Innovative company Essay Example for Free

Innovative company Essay ?Innovative Engineering Company was founded by two partners: Meredith Gale and Shelley Yeaton, shortly after they graduated from engineering school. Within five years the partners had built a thriving business, primarily through the development of a product line of measuring instruments based on the laser principle. Success brought with it the need for new permanent capital. After careful calculation, the partners placed the amount of this need at $1. 2 million. This would replace a term loan that was about to mature and provide for plant expansion and related working capital. At first, they sought a wealthy investor, or group of investors, who would provide the $1. 2 million in return for an interest in the partnership. They soon discovered, however, that although some investors were interested in participating in new ventures, none of them was willing to participate as partner in an industrial company because of the risks to their personal fortunes that were inherent in such an arrangement. Gale and Yeaton therefore planned to incorporate the Innovative Engineering Company, in which they would own all the stock. After further investigation, they learned that Arbor Capital Corporation, a venture capital firm, might be interested in providing permanent financing. In thinking about what they might propose to Arbor, their first idea was that Arbor would be asked for $1. 2 million, of which $1. 1 million would be a long-term loan. For the other $100,000, Arbor would receive 10 percent of the Innovative common stock as a sweetener. If Arbor would pay $100,000 for 10 percent of the stock, this would mean that the 90 percent that would be owned by Gale and Yeaton would have a value of $900,000. Although this was considerably higher than Innovative’s net assets, they thought this amount was appropriate in view of the profitability of the product line they had successfully developed. A little calculation convinced them, however, that this idea (hereafter, proposal A) was too risky. The resulting ratio of debt to equity would be greater than 100 percent, which was considered unsound for an industrial company. Their next idea was to change the debt/ equity ratio by using preferred stock in lieu of most of the debt. Specifically, they thought of a package consisting of $200,00 debt, $900,000 preferred stock, and $100,000 common stock (proposal B). They learned, however, that Arbor Capital Corporation was not interested in accepting preferred stock, even at a dividend which exceeded the interest rate on debt. Thereupon, they approached Arbor with a proposal of $600,000 debt and $600,000 equity (proposal C). For the $600,000 equity, Arbor would receive 6/15 (i. e. , 40 percent) of the common stock. . . . Assignment 1. For each of the four proposals, calculate the return on common shareholders’ equity (net income after preferred dividends divided by common shareholders’ equity) that would be earned under each of the three income assumptions. Round calculations to the nearest $1,000 and 1/10 percent. 2. Calculate the pre-tax earnings and return on its $1. 2 million investment to Arbor Capital Corporation under each of the four proposals. Assume that Arbor receives a dividend equal to its portion of common stock ownership times Innovative’s net income after preferred dividends (if any); assume a â€Å"negative dividend† if Innovative has a net loss. 3. Were the partners correct in rejecting proposals A and B? 4. Comment on the likelihood that Innovative Engineering Company could find a more attractive financing proposal than proposal D. Answer : A. 1. 100k long term loan, 100k = 10% of Common Stock. B. 200k Debt, 900k Preferred Stock, 100k Common Stock. C. 600k Debt, 600k Equity, arbor will get 40% of the equity D. 300k debt, 900k equity, 50% Interest 8% Dividend 10%

Comparison of Supply Chain Management Practices Essays -- Wal-Mart and

This report provides a comparison of the supply chain management practices of Wal-Mart and Toyota. Comparison was done after researching, examining, and analysing each company’s supply chain management practices, in relation to each company’s values and philosophy. Comparison was done in five sections, by examining strategic alliances, procurement and outsourcing, challenges and risks, sustainable strategies, and efficient supply chains in relation to technology. Additional figures and references used can be found in the appendix and reference list. Comparison of the two supply chain management practices showed that despite being from different industries, with different company philosophies, Wal-Mart and Toyota both have similarities in their supply chain management practices. In particular, the two companies are similar in their responses to challenges and risks faced, as well as the incorporation of sustainable strategies in their supply chain practices, and their usage of technology to increase the efficiency of their supply chains. In conclusion, a number of recommendations are presented for each firm. Wal-Mart is advised to foster a more collaborative supplier relationship, especially with local entities in unfamiliar markets, as well as encouraging suppliers to build more sustainable operations through the research of efficient packaging designs. Recommendations for Toyota include revising contracts and risk management with Toyota’s current and future suppliers for stricter quality control along their supply chain, so as to ensure delivered materials are standardised. Moreover, Toyota could also enter new geographic markets though a strategic alliance with existing companies. By doing so, Toyota is able maintain thei... ..._philosophy/toyota_global_vision_2020.html. Toyota Global. (2013, September). Sustainability Report 2013. Retrieved from http://www.toyota-global.com/sustainability/report/sr/pdf/sustainability_report13_fe.pdf. Trudell, C., & Hagiwara, Y. (2014, April 10). Toyota Recalls More Than 6 Million Vehicles Worldwide. Bloomberg. Retrieved from http://www.bloomberg.com/news/2014-04-09/toyota-recalls-6-76-million-vehicles-worldwide-including-rav4.html. Useem, J., Schlosser, J., & Kim, H. (2003). One Nation Under Wal-Mart. Vitousek, P. M. (1994). Beyond global warming: ecology and global change. Ecology, 75(7), 1861-1876. Waller, M., Johnson, M. E., & Davis, T. (2001). Vendor-managed inventory in the retail supply chain. Journal of business logistics, 20, 183-204. Want, R. (2004). RFID: A key to automating everything. Scientific American,290(1), 56-65.

