Monday, May 25, 2020

Essay on Case Study Dupont Divestiture of Conoco

FI561- Mergers and Acquisitions Week 5 Case Study: DuPont Divestiture of Conoco November 27, 2011 . Abstract In this paper, we are examining the 1998 DuPont spin off of Conoco by analyzing the transaction itself. Then, I look at one of the possible alternatives to the chosen transaction and compare that alternative with the actual long term impacts of the sale. I will then decide and recommend which option would have been the best utilized by DuPont over the long-term in order to generate the most revenue from its ownership of Conoco. DuPont purchased Conoco in 1981 and it was the largest merger in corporate history at that time. The purchase gave DuPont a secure source of petroleum feedstocks needed for many of its fiber†¦show more content†¦Conoco was involved in different aspects of the oil industry, however, which somewhat sheltered DuPont against sudden drops in the price of oil. A spin-off of Conoco meant that executives would be able to address these two issues at the same time. To determine if this was the most appropriate course of action requires looking at the situation through the eyes of CFO. This will be accomplished by: analyzing the actions that took place and possible alternatives. These different elements will help determine it the spin-off was a financially prudent transaction over the long term, or if an alternative transaction would have been more financially worthwhile. The Actions of DuPont In 1998, the price of crude oil went into a major decline with prices collapsing to below $20 per barrel after reaching highs around $37 during the Iran oil embargo of 1979. (â€Å"Chartsbin†) Some companies within the oil industry such as Conoco In some cases were integrated producers that were somewhat protected against an overall collapse in the price of oil. Conoco had operations in different segments of the industry including: drilling, refining, transportation and production. The combination of these segments helped provide Conoco with consistent profits those profits were not as high as DuPont executives had hoped whenShow MoreRelatedCase Analysis : Dupont Company1135 Words   |  5 PagesWRITTEN ANALYSIS Initially, DuPont started operating in 1802 as a gunpowder manufacturer supplying the U.S. army under the president Thomas Jefferson. It is based in Delaware. The company operated in different industries because they had a tradition of technological innovation in businesses as diverse as food and nutrition, healthcare, agriculture, fashion and apparel, home and construction, electronics, transportation and energy. During the year it evolved into a giant chemical and textileRead MoreEssay on Dupont Divestiture1607 Words   |  7 PagesDuPont’s Divestiture of Conoco | Analysis of the Merger | | DuPont began life in 1802, as a gunpowder manufacturer supplying the US Army under President Thomas Jefferson. The company had a long tradition of technological innovations in business and it continues to serve worldwide markets including food and nutrition;  health care; agriculture; fashion and apparel; home and construction; and electronics. Among some of its inventions are nylon stockings invented in 1939, Teflon for pans, KevlarRead MoreDivestiture of Dupont Company1274 Words   |  5 Pagesï » ¿Running Head: DIVERSTITURE OF DUPONT COMPANY DIVERSTITURE OF DUPONT COMPANY I suggest a divestiture model that will enable Dupont to sell a minority stake in Conaco. A partial sale, in the range of 40 to 50 per cent, will enable Dupont to make upfront payment to reduce its debt load as well as ongoing interests in the company through its remaining stake. Basically, such an arrangement would allow the businesses to act in a more commercial manner, thus increasing the value of Duponts remainingRead MoreExxon Mobile Merger13851 Words   |  56 Pagesdeal terms, discounted cash flow (DCF) spreadsheet valuation models, DCF formula valuation models, valuation sensitivity analysis, the value consequences of the merger, antitrust and competitive reaction patterns, and the implications of the clinical study for merger theory. JEL classification: G34, G20 Keywords: Mergers; Acquisitions; Alliances The Exxon-Mobil Merger: An Archetype The high level of merger activities throughout the world between 1994 and 2000 reflected major change forces. TheseRead MoreA Financial Perspective on Mergers and Acquisitions and the Economy19349 Words   |  78 Pagesin 1986 and 36 of 3000 deals in 1985 (Grimm, 1985). There were only seven billion-dollar plus deals in total, prior to 1980. In addition to these takeovers, mergers, and leveraged buyouts, there were numerous corporate restructurings involving divestitures, spinoffs, and large stock repurchases for cash and debt. The gains to shareholders from these transactions have been huge. The gains to selling-firm shareholders from mergers and acquisition activity in the period 1977-86 total $346 billion (inRead MoreExxon Mobile Capstone40455 Words   |  162 Pages........................................................33   Acquisitions ............................................................................................................................................ ...........................34   Divestiture.........................................................................................................................................................................35   Joint  Venture  and  Alliances ............................................

