I. Statement of Financial Problem Should Continental Carriers‚ Inc. use debt or equity to finance the acquisition of Midland Freight in 1988‚ either by selling $50 million in bonds at a 10% interest rate to a California insurance company with a maturity of 15 years‚ or by issuing 3 million in common stock at $17.75 per share with a dividend rate of $1.50 per share? II. Financial Framework The outcomes of various financial alternatives can be examined through an EPS-EBIT analysis‚ where EPS
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Company Overview Continental Carriers is a general commodity motor carrier and has been since 1952‚ and they recently experienced successful growth since Mr. Evans focused on improving service‚ as well as an extensive marketing effort to boost their revenues in their already existing routes. He also implemented a way to reduce costs through computerization of operations as well as an improvement in terminal facilities to improve the company’s structure. This has since made CCI become a much larger
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Introduction Continental Carriers Inc is a trucking company which specialises in transporting general commodities. Since its establishment in 1952 the company operates within the district of the Pacific Coast and from Chicago to various points in Texas. It was noted that the company maintains an overall low debt policy‚ whereby they obtain infrequent short term loans and avoid long term debt. Furthermore with the appointment of Mr. Evans as president‚ the company became more profitable and experienced
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Continental Carriers‚ Inc. Advanced Financial Management Continental Carriers‚ Inc. (CCI) should take on the long-term debt to finance the acquisition of Midland Freight‚ Inc. for a few reasons. The company is heavy on assets‚ the debt ratio will only grow to 0.40 with the added $50M in debt. Also‚ the firm will benefit from an added $2M in a tax shield and be able to return $12.7M a year to its stockholders and investors‚ instead of $8.9M if equity is raised to finance the acquisition
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Continental Airlines Inc. Analysis Strategic Management Vision Statement Continental Airlines Inc. seeks to lead its industry in superior customer service‚ innovative technology‚ employee satisfaction‚ and environmental advances‚ at home and abroad. Mission Statement At Continental Airlines Inc.‚ we strive to obtain excellent customer service and satisfaction through technological advances in on-line bookings and e-ticket purchases. We have strict security measures to ensure our
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Cases in Financial Reporting Continental Airlines‚ Inc - Leases Anderson‚ John Armanini‚ Nathan Avery‚ Sarah Hacker‚ Matthew Adkins‚ Lindsay To: Larry Tomassini From: Group 6 Subject: Case Study #3 – Continental Airlines‚ Inc. - Leases Date: February 22‚ 2011 This memo contains a lease analysis of the case titled: Continental Airlines‚ Inc - Leases. All numbers contained in this memo are in millions. D. i. Rental Expense (Aircraft Equipment) $896 Rental
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Continental Carriers Inc is a trucking company which focuses in carrying generalcommodities. From the start of its operation in 1952‚ the company manages within thedistrict of the Pacific Coast and from Chicago to various places in Texas. They attainedfew short term loans resulting from a low debt policy and evading long term debt. The company obtained its profitability and internal growth from the time that Mr. John Evanswas appointed as President of the company. He focused on rigorous marketing
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Case Synopses Walmart Stores‚ Inc. 09/12/13 Which strategic management concepts are useful in the analysis of this case? 1. SWOT Analysis Walmart’s internal strengths and weaknesses and environmental opportunities and threads are: Strengths Highly motivated and committed employees (Associates) Top management involved on daily operations (street managers) Latitude price setting (allows more profitability in different locations) Technology oriented (Satellite system and logistic
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Introduction Ocean Carriers Inc. is a shipping company specializing in the operation of capsizes bulk dry carriers. In January 2001‚ the vice president of finance for Ocean Carriers was evaluating a contract proposal. In the proposed contract‚ Ocean Carriers would lease one ship to a client for a three year time frame. The customer would begin utilizing the ship in 2003. In 2001‚ Ocean Carriers did not have a ship that would meet the needs of this customer‚ and thus was considering purchasing a
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Title II Eligibility Period ISSUE The DDS proposes allowance for this claimant with an EOD of 6/30/16. The evidence in file shows a later onset date is warranted and the claimant was not insured for title II benefits at the time the disability began. CASE DISCUSSION & POLICY ANALYSIS (INCLUDING SPECIFIC REFERENCES) The claimant is a 31-year old filing a concurrent claim with an AOD of 07/25/2012 due to Psoriatic arthritis‚ cataracts‚ hepatitis C‚ s sesamoiditis‚ depression‚ anxiety‚ iritis‚ pilonidal
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