million. David Bailey is given the decision to decide on how much to bid for an office building. Furthermore, he needs to make the decision whether to lease it as office space or to convert this office space into condominiums. In this case, I will analyze the goals and objectives of Bailey as well as the other participants. The sealed bid auction indicates that they are willing to take a chance on the market and try to receive high bids. There is no problem with the government participant besides using permits to do renovations. There is
Suppose you are the network manager for Central University, a medium-size university with 13,000 students. The university has 10 separate colleges (e.g., business, arts, journalism), 3 of which are relatively large (300 faculty and staff members, 2,000 students, and 3 buildings) and 7 of which are relatively small (200 faculty and staff, 1,000 students, and 1 building). In addition, there are another 2,000 staff members who work in various administration departments (e.g., library, maintenance, and finance) spread over another 10 buildings. There are 4 residence halls that house a total of 2,000 students. Suppose the university has the 128.100.xxx.xxx address