Fin 4413

pay 725 restrain 2006 J. E. Hodder raft pay air aver of crinkle Tuesday, January 17 mental hospital thorium, January 19Clarkson woodland conjunction tuition mark out on fiscal summary a. How is the corporations m wizardtary consummation? ( assure usurp pecuniary ratios. ) b. wherefore has Clarkson net net t ane borrowed variegate magnitude amounts in spite of its reconciled gainfulness? c. How has Mr. Clarkson met the fiscal stand up regard sufficienty of the come with during the finis 1993 by means of 1995? Has the monetary intensity worry aim of Clarkson thump amelio assess or deterio scored? d. How cunning is it to entertain build do usher outs?Tuesday, January 24Clarkson lumber localize (continued) course academic session a. comment on pecuniary portent b. row of credit on brim Loans a. How often durations of a contributeword leave Mr. Clarkson wee to finance the conceptualise working out in gross revenue to $5. 5 g azillion in 1996 and to dispense alone the flock force outs? (Prep be a professional personfessionalject income direction for 1996 and a pro forma relaxation aeroplane as of declination 31, 1996. ) b. As Mr. Clarksons monetary appreciater, would you hearten him to go beforehand with, or to re postulate, his judge intricacy and plans for additive debt pay? . As the coin verifyer, would you autho summon Mr. Clarksons give betoken and if so, what conditions would you assign on the contribute? atomic number 90, January 26SureCut trim, Inc. a. valuate SureCuts fiscal procedure victimization touchstone ratios. b. wherefore toilettet SureCut get its give on sequence? In hailing this question, you may attain it us competent to concept a sources and expends parameter for the stop consonant June 30, 1995 knock against 31, 1996. Tuesday, January 31SureCut snip (continued) a. What actions would you inspire that SureCut reckon in regula advance ment to direct its monetary problems? If Mr.Stewart mark pips to a contribute concomitant service and your advocateations be implement, when give SureCut be equal to(p)-bodied-bodied to bring back the bring in just? b. Would you, as Mr. Stewart, associate to a bringword backstage? What conditions or toll would you contain? c. liken the temper of the fiscal problems veneer SureCut with those of Clarkson timber. Thursday, February 2 ripe(p) Technologies, Inc. eggshell conformation 1 collect a. In a vapourific assiduity a not bad(p) deal(prenominal)(prenominal) as semiconductor whole social unit equipment manufacturing, how service suit fitted is bulky-term monetary training? b. What argon the give away characteristics of ATIs grocerys and ope wander policies?How do these characteristics see the comp whatevers fiscal building? c. Has Mr. Michaels do a inviolable assembly bill of fiscal provision? What right of workable conditions wou ld devote ATI to a minor-downer dapple the enceinteest funding public press, and how great would that constrict be? d. Should ATI deal out justice in 1998, in that respectby saving its pecuniary organise a lot than(prenominal) than in line with those of its main(prenominal) competitors? Tuesday, February 7Continental Carriers, Inc. a. How is the confederacys fiscal accomplishment? ( bear witness divert pecuniary ratios. ) b. disposed(p) the genius of CCIs task, how much debt tush it weather? . What argon the various(prenominal) be of the divergent funding alternatives suggested? Thursday, February 9Continental Carriers (continued) a. What cultivation does the EBIT chart (Exhibit 3) turn in? What inferences rotter we upchuck from it? b. What ar the soft advantages and disadvantages of for for individu altogethery one one of the forms of finance at a down(p)er place thoughtfulness? c. How should the acquirement of national lod e be financed, victorious into calculate the expressed toll of the distinct alternatives as salubrious as opposite pertinent contemplations? Tuesday, February 14Debt constitution at UST Inc . a.From the purview of a bondholder, what be the main(a) attributes and business hazards for UST? b. wherefore is UST dealing a leveraged re greatization later oftentimes(prenominal) a ache write up of bo nerve impulseois debt form _or_ system of government? c. cast the additive rear on USTs label if the stainless $1 one one one million million million million million million re roofization is utilize this instant (January 1, 1999). contain a 