Deluxe Corporation Essay Example for Free

Deluxe Corporation Essay What should Singh recommend regarding: * Target bond rating * Level of flexibility * Mix of debt and equity * Other Issue As for what should Rajat Singh recommend regarding target bond rating, level of flexibility or reserves, mix of debt and equity and lastly any other issues. So, firstly look into the target bond rating, in our opinion DC needs to position itself to obtain a AAA rating. At AAA grade bond rating shows that AAA bond rating is higher in unused debt capacity so at AAA bonds rating Deluxe company has a lower unused debt capacity. So, that means if the shareholders start to sell, this company may not rebound since it is in a dying industry. The company will be an acquisition target by growing electronic payment companies because of the drops out of the premium ratings. For your information, for the level of flexibility is the amount of debt DC can take on before you lose the investment-grade bond rating. Based on the financial analysis, the B level is where the cost jumps the most. There is a 26% increase in costs from a level BBB rating to a level BB. As for mix of debt and equity, DC is targeting an aggressive share buyback plan. They are increasing their equity in the company by reducing shares. But because of the future of the company, they will also need to take on debt. Based on the financial analysis, they are better off taking on debt. Debt is cheaper for DC. Cost of debt ranges between 5. 47% to 12%, and that does not even include the 38% tax shield. Cost of equity is more expensive, it ranges from 10. 25% to 14. 25%, and there is no tax shield. Cost of debt after the tax change ranges between 3. 39% to 7. 44%. Lastly, for other issue knows today is 12 years after the case, and DC is still in business. CONCLUSION As we know, prior to the 1990s, the  Deluxe  Corporation  (DC), the world’s largest printer of checks as well as a provider of electronic products and services to financial institutions and retail companies, was characterized as a generally stable, family oriented business. This relatively calm situation was unsettled in the 1980s by deregulation of the banking industry and changes in technology. Deluxe is forced to adopt a business model and implement strategic objectives to stay alive. Therefore, based on the all the calculation and explanations, we have finally fulfilled all the statement of problems. As for the foreseen financial requirement for the coming years, which back then was the year after 2001, it shows that DC needs additional financing for working capital, capital