Commercial Fixture Essay

Suggested questions for the Commercial Fixtures Inc. case are given below. 1. What would you as an outside third party bid under the same conditions (with the same information) for the entire company (both halves)? Why? 2. What do you expect Albert Evans to bid for Gordon’s half interest? Why? 3. What should Gordon Whitlock bid for Albert’s half interest? Why? 4. How would you structure the purchase of the business? Question #1 is a business valuation question. There are a number of ways to estimate the value of a business. You have probably covered one or more of these ways in a previous class. The next two pages review a few of the various ways to go about it. For a discounted CF approach of valuing Commercial Fixtures Inc., I will use the following template: VALUATION APPROACHES – OVERVIEW/REVIEW 1. Comparable Trades Analysis — Using valuation ratios, or â€Å"multiples† of comparable firms Use one or more valuation ratios, which include (a) Price-Earnings (b) Market-Book (c) Price-CF (d) Price-Revenues (e) Enterprise Value to EBITDA, and (f) Other ratios. The prospective value (price) of the subject firm is quantified into—and compared with—one or more of the valuation ratios of its peers. The better the performance of the subject firm relative to comparable firms in the relevant performance measures (as measured by operating ratios), the higher the appropriate valuation ratio for the firm (and vice-versa). 2. Liquidation Value, aka Book Value approach Place liquidation values on the net working capital and fixed assets of the firm. Include tax write-off benefits, if any. This approach is rarely useful, and will typically serve as a minimum value (unless the firm is in severe distress). 3. (i.) Discounted Present Value of the Firm’s Free Cash Flows   Ã¢â‚¬â€ commonly referred to as DCF Valuation, or WACC valuation Value of the Firm = PV of future free cash flows + PV of terminal value a.Estimate the first 3 to 10 years’ free cash flows and calculate the PVs. (A five year horizon is common, but this can vary.) Typically you will use the WACC as your discount rate. Depending on the circumstances, the estimated cash flows may be available for fewer than five years, or more than five years. b.Estimate the PV of the terminal value. One estimate for the terminal value involves assuming perpetual cash flows after the initial time horizon, e.g.: i.If the cash flow after 5 years is expected to grow at a rate g for the foreseeable future: Terminal Value5 (TV5) = FCF6 /(k – g) = FCF5 (1+ g) / (k – g)., where k is the required rate of return. You must discount the TV to time 0, and then add this to the PV of the FCFs during the projection horizon. ii.If the cash flow at the end of 5 years is not expected to grow, i.e., g=0, then the general formula collapses to the PV of a no-growth perpetuity: Terminal Value5 = FCF6 / (k-g) = FCF5 (1+ g)/(k – g) = FCF5 / k c.Use the Value of the Firm equation above, i.e. sum PV of free cash flows + PV of terminal value . The Value of the firm’s Equity = Value of the Firm – Debt Currently Outstanding. 3. (ii.) Adjusted Present Value approach — we will only briefly discuss this approach; a topic for a future finance course. 4. Comments on Valuing the Firm using DCF (or WACC) and APV valuation approaches a.Watch the free cash flows (not reported earnings)! In particular, as in the capital budgeting decision process: –Depreciation charges are not cash outflows. –Investment in new property or equipment is a cash outflow. –Increases in net working capital are cash outflows. –Taxes are cash outflows b.Do not subtract interest expense from FCFs. We want to estimate a value for the whole business. The return to creditors is reflected in the discount rate used. c.Consider other factors, such as a control premium or a lack of marketability discount. These are mentioned in your textbook, and we will discuss these in class. d.Notice the sensitivity of your estimated firm value to changes in assumptions, particularly the perpetual terminal growth rate, and the discount rate. Typically a range of firm values is calculated from various ranges of these two rates (as suggested in the template on p. 1), particularly when uncertainty is high.

