Saturday, February 15, 2020
Significance of organisational culture Essay Example | Topics and Well Written Essays - 3000 words
Significance of organisational culture - Essay Example Foundation of organizational culture can be broadly classified into two parts, one is known as ââ¬ËAnthropological foundationââ¬â¢ and another is known as ââ¬ËSociological foundationââ¬â¢. Both of the foundations can be differentiated on the basis of functional and semiotic approach. The functional approach takes several parameters into consideration that make a distinction between both the foundations. These parameters can be identified as focus, variables, assumptions and observation. The anthropological foundation assumes that an organization itself is a culture where as sociological foundation assumes that organizations have a culture (Cameron and Quinn 2011). The focus of anthropological foundation lies at collective structure unlike the case of sociological foundation that focuses at collective behavior. The culture of an organization is observed as a subjective factor by anthropological foundation where as it seen as a matter of objective factor by sociological fou ndation. There is also a difference between both the foundations on the issue of variable factors. Anthropological foundation perceives, culture as a dependent variable, where as sociological foundation perceives culture as an independent variable (Cameron and Quinn 2011).The semiotic approach is also taken into account in order to identify and analyze the key difference between anthropological and sociological foundation. The anthropological foundation assumes culture as reality where as sociological foundation assumes culture.... The culture of an organization is observed as a subjective factor by anthropological foundation where as it seen as a matter of objective factor by sociological foundation. There is also a difference between both the foundations on the issue of variable factors. Anthropological foundation perceives, culture as a dependent variable, where as sociological foundation perceives culture as an independent variable (Cameron and Quinn 2011). The semiotic approach is also taken into account in order to identify and analyze the key difference between anthropological and sociological foundation. The anthropological foundation assumes culture as reality where as sociological foundation assumes culture as a mean that develops a sense of reality at workplace. The focus of anthropological foundation lies at individualââ¬â¢s assumptions rather than individualââ¬â¢s cognition as in the case of sociological foundation. The factor of ââ¬Ëobservationââ¬â¢ is also taken into consideration for differentiating the key issues between both the foundations. The ââ¬Ëindividual immersionââ¬â¢ is a subject of observation for anthropological foundation where as ââ¬Ëindividual involvementââ¬â¢ is taken into consideration as a subject of observation by sociological foundation. The anthropological foundation perceives culture as a dependent variable which requires an understanding of culture by the members of the organization where as sociological foundation perceives culture as an independent variables and assumes that other outcomes are dependent on organizational culture and can be predicted. Significance of organisational culture: It is imperative for organisations across the globe to understand their culture in order to succeed and
Sunday, February 2, 2020
Foreign Policies in the Middle East - 1750 Research Paper
Foreign Policies in the Middle East - 1750 - Research Paper Example Also after explaining the why maybe predict a future policy possibly that could be made down the road or just provide an implication from using our logic on why the other policies were created. The Middle Eastern foreign policies are among the most complex policies found anywhere in the world. Policymakers in this region have much internal autonomy in policymaking. But, Middle East is a region which has been plagued quite often with issues like instability and terrorism. This is why many opinions that this region is crowded with unstable states each of which is encountered with different challenges. This turbulence or insecurity plays a big role in shaping foreign policies. Many different labels have been given to these policies over time in research literature from strictly Islamist to Western to secular. This research paper aims to label these foreign policies as appropriately and objectively as possible with the help of modern research. It also serves to explain why foreign policies in the Middle East are so hugely affected by religion. Though there is a mix of factors which influences Middle East foreign policies, policymakers have never been able to ignore the factor o f religion which is a very powerful means of controlling or shaping the image of Middle East. A growing body of research over past many years has scrutinized the relationship between Islam and regional politics of Middle Eastern states. But, this research can surely benefit from more illuminating concepts about how religious thought works to affect outcomes of these foreign policies of different Middle Eastern states. Following discussion aims to illustrate the reality of this claim that religion strongly influences the internal relations of Middle East. It also hopes to improve understanding of this relationship between the two entities. The countries covered in this discussion are Iraq, Kuwait, Egypt, and Syria. Some suggest that bringing religion into international relations is not a modern or thoughtful strategy, but the state in the region of Middle East is different.Ã Ã