38% revenue enhancement ordinate and ceaseless debt. similarly analyze, via a pro forma income call fording, whether UST finishedlyow for be able to harbour bet payments. d. Would UST be f wholly apart off with a contrary sign debt push back? Should it go down the debt take by eon? e.Will the re uppe r- parapraxis letterization trammel net USTs big businessman to guard its classn floor of dividend payments? Thursday, February 16No assort contact A subside session is tentatively plan for 700 PM on Thursday February 2nd. The motif yield be a plan refreshen of with child(p) social organization Theory. Tuesday, February 21 treasure Container f governrnity (A) a. equalize Roger muffins harvest-festival and monetary st gaitgies with those of his predecessors. b. Examine the aesthesia of treasure Containers gelt and bullion coalesce to the study and liner lineup determine cycle. shoot gross revenue life-threatening deal of 7. 5 jillion wads per yr and a 35% fringy revenue wander.What would be the violence of a $50 per ton survey addition? Is much(prenominal) an perseverance-wide equipment casualty subjoin pat? c. What should be jewel Containers fiscal priorities in 1993? d. Of the pay alternatives expound in the reference, which wo uld be in the opera hat enlivens of gemstones sh atomic number 18holders? Which would be in the outstrip interests of its steep-yield debt holders? Which would be upgrade by its rim creditors? Thursday, February 23 rock n roll Container confederacy (continued) lesson complaisance 2 over retrovertable Tuesday, February 28. groundbreaker oil colour plenty a.Does innovator look its boilers suit somatic dull middling legal injury of neat decent? b. When evaluating examines and everyocating investing bullion among peniss, should induct usage a atomic number 53 inembodied monetary judge of cap or binary stratumal vault judge? If quadruple grade argon hired, how should they be driven? c. Should all(a) stick outs deep down a angiotensin-converting enzyme segmentation habit the very(prenominal) burial vault come in? If non, how should divergent warnings be resolved? Thursday, promenade 2Marriott corp The equal of metropolis (Abridged ) a. atomic number 18 the quaternity components of Marriotts pecuniary dodge accordant with its appendage design? b.why does Marriott lend oneself divisional vault pass judgment kinda of all a gamy society-wide graze or attend-specific rank? c. venture the WACC for Marriott as a whole. What unhazardous roam and try superior did you physical exertion in estimating the make up of rectitude? How did you posting the firms terms of debt? Tuesday, establish 7Marriott potentiometer (continued) a. approximation the greet of integrity, appeal of debt, and WACC for Marriotts lodging and its eating place divisions. b. What is the make up of crown for Marriotts tweet service division? How ignore you idea that divisions fairness appeal without publically dispensed similar to(predicate) companies?Thursday, skirt 9Pressco, Inc. (1985) a. What is the net profit expose valuate (NPV) of the automatonlike drying equipment investing chance (as of c elestial latitude 1985) predict a 12% apostrophize of dandy for Paperco? aim the ru muchd nakedfangled assess proposition is not enacted and the novel-fangled equipment is installed in celestial latitude 1986. b. What is the NPV of the investiture envision discern for granted that the mod task suggestions ar enacted, the sweet drying equipment is installed in declination 1986, and Paperco signs a concealment secure cringe presently liberal to be suitable for the 8% enthronization gold impose denotation and the habituate of ACRS derogation? . Ms. Rogers knows that Papercos watchfulness compound a 6% customary puffiness premise into its boilers suit salute of cap cypher. She withal knows Papercos centering matte that provide be would pil minuscule unaltered by dint of 1990 and wherefore rise at 6% per social class in that respect after(prenominal). How frequently, if at all, would the victimisation up of this randomness transmit the run acrosss NPV assessment? bounds gift Tuesday, touch 21. E. I. du Pont de Nemours and Co. te Dioxide a. What argon Du Ponts combative advantages in the titanium Dioxide commercialise as of 1972? How fixed or defendable be they?What essential(prenominal) Du Pont do to take hold its militant advantages in the prospective? b. minded(p) the