Finance and Company Essay Example for Free

Finance and Company Essay So Wrigley has to make decisions on whether or not to borrow $ 3 billion for recapitalization. Question Based on the above situation, there are few questions that arise as seen below: ? Whether the recapitalization would be good for the company’s development in the long run? ?After borrowing $ 3 billion dollars what would the impact on the company’s debt rating be? ?What’s the impact on the company’s share value; would the recapitalization increase the company’s share value? ?What’s the impact on the company’s WACC, an increase or decrease? Would recapitalization increases the EPS of the company? Hypothesis Before capital restructuring due to not having any debt, return on capital and operating income as a percent of sales can be used based on exhibit 2(it is $513,356/$2,429,646= 21%) which is the A to AA range of investment grade. After recapitalization, the company’s debt rating will fall to a BB/B rating which reflects a higher risk and lower debt rating that will cause higher yields. According to Exhibit 7’s given information, the yield is between BB (12. 753) to B (14. 663) to obtain a cost of debt. Impact on share value If the company chooses to repurchase the stock, the WD will be 22. 89% (3,000,000/13,103,000), the WACC will be 10. 19% (22. 89% (1-40%)*13%+77. 1%*10. 9%). Both 10. 32% and 10. 19% are lower than the WACC before recapitalization, which indicates that after the recapitalization the company will have a lower minimum rate of return for the company that it needs to earn on its investments to maintain its wealth. Impact on Voting Control If the company is using the dividend plan to do capital restructuring, there will not be any impact on voting control. However, if the company is using the stock repurchase plan, it will have an influence on the voting control. The current Wrigley family ownership includes 21% of common shares and 58% of B shares. The total numbers of shares outstanding for Wrigley consists of the sum of the common shares of 189. 8 million and class B shares of 42. 641 million (10 votes each), a total of 232,441 million shares. So the company will have 46. 6% ((189. 8*21%+426. 41*58%)/616. 21=46. 6%)voting control before recapitalization. After the recapitalization the voting control will increase to 49% [(179. 22-42. 641)*21%+426. 41*58%]/ (136. 58+426. 41) =49 Based on the above analysis, my suggestion is not to borrow $ 3 billion dollars, or if the company insists in doing a recapitalization I would suggest for them to not borrow as much and to make some investment on assets instead of it all in equity. For the Wrigley Company I think they should keep their debt below 50 percent. Because after recapitalization, it will have negative impacts on EPS, debt rating, share value and it has a slightly positive impact on WACC and voting control. The results of impact on EPS analysis shows that EPS will drop from $ 1. 61 to 0. 46 and, the debt/ assets ratio will be 169% which will increase the company’s risks. From a debt rating aspect, after borrowing $ 3 billion dollars, the debt rating of the company will decline from AA/A to BB/B which means that the company will have a higher interest rate, more interest expense and a lower credit rating in the future. This is not good for the company’s future development. From a long term prospective, I believe it’s important that the company be careful in determining whether they should pursue a dividend or stock repurchase strategy. If the company chooses to use the $ 3 billion to pay dividends now, it might increase the investor’s satisfaction in the short run but once the dividend has been paid, the investor will expect the same amount of dividend in the future and a lower dividend might disappoint investors and that might affect the company’s stock price in the future. The stock repurchase is temporary as well, so after the repurchase the ending stock price might drop and it may hurt a potential new investor who made a purchase during the repurchase period. All things considered as long as Wrigley keeps an eye on their long term goals and continues to look at the big picture whilst making good solid financial choices for their company they should be most successful.