Saturday, January 25, 2020
Gender Inequality and Discrimination in America Essay -- Essays Papers
Gender Inequality and Discrimination in America What is your first memory of a child? Was it blowing out the candles on your birthday cake, or was it playing a game with a friend? Was it riding a bike or making a snowman? Many of these events will most likely be remembered of your childhood, but the memory of how you were socially biased will not be. The memory of being wrapped in a socially acceptable colored blanket depending on your gender either boy or girl. How your mother spoke to you, with a soft voice of understanding or concern if you were likely a boy, and how if you were a girl you were likely given a baby doll to play with instead of a truck. Throughout history gender differences have been exemplified given a particular culture. In the USA the role of the female has endured much discrimination as with racial discrimination. Many factors contribute to the problem of gender inequality [1]; two of these factors will be discussed, social structural factors and social psychological factors. Attitudes and values of both men and women perpetuate gender inequality. Past attitudes have reflected the traditional role of the female within society: the notion that women are less capable and competent as men. Within this traditional role, a woman's place is in the home, as the guardian of the social order. Gender roles are evident within any society. Not all roles follow these traditional roles of male dominance and submissive women. Such societies take on roles, which are the betterment of the community. An example would be the study performed by Margaret Mead (1969), of three primitive New Guinea tribes. Mead states that the meaning of being male and female is determined not only biologically but also... ...without gender differences we would all be as robots cohabitating in a fantasy world of equality. I took on this topic because of the strong emotion I feel as a women living with such discrimination in our society. As subtle as some discriminations are, there is no denying the definite battle of inequality women face daily within our society. Even with the economic, social, political and educational inequality that women must overcome, I will accept the fight, rather than conform to a non-gender society as stated by Bem. The desire of most women, including myself, is not to be the same as men but to be given the same opportunities and options in life. I believe in the philosophy that you can be whatever your heart desires. If a women strives hard enough, the trials and tribulations she may face along her chosen path will only make her stronger in the end. Gender Inequality and Discrimination in America Essay -- Essays Papers Gender Inequality and Discrimination in America What is your first memory of a child? Was it blowing out the candles on your birthday cake, or was it playing a game with a friend? Was it riding a bike or making a snowman? Many of these events will most likely be remembered of your childhood, but the memory of how you were socially biased will not be. The memory of being wrapped in a socially acceptable colored blanket depending on your gender either boy or girl. How your mother spoke to you, with a soft voice of understanding or concern if you were likely a boy, and how if you were a girl you were likely given a baby doll to play with instead of a truck. Throughout history gender differences have been exemplified given a particular culture. In the USA the role of the female has endured much discrimination as with racial discrimination. Many factors contribute to the problem of gender inequality [1]; two of these factors will be discussed, social structural factors and social psychological factors. Attitudes and values of both men and women perpetuate gender inequality. Past attitudes have reflected the traditional role of the female within society: the notion that women are less capable and competent as men. Within this traditional role, a woman's place is in the home, as the guardian of the social order. Gender roles are evident within any society. Not all roles follow these traditional roles of male dominance and submissive women. Such societies take on roles, which are the betterment of the community. An example would be the study performed by Margaret Mead (1969), of three primitive New Guinea tribes. Mead states that the meaning of being male and female is determined not only biologically but also... ...without gender differences we would all be as robots cohabitating in a fantasy world of equality. I took on this topic because of the strong emotion I feel as a women living with such discrimination in our society. As subtle as some discriminations are, there is no denying the definite battle of inequality women face daily within our society. Even with the economic, social, political and educational inequality that women must overcome, I will accept the fight, rather than conform to a non-gender society as stated by Bem. The desire of most women, including myself, is not to be the same as men but to be given the same opportunities and options in life. I believe in the philosophy that you can be whatever your heart desires. If a women strives hard enough, the trials and tribulations she may face along her chosen path will only make her stronger in the end.