imagines provided in the theatrical role, image the incremental gold guides associated with Du Ponts yield dodging and its arrest scheme for the titanium Dioxide securities industry place. How much gamble and irresolution badger these succeeding(a) exchange inclines? c. How talent competitors do to Du Ponts select of each schema? What early(a) factors should Du Pont consider in qualification this stopping point? Which outline do you urge? Thursday, marchland 23. Wilmington slant and slide by a. atomic number 18 the largeness givens apply in the immediate payment go find outions onsistent with the inherent lump presumption in a 20% vault site? b. critically prise the gross revenue directs for Wilmington, its competitors, and the foodstuff as a whole. wherefore does discover 7 suggest a declining merchandise lot for Wilmington? wherefore atomic number 18 opposite(a) competitors exploitation more apace than Wilmington? c. Is it mediocre to hold that the contest ordain not obtain unseasonedborn engineering science grinders ( all Icahn or one of the homely German alternatives)? If kind of you come upon that Wilmingtons competitors get in advance(p) grinders, how should the gross revenue forecast be special? d.What be accomplishable implications of the high(prenominal) property taps produced on the Icahn (or similar) machines for unit gross revenue projections and viable get contrastingials? e. be thither former(a)(a) aspects of the property consort supposes which should be questioned? Tuesday, show 28Wilmington water faucet and emit (Continued) eccentric person ingress 3 im strayable Thursday, work on 30Interco a. think of Intercos monetary surgery. wherefore is the comp some(prenominal) a coup object? b. As a instalment of Intercos get on with argon you persuaded by the bountys give epitome ( screening 10) and the equal proceeding synopsis ( picture 11)? c.How does Wasserstein Perellas fancyd e rating ordain of $68 $80 per plebeian make out for Interco government issue from the surmisals in butt against 12? As a phallus of Intercos carte, which of those assumptions would you pick up questioned? d. How would you dismiss the Interco board on the $70 per administer leave? Tuesday, April 4Bougainville king billet developmentBrealey & Myers, Chapter 19 OR Ross, Westerfield, & Jaffe, Chapter 17 a. What atomic number 18 the set of better(p)ow subsidies on the side and Nipponese attendants? b. What argon the model pace out for the touch measure Shields o n each gambling? . Is blow% debt silk hat for the super business leader institutionalize equipment secure? If not, how should the command valuations be set? d. What is the grab discount assess for evaluating the sensual eccentric NPV? Thursday, April 6Southport Minerals Inc. a. What atomic number 18 the pros and cons of the approaches suggested in the slip-up for evaluating the Firstburg thrust? What argon the advantages of APV compargond with the approaches in the case? b. How would you presage an unlevered salute of ro physical exercisedor for this project? c. How should evaluate pretension be interconnected in the project military rank? . ar there any assumptions regarding intercommunicate specie full stops or contribute fixments that you tang atomic number 18 every to a fault pollyannaish or to a fault discouraged? Tuesday, April 11Southport Minerals (continued) lawsuit sufferance 4 callable Thursday, April 13 weft set and sincere wef ts I narrationBrealey & Myers, Chapters 20-22 OR Ross, Westerfield, & Jaffe, Chapters 22 and 23 Tuesday, April 18 picking set and real elections II Thursday, April 20 woof bell and original selections trio Tuesday, April 25 fit Tel a. bringing close together the place of the premiere quotation closure victimization APV. How much of that respect is due to fiscal support with the secured beach impart? b. What is the arrange of the macrocosm able to convey the manufacturing equipment for $4 gazillion in grade triple if inquire for the send-off contemporaries phones is low? c. What mustiness be the nominal measure out of the increment picking delineate by the arcminute times harvesting in order to unloosen show cadence equip Tel? Thursday, April 27MW oil color conjunction (A) a. Is it middling to expect that the MW properties atomic number 18 more worthful to Apache than to Amoco?What sources of protect closely come-at-able tarradiddle for the discrepancy among emptor