The Rise of Science and the Aesthetic Reaction to It Essay

The Rise of Science and the Aesthetic Reaction to It - Essay Example The reaction to Darwin and Freud (whose psychological theory did not as much as put forward the rationality of man, rather that he is driven by irrational forces) was seemingly two-fold in fin de siecle literature. First, was the depiction of the separation of inner and outward character (a painting that serves as the mirror of the soul of a debauched, perfect-looking man in Oscar Wilde's Dorian Gray or a Mr. Hyde, the monster to the respectable Dr. Jekyll in the famous novel by Robert Louis Stevenson) whose reconciliation would not happen in actual life but would be brought about only by death. Second, was the cold-blooded, detached view of life as a field where one can experiment and perform whose boundaries need not be set by society, but by only the individual. In both cases, the case of appreciation for what constitutes beauty or in general, what constitutes art, is laid at the mercy of a conscious or unconscious imitation of the scientific method. But does science lends itself to the cause of art or the appreciation of what is true or beautiful Walter Pater who influenced Oscar Wilde as a student, wrote in his essay, Style that literature's enterprise "may well lie in the naturalization of the vocabulary of science, so only it be under the eye of a sensitive scholarship--in a liberal naturalisation of the ideas of science too, for after all the chief stimulus of good style is to possess a full, rich, complex matter to grapple with" (Pater p. 16). In the novel The Picture of Dorian Gray, the "full, rich, complex matter to grapple with" has been introduced to Dorian Gray by Lord Henry Wotton whose fascination with the methods of science was applied to the investigation of human life (Wilde chapter 3). That the main character in the novel would indeed take literally Lord Wotton's advice that "the only way to the only way to get rid of a temptation is to yield to it" (Wilde chapter 2), is shown how seemingly the material of life is under the control of the in dividual - much like a scientist is in control of laboratory. The difference lies of course is that a scientist what experiments from are inanimate - not creatures of feelings, sensibilities or complex passions. What Dr. Jekyll at the start enjoyed over the safety of limiting his evil side to Mr. Hyde, would unravel when the evil side eventually took over his own body - the case of the material devouring the creator or the artist. The aesthete character as depicted in fin de siecle literature also shows how detachment and obsession are the contradictory attitudes towards beauty. It is not as much as morality or insistence on the weight of value has no part in it, as much as beauty seems to be confined in the recesses of the mind, its purity guarded and valued for its own sake - only to be wasted away when its feet touches the ground. In Dorian Gray, as much as the tiring paradoxes mouthed by Lord Wotton, beauty is only in the mind, and its attainment is through its defilement and destruction in real experience. To a certain extent, the character of Gilbert Osmond who fascinated the main character enough to fall into his trap in Henry James' A Portrait of Lady is a fine specimen of such an

Western civilization Essay Example | Topics and Well Written Essays - 500 words - 7

Western civilization - Essay Example This paper seeks to explore the shifts in concepts and ideologies that occurred leading to western civilization. Renaissance illustrates a period of cultural movement and its spread to the rest of Europe whereas Italy is considered the birthplace of the Renaissance, which saw the outlook and institutions of the middle ages merge. Therefore, during this period radical change would be experienced at all levels of the society, giving rise to the European civilization, which later transformed to the modern western civilization. The central government within the political organization grew stronger in the wake of the rebirth but at the expense of feudalism. Feudalism was an arrangement in which persons regarded as nobles exercised public power, formerly held by kings since the existing monarchs could not guarantee the safety of their subjects. The notion that those regarded as the wellborn can influence policies and rule over others behind closed doors is still among the western civilization where stakeholders are involved in the decision-making process. Commercial and industrial activities expanded significantly, which introduced new and more efficient products to the society. As a result, capitalism in most city-states replaced most primitive forms of economic organization (Perry et al 293). This is a defining characteristic of the modern western civilization whose commercial activities are based on capitalism. The adoption of capitalism by the earlier civilizations enhanced pre-existing social inequalities, which for instance widened the gap between the rich and poor. At the height of the booming commercial activities, people in the middle-class level of the society increased in number as they amassed wealth, which played a crucial role in the economic and cultural life. In addition, religious reforms were introduced following the fragmentation of unity in

Managing Organisation Change Essay Example | Topics and Well Written Essays - 750 words