Friday, January 17, 2020
Civil War: Myths vs Facts
There has always been a number of circulating myths about the American Civil War. We need to dig deep and find out if these myths are true. Did the South HATE black people? Did Robert E. Lee hate America? Was the civil war all about slavery? Did the South start the civil war? All of these myths are to be revealed. Supposedly the Southern people were the only Americans that enslaved black people. They tortured, beat, and starved them. According to research, a slave in todayââ¬â¢s modern world, would cost anywhere from $100,000-$200,000. Why would a slave owner waste that much money and something they would treat as a rag doll? In many cases slaves were treated as part of the family. The North also had slaves, not just the South. In the North, everything was supposedly free and had choices. The North technically did not own slaves, but they were people in the North that owed them things. These people were called indentured servants. These indentured servants were not all of African race either. They were to be released over a stated time. This myth came to be because basically whichever side won the war; they would blame the opposing side. Was Robert E. Lee a horrible man? Did he hate American with a passion? The answer to this is false. Robert E. Lee did not ever even own a single slave. He was very strong in his passion with the Confederate States of America. He lived in the state of Virginia and said he would never leave them in any hard times. In saying this, he joined the South in the American Civil War. He loved America, but did not like the injustice the South was being shown. His home of Arlington was turned into a war cemetery. Present day, it is known as Arlington National Cemetery. This was initially a cemetery for Union Soldiers. How could the entire war be about slavery? The war lasted 5 years, 1861-1865. The Emancipation Proclamation was put into effect in 1863. What could the war have been about for the last two years? The Civil War was fought because of Northern oppression. The South began to go bankrupt because the North was taxing the South very heavily, and the South was not as industrialized as the North. Slavery was an issue, but because the South was not industrialized. The South was just using what they had for resources. The slaves were their resources. There has been a myth that says that the South started the war. This is actually somewhat true, but not totally true. The South decided that it did not want be part of the United States of American anymore. It simply seceded. The North still had some forts located in the South though. Fort Sumter most notably was attacked by Southern soldiers because the South felt threatened by what could have been dangerous people from the North. The South was forced into battle because the North had sent a transport ship of supplies. The South defended itself because it had to protect itself from the transport ships and the Northern soldiers at Fort Sumter. The truth about all of these myths is revealed not by proof of Northern history, or Southern history, but of American History. Just because the North won, does not mean everything that they write and publish is true. There are many newspapers, letters, and diaries depicting significant events that reveal the truths of many other myths as well. The truth of these myths comes from the history that actually happened.
Wednesday, January 8, 2020
Is Bullying A Victim Of Bullying During Childhood And...
Being a victim of bullying during childhood and adolescents years can take a serious toll on your health and overall well-being. I, myself, have gone through the hardships of bullying throughout my years in school making me familiar with the long-term effects. I want people to become more aware of bullying and hope someday it can come to a stop. No matter what it involves, abuse is wrong and goes against our given rights. The magazine article, Hurt Can Go on Even after Bullying Stops, emphasizes that the negative health effects from bullying can carry on long after these aggressive acts end. Some of these negative health effects include, but are not limited to: anxiety, depression, and a damaged sense of self-worth. The main focus of this study was on studentsââ¬â¢ past and present bullying experiences and examined how the effects of bullying can add up over time leading to a potential ââ¬Å"snowball effectâ⬠. Researchers used surveys gathered from about 4,300 public school students in Houston, Los Angeles and Birmingham. The results from these surveys showed that 22% of the participants claimed being bullied in the fifth grade, 5% claiming to be bullied in the seventh grade, and 3% in the tenth grade. According to the surveys, bullying seemed to be less reported as the students grew older. The surveys also show that students who were bullied in the past and present scored the worst on numerous health tests, followed by students who were bullied only in the present, then studentsShow MoreRelatedWhy Bullying Is An Act Of Survival932 Words à |à 4 PagesBullying can be traced back to the beginning of time, but only recently has it become a national problem in schools. Donegan(2012) explains how the desire to survive is part of instinct among all living things due to the multitude of species and limited natural resources on the planet which requires species to compete. 