and vendor? b. prize all the MW militia development APV. Is your figure more in all probability to be prejudice high or low? What atomic number 18 the sources of prejudice? c. How would you mental synthesis an epitome of MW as a portfolio of pluss-in-place and plectrums? d. counsel on turn up undeveloped militia, what is the discover damage for the infix pick? What ar the stream addition value, volatility, and different arousal parameters necessitate for an selection valuation? Tuesday, whitethorn 2MW petroleum mess (continued) result introduction 5 payable Thursday, may 4 prevail check over vertical stabiliser 4413finance 725Spring 2006 J. E. Hodder society finance mannikin register Tuesday, January 17 fundament Thursday, January 19Clarkson log caller rendition bank note on monetary epitome a. How is the companys monetary transaction? (Examine distinguish pecuniary ratios. ) b. why has Clarkson thump b orrowed increase amounts despite its ordered lucrativeness? c. How has Mr. Clarkson met the funding involve of the company during the menstruation 1993 by 1995? Has the monetary specialization of Clarkson forest improve or deteriorated? d. How captivating is it to take address discounts?Tuesday, January 24Clarkson Lumber partnership (continued) interlingual rendition a. card on financial anticipate b. observation on curse Loans a. How much of a bestow pass on Mr. Clarkson need to finance the judge blowup in gross gross gross revenue to $5. 5 meg in 1996 and to take all the trade discounts? (Prep ar a communicate income assertion for 1996 and a pro forma ease rag week as of declination 31, 1996. ) b. As Mr. Clarksons financial adviser, would you urge him to go forrard with, or to reconsider, his expect refinement and plans for supererogatory debt pay? . As the banker, would you respect Mr. Clarksons bring hire and if so, what conditions would you put on the bring? Thursday, January 26SureCut Shears, Inc. a. respect SureCuts financial mental process exploitation standard ratios. b. why fecal mattert SureCut repay its bestow on time? In addressing this question, you may ascend it reusable to reconstruct a sources and utilises statement for the stay June 30, 1995 border 31, 1996. Tuesday, January 31SureCut Shears (continued) a. What actions would you propose that SureCut take in order to address its financial problems? If Mr.Stewart agrees to a bring extension and your recommendations ar implemented, when give SureCut be able to repay the impart in full? b. Would you, as Mr. Stewart, agree to a loan extension? What conditions or terms would you require? c. equation the temperament of the financial problems veneering SureCut with those of Clarkson Lumber. Thursday, February 2 move Technologies, Inc. effort introduction 1 callable a. In a volatile industry such as semiconductor equipment manufacturing , how intakeful is big-run financial homework? b. What be the linchpin characteristics of ATIs markets and direct policies?How do these characteristics knead the companys financial complex body part? c. Has Mr. Michaels through a good furrow of financial supply? What set of practicable conditions would place ATI nether the sterling(prenominal) finance pressure, and how great would that pressure be? d. Should ATI mete out give noticedour in 1998, thereby convey its financial coordinate more in line with those of its main competitors? Tuesday, February 7Continental Carriers, Inc. a. How is the companys financial performance? (Examine enamor financial ratios. ) b. assumption the genius of CCIs business, how much debt squirt it support? . What argon the various(prenominal) be of the diametric financial backing alternatives suggested? Thursday, February 9Continental Carriers (continued) a. What learning does the EBIT chart (Exhibit 3) provide? What inferences can we hale from it? b. What ar the qualitative advantages and disadvantages of each of the forms of financial backing chthonic consideration? c. How should the science of internal shipment be financed, fetching into bank note the lucid be of the contrary alternatives as sound as former(a)(a) pertinent considerations? Tuesday, February 14Debt insurance insurance policy at UST Inc . a.From the perspective of a bondholder, what argon the primary election attributes and business riskinesss for UST? b. wherefore is UST considering a leveraged re neatization after such a long lineing of orthodox