Questions On Stillwater Mining Company Essay

Identify the strengths and weaknesses of Fontaine's and Gaudin's negotiating strategy in their deliberations with Reliant Chemical Company. How effectively did Fontaine and Gaudin approach the negotiation?

1. What are Gilcrist’s responsibilities to the company? To the employees who might resent her sudden appearance? To Boswell?

Person centred planning is a set of approaches designed to assist someone plan their life with support. It is most often used as a model to enable people with disabilities or otherwise requiring support to increase their personal self determination and improve their own independence. It discovers and acts on what is important to the person.

Production line workers are the employees who are usually doing their work by hand or in this day and age, running the machine or equipment to make the products. In this particular case, Canada Chemicals Corporation utilizes their production employees by producing industrial chemicals. These production worker’s jobs are a lot more complete then other production level workers employees as they usually have plenty of skill, knowledge and experience, and have high educational background. In order to reverse recent challenges with production and sales, I have composed a compensation package for these employees that will motivate them intrinsically, and focus on rewards that are extrinsic.

The Standard Oil Trust of Ohio was and American oil producing, refining, and transporting company. It was founded in 1863 by John D. Rockefeller and lasted until 1911. During 1868, Rockefeller expanded the oil company to become the largest oil refining company in the world. In 1870, the company was renamed Standard Oil Company. After it was renamed, Rockefeller purchased most of the oil companies that were currently in business to make one large company.

Estimates of fixed costs are reasonably straightforward and are given in the case (p.280), a total of $250,000 ($160,000+$90,000).

The Prudhoe Bay field is a deltaic high quality sandstone reservoir that is about 500 feet thick with porosity in the 15-30%. The Permian to Triassic age horizon is the largest producing in the field and is referred to as the Ivishak reservoir. The reservoir is made up of a series of clasitc near-shore marine deposits as well as sandstones and conglomeratic braided-stream deposits (Erikson, Sneider 1997). The reservoir is a structural stratigraphic trap by faulting in the north and south. It is bounded in the north and south by major faulting in the the Barrow Arch and Brooks Range mountains (Figure 5). The east is a truncated Cretaceous horizon that separates it from the Canadian basin. The Prudhoe Bay field is 225 square miles and was discovered in 1968 but because of how remote and undeveloped that area was at the time, exploration did not begin until 1977. Since then it has developed into the largest oil and gas play in North America (Figure 6). Figure 7 highlights the source/reservoir rocks and the types of ongoing and potential

Therefore, it really needed a strong product that responded the market’s needs and wants so that the product could speak itself in order to survive the keen competition.

Lastly, the interest rate was calculated by dividing interest expense by long-term debt for the company. These numbers, along with equity and debt data given to us in the case, resulted in a WACC of 13.89%.

1. In a defined-contribution (DC) pension plan, the employee or employer, or both, make regular contributions to the plan. In the US, employees typically set aside a predetermined percentage of their earnings which is deposited to the plan and the employer will match that contribution. Ultimately, the amount of money available to the individual upon retirement is determined by the performance of their investments. Each employee retains the option to choose how to diversify their investments, while the employer will typically provide a “default allocation” option. The options available are generally very varied, and includes a number of index funds and actively managed mutual funds.

If company doesn’t have any debt, it means that WACC is equal to cost of equity.

1. Incremental cash flows are ultimately the relevant cash flows to be used in project analysis. It is the difference between the cash flows the firm will have if it implements the project, and the cash flows the firm will have if it rejects the project. Although they are a cash expense, interest expenses are not included in project cash flows. We discount a projects cash flows by using its weighted average cost of capital (WACC), which already includes the cost of debt. Therefore, we do not include interest expenses in cash flows because it would essentially be counting them twice.

Before recapitalisation Wrigley’s WACC was equal to it’s cost of equity (ke), which was calculated at 10.95%. After capitalisation it was found that Wrigley’s WACC decreased to 10.29%. This follows the general pattern of increasing debt resulting in a lower WACC.

As a first-time homebuyer in the Dallas/Fort Worth area, I thought I had very carefully prepared myself for all that the process would involve, including gathering income and financial documentation, qualifying for a mortgage, arranging for a thorough inspection, evaluating needs and desires from a home and finding a reputable agent to represent my interests. One area I never considered, however, was the issue of mineral rights. To be perfectly honest, although I 'd heard the term, I 'd never given consideration to what it actually meant. But that all changed in the middle of my home buying process - and I 'd like to share with you the knowledge I 've gained through extensive research I completed to protect my own rights and the rights I would possess as a soon-to-be homeowner. According to property law, two different forms of rights exist in any real property: surface rights and mineral rights. Surface rights refer to any structure erected above the surface or sub-surface structures that do not exceed a certain depth, as well as rights to use all surface property surrounding structures in accordance with zoning ordinances. Mineral rights refer to mineral substances below a certain depth and the way in which they are preserved, explored or extracted. These mineral substances can include natural gas, oil, or any other substance in common use today that can be mined or otherwise extracted from below the surface. Local laws set the depth below which surface rights terminate

The exploration phase takes about 5 years. It involves looking for oil and gas using seismic surveys. There is about 10% certainty to find oil and 75% certainty to find any oil at all. The exploration costs for a conventional oil and gas onshore is $10 - $15 million whereas it is $10 - $100 million in the deepwater’s.