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In a recent Broadly report (Kazdin, 2016), I read that on February 27, 2016, Marina Lonina, who was 18 at that time, live streamed her friend being raped by a 29-years-old man on Periscope app. She didnââ¬â¢t call the police and she claimed that she was doing it toRead MoreAdolescent Bullying Using A Liquid, Best Policy Practice Approach Essay1499 Words à |à 6 PagesReassessing Adolescent Bullying Using a Liquid, Best Policy Practice Approach Bullying is defined as the prolonged malicious act of harming peers by abusing their own--or an existing imbalance of--power, and has become one of the most common sources of trauma among adolescents. 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Past experiences in a person s childhood can form and shape t heir lives so that they may end up having social anxiety disorder. Some past experiences like bullying, depression and low self esteem can lead to the fear of socially interacting or communicating with other people. There are many cases of bullying that cause people to grow this disorder. Bullying is oneRead MoreEffects Concerning School-Age Bullying: A Retrospective Examination of College Students Experiences3654 Words à |à 15 Pagesï » ¿Retrospective examination of college students experiences and effects concerning school-age bullying Table of Contents Abstract: 3 Introduction: 4 Childhood Teasing: 4 School age bullying: 6 Experiences of college Students: 7 Long term Consequences: 8 Relationship with Interpersonal Functioning: 9 Relationship with anxiety and depression: 10 Relationship with trust: 11 Relationship with quality of friendship: 12 Coping Strategy: 12 Conclusion: 13 References: 15 Abstract: Read MoreThe Relationship Between Bullying And Peer Relationship1596 Words à |à 7 PagesThe Relationship Between Bullying and Peer Relationship In Middle Childhood Bullying is an unfortunate issue that many children face every day. When people think about bullying many imagine something like this; one child yelling at another to get his or her attention. Also, another scenario would be a child being bullied for their lunch or lunch money. However, todayââ¬â¢s bullying issues have become much more severe. Unfortunately, todayââ¬â¢s bullying antics could easily lead to physical and psychologicalRead MoreCan Witnessing or Experiencing Domestic Violence Be Linked to Bullying in Adolescents?1632 Words à |à 7 Pagesperson? Are they taught this behavior at a young age and just reflect what they are taught onto people outside of the home? As an adolescent, does witnessing and experiencing domestic violence first hand, make that child a bully or a victim of such acts? Numerous studies have been done to show in fact that there is a link between the issues of domestic violence and bullying. The two studies that have been compiled up recently, both have been done in Finland. Though it may seem weird that I am talking
Tuesday, December 31, 2019
Study On The Seagate Technology Buyout Finance Essay - Free Essay Example
Sample details Pages: 10 Words: 2858 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Motivation and structure of the transaction. In early 1999, Seagate was planning on major restructuring proposal with the private equity firm, Silver Lake partners L.P. The plan implied a leveraged buyout of Seagates disk drive operations, followed by the tax free acquisition of Seagates remaining assets by VERITAS Software Corporation. Donââ¬â¢t waste time! Our writers will create an original "Study On The Seagate Technology Buyout Finance Essay" essay for you Create order The choice for this two step transaction was mainly a result of Seagates 40 percent ownership of VERITASs common stock. In the previous year the share price of VERITAS increased significantly and the market value of Seagates share in VERITAS had come to substantially exceed Seagates entire market capitalization. The value gap was a result of the perceived tax liability by the market if Seagate were to sell its VERITAS stake and Seagates core disk drive operations were not fully valued in the market due to increased interest in Internet firms and cheaper data storage providers. The two-step transaction was thus believed by Seagates management to generate significant wealth gains for its shareholders. Before making their decision Seagates has to consider some alternatives to the previously described restructuring in order to address its low stock price. The company could sell the company as a whole, repurchase its own stock or sell off part of the VERITAS stake, or undertake a tax-f ree spin-off of either the disk drive business or its stake in VERITAS. We address each of these alternatives next. Seagate could choose to sell itself to other companies that may be interested. A merger or acquisition, in this case, could be either horizontal or vertical. Whereas a horizontal merger or acquisition could be beneficial for Seagate, because of the even higher market in the very competitive disk drive market, a vertical merger would be less successful as the company is already vertically integrated. However, it would be ideal for Seagate to be acquired by VERITAS as it holds 40 percent of its shares. But VERITAS was not interested in entering into the disk drive industry as management believed this was to far away from their core software business. A second alternative for the company is to sell its VERITAS stock or repurchase its own stock partially in the open market, however. However both actions proved to be ineffective. First Seagates ability to sell of VERI TAS shares was limited by a prior agreement made with VERITAS. Even if they could sell off the entire VERITAS stake, it still seems an undesirable outcome since the transactions would be taxable on both the corporate as personal