Greenfield investment

KENNECOTT COPPER CORPORATION CASE REPORT 1. Analyze the economic rationale of the Carborundum acquisition. Under what conditions an acquisition would be expected to add to shareholder value in general? Do any of these reasons apply to Carborundum acquisition? Prior to the consideration of Carborundum as an acquisition target, Kennecott, a copper company, pursued an acquisition of Peabody, a coal company, for $285 million in cash in 1968. There are two main rationales behind the acquisition of

Caledonia Products Integrative Problem FIN/370 Finance for Business January 13, 2013 Caledonia Products Integrative Problem The following observation will describe the decisions made by a financial analyst who is working for the capital budget department at Caledonia Products. The organization has asked Team B to evaluate the potential risk involved in an upcoming transaction and identify several options in how to proceed. Because this is the team’s first assignments dealing with risk

middle of 2005, Value Trust is worth $11.2-billion. Bill Miller’s approach to investment management was research-intensive and highly concentrated. For instance, nearly 50 percent of Value Trust’s assets were invested in just 10 large-capitalization companies. While most of Bill Miller’s investments were value stocks,

McCain’s investment in alternate energy and waste lagoon together will cost 150 millions with a possible cost of capital 15% per annum. So, McCain therefore need to evaluate profitability, feasibility and cost effectiveness of both project in long run. We as financial consultants at Tooting Broadway consult presenting this formal report on the issues raised by Finance Director to the Board of Director of McCain. Investment Appraisal Standard techniques of quantitative investment appraisal in

Ways of Computing the Value of Alternative Projects When deciding whether to invest in a project an investor first will compare investment or sunk costs to the expected profit and based on this decision will decide what to do. Depending on the specifics of the project calculating of sunk cost and expected profit might be rather different and will play the main role in the decision to invest, wait and invest later or not to invest at all. More detailed consideration of the standard NPV rule:

A Random Walk Down Wall Street There is a sense of complexity today that has led many to believe the individual investor has little chance of competing with professional brokers and investment firms. However, Malkiel states this is a major misconception as he explains in his book “A Random Walk Down Wall Street”. What does a random walk mean? The random walk means in terms of the stock market that, “short term changes in stock prices cannot be predicted”. So how does a rational investor determine

UNIT:2 P4 P4: Describe sources of internal and external finance for a selected business. Introduction: In this particular task of the unit I will describe the internal and external finance sources for a particular selected business. In this task I will use the same company as I did before in the previous part of the unit. The name of the company is : Media Markt. In this task we will get to know where money actually comes from to actually create such a big company which is well known of its

Evaluating Project Risk It’s Better to Be Safe Than Sorry! “It’s amazing how much difference there is in the way proposals are presented at two different firms,” said John Woods to his assistant, Pete Madsen, as he pointed to the stack of capital investment proposals piled on his desk. “We sure have our work cut out for us, Pete. I need you to collect some data for me as soon as possible. ” John Woods, had recently been hired as the Assistant Vice President of Finance of Mid-West Home Products. His

quality. No investment is needed. Option 2: establishing a partner with a single supplier. This way there would be a sole supplier for Stryker established in a new facility near them, this would give more certainty and control over continuous supply and quality standards. Again, no investment is needed. Option 3: in-source the PCB’s, there is a project for investing and owning a plant for producing their own PCB’s, this way they would assure

Dave would get 45000 dollars as securities analyst till the original position is available in 6-12 months. Dave’s wife wants him to choose this job as this does not require any investment and is a fairly secure job not involving any risk or uncertainty. According to Dave’s perspective, to satisfy his personality aspects and aspirations, he should choose Job A. However, according to his wife’s wishes, she would want him to choose