U.S. Semiconductor Ltd.Case Study

MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.

In 1975 Pioneer maintained relationships with approximately 3,500 franchise retail outlets, the retail outlets benefited from a 5% Pioneer investment in local advertising, and attractive gross margins and credit terms. However, that same year, Pioneer and three competitors were forced to sign consent decrees with the U.S. Federal Trade Commission promising not to engage in alleged anti-fair competition practices – namely requiring distributors to use suggested list prices and punishing those distributors who didn’t comply either through delayed shipments or revoked franchises. A market price war followed the signing of the consent decrees, lowering franchise’s profits while increasing revenue for Pioneer. Pioneer followed

2. Forecast the firm’s financial statements for 2002 and 2003. What will be the external financing requirements of the firm in those years? Can the firm repay its loan within a reasonable period? In order to forecast the financial statements of 2002 and 2003, the following assumptions need to be made. The growth of sales is 15%, same as 2001, which is estimated by managers. The rate of production costs and expenses per sales is constant to 50%. Administration and selling expenses is the average of last 4 years. The depreciation is $7.8 million per year, which is calculated by $54.6 million divided by 7 years. Tax rate is 24.5%, which is provided. The dividend is $2 million per year only when the company makes profits. Therefore, we assume that there will be no dividend in 2003. Gross PPE will be $27.3 million (54.6/2) per year. We also assume there is no more long term debt, because any funds need in the case are short term debt, it keeps at $18.2 million. According to the forecast, Star River needs external financing approximately $94 million and $107 million in 2002 and 2003, respectively. In order to analysis if the company can repay the debt, we need to know the interest coverage ratio, current ratio and D/E ratio. The interest coverage ratios through the forecast were 1.23 and 0.87 respectively, which is the danger signal to the managers, because in 2003, the profits even not

Suncor Energy is a company I would like to work for because they have a solid foundation for both business and employee success. Also, the company has an achievement- oriented culture, enormous opportunities for career growth, a very competitive compensation package, an industry leading experience and a great reputation for social and environmental responsibility.

Du Pont's financial policy had always been based on maximization of financial flexibility. Taking to consideration the riskiness of Du Pont's businesses, its competitive position and profitability had declined in the last 20 years. Moreover, the firm is still forced to seek external financing each year for the next five years (1983-1987) due to the continued high level of capital expenditures which are considered non-deferrable to redress the causes of poor performance. In view of the importance and magnitude of the projected financing needs, the firm is concerned about how the cost and availability of debt

International projects present multinational corporations with many complexities in organizing a profitable transaction structure.Foreign exchange risk is an underlying problem. Credit risk presents another challenge. Payment terms and the certainty of realizing them can be difficult points. Negotiations with foreign corporations and governments, and with agents and intermediaries, present additional challenges. An example of the demanding environment for global financial activities is presented in the case of "Avicular Controls and Pakistan Airlines". It is found in Cases in International Finance on page 40.

Diageo’s mixture of the short- and the long-term debt and the currencies can be a subject for concern: having 47% of the debt was raised via short-term commercial papers and thus exposing the company to the refinancing risk in case of the adverse changes in the interest rates. Currencies’ mixture of debt was also quite concerning: with the ca. 50% of operating profits

Introduction:   With  the  introduction  of  new  Chinese  competitors  in  the  DRAM  market  it  is  necessary  for  Samung  to  access  their  strategy  for  the  future.  Looking  at  past  trends  in  the  DRAM  market,  current  market  situation,  and projections  for the Flash market, the  best option for  Samsung  is  to focus their efforts  on  growing  the  Flash  technology,  while  maintaining  their  DRAM  output.  This  is  the best course of action  because  Samsung’s  customer  loyalty  will  carry  their  market  share  in   the  DRAM  market,  while  they  are  focusing on establishing this type of dominance in the Flash market.

This report is created with a discussion over several important international finance topics for instance, interest-rate parity, currency risk management, regarding description on Carrefour S.A. financing policies as well as hedging strategy. Additionally, we also discussed on which currency Carrefour should issue its 10-year, 750 million euro, annual coupon bond, its foreign currency risk exposure and a possible hedging decision in dealing with any or all of the identified risks.

National Semiconductor (NSC), based in Santa Clara, California, manufactures integrated circuits in analog and mixed signal chips. NSC established the India Design Center (IDC) in Bangalore in 1995 to capitalize on the availability of a low cost and highly specialized labor force. 2002 has not been a good year for NSC, resulting in a net loss of $122 million. The IDC has gradually become NSC’s fastest growing overseas design house and is the “go-to” team at NSC that upper management relies on for new product development. However, IDC is in need of a robust management development program. The team recently instated a 360-degree (360D) feedback process as a managerial developmental

and let them see my side of the business. I have to cut costs, so we

15 minutes to review your notes and text, and then take the quiz without notes, etc.

Volume up and the price down is the key strategy at TI over the years. TI 's organizational culture can be summed by a "Do it ourselves" approach. TI is run by engineers for engineers. The company prefers to hire straight out of college and incentivizes employees with salaries and tenures in addition to a company culture that rarely fires. By this, TI cultivates loyal and more importantly proud employees. It is no surprise therefore that there is an almost obsessive dislike of other company 's products. TI 's culture both its strength and weakness as it was a source for breakthrough innovation whilst at the same time arrogance and corporate hubris which eventually tempered with their

Second, I will discuss any issues involved related to raising capital in the global market. When a company decides to enter the global market, it is up to management to ensure that the company is ready for such move. When raising capital in the global market, companies may have to deal with global credit facilities. Before global credit facilities decide to do business with a company, the company must first prove that the standing of the company is healthy. The company must be able to show the global credit facilities that the company’s overall financial performance is healthy and in some instances that the financial strength of the parent company is healthy as well. A common issue that a lot of companies wishing to raise capital in the global market may come across is the preparation of financial statements. Financial statements preparation varies from country to country and can be very difficult for some countries to understand or read

• an increase in foreign liabilities in the form of loans to businesses investing in their foreign partners,