Thursday, May 14, 2020

Gay Marriage Should Be Legal - 1179 Words

GAY MARRIAGES Some states such as Iowa legalized gay marriage through the action of judicial interpretation based on the state’s constitutional stipulations while other states such as Vermont legalized gay marriage through legislation initiatives. These cases demonstrate the government is the sole body that can dictate the validity of whatever is to be regarded as a marriage, and in this case gay marriage. The power to validate marriage is still observed among the private citizens, religious institutions, in families and in the civil society as well. The society, religious institutions and the state seem to be influencing the degree of freedom of marriage by deciding who marries and who can’t marry. These parties’ involvement in the issue of marriage has significantly raised fundamental issues about the biased nature of promoting equity in granting marriage rights most especially to homosexual couples. The government engages in action of granting dignity to a potential couple for marriage. However, religious institutions take up the role of administering the right of marriage. The society should accept the existence of homosexual people because their presence does not directly harm or pose any threats to the society. In the article titled ‘Another Argument for Legalizing Same-Sex Marriages’, Donald Marron suggests that â€Å"It would benefit those who want to get married, while harming, as best as I can tell, no one. (In econo-speak, that’s called a Pareto improvement, and theShow MoreRelatedGay Marriage Should Be Legal1205 Words   |  5 PagesHoward Sociology 1301-93431 Gay Marriage Getting married is something that most people do when they find love, which it is an important event in their life. The GLBT (gay, lesbian, bisexual and transgender) community now get the legal right of same-sex marriage, which they have fought for throughout the years; on the other hand, some opponents of same-sex marriage have called for a constitut ional change towards it. Although there were some countries that allowed gay marriage before the United StatesRead MoreGay Marriage Should Be Legal1159 Words   |  5 PagesAmendment, which puts a ban on gay marriage. This amendment entitles to equal rights to the gay community, ending toleration of discrimination in jobs, rights protecting gays from hate crimes,rights allowing advancement in government. However, the concept of gay marriage is still not considered a right the American people should extend to homosexuals. II. The vast majority of opponents believe marriage should be between one woman and one man, meaning marriage should be between members of the oppositeRead MoreGay Marriage Should Be Legal1574 Words   |  7 Pagesequal rights. Gays and lesbians are consistently denied rights that are typically taken for granted by the average American. Specifically, gay and lesbian couples are denied the right to marry even if they are outstanding citizens. They are held at an unfair disadvantage solely because of their sexual orientation. This discrimination must stop, because gay and lesbian couples are law-abiding citizens too, who should be afforded the same rights as heterosexual couples. Marriage is about love andRead MoreGay Marriage Should Be Legal1564 Words   |  7 PagesWhat is marriage? Recently, people argue with respect to the definition of marriage. What happened to marriage? To get married is a very important event for almost everyone. Especially for women, marriage and giv ing a birth could be the two biggest events of their lives. Many people believe that getting married to the one whom he or she loves is natural. However, what do you think if you cannot get married to him or her because it is socially unacceptable? 100 years ago different colored peopleRead MoreShould Gay Marriage Be Legal?778 Words   |  3 PagesShould Gay Marriage Be Legal? â€Å"†¦I now pronounce you husband and wife†¦Ã¢â‚¬  One would normally hear this when attending a wedding. In tradition marriage has been between one male and one female who love each other. But how would one feel if they heard â€Å"I now pronounce you groom and groom† or how about â€Å"†¦bride and bride...†? In the last 50 years the number of same-sex couples has increased. The on-going argument between the government and the people is â€Å"Should gay marriage be legal?† Although some sayRead MoreGay Marriage Should Be Legal1126 Words   |  5 PagesJune 26, 2015 for gay marriage to be legal in all fifty states, thirty seven out of the fifty and Washington D.C already legalized gay marriage. Many support gay marriage and many do not, with widespread values and reasons for and against it. Due to religion and rights people across the nation have differing views and opinions of it.In a five to four vote in the Supreme Court gay marriage becam e legalized in all fifty states. Shortly after that a few marriage officiators and marriage licenses peopleRead MoreThe Gay Marriage Should Be Legal947 Words   |  4 PagesDefending Gay Marriage During the last few years, homosexuality has become an important issue for debate. Moreover, homosexuals have taken their case further by claiming their right to marry. Same-sex marriage, usually known as â€Å"gay marriage†, is the marriage between two people from the same biological sex (Doskow1). Since 2000, eleven countries have approved the legalization of gay marriage worldwide: Netherlands, Belgium, Spain, Canada, South Africa, Norway, Sweden, Portugal, Iceland, ArgentinaRead MoreGay Marriage Should Be Legal1480 Words   |  6 PagesNew World Dictionary defines the word married as being husband and wife, yet there are millions of gay activists who are fighting for a new meaning. They believe marriage is more than a piece of paper and a set of rings. The hope is that marriage could be defined as a â€Å"public recognition of a private commitment† or â€Å"emotional, financial, and psychological bond† between two people (Sullivan 53). Gay activists belie ve that taking away the ability to have a publicly recognized relationship or an acceptedRead MoreGay Marriage Should Be Legal1351 Words   |  6 Pageshappened for United States, gay marriage became legal in all 50 states. In most states it already was but the remaining 13 became legal this year. There are many concerns regarding gay marriage, and the effects of them involve many legislative, cultural, religious and family issues. Gay marriage is controversial because a lot of people do not approve of it, they think it is immoral, unnatural, and not what the traditional concept of â€Å"marriage† really means. Opponents of gay marriage say it is only meantRead MoreGay Marriage Should Be Legal925 Words   |  4 PagesGay Marriage jenisea Phoenix Community College Gay Marriage What if you met someone and fell deep in love? What if they meant everything in the world to you? Wouldn’t you do whatever it takes to make them happy? What if i told you that you couldn’t? and that no matter how much you showed someone that you are meant to be that you couldn’t marry them? Wouldn’t that tear you apart inside?. â€Å"The Human Rights Campaign Foundation states that