Everyones day starts in the morning Essay

Everyone’s day starts in the morning and ends in the evening or night. It is very important to know when a person usually wakes up, eats or sleeps at night because these all activities affect the person’s biological clock. If a person is not following his/her daily routine, it can put the person in trouble. For example, if a baby is not sleeping when he/she is supposed to, she can have really badly next day. Not following a daily schedule can disrupt the sensations of your brain. There are two significant differences between working in the morning and in the evening, such as, changes of mood and behavior and changes in diet. The first difference of working in the morning and evening is the changes in person’s mood and behavior. Unlike evening workers, morning workers are more energetic and fresh-minded. Morning workers work more efficiently than evening workers because they have gotten enough sleep at night, so their body has recharged for the next morning. Moreover, working at sunrise helps the humans’ body to be productive. However, evening workers sometimes become lazy to do their job properly. Sometimes, they can’t focus on what they are doing because of irregular sleeping hours. Moreover, not having regular hours of sleep can cause a person to become depressed and mentally unstable. The second difference is the changes in person’s diet. Unlike the evening workers, morning workers usually have their breakfast before they start working. Then, they usually get hungry at noon because they have already burned the energy which they gathered from breakfast. So, that’s how their diets are regular. On the contrary, evening workers have time just to do their lunch. For instance, if a person is working from 7 pm to 6 am, he/she will sleep right after his/her working shift. Then, after waking up at noon, they get hungry and eat lunch. So, that’s how not having a breakfast or dinner will disrupt their diet. Disrupting a workers’ diet can cause them many unintended consequences. In conclusion, it is really difficult to change a person’s biological clock. There are many negative results of working in the evening. In addition, irregular working schedule make the day-to-day activities tougher to complete. A person can’t get enough time to do his/her day-to-day  activities. However, morning workers have the best productivity to do their job. Getting enough sleep at night and working at sunrise are two factors that give energy to morning workers. Changes in a person’s mood and behavior and changes in a person’s diet are two major differences of working in the morning and evening.

How to Make Glowing Bubbles

Bubbles are already awesome, but glowing bubbles are even better. It is easy and safe to make bubbles glow, plus it doesnt require any hard-to-find materials. Here is what you do. Materials Bubble solutionGlow in the dark solution (can use washable glow paint or can make glow solution)Bubble wand Make Glowing Bubbles Mix bubble solution with ​​the  glow solution.The only trick is making sure you have enough bubble solution to make strong bubbles and enough glowing solution to get a good glow. Try a 50:50 mix to start. You can add more glow liquid or more bubble solution, depending on your results. How to Make Glow Solution If you use washable glowing paint and add that to the bubble solution, your bubbles will glow in the dark after the solution has been exposed to bright light. Sometimes it can be difficult to find washable glowing paint, so you may wish to make glowing water using a highlighter pen. This solution mixes about 50:50 with bubble solution to make glowing bubbles. The color of the glow depends on the highlighter that you use. Highlighter pens fluoresce, which means you will need to shine a black light on the bubbles to get them to glow. Check your pen with a black light before you cut it open. Yellow almost always glows. Green and orange are good too, but a lot of blue and red pens dont glow. Here is how you make the glow solution: Use a knife to (carefully) cut a highlighter pen in half. Its a pretty simple steak knife and cutting board procedure.Pull out the ink-soaked felt that is inside the pen.Soak the felt in a small quantity of water.  Use the dyed water to make bubble solution or for other glowing projects. Safety and Clean-Up The glowing bubble solution is very safe, providing you used either non-toxic washing glow paint or a non-toxic highlighter pen. If you blow the bubbles outdoors you dont have to wash glowing liquid off of walls or furniture. Bubble solution is already pretty soapy, so clean up any spills with lots of water. One nice thing about cleaning up glowing bubble solution is you can see the spots made by the bubble solution very easily.