Mc Donalds free essay sample

What tactics did the activist investor William Ackman (Pershing Capital) pursue in his campaigns against Wendys and McDonalds? Briefly describe each tactic used and the way in which each tactic might help Ackman to achieve his goals. We will write a custom essay sample on Mc Donalds or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page What other tactics could Ackman have employed to achieve his goals? B. What did Ackman ultimately hope to achieve through his activism? What role, if any, did corporate governance issues play in Ackmans activist campaigns? C. With the benefit of hindsight, describe the alternative tactics that McDonalds management could have pursued in response to Ackmans display of activism? Would it have been possible for McDonalds management to maintain its resistance at any cost? D. In you view, who emerged as the winner in this activist standoff between Ackman and McDonalds? Explain why (supplying evidence in support of your arguments). A. What tactics did the activist investor William Ackman (Pershing Capital) pursue in his campaigns against Wendys and McDonalds? Briefly describe each tactic used and the way in which each tactic might help Ackman to achieve his goals. What other tactics could Ackman have employed to achieve his goals? Spin off A situation in which a company offers stock in one of its wholly-owned subsidiaries or dependent divisions such that subsidiary or division becomes an independent company. The parent company may or may not maintain a portion of ownership in the newly spun-off company. A company may conduct a spin-off for any number of reasons. For example, it may wish to divest itself of one industry so it can expand into another. It may also simply wish to profit from the sale of the subsidiary. A spin off should not be confused with a split off. | With implementing spin off, Wendy would be able to get independent from its parent operation chain Tim Horton’s dog nut. Even when Tim Horton’s Dog nut was a growth driver, representing 50 % of overall operating profits, the spinoff would promote tangible stock raising price. IPO will provide Horton’s value up to 4,48 billion. | Autonomous Operations from its subsidiary (Tim Horton’s)+ Confidence to Joint venture capital. Tax free transactionUnlock of Shareholder value. 72 M in equity , for 15% of Horton’s total shares. 15 % stock value increase after spinoff. | Being Tim Hortons the major growth agent of Wendy’s, and despite the sudden increase on stock value, the spin off revealed the not satisfactory long term value of Wendy’s , which leaded to a long term price decrease. Sale of large portion of the company’s restaurant to franchisees. | Ackman initiative included to sell more than 200 real estate sites, close 60 poorly performing stores and sale of hundreds of company owned restaurants. Profit increase of 25 %Reduction of debt by 100 mIncrease on equity and long term profits+ Funds to invest in growth and unexplored markets. + steady cash flow from franchisee fees. | Loss of potential plus value added equity: Real Estate. Lack of confidence on franchisees for the management of a solely entity with no company owned restaurants. | Share repurchases. A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. Share repurchase is usually an indication that the companys management thinks the shares are undervalued. The company can buy shares directly from the market or offer its shareholder the option to tender their shares directly to the company at a fixed price. | With the Horton’s spin off the appreciation of tangible benefits to shareholders’ dividends would be finally accountable in Wendy’s equity interest to shareholders. | Reduce the number of outstanding shares. + earnings / share+ price of Wendy’s shares. | Dependability of the dividend for investors: More important. As such, investors may invest more heavily in a stock with a dependable dividend than in a stock with less dependable repurchases. Asymmetric information on transaction details. | Avoidance of large acquisitions. | The strategy includes this provision to state the level of certainty for investors in Wendy’s transaction as a complementary key of the probable long term stock price decrease due to the spin off strategy, the reliability on stable company with long term outlook of growth will provide such a reflection in stock price. | + initiative for investors to keep its equity level I the company+ Increase on stock price. | Limitation for expansion in short term.