Wednesday, May 6, 2020

Benefits Of Non Renewable Energy - 788 Words

Non-Renewable energy is the energy which is taken from the sources that are available on the earth in limited quantity and will vanish fifty-sixty years from now. Non-renewable sources aren’t friendly to the environment and can have serious impacts on people’s health. They’re called non-renewable because they can’t be generated again within a small amount of time. Non-renewable sources are existent in the form of fossil fuels, natural gas, oil and coal. Now, just like Renewable sources do, Non-Renewable sources also include pros and cons. Pros, Non-renewable sources are low in price and pose no difficulty to utilize. You can with ease fill up the tank of a car and power a motor vehicle. People can use short quantity of nuclear energy to†¦show more content†¦Why should we conserve Energy? Energy has to be taken care of to protect our environment from huge changes, to rescue the depleting resources for our to come generations. The rate at which the energy is being created and consumed can harm earth in many ways. In other words, it helps us to save the environment. We can reduce those impacts by consuming less energy. The cost of energy is rising every year. It is important for us to realize how energy is useful to us and how can we avoid it getting wasted. Home energy audits in Calabasas will develop custom solutions to keep the energy efficiency of your home at its highest level. Energy in India defines energy and electricity manufacture, depletion and importation in India. Energy policy of India designates the politics of India associated with energy. Electricity segment in India is the central article of electricity in India. At India, The Ministry of New and Renewable Energy offers data in the form of a yearly report concerning advancement in the energy area. India is a remaining energy distributor. India was 3rd highest coal producer in 2009. India carries importations of oil and coal. Energy conservation has arisen as t he main policy goal, and the Energy Conservation Act in 2001, was approved by the Indian Parliament in September of 2001, 35.5% percent of the populace still live deprived of the right to use electricity. This Act necessitates great

