Bank Merger
This analysis examines various questio

Bank Merger This analysis examines various questio This analysis examines various questions raised by the merger of Wells Fargo Bank with First Interstate Bank. It is argued that this merger may be the biggest bank merger in history, and is definitely the largest unsolicited bid. As such, the merger may have far-reaching implications for banking in general and particularly for customers of both banks. The major issues addressed in this discussion include: questions of compatibility between the two banks, consequences for the industry as a whole, impact of the merger at the community level, and potential affects for personnel, branches, and customers. It is argued that the merger likely began…
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Capital
To what is th weighted average cost of ca

Capital To what is th weighted average cost of ca To what is th weighted average cost of capital usually compared? The underlying basis of the concept of a weighted cost of capital is recognition that an organization's capital is derived from multiple sources. Within this context, therefore, the cost of capital used in analyses designed to value the assets of an organization or to evaluate investment opportunities must consider the weighted cost of capital. Cost to the organization is determined for each capital source, and weightings for capital sources reflect their proportion in an organization's total capital structure. With respect to the issue of comparing the weighted cost of…
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Italy’s Macroeconomics

Italy's Macroeconomics According to Italy Review (2007), since the end of World War II, the Italian economy has been transformed from an agrarian to an industrial base and now ranks as the seventh largest economy in the world with an economic structure comparable to that of other advanced Organization for Economic and Cooperative Development (OECD) countries. However, Business Monitor International (2008) states that the Italian economy will ease in 2008 due to record energy prices, a strong Euro, and the potential fallout from an autumn 2007 global credit squeeze. Also, the downturn in economic activity is likely to be a longer term winding down of the growth cycle toward historical…
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Kikkoman Corporation & US Trade Policy

Kikkoman Corporation & US Trade Policy Kikkoman Corporation is a Japanese-based organization best known for making soy sauce. Its history stretches over several hundred years, and its product line includes products well beyond soy sauce. The company has facilities, offices, and subsidiaries located throughout the world which gives it an international presence, but which also protects it from the regulations that "foreign" companies face. Within the United States, the company has avoided problems with federal regulations by operating through its Kikkoman International subsidiary, and the company does not market its pharmaceutical products in the United States. This research examines Kikkoman Corporation and the trade issues it does face in the…
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A Financial Analysis of Wendy’s International

A Financial Analysis of Wendy's International A FINANCIAL ANALYSIS OF WENDY'S INTERNATIONAL USING MCDONALD'S CORPORATION AS A BENCHMARK A financial analysis of Wendy's International Corporation was performed. The results of this analysis are summarized in this section, and the complete results of the analysis are presented in a series of appendices. The McDonald's Corporation, the industry leader in the fast food segment of the restaurant industry, was used as the benchmark firm for purposes of a comparative analysis of Wendy's performance in 1998. Wendy's, at the close of 1998, was in a strong financial position, as indicated in Appendix A-2. The corporation made better use of its assets in 1998…
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Analysis of Kmart

Analysis of Kmart The purpose of this report is to answer a series of questions regarding the status of Kmart, a ubiquitous American discounter that has fallen on hard times in recent years. Yue (Summer slump getsa, 2002) reported that this Troy, Michigan-based company filed for Chapter 11 bankruptcy reorganization on January 22, 2002. Kmart shoppers and employees and industry experts are divided on the question of why sales are not higher despite efforts to improve the firm's image, merchandising, inventory programs, and store design. Kmart, despite its current financial situation, is the nation's number two discounter, behind competitor Wal-Mart and slightly ahead of Target (Target's aima, 2002). For many…
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Analysis of Apple Computer

Analysis of Apple Computer 1. Problems within the company (Beers quotes) 2. Disillusionment of managers (Harvard Business School Case Study) 2. Decisions made on company vision, not customer desires 1. Should Jobs be blamed for bad management, since nothing in his background suggests that he even likes people? Apple Computer was founded in the early 1980s by Steve Jobs, who created an alternative operating system for a hard disc that used a graphical interface rather than the less user-friendly DOS systems invented and marketed by Bill Gates. The two operating systems compete head to head, although the market penetration of Apple is considerably smaller than that of the computers based…
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U.S. International Economic Policy

U.S. International Economic Policy Modelski, George. "Long Cycles and the Strategy of U.S. International Economic Policy." In Avia, William P., and Rapen, David. (Eds.). America in A Changing World Political Economy. New York: Longman Publishers, 1982, 97116. Modelski (1982, p. 97) contended that, in the modern world system, political and economic processes are linked in a model of alternating innovations. In this model, the political process is viewed by Modelski (1982, p. 97) as the dependency of the world political system on the rise of world powers. Similarly, the economic process is viewed in the model as the dependency international economic system on the formation of lead economics. The alternating…
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Market in Which Microsoft Competes

Market in Which Microsoft Competes There are considerable profits to be made in this global environment, and companies often seek to become as large as possible in order to realize economies of scale as well as pose significant competition to others. Monopolies and trusts have long come under fire from government regulators, and Microsoft is only the latest company to struggle against possible government intervention. But it is not always clear what the long-term ramifications of breaking up large monopolies will be. For example, the breakup of Standard Oil resulted in several large oil companies, including Exxon and Mobil, which are now considering mergers with other oil companies. This research…
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Shareholder Activism & the Stock Market

Shareholder Activism & the Stock Market THE STOCK MARKET AND SHAREHOLDER ACTIVISM Companies can raise capital in two ways: by issuing debt or selling equity. Debt is a straightforward borrowing arrangement that does not change the ownership structure of the firm. Investors loan funds to the company and are repaid at a given rate of interest. The investors have no claims to the company's management or assets so long as the debt is repaid according to schedule. Equity, most often thought of as stock, is a different matter. Investors who purchase equity are buying an ownership share in the firm. Stockholders are typically not involved in the day-to-day operations of…
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