Case 47: Timken
1. What is the big idea of this case? In other words, what is the overarching question?
2. How does Torrington fit with the Timken Company, and what are the expected synergies?
3. What is your stand-alone valuation of Torri
Prof. James Nish
Chapter 1 questions
1. What are the benefits of a long-term perspective on value creation? For companies? For the
Companies focusing on long-term value creation want to generate higher return than their cost of
1. Draw the surface winds around the eye of the Northern
Hemisphere hurricane depicted in Figure 13-1.
2. How does subsidence at the storms periphery make surface
air relatively dry there?
Subsistence at the periphery of a hurricane dries the air because
1. Draw the surface winds around the eye of the Northern Hemisphere hurricane
depicted in Figure 13-1
2. How does subsidence at the storms periphery make surface air relatively dry
Subsidence is simply sinking air. As air sinks it warms adiabatical
Prof. James Nish
1. From a value-creation perspective, is it more important for a company to know
where to compete or how to compete? That is, is it more important to play in the
right markets or to be the best player in your
The Spirit Store
To create invoice for customer sales
The Spirit Store
1042 Liberty Road
Jackson, Michigan 60005
June 15, 2016
222 Central Avenue
1. Which of the following were fundamental flaws in the decisions made
by participants in the securitized mortgage market that contributed to
its boom through 2007?
I. Leverage creates value.
II. Lower costs create value.
III. Diversification creates valu
Diversification can reduce some risk, not eliminate it
How do you chose the right portfolio?
Common way: combination of things
Psychological side of it. Tool used is a simplification to see things.
Indifference curve relevant from an i
Week 2 Case 2
(Tutorial 2 Formatting a
Name A1 Title
& date style 24 pt
Doc. (changes to A3:A5
left, Long A3:B5
Accent 2 top Date borders
Copy A1 In F5
Share price has risen from R$15 to R$25/ Share
Debt: R$100 million
Sao Paolo data
Market risk premium
YTM 50 basis point aboe risk-free bond
Source of capital
The Timken Company
1. How does Torrington fit with the Timken Company?
There are several ways Torrington fit with the Timken Company, since that one is in
automotive and the other in the industrial bearings market they can be dependent on
one another. The
It faced growing competitive threats from other breweries both large and
Beer industry as a whole had been on decline while sales of wines and spirits
Opposing companies such as anheuser-bush inbev and Miller Coors LLC use
Chapter 1: Why value value ?
Responsible for the internet boom and bust: misapplication of supply-side
economies of scale
Franco Modigliani and Miller: Capital changes does not create value because
change the nature of productive assets
Getting bigger d
Arithmetic Order of Operations Examples
(Excel follows the rules for order of operations and will calculate
each example correctly so you can check your answers.)
In your head, figure the
answer to the calculation,
then type your answer in
Review: Mark T. Conrad, ed. (2007) The Philosophy of Neo-Noir.
Lexington, KY: University of Kentucky Press.
University of Bangor
Memento (Christopher Nolan, 2000), perhaps the most complex neo-noir
feature to be dis
Chapter 1: Why value value?
Responsible for the internet boom and bust: misapplication of supply-side economies of scale
Franco Modigliani and Miller: Capital changes does not create value because change the nature of
Getting bigger does
1. The Science of the atmosphere
A. Meteorology as a science: chap 1 p4-5, chap 2 p37-43, chap 6 p133 and 137
B. The Earth as a system: chap 1 p 6-7, chap 9: p 235-236, chap 3 p 60-62
C. The structure of the atmosphere chap 3 p48-60
2. Temperature: The Su
Dim x as variant
Dim y as integer
For K= 1 to 4
Cells (8 + k , 7). Interior.ColorIndex = 3 + k
Price per minutes and percentage of outbound call by company
Tot= Worksheets("Parameters").Cells(2, 5).Value
Chapter 6: Corporate level strategy
Creating value through related and unrelated diversification
1) Related diversification: economics of Scope
- Leveraging core competences
Core competencies: collective learning in organizations, how to coordinate
Class 2: Futures
T1: Oats selling at $2 per bu
Wheat selling at $2 bu
T2: They all went to wheat so
Wheat $ 1
Wheat $2 futures contract is for $10
There is a 3rd person in the transaction called the speculator
Buyers, seller, and speculator
Prof. James Nish
Chapter 2 questions
1. How does return on invested capital affect a companys cash flow? Explain the
relationship between ROIC, growth, and cash flow.
Return on invested capital is a key determinant of a company value. W
Strategy Entry-level cameras
We believe that our goal is to provide people a way of capturing their favorite
moment at low costs and good quality. We constantly devote our profits in
increasing customer su
1) Merge and Acquisitions
2) Corporate Governance
Comcast corporate governance promotes fairness and transparency. The board of
Comcast Board of directors is composed of outside and gray directors. Indeed, a lot of
directors do not have any direct connect
Rank the following from the most to least liquid: reserves, securities, commercial loans, physical
What happens to reserves of the bank if one person takes out 1000 and another deposit 500? Assets=
-500 and liabilities = -500