accounts. Second when the company performed a repurchase it had little impact on its stock price. A tax free spin-off would imply that Seagate spins off one of its business units, the core disk drive business or the VERITAS stake as an entirely new company. However the internal revenue code, as part of the US statuary tax law, requires that both the distributing corporation and the controlled corporation must be engaged immediately after the distribution in an actively conducted trade or business for a five-year period. Furthermore it also states that the corporate divisions lacking a business purpose can not be accomplished tax free (IRS, 2003). Clearly the VERITAS stake corporation will not satisfy these conditions and thus a tax free spin-off is unlike ly. Besides the distribution must be the last resort for solving the business problem. In other words, it must be established that the business problem cannot be solved otherwise. This condition also does not hold since, as we will later see, the proposed two step transaction remains as a valid alternative. After reviewing these alternatives the proposed two step transaction seems to be baneful, mostly due to its low tax nature. As indicated in the case the stock-for-stock swap qualifies as a reorganization under the Internal Revenue Code, thus avoiding the tax implications as a swap. VERITAS will swap 109,330,300 shares for 128,059,966 shares previously owned by Seagate, and the tax advantage will be Huge as no personal or corporate taxes have to be paid on the transaction. Furthermore the decrease in total outstanding shares associated with the deal will cause earnings per share to rise, cetris paribus. In total this would be in the benefits of the VERITAS shareholders, enablin g the two stage transaction to be pursued on their behalf. Seagates shareholders also benefit from the potential restructuring program. First they will receive 109,330,300 shares that have experienced a price increase of 200 percent after the half year that followed VERITAS acquisition of Seagates Network and Storage group. Compared to the 25 percent increase over the same period of its own shares this is a significant difference. Furthermore they will receive an additional amount generated from the sale of Seagates disk drive manufacturing assets (including $765m of cash) to the Suez Acquisition Company. The benefits to be received here, and thus also the potential benefits of Silver lake Partners L.P. are thus for the main part determined by this price, which was not determined yet. Seagates employees will also benefit from the two step transaction as their incentive to perform increases significantly when the new Suez Acquisition Company is no longer tight to VERITAS performan ce. Corporate governance is now considerable tighter than in the old situation. A sincere loser of the reorganization is the government that could have gained more in taxes if one of the pre-described alternatives were chosen. Levering the buyout There are a number of benefits of leveraged buy outs. Business efficiency improvements, increased interest tax shields, change of management or improved management incentives and higher firm value are the most important possible effects. In the case Seagate an increase of the stock price was the most important target of the leveraged buyout. Before the leverage buyout Seagates stock price was more and more tied to VERITAS stock price. The performance of Seagates main business was a subordinated parameter. The trial to increase the stock price by means of selling VERITAS shares and buy own shares in the open market did not lead to the aimed target. Therefore a leveraged buyout was a possibility to lose the stock price from the performance of VERITAS. Besides of this main purpose to disconnect the stock price development from VERITAS also other positive effects of leveraged buyout could be realized, as the improvement of the market position of Seagate from a strategic and long-ter m point of view. As a consequence a higher probability to secure a positive stock price development after being on the stock market again can be attained. Another positive aspect of leveraged buyouts are taxes that can be saved through higher debts and interest that is tax-deductible. Although it should be considered that interest cannot be deducted unlimited because of interest barrier rules or earnings stripping rules. Therefore the interest only can be deducted to a certain extent, depending on the debt-to-equity ratio. There are specific regulations that differ from country to country. In case of cross-border leveraged buyouts the situation should be analyzed separately. Within the EU there is no different treatment in cross-border situations because of the freedom of establishment and the freedom of capital of the EC Treaty. A decisive argument of leveraged buyouts is the possibility that enterprises that were poorly managed before their acquisition can undergo valuable c orporate reformation when they become private. An important change in the corporate structure is often the modification and replacement of the management staff or improved management incentives. In the Seagate case Silver Lake was convinced about the abilities of the management team. Silver Lake argued that the members of the management team had over ten years of experience in the disk drive industry and underlined that it was an important condition of the deal that the six top managers were taken over. In many articles it is argued differently as a restructuring without modification of management staff is much harder and there is a