Pierce Crowley Writing 105102015 Research Essay Outli 565563

Pierce Crowleywriting 105102015research Essay Outlineintrothesis

Pierce Crowleywriting 105102015research Essay Outlineintrothesis

Pierce Crowley Writing /20/15 Research Essay Outline Intro: Thesis - Gun control has been an issue the United States has faced for years, but the recent gun culture and school shootings has erupted the topic back into the media and politics and continued to grow. · Mass school shootings have happened in the united states for hundreds of years, but not until recently have them become so terribly common · Since 1999 the US has averaged around 3 fatal school shootings every year · With as many as 9 in 2012, the number continues to rise · The US has an unique gun culture · Has more guns and more gun related violence than almost all other first world countries · Guns have become almost normal in society caused by all the exposure we have to them from a young age · Guns have been glorified in America since the days of the cowboys, but are much less needed and practical in today’s society · Such factors as America’s gun culture, recent mass school shootings and how they are being reported and mental health have all led to an increase in gun violence and school shootings, and will continue to unless a solution is reached 1st Body: Gun culture Topic - Over the years glorification and the commonality of guns in US society has lead to an increase in gun violence. · At one point in the US guns were needed because we were constantly at war and we had to protect ourselves · Since then the necessarity of civilians having firearms has decreased immensely · US “fascinated with firearms†· Becoming more toys than tools · At this point almost half of households in the US own at least one gun · The US has much more lax gun control laws than most other similar countries, and we own more by number and capita than any other country · Kids grow up playing with guns since they are little, desensitizes them to violence and the real consequences and seriousness of guns · Having guns so easily accessable and attainable has contributed to the number of gun crimes especially mass school shootings 2nd Body: Mass School shootings Topic - The abundance of recent school shootings and how they have been reported on has lead to more troubled kids choosing to do the same thing. · The number of fatal school shootings has sky rocketed in the past 15 years · When young people see things like this on the news frequently, they can be easily influenced · Kids can be influenced by media and the things they see on TV sometimes without themselves or their loved ones realizing · Many school shooters weren’t very popular and weren't payed attention to in school · Committing one of these horrible acts puts them in the spot light and puts their name in the national attention · So if this is part of what these kids are seeking, because the media has chosen to deal with these situations in this way of national attention and publicity, it makes it more likely this pattern of school shooters will repeat itself · This also deals with the debate between gun control and mental health reform 3rd Body: Mental Health Topic - The debate of the cause of school and mass shootings due to either gun control laws or mental health services has been ongoing and has caused a rise in gun crime and shootings because it is hard to solve a problem without really knowing the true cause behind it. · If kids couldn't get the guns in the first place, wouldn't be mass shootings (gun control) · If there were better programs to identify mental illness early and treat it, wouldn't be mass shootings (mental health) · Debate because almost all mass shooters are also dead after it happens, so it is hard to determine for sure if mental illness was present · Any shooter who survives is most likely going to plea insanity, regardless if he actually is or not · Because of lack of resources people want one solution that faces both problems · “Unfortunately, both sides continue to waste time, energy, funding, and political capital on old ideas that barely qualify as solutions.†· This debate has a large place in politics, faces the two most realistic causes for these tragedies Conclusion: Thesis - While it is unclear exactly what has lead to this increase in gun violence in the United States, it is clear that America’s gun culture, recent mass school shootings and how they are reported in the media and mental health have all played large roles. · Gun control is an issue that directly or indirectly effects all Americans · While the US has a very violent history, gun violence and mass school shootings have not gone on the rise until recently (last 20-50 years) · Even in countries like Canada, whom has more guns per capita than us, we still have an extremely higher gun violence rate · This is one of the biggest debates in politics right now and action needs to be taken soon to protect our schools and youth · Given the intricacy of the situation, multiple solutions or one that adressess multiple issues will most likely be necessary Case #2 template(1).xlsx Valuation Data from Case Table Sales Revenue 1,000.00 1,250.00 1,875.00 2,100.00 3,750.00 Investment in CapEx and NWC Depreciation Interest payments 94.....4 Data from Case Table 2 Current YTM on 30 year treasury bonds 2.50% Current YTM on 3 month treasury bills 2.00% Most recent 1-year return on S&P .30% Estimated annual return on the S&P 500 for next 30 years 8.00% WACC Estimate Marginal tax rate 40% Target Debt to Value Ratio 15.0% Terminal growth rate 2.0% Expected return on market 8.0% Rf 2.5% Rd 6.2% Market Risk Premium Data for comparable firm (ArtToday.net): Levered beta 1.5 Debt to Equity 0.75 Unlevered beta Data for Artforever.com: Unlevered beta Target D/E Levered beta CAPM Re WACC Free Cash Flow Estimate Marginal tax rate 40% COGS as % of revenues 42% SG&A as % of revenues 15% Revenues Less: COGS Less: SG&A Equals: EBIT Less: Taxes @ 40% Equals: EBIAT Add: Depreciation Less: Investments in Capex & NWC Equals: Free Cash Flow WACC Valuation Free Cash Flows Terminal Value TOTAL PV(Free Cash Flows) PV (Terminal Value of FCF) Value of Artforever.com Value of Equity of Artforever.com FIN526-Waltham-Case.pdf WALTHAM, INC.: Acquisition of Artforever.com Waltham, Inc., a publicly traded firm, is considering the acquisition of a private company, Artforever.com, which specializes in restoring damaged artwork and vintage photographs for high net worth individuals.

Waltham’s CEO and chairman of the board, Willie Ray, described the motivation for the acquisition as follows: “We are running out of profitable investment opportunities in our core vintage shoe restoration business, and our shareholders expect us to continue to grow. Therefore, we must look to acquisitions to expand into growing markets.†Waltham’s stock price is currently at $50 per share, with 100,000 shares outstanding. The book value of the stock is $20 per share. The company has $2,000,000 in market value of bonds with a coupon rate of 5%, trading at a yield to maturity of 6.2%. The firm’s industry is characterized by slow growth, and its predicted perpetual growth rate for free cash flows beyond 2017 is 2.0%. The parent company’s target debt to value ratio is 15%, and its current debt level is $2,000,000 with a 5% coupon rate, trading at a 6.2% yield.

In evaluating the acquisition, your task is to determine the appropriate discount rate for valued the target, identify relevant cash flows, and compute the maximum price Waltham should pay for Artforever.com. Your analysis should incorporate current market data, industry characteristics, and compare with a publicly traded similar firm, ArtToday.net, which has a levered beta of 1.5, debt/equity ratio of 0.75, and is trading at $12 per share with 50,000 shares outstanding.

In your report, include the arguments and reasoning behind your discount rate choice, outline the key cash flows relevant for valuation, and provide your recommended maximum purchase price for the private firm. Consider conditions under which management might justify offering a higher price, and substantiate your conclusions with appropriate financial analysis and references.