When Kraft recently bid $16.7 billion for Cadbury, Cadbury's market value rose, but Kraft's market value fell by more. what does this tell you about the value-creating potential of the deal?
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When Kraft recently bid $16.7 billion for Cadbury, Cadbury's market value rose, but Kraft's market value fell by more. what does this tell you about the value-creating potential of the deal?
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- Why is Bill Gates so rich and famous as an entrepreneur?(Brief explanation will do. Please provide an answer. Thank you in advance.)"I know that it's the thing to do," insisted Pamela Kincaid, vice president of finance for Colgate Manufacturing. "If we are going to be competitive, we need to build this completely automated plant." "I'm not so sure," replied Bill Thomas, CEO of Colgate. "The savings from labor reductions and increased productivity are only $4 million per year. The price tag for this factory-and it's a small one-is $45 million. That gives a payback period of more than 11 years. That's a long time to put the company's money at risk." "Yeah, but you're overlooking the savings that we'll get from the increase in quality," interjected John Simpson, production manager. "With this system, we can decrease our waste and our rework time significantly. Those savings are worth another million dollars per year." "Another million will only cut the payback to about 9 years," retorted Bill. "Ron, you're the marketing manager-do you have any insights?" "Well, there are other factors to consider, such as service…Suppose that a local electrical utility firm was split into five firms of equal size. What do you expect about electricity prices?
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- Janine and John share profits of their partnership in the ratio of 2:3. If Janine's share in the profit for last year was P 30,000.00, how much was John's share in the profit of the business?Suppose that the market for cherries in Shandong Province consists of two firms: Organicherry and Pesticherry. You are the owner of Organicherry, and have discovered a natural way to ward off aphids without resorting to pesticides. This advantage has allowed you to enjoy a relatively higher yield than Pesticherry. You use this advantage to be the first firm to choose its output level. The inverse demand function for a box of cherries is P = 1,125− 5Q (prices are in CN¥). Organicherry’s costs are CO(QO) = 40QO, and Pesticherry’s costs are CP(QP) = 80QP. If there were no official/legal issues in merging the two firm, would it be profitable to merge with Pesticherry? If so, how much would you offer to Pesticherry’s owners? [You may use the facts that, if R(Q)=aQ2 +bQ+c then MR(Q)=2aQ+b and that,ifC(Q)=cQ then MC(Q) = c.]Japan Airline is interested in purchasing new commercial aircraft from us manufacturer Boeing at a price of 89 million dollars per plane. What is the difference in the Yen price between month 1 and month 2? During which month is Japan Airlines more likely to buy more planes? Why? Explain your answer using the numbers from the chart and show your math.