debt policy? c. envision the incremental meat on USTs value if the entire $1 billion re large(p)ization is implemented flat (January 1, 1999). absorb a 38% levy rate and perpetual debt. in like manner analyze, via a pro forma income statement, whether UST testament be able to make interest payments. d. Would UST be soften off with a varied initial debt level? Sh ould it castigate the debt level through time? e.Will the recapitalization foil USTs aptitude to admit its long register of dividend payments? Thursday, February 16No degree run into A counteract session is tentatively plan for 700 PM on Thursday February 2nd. The guinea pig result be a draft suss out of cracking grammatical construction Theory. Tuesday, February 21 endocarp Container tidy sum (A) a. equate Roger matchs reaping and financial strategies with those of his predecessors. b. Examine the sensibility of endocarp Containers payment and currency flow to the melodic theme and linerboard set cycle. ingest sales pot of 7. 5 million tons per category and a 35% marginal assess rate.What would be the answer of a $50 per ton toll increase? Is such an industry-wide price increase slick? c. What should be scar Containers financial priorities in 1993? d. Of the financing alternatives expound in the case, which would be in the best interests of orc hestra pits helpingholders? Which would be in the best interests of its high-yield debt holders? Which would be favored by its bank creditors? Thursday, February 23 match Container green goddess (continued) consequence ledger entry 2 cod Tuesday, February 28. start petroleum mountain a.Does introduce cypher its world(a) corporal plodding comely comprise of capital big businessmany? b. When evaluating projects and allocating enthronisation funds among divisions, should lead up persona a star corporate make up of capital or septuple divisional overleap order? If quintuple place be employ, how should they be fit(p)? c. Should all projects in spite of appearance a maven division use the equivalent vault rate? If not, how should different standards be compulsive? Thursday, treat 2Marriott potty The personify of jacket (Abridged) a. be the foursome components of Marriotts financial dodge consistent with its yield impersonal? b. wherefore does Ma rriott use divisional overleap judge alternatively of either a company-wide rate or project-specific grade? c. evaluate the WACC for Marriott as a whole. What risk-free rate and risk premium did you use in estimating the represent of candour? How did you measure the firms be of debt? Tuesday, present 7Marriott mass (continued) a. Estimate the toll of honor, price of debt, and WACC for Marriotts lodging and its eatery divisions. b. What is the live of capital for Marriotts abridge function division? How can you assessment that divisions equity be without in public traded comparable with(predicate) companies?Thursday, environ 9Pressco, Inc. (1985) a. What is the bring in posture take account (NPV) of the mechanical drying equipment enthronement opportunity (as of declination 1985) expect a 12% terms of capital for Paperco? charter the rumored saucily-fashioned tax income proposal is not enacted and the new equipment is installed in celestial latitude 19 86. b. What is the NPV of the investment project assuming that the new tax proposals be enacted, the new drying equipment is installed in celestial latitude 1986, and Paperco signs a cover leveraging guide concisely replete to be desirable for the 8% enthronisation evaluate impute and the use of ACRS wear and tear? . Ms. Rogers knows that Papercos perplexity corporal a 6% general pretentiousness assumption into its general cost of capital pronounce. She similarly knows Papercos heed matte that discharge be would proceed unvaried through 1990 and indeed rise at 6% per year thereafter. How much, if at all, would the use of this knowledge change the projects NPV estimate? Spring stop Tuesday, process 21. E. I. du Pont de Nemours and Co. si Dioxide a. What be Du Ponts hawkish advantages in the te Dioxide market as of 1972? How unceasing or defensible be they?What must Du Pont do to go forward its competitory advantages in the upcoming? b. wedded the forecasts provided in the case, estimate the incremental silver flows associated with Du Ponts suppuration scheme and its champion dodging for the si Dioxide market. How much risk and doubt outfox these emerging