Managing Organisation Change - Essay Example In an organization equipped for complete learning, communication and structures within the company should be flexible and open - and in a way, Sanyo with Nonaka, could be said to be equipped in these aspects. The process for innovation through the changes that had been introduced, at least was steered towards a cyclical process where learning is continuous as opposed to being linear and discontinuous. 2. How did Nonaka try to revolutionize learning and change and how did this relate to incomplete learning Identify the levels of learning if any. Which typology/s of learning best describes the events in Sanyo While Nonaka introduced process and systems-related innovation to Sanyo, the changes that she tried to accomplish was only done on a horizontal plane, and did not account the vertical integration of the new vision for the company. The levels of learning were limited to environmental and behavioral directions or cues for the company. However, the leaning was in a way incomplete because the changes did not seep down to the very purpose of the company, that is specifically charting the unique role of Sanyo which has to do with the identity or mission of the company. A company needs to be rooted to its values and belief systems that it has developed over time - for example Sanyo is proud of its heritage as a maker of refrigerators and batteries as well being known in its markets for this. The learning was incomplete also by which Nonaka's team failed sufficiently to take into account the capabilities of the company or the question of how its core competencies will be aligned with the e nvironmental cues for change. Thus, some stakeholders did not fall into line in supporting Nonaka's vision for Sanyo. The typology of learning that fits within the case of Sanyo may that of the model of organizational change, by which changes are done in the structural level, but not with the culture and the strategy of the company. Learning through organizational change is quite focused through changing from without, and not from within which takes intro consideration the cultural aspects and belief system of an organization. This kind of learning by organizational change, as opposed to deeper levels of learning that comes with organizational development or transformation. 3.What has this case got to do with exploration and exploitation Explain. The case of Sanyo with Nonaka at the helm when she tried to make changes can be called to have made too much of a call for exploration and failing at decisive exploitation. Nonaka was on the right frame of mind when she took into consideration at the way the world has increasingly looked at environmentally conscious products and businesses as the wave of the future, not only because of the projected demise of oil-based fuel systems but because a value-based respect for the environment has been gaining ground with consumers. By aligning Sanyo with the new paradigm, potentially Sanyo was at the leading edge in terms of technology and with its new products. However, exploration needs to be balanced with exploitation or that which has to do with what the company's ability to improve and refine

Leadership Trait for Successful Women Entrepreneurs Literature review

Leadership Trait for Successful Women Entrepreneurs - Literature review Example However, the opportunities which women have to start business enterprises as entrepreneurs would enable them to apply their unique attributes in a leadership style which would allow them to achieve success. The issue of leadership trait has been studied extensively which leaves us with a question of whether there is an appropriate leadership style that women should employ in order for them to be considered as successful and influential leaders. This paper presents a literature review on women entrepreneurs as leaders with a view of answering a question as to whether they require a specific leadership style or attributes for effectiveness and success as entrepreneurial leaders. Research has been conducted on leadership traits which are associated with gendered attributes. It has been argued therefore that the male gender has attributes that makes men more qualified for leadership positions (Burke and Collins, 2001, p. 244). This illustrates that women have been stereotyped within orga nizations and institutions. It is also argued that the diversity in the work place and the economic crises which are being experienced by the contemporary organizations are attributed to the limitations of leadership opportunities for women (Enhai, 2011, p. 111). The observation that the number of women who lead large organizations is smaller than that of men demonstrates the stereotyping of women leadership. Studies of typical leadership styles illustrate that women demonstrate some leadership qualities that are superior to that of men (Mukherji and Jain, 2009, p. 63). With the increased number of women who are venturing into entrepreneurship, it is necessary to determine the most appropriate leadership trait that would match with the natural attributes of women which would enable them to be effective leaders. The traditional gender stereotyping against women has reduced significantly over time (Lopez-Zafra, Garcia-Retamero and Berrios Martos, 2012, p. 97). Traditionally, financier s had wrong impressions of women who require capital for starting businesses. This has made them to have a hard time explaining to lenders and bankers why they need financing. This situation persisted regardless of the fact that women presented better business cases as compared to men (Greenberg and Sweeney, 2005, p. 32). These arguments demonstrate that there is a gap in knowledge on how and why this situation has changed over time. The changes that have been experienced in the modern business world include decreasing scores of men in managerial tests. Despite the emphasis that has been put on importance of teamwork, it is argued that men have scored lower than women who have contributory and collaborative leadership behaviour and support for teamwork (Psychogios, 2007, p. 169). Women entrepreneurs have been considered to have a higher emotional intelligence in leadership as compared to men (DeCaro, DeCaro and Bowen-Thompson, 2010, p. 75). Emotional intelligence is associated with ability of a leader to act as a role model and create confidence among followers. These are typical attributes of a transformational leadership trait (Smith-Hunter and Leone, 2010, p. 21). Women are said to have a strong need to connect to their subordinates, a situation which often leads to building of trusting relationship between the management and employees. The

