Essays on Corporate Finance

1. How has Diageo historically managed its capital structure? Diageo sought to maintain the low-debt (conservative) financial policies of the Guinness and Grand Met with goals to keep * its interest coverage ratio (EBITDA / Interest Payments) between 5 and 8 and * its EBITDA / Total Debt around 30-35% Although not quite as conservative…

How is the policy portfolio of Harvard determined? What are the three major plus categories in the portfolio as of May 1999? Internally. by the HMC. The Board of the corp determined the Pol Port. but the mgmt. was permitted to do short-term determinations within certain restraints. HMC. considered 3 things when looking at plus…

What is the weighted Average Cost of Capital for Marriot Corporation? WACC for Marriott Corp is 11.89 WACC of divisions: Lodging 10.29, Restaurant 13.49, Contract Services 13.615 a) What risk-free rate and the risk premium did you use to calculate the cost of equity? We used 8.95% as the risk free rate (LT Government Debt) and…

Larry Yung, Chairman of Citic Pacific Limited, has a decision to make. He must decide if he should invest in property and build the “Citic Tower II”. Under the current conditions, the current net present value is negative, which is one of the factors that Larry is using to decide. Another concern is that the…

Statement of the Problem In the instance Roche Holding AG: Funding the Acquisition, Roche and Genentech are interested in an acquisition. Roche is geting about having all outstanding portions of Genentech. Roche Holding AG is a Switzerland-based pharmaceuticals and nosologies company. It discovers, develops and provides diagnostic and curative merchandises and services from early sensing…

In 2001 Berkshire Partners began due diligence in hopes to make a bid for carter’s. Berkshire Partners was founded and led by of five as a private equity firm adhering to the following characteristics: building and sustaining relationships, rigorous work, deep analysis and the environment of open decision-making. Berkshire opts to create value by straightening…

4. Dwayne inquired about the different versions of the DDM that can be utilized and their reasons for use. Jonathan should reply by explaining that one alternative version of the DDM acknowledges dividend payments that gradually increase at a consistent rate. This method regards the company’s equity as an ongoing perpetuity. It is essential to…

It is only a normal thing that there would be change in the income of shareholders whenever there is a merger in the firm that invested in. the question that now comes with this paper is that, does this mergers and acquisitions affect the investment of the shareholders and if it does, does it affect…

Introduction Established in 1977 by Raunaq Singh, Apollo Tyres Ltd. is a prominent Indian tire manufacturer that adheres to the core principles of delivering shareholder value through product reliability and maintaining dependable relationships with stakeholders. The company provides a diversified range of tires for heavy, light, and passenger vehicles. The company operates a total of…

Recommendation Under the two circumstances presented, I recommend that Harriet Burns and Richard Irvine should finance the purchase of Harmonic Hearing Co. through the deal proposed by the private equity firm, Comet Capital. This proposal best aligns with Burns and Irvine’s goal to select an option that offers the “best combination of cost, expected return…