Donner Company Case Analysis

1) Estimate the WACC that is appropriate for discounting the Collinsville plant’s incremental cash flows. You should estimate and present each component of the WACC separately, explaining briefly but clearly what assumptions you are making for each of them. In the same spirit, estimate the appropriate all-equity cost of capital for the APV-based valuation.

1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements

In 1992, when moving to Southwestern Michigan, I was shocked when discovering thousands of kids were growing up in dire need of something positive to do during after-school hours and the summer months. My idea, establish Winning Inc. of America, a 501c3 non-profit to provide free summer sports camps and literacy intervention to support failing schools by preparing youth, ages 6 – 14, for successful lifelong learning. Winning Inc.’s belief was and remains, a child strengthened with enhanced literacy strategies, confidence, organizational skills and positive self-realization is empowered for lifelong decision-making.

The owner of Hansson Private Label (HPL) must determine whether or not to accept an aggressive expansion project that would preclude the company from pursuing any alternative investment opportunities for several years. The investment, if successful, would offer numerous benefits to the company, capturing greater market share, strengthening relationships with major customers, crowding out competition and increasing firm value. Nonetheless, the decision carries significant risks and could lead to a substantial decline in firm value, if not bankruptcy, should any number of variables prove unfavorable to HPL. Moreover, the project relies heavily on a contract with a single large

To: Amanda Cabot, CEO, Dansko Inc. From: Ryan Davis, Jentry Highland, Mashari Al-Badar & Zachary Jochem Date: 8.7.2014 RE: Recommendation for the future of Dansko, Inc. ______________________________________________________________________________ Executive Summary: “Dansko, Inc., a casual footwear company known for Danish clogs, has successfully and organically grown from a mom and pop operation to a cult phenom. The company is currently faced with how to achieve scalability with their growth and whether to sell or continue to try to grow organically. The owners started the business with no knowledge or experience in the shoe industry, and were able to “stay gourmet” throughout their major period of growth (1997-2004).

The bible says “Trust in the Lord with all your heart, and do not lean on your own understanding. In all your ways acknowledge him, and he will make straight your paths” (Proverbs3:5-6). After weighting my options between the offer made by the company in Texas and my current business deal, I have decide that it is best for me to discontinue doing business with Marshall. It saddens me to make this decision, but I believe Marshall and I have two different agendas. I have been nothing less than loyal, caring and compassionate when it comes to him and our business relationship. Marshall has been late numerous of times and I refrained from charging him late fees or penalties. He completely disregards the 30 day invoice payment and pays between 45 and 60 days. This act alone should have been a red flag for me, but I gave him the benefit of doubt. Not only does he violates the invoice, but he has broken my level of trust with him. Marshall had my son, a minor at the time, sign a contract behind my back with no intentions on informing me. How can I continue doing business with him if he isn’t trustworthy? Now I’m beginning to question his motive and his character after displaying this type of behavior.

Myer Holdings Limited is an Australian department store group, which provides 11 product categories including clothes, footwear, handbags, fragrances and cosmetics, beauty, homewares, toys, electrical products, and general merchandise.

A. There is no gain or loss realized or recognized by Tom upon the formation of the S-Corp. The beginning balance of stock basis is $ 172,000 which is the total cash contributed by Tom to the new corporation. (See appendix A)

A1. Justification: The streamlined, 5-workstation production line layout was selected bases on an analysis of Shuzworld’s assembly line data at its Shanghai production facility. The 5-workstation assembly line was achieved by using the assembly line balancing tool, which is designed to minimize the imbalance between machines and/or personnel while meeting the amount of output required. Using the data from the assembly schedule provided by the Shanghai production facility, the cycle time (takt time) and the minimum number of workstations was calculated in preparation for using the assembly line balancing tool.

Since the current assembly line layout should achieving 100% line efficiency when running at maximum capacity of 215 units. Thus, to operate at target 300 units/day, the current assembly line needs to redesign.

The Wilkerson Company is in the business of manufacturing valves, pumps, and flow controllers to sell to companies that manufacture water purification equipment. The company started out with a very unique and more efficient way of designing the valves and it was better than any of the other competition that also made valves. And this actually helped them establish a loyal customer base since they were so innovative and had the best quality at the time. They are looking for help since they are having issues with the decline in their company’s profits. The company wants to figure out exactly how and why their profits are as low as they are by reaching out to their controller and manufacturing manager. They want to seek additional help and

As a manufacture of private label personal care products, Hansson Private Label, Inc. has a considerable amount (28%) of market share in its specific industry. However, private labels as a whole constitute less than 19% in the entire personal care industry. Therefore, growth of HPL depends on the growth of the industry and more importantly the growth of private label component within the industry. In terms of the personal care industry, market growth will not improve significantly in the future. As proven in the past four years, unit volumes in the industry increases less than 1% in each year and the dollar sales growth was only driven by modest price increases. Therefore, the opportunity for private labels

Honicker Corporation is a USA based, successful dashboard manufacturer. It has opportunities for international expansion, but due to the ultraconservative culture it did not happened until they faced a change in management in 2009. Honicker was a rich company, and to expand, they took the short road and acquired four companies around the world: Alpha, Beta, Gamma, and Delta. There were two commonalities among these companies: they serviced mainly in their own geographical area, and senior management knew their geographical culture and hold good reputation with their stakeholders.

Next, you find that all of the salespeople are paid a straight salary, and all receive exactly the

(FIFO) policy, minimum stock reorder for each item and periodic stock evaluation. One of the