Marketing and the Apple global organization Research Paper

Marketing and the Apple global organization - Research Paper Example The history of Apple Inc. dates back to the early 1970’s when Steve Jobs along with Ronald Wayne and Steve Wozniak established the technology firm. Apple is presently headquartered in California, USA. The company together with its subsidiaries develops and markets laptops, portable music players, desktop computers, mobile communication devices and several other gadgets. Apple has a global presence and functions with around 370 Apple exclusive stores. As of 2011 the company employed 60,400 people throughout the world (â€Å"Apple Inc.†). Some of the evident products that have made Apple one of the biggest technical giants of the world are I-Phone, I-Pad, I-Pod and various software products. The Mac OS X in the software category has been able to revolutionize the computing experience of the users. If reports are to be believed, within few years from now the company will be launching I-car, a four wheeler car with unique style and design resembling the official logo of App le. From the days of its inception Apple is highly sensitive towards its marketing strategies. The company tactically develops its business strategies for the purpose of retaining and gaining customers. This is the reason why we find Apple launching new products in every 2-3 years. Apple mainly distributes its product through whole sellers, retailers and Apple owned exclusive stores. The company has large number of competitors in direct and indirect form. Hewlett Packard, Dell, Google and Research in Motion Limited are the direct competitors of the company (â€Å"AAPL Competitors†).... In this article the author discussed about the unique marketing initiatives of Apple Inc. Furthermore the article highlighted some interesting facts about the company. In the introduction part of the article the author demonstrated about the hype that Apple creates before launching a product in the market place. To cite an instance it showcased how the brand loyal customers of Apple spend a night outside an Apple store, just for the purpose of buying the new product from the company. The article offered a number of unique marketing strategies of the company. Some of the evident among them are as follows: - Apple has been long facing issues with the product knowledge of its sales staffs. This problem made it more complex for the company to notify the potential customers about the unique features that it offers. Hence the company decided to open ‘a store just for Apple’ or an Apple exclusive store. In this article it has been also highlighted that the products of Apple com es in the form of a complete package, so that users do not have to search for any add-ons. In accordance to this statement the author mentioned the example of I-Pod and free music via Apple I-tunes. The product strategy of the company has been also emphasized in this article. Apple uses a varied product strategy, in which they offer various portable gadgets at a low cost to the consumer, with a feeling that these customers may consider buying an Apple computer in the near future. The author also clearly explains about the extensive research and development that the company carries out for the purpose of offering quality products. Furthermore in the article few promotional

Hispanic American Diversity Research Paper Example | Topics and Well Written Essays - 1250 words - 2

Hispanic American Diversity - Research Paper Example Among them, the majority are the Hispanics, and because of the increase in their population, they are on the verge of becoming the largest minority group in America, surpassing even the African American population. â€Å"For a country long used to seeing itself as black and white, it will be something of a shock when Hispanics become the nations largest minority group in five years and fully one-quarter of the population by mid-century.† (Robinson). Although Hispanics have a common culture and a common language of Spanish language, they are subdivided into four groups based on their native place’s culture. The four Hispanic groups are Mexican Americans, Puerto Ricans, Cuban Americans and Colombian Americans. Among the total population of Hispanics in America, Mexican Americans constitutes the largest group in terms of numbers. Linguistically they speak the common language of Spanish. Having large numbers in various constituencies in many states, the Mexican American group can influence vote swings during elections and also the political policies. Their social life mainly revolves around their immediate as well as extended family. Within the family, the male head will take care of the household expenses, while the female is responsible for all the household duties. They mainly follow the social customs of their native place, during most social occasions and also during religious festivals. All the Mexican Americans are Christian by religion; they are divided into Roman Catholics and Protestants. However, when their economic condition is viewed, it does not show a positive reading. As stated by Gaudette (2006), â€Å"The average household income of Mexican-Americans is 40 percent below t hat of non-Hispanic whites, due largely to lower education levels than nearly all other racial and ethnic groups, a new report shows†. Quite contrastingly to other Hispanic groups, Puerto