Mesopotamian and Egyptian influences on the Hebrews essays

Mesopotamian and Egyptian influences on the Hebrews essays The Mesopotamian myth of Atrahasis tells of the creation of humans as slaves to their gods. Atrahasis also tells of the destruction of all people by a deluge, save one man and his family, who were saved by divine intervention on the part of the god Enki. At the myths conclusion, Enki places reproductive restrictions on the people of earth, eliminating the need to destroy them again later. Enuma Elish, a second Mesopotamian creation story, begins in a time of watery, primeval chaos. The oldest generation of gods were called into being (Ideas, p.5) in male and female forms. The events that follow lead to a bloody battle, after which order is imposed onto the universes preexisting forms. This myth, from a different city and a later period in Mesopotamian history than Atrahasis, says that humans were created as a work of consummate art. The Hebrew myth of creation in many aspects reflects these two stories, such as the creation of heaven and earth without form...and the spirit of God...moving over the face of the waters (Ideas, p. 78), echoing the beginning of Enuma Elish. God speaks to create, in the same manner as the calling into being of the first Mesopotamian deities. God separated heaven and earth with the firmament (Ideas, p.80), imposing order on these already existing forms, much like Marduk did in Enuma Elish. People were created from dust similar to the clay used in both Mesopotamian myths, and imbued with a part of God, in male and female forms in our [Gods] likeness-thus, the Hebrews also believe that people are a consummate work of art (Ideas, p.79). This theory of peoples purpose primarily reflects the later Mesopotamian myth, but the idea of labor and suffering as human destiny is illustrated in the myths that follow the creation story, the &qu...

Advance coorperate finance Essay Example | Topics and Well Written Essays - 750 words

Advance coorperate finance - Essay Example Crown’s (Australia) FCFF grows continuously for the five years after which it takes a slight downward trend. This means at the fifth year of its operation it reaches maximum profitability level of the company beyond which level the expenses of the company increases resulting in decease in the FCFF of the company. The company projection has been made on the basis of both DCF and DDM approach where the former is 81.24 and the later is 50.27 which means that the market has been pessimistic for the duration of which the discounted cash flow and the dividend discount model has been computed. Contrarily the intrinsic value of the company being $4.46 as against the market price of the company at $9.06 indicates that the company shares are overvalued. Thus it will turn out to be beneficial for the sellers of the shares, while investors thinking of buying the shares of Crown should wait till the market price of the company dips a little. The P/E ratio of Crown is 20.46 while that of CN TY is 20.85; through this we can say that CNTY is in a better position than Crown. However, the higher P/E ratio is also an indication of the risk of the company being high as the market value of the company has fallen in comparison to the earning per share of the company. This effect can be brought about through the buyback of shares. (Cassia, Plati & Vismara 1-10). Mergers and Acquisitions Acquisition is a process which a firm enters into to gain control of the target company that is being acquired. It is one of the growth strategies of the company through which the company plans to expand its business. Crown Limited has acquired the Aspinall’s Club which is a high-end casino in London. This has enabled Crown to successfully operate in London while catering to the VIP business class leveraging the marketing and the sales capabilities of Crown in the international market. But as per the expectations of Crowns acquisition the returns for the company has not turned out to be a remarkable one. The other acquisition of the company is the Holiday Inn hotel which was entered into by the company on 11th May, 2011 to possess the assets in Perth that amounted to approximately $79 million. For the settlement of the equity derivatives the company acquired both Echo Entertainment Group and Tabcorp Holdings Limited. Most of the acquisition of the company did not show incredible results resulting in the increase in the capital expenditure of the company (Crown Limited, 2011). Segment Report The segmentation of the Crown Australia was done on the basis of geographically from Melbourne and Burswood. The major portion of the company’s sales is generated from Melbourne which is 71% while that of Burswood is 29%. The acquisition of the casino led to the VIP program. But due to heavy impact of stiff competition both Crown Burswood and Melbourne were affected by the reduction in the VIP program. Across the two properties of Crown in Australia, the main floor gaming revenue shot to 56% while its PM was 39% over the year in 2011. However, the non-gaming segmentation policy of Crown adopted by the company boosted its revenue in the non-gaming section by 22% while the PM was 16% benefitting the full year operation of the company. On the other hand, the strategy adopted by the company to source new customers from China helped them earn better VIP program revenue of $31 million from Crown Melbourne. Contrarily the major operational revenue of the company came from main floor gaming segment where Crown Melbourne gave $930,657 million while Crown Burswood added $413,770 million. Hedging Policy The company hedges the derivative instruments but does not use the process for trading purposes. The process of hedging is carried on fair value and the cash