stronger opposition against many unpleasant but necessary changes. As incentives the management had to convert a portion of their Seagate equity into new equity and also got some deferred compensation. The rejection of unnecessary company sectors as well as the reduction of excessive expenditures also is an important factor for the success of the deal. In the leveraged buyout market stable and predictable cash flows and significant tangible assets which can be provided as security for bank loans are positive preconditions. These are features that make an enterprise for private equity firms interesting to invest. In the 1980s and early 1990s industrial companies were strongly favored and technology business was avoided. This has changed as the technology sector has become more and more important and in the last years this sector has become increasingly more interesting for Private Equity investments (von Nell-Breuning/2010). The disk drive industry as part of the technology sector is distanced by heavy price competition, short product life cycles which are often no longer than six months and high expenditures on RD. These are features that make buyouts very risky. It makes it difficult to predict cash flows, which plays a significant role for the success of a leveraged buyout. Nevertheless Silver Lake was convinced that in gen eral the disk drive industry market development would be extremely positive and that the disk drives would be the key technological component in hardware products. It also should be taken into account that Seagate had a number of characteristics that were from a positive nature for a leveraged buyout like vertical integration for a better competitive position on the market. But also high RD while using up cash is a positive aspect to prevent market entry of smaller, less well-capitalized competitors. Another advantage of Seagate was the relatively high equity ratio compared with the technological industry. The equity ratio of Seagate was 26.6 per cent in June 1997, it was 29.6 per cent in June 1998 and in June 1999 the equity ratio constituted 23.9 per cent. The equity ratio of its competitors were lower, f.ex. the competitor Quantum HDD only had an equity ratio from about 13.5 per cent. The average equity ratio of mature industries is between 20 and 25 per cent depending on the country. Capital Structure In order to assess the capital structure of the deal and in essence the amount of debt the Luczo and the buyout team should take it is necessary to estimate the firm value. Two model are being considered for this task. The first one is the relative valuation model. The rationale for relative valuation stems from the notion that the intrinsic value of an asset is difficult to estimate. Its value can be measured by the price the market is willing to pay for its assets, based upon its characteristics. The second model being considered is the DCF model. When comparing relative valuation with DCF, one advantage over DCF is the reflection of market perceptions on the value of the company. Thus, in a perfect market, the perceptions of future prospects are already reflected in the stock price. It requires less information than DCF models and is therefore less prone to estimation errors. In addition, managers are often judged on a relative basis and relative valuation might therefore match their needs and horizons. Markets are assumed to make mistakes when pricing assets across time. DCF valuations detach themselves from market valuations and assess the fundamentals underlying the firm and its growth perspectives. Relative valuation leads to a reasonable estimate when there are many comparable assets that are priced in the market and a common variable can be applied to standardize the prices. Although the case offers some information on competitors we deem the data to be insufficient. Even more, relative valuation works best for investors that usually have relatively short investment horizons as it is rather difficult or impossible for the market to perceive long-term growth perspectives. In general a private equity investment(PE) spans on a 5 to 7 years time line meaning the PE investor has a medium to long-term investment horizon. More confidence in reasonable firm value estimation is thus assigned to the DCF valuation. The fundamentals of a company provide a pruden t basis for estimations. Assumptions for the estimations are transparent while these are rather not in the case of relative valuation. A DCF valuation can be applied to long-time horizons and is thus more applicable for investors with long-term investment perspectives. In addition, a fundamental approach might work as a catalyst that moves the price in the market towards the real value of the assets. Silver Lake Partners L.P., as the bidder for the controlling stake of the company is interested in deriving the firm value, meaning the value of the equity stake in association with debt. Cash flows coming from operating activities would therefore need to be estimated. A first step concludes in the calculation of free cash flows to firm (FCFF). The FCFF is computed based on the following assumption: The company management provides three different projections for the buyout team: The Base Case, The Upside case and The Downside Case, each differing in EBITA and Revenues values. C apital expenditures and Depreciation are to remain the same in all three cases. The values used are provided in the operating performance projections table of Seagate. The working capital(WC) is mentioned in the case as being historically equal to 0 for the industry so the change