Is Insanity Normal? Essay -- Mental Illness Insane Crazy Norm essays

Is Insanity Normal? Works Cited Missing We’re all mad here. I’m mad. You’re mad -The Cheshire Cat from Lewis Carroll’s Alice’s Adventures in Wonderland Have you ever questioned your sanity? Have you ever wished you could change, for even one day, and be the person that others wanted you to be? Have you ever actually made that change, either by choice or by force? Do you think you’re normal? Maybe you’ve lived the most normal life you could imagine. Or maybe not. Maybe you’re life is so abnormal and outrageous that you don’t wish to be normal. Have you ever questioned your sanity? Introduction Insanity appears in various forms and we all know how to mentally picture it. We can create clear images of "insane" individuals in our heads and, very often, feel comfortable with those images. Maybe we picture the serial killer on television, the old woman next door who refuses to leave her house, the people in rubber rooms, or even ourselves. Despite whom we picture, however, we, as members of this society, have a tendency to label those who act differently from us "crazy" or "insane." Society attempts to classify the "sane" and "insane" based on how "normal" or "abnormal" they are. Unfortunately, this forces us into a binary view of individuals that causes many of those individuals to lose their senses of uniqueness and freedom. This also causes others to discriminate based on their differences. What we fail to realize is that the line we establish between "sane" and "insane" is unclear and undeterminable and, therefore, gives us no grounds for bias. For that reason, we must abandon it entirely because the categories it forms inhibit some from living their ideal ways of life. We need to, essentially, stop classifying abn... ...ation. For example, there are Gay and Lesbian Pride groups, Fat Pride groups, the Deaf Community, and so forth, but because the line society draws for insanity is so ambiguous, and clear categories are indeterminable, it is impossible to form an "Insane Pride" group, for instance. The only current option for these people, therefore, is to stay within the binary. We need to find a way to resist this need to conform because, in reality, we all in some way fit into the category of the insane to different degrees. Hence, we need to establish ourselves as individuals with needs. We must begin to look at what we have come to call "insanity" in a new way and, in effect, exclude the word from our vocabulary. If we can, therefore, find some way to eliminate the stigma and reaffirm the spectrum, we will be able to treat others and ourselves affectively and appropriately.

Change Management Plan and Communication Plan Essay

Workers react to change differently and often feel threatened by it. Reaction to workplace transformations usually manifests itself in one of three ways. There is proactive reaction that sees change as an opportunity to try new and improved things. Reactive workers resist change and try to keep things as they were. Inactive employees take the neutral position and straddle the fence watching the struggle between other employees. Older workers within the company tend to resist change because they want to do things the old way. Employees may feel a loss of identity. They may feel a loss of control. Workers also experience a loss of meaning, belonging, and even a loss of their future. Trying to make the changes seem positive does not erase the uncertainty, rumors, or the ambiguity (Jones, 2011). Managers should strategize on the best way to enforce any changes at Riordan Manufacturing. There should be some expectation of resistance in regard to any change. There should be time restraints and deadlines put into place. The changing process may affect deadlines until everyone is on task with the operational changes and new policies. Managers must plan ahead for any resistance at Riordan. Forming task teams that oversee each department affected by the changes over the next 12 months is one strategy that can prove useful. New goals and expectations as a result of the changes should be outlined and followed. There should be effective communication skills with floor managers and employees (Gul & Sahin, 2011). The process can run smoother if the employees at Riordan feel motivated, and teamwork encouraged. There will be employee evaluations over the next year to monitor the success or failure of the changes. New system changes, problems, and success will be determined weekly in a detailed report. The reports from the task team and the floor managers will determine the feasibility of the changes. Employees will be required to take assessments to ensure that they fully understand the new operations. New records will be maintained,  updated, and signed by each employee. Training and educational courses will be provided, including computer classes. References Gul, H., & Sahin, K. (2011). The Information Society and Public Employees Perception of Transformational Leadership. Selcuk University Social Sciences Institute Journal(25), p237-249. doi:64368178 Jones, T. (2011, January). Use Resistance to Enact Workplace Change. Business Journal Serving Fresno & the Central San Joaquin Valley, p.11. doi:10797394

Heat of Vaporization Example Problem

Heat of vaporization is the amount of heat energy required to change the state of a substance from a  liquid into  a vapor or gas. It is also known as enthalpy of vaporization, with units typically given in joules (J) or calories (cal). Heat of Vaporization Problem This sample problem demonstrates how to calculate the amount of energy required to turn a sample of water into steam: What is the heat in joules required to convert 25 grams of water into steam? What is the heat in calories?What you know: Heat of vaporization of water 2257 J/g 540 cal/g Note:  You wont be expected to know enthalpy or heat values; they will be given in a problem or can be looked up in a table. How to Solve You can solve this problem  using either joules or calories for heat. Part I: Use the formula  q m ·ÃŽâ€Hv in which q heat energy, m mass, and ΔHv heat of vaporization.q (25 g)x(2257 J/g)q 56425 JPart II: q m ·ÃŽâ€Hfq (25 g)x(540 cal/g)q 13500 cal Answer The amount of heat required to change 25 grams of water into steam is 56425 joules or 13500 calories. A related example illustrates how to calculate the energy when water changes from solid ice into steam.