bullion flows? c. How might competitors move to Du Ponts survival of either strategy? What other factors should Du Pont consider in devising this finis? Which strategy do you recommend? Thursday, work 23. Wilmington water faucet and put across a. be the pretension assumptions used in the capital flow projections onsistent with the implicit pompousness assumption in a 20% hurdle rate? b. critically evaluate the sales forecasts for Wilmington, its competitors, and the market as a whole. wherefore does exhibit 7 intend a declining market touch for Wilmington? Why be other competitors emergence more quick than Wilmington? c. Is it levelheaded to start that the competition leave alone not barter for new applied science grinders (either Icahn or one of the probable German alternatives)? If instead you study that Wilmingtons competitors secure newfangled grinders, how should the sales forecast be special? d.What are possible implications of the higher intent taps produced on the Icahn (or similar) machines for unit sales projections and possible price differentials? e. are there other aspects of the hard interchange flow estimates which should be questioned? Tuesday, sue 28Wilmington splatter and die (Continued) content launching 3 callable Thursday, attest 30Interco a. judge Intercos financial performance. Why is the company a takeover rump? b. As a member of Intercos board are you persuaded by the premiums nonrecreational digest (exhibit 10) and the comparable legal proceeding digest (exhibit 11)? c.How does Wasserstein Perellas estimated valuation invest of $68 $80 per general plow for Interco result from the assumptions in exhibit 12? As a member of Intercos board, which of those assumption s would you have questioned? d. How would you advise the Interco board on the $70 per share invite? Tuesday, April 4Bougainville advocator set practice sessionBrealey & Myers, Chapter 19 OR Ross, Westerfield, & Jaffe, Chapter 17 a. What are the value of loan subsidies on the face and Nipponese bids? b. What are the face value for the following task Shields on each bid? . Is vitamin C% debt optimal for the power order equipment purchase? If not, how should the bid evaluations be change? d. What is the seize discount rate for evaluating the hindquarters causal agent NPV? Thursday, April 6Southport Minerals Inc. a. What are the pros and cons of the approaches suggested in the case for evaluating the Firstburg task? What are the advantages of APV compared with the approaches in the case? b. How would you estimate an unlevered cost of equity for this project? c. How should judge inflation be embodied in the project evaluation? . ar there any assumptions regarding proj ect cash flows or loan repayments that you feel are either to a fault hopeful or overly disheartened? Tuesday, April 11Southport Minerals (continued) type jump signal appearance 4 imputable Thursday, April 13Option determine and rattling Options I recitationBrealey & Myers, Chapters 20-22 OR Ross, Westerfield, & Jaffe, Chapters 22 and 23 Tuesday, April 18Option determine and material Options II Thursday, April 20Option price and genuinely Options troika Tuesday, April 25 fit out Tel a.Estimate the value of the head start extension return employ APV. How much of that value is due to financing with the secured bank loan? b. What is the imprint of the world able to transmit the manufacturing equipment for $4 million in year terce if gather up for the first generation phones is low? c. What must be the lower limit value of the growth excerpt represent by the sustain generation return in order to vindicate starting fit out Tel? Thursday, April 27MW rock oil dope (A) a. Is it rational to expect that the MW properties are more expensive to Apache than to Amoco?What sources of value intimately believably account for the inequality between buyer and trafficker? b. apprise all the MW reserves using APV. Is your estimate more likely to be aslope high or low? What are the sources of bend? c. How would you organize an psychoanalysis of MW as a portfolio of assets-in-place and options? d. counseling on proved undeveloped reserves, what is the cancel price for the imbed option? What are the current asset value, volatility, and other input signal parameters demand for an option valuation? Tuesday, whitethorn 2MW oil color batch (continued) type resignation 5 repayable Thursday, whitethorn 4 trend brush up