in WC is to be ignored. According to this values the FCFF can be computed. After total cash flow is calculated, it is brought back to NPV using the companys weighted average cost of capital (WACC). The WACC, which is defined by the relative cost of the companys debt and equity is also viewed as the required rate of return for the company and its investors to compensate them for the inherent risks of ownership and realization risk for projected cash flows. The value for the risk free rate and the market risk premium have been set as given by Damodaran(2010) as 3.20% and 2.05% respectively. The beta of the company is supplied by the case as 1.2. Thus we come to the value of 6% for the WACC. Based on the va lues of the FCFF and WACC computed we can now asses the present value of the firm in the years to come. By summing up this values for the required time horizon we get to the firm values for the three cases Figure 1 Firm value analysis As it can be noticed the firm values for the cases register important differences. The Upside case stands out. Comparable to this the Downside Case has a much smaller difference. In order to better account for the possibility of worse than expected, but more importantly, for better than expected performance in the company we consider that the average of the three values should be used as the firm value and as the price the buyout team should pay meaning US$2.224 billion. We have determined a purchase price of $2.22 billion that Silver Lake Partners will pay to acquire the operations of Seagate. This will be a leveraged buyout that includes two different equity sources and two different debt sources. Our proposed capital structure will consist of 79% percent equity and 21% percent debt. This structure was chosen based on the BBB three-year median rates as referenced in the case (Exhibit 11). The EBIT Interest Coverage ratio set the median value over 1997 to 1999 of 3.9x. In order to get the highest value for the firm when deciding to sell it, the PE firm will try to maintain its rating or even to improve it so it makes sense to consider the BBB value as appropriate. Even more lower rating will also mean higher interest rates for its debt. Using this value and the EBIT values provided for the case we can compute the amount of interest that the firm can afford to pay every year. It can be noticed in Exhibit 1 that the lowest value for EBIT is predicted in year 2000 so it makes sense to consider this value as a benchmark as the following years the performance is expected to improve. Starting from amount of interest that the firm can afford to pay every year we calculated the value of debt that the firm has to take in order to be required to pay that amount of interest. This adds up to US$468.31 meaning 21% of the price recommended for the deal. By comparing this result with the values provided in Exhibit 11 from the case it can be noticed that the firm will remain under BBB rating. The remaining 79% is to be provided by the buyout team in form of equity. It should also be considered that Silver Lake Partners L.P. will receive US$765 million by acquiring Seagate, funds that can be used as equity for the deal. Figure 2 level of debt analysis In order to better assess the impact of the three scenarios on the capital structure of the deal we also used the values computed under The Base Case, The Upside Case and The Downside Case. Again it can be noticed that the better performance predictions stand out. This is based on the possibility that in the latter years of the investment the firm will perform over the expectations even though 2000 is perceived as the same in all cases.
Monday, December 23, 2019
Intro to Logic - 821 Words
1. The following argument violates some principles of well-crafted arguments: While 1[there is much wickedness in the world,] 2[then there is also much good.] For 3[if there is evil, then there must be good,] since 4[good and evil are relative, like big and small.] And no one will deny that 5[evil exists.] Answer questions ââ¬Ëaââ¬â¢ to ââ¬Ëeââ¬â¢ below from the passage above. A) Write a well-crafted version of the argument, replacing the emotionally loaded verbiage with more neutral language. 1. The world has much good and evil. b) Examine each statement and explain the reference to the language and sentences used as to how you could decide whether this argument is valid or invalid. The language used is uniformed and charitable.â⬠¦show more contentâ⬠¦1. Water is life. 2. Life is a gift. 3. My guitar is a gift. 4. Thus water is my guitar. Answer questions ââ¬ËFââ¬â¢ to ââ¬ËIââ¬â¢ below from the passage below. Mercy killing is morally permissible only if it promotes a greater amount of happiness for everyone affected than the alternatives do. And mercy killing does promote a greater amount of happiness for everyone affected than the alternatives do. Therefore, mercy killing is morally permissible. f) Use as many examples that may include symbols and letters if necessary to help you to distinguish between formal validity and formal invalidity. Formal validity: 1. If A then B 2. A 3. So B Formal invalidity: 1. If A then B 2. B 3. So, A g) Use letters to write the argument form of the passage above. 1. If B, then A 2. B 3. So, A. H) Construct a counterexample to the argument form above. 1. If mercy killing promotes a greater amount of happiness for persons affected than the alternatives do, then it is morally permissible. 2. Mercy killing does promote a greater amount of happiness for those affect ed than the alternatives do. 3. 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