Tuesday, May 5, 2020

Theory and Measurement of Economic Externalities MyAssignmenthelp

Question: Discuss about the Theory and Measurement of Economic Externalities. Answer: Introduction: The essay focuses on the economic analysis of the article on discovery and effects of new genes on the bread wheat production in Australian economy. The article says that researchers have found 21000 new variety of genes in 16 different varieties of wheat. Also the variations among the common wheat varieties have also been discovered. According to professor David Edwards, these new discoveries could help in the creation of disease resistant wheat varieties as well as it could open up opportunities in the wheat production in the world. Hence, this discovery of new genes has a positive effect on the horticulture industry of Australia. This not only would increase the variety of wheat to be produced, but it would improve the quality of wheat also by making it disease resistant (Logan, 2017). The market for wheat is a market with perfect competition. Here, the product is homogeneous; there are many buyers and sellers; a single seller has no power to influence the market price, hence, the sellers are price taker (Kirzner 2015). The discovery and application of new disease resistant genes in the wheat is going to increase the supply of the wheat in the market. As better quality of wheat is ensured, and disease resistant genes ensure that the level of crop damage due to diseases is reduced, the supply of wheat will rise in the market (Tomek Kaiser, 2014). The above figure shows that initially the market equilibrium is at E1, with price P1 and quantity supplied Q1. With the introduction of new genes in the wheat varieties, the crop damage is reduced and better quality is supplied. Thus, supply of wheat rises in the market, and supply curve shifts rightward from S1 to S2. In the short run, demand will not change as the income and preferences of the consumers do not change. Thus, there is excess supply in the market at the initial price P1. To absorb this excess supply, the producers will decrease the price to P2 to reach the new market equilibrium at E2. The new equilibrium price is less than the initial equilibrium price and quantity is more than the initial quantity supplied. Price elasticity of demand is the change in the quantity demanded due to one percent change in the price of the product. As wheat is an agricultural product and it is a necessary good; hence, wheat is relatively price inelastic. Even if the price changes, the demand for wheat does not get affected much (Thimmapuram Kim, 2013) Figure 2 shows the impact of price changes on the quantity demanded of wheat. As it is an agricultural and necessary product, changes in the price will not affect the quantity demanded much. It has a relatively inelastic demand curve. When the supply increases, the supply curve shifts rightwards to S2 from S1. The price falls from P1 to P2. Due to price inelasticity, the fall in price does not have a significant effect on the quantity demanded, as it rises from Q1 to Q2. Thus, revenue of the producers will not increase much (Wang Dalal, 2015). The discovery of new genes in the wheat varieties has a positive externality on the wheat production. Researchers assure that this new invention would help in the production of better quality and disease resistant wheat. The benefit will be enjoyed by everyone in the society. However, in this case, consumers will enjoy better and more bread wheat at a lower price. Therefore, producers might incur losses, as they would spend more for better quality seeds but would get less revenue. To solve this problem of positive externality, the government can give subsidies to the farmers. This subsidy would increase the revenue of the farmers, while the consumers do not have to pay extra price (Lin, 2014). This essay has discussed the possible effects of the discovery of new genes in the wheat varieties as highlighted in the article, and the impact on the prices of wheat. The new 21000 genes in 16 varieties of common wheat breed are opening a new direction in the wheat production in Australia. This would not only offer better quality of wheat but also increase the supply, as diseases in the crop would be reduced. As demand remains unchanged in the short run, the price of wheat would fall and revenue would not increase much. Hence, to prevent the effects of positive externalities, the government should provide subsidies to the farmers. References: Kirzner, I. M. (2015).Competition and entrepreneurship. University of Chicago press. Lin, S. A. (Ed.). (2014).Theory and measurement of economic externalities. Academic Press. Logan, T. (2017). Scientists make discovery that 'shakes up' foundations of wheat genome research. ABC News. Retrieved from https://www.abc.net.au/news/rural/2017-03-09/researchers-find-new-bread-wheat-genes/8337326 Thimmapuram, P. R., Kim, J. (2013). Consumers' price elasticity of demand modeling with economic effects on electricity markets using an agent-based model.IEEE Transactions on Smart Grid,4(1), 390-397. Tomek, W. G., Kaiser, H. M. (2014).Agricultural product prices. Cornell University Press. Wang, W., Dalal, R. C. (2015). Nitrogen management is the key for low-emission wheat production in Australia: A life cycle perspective.European Journal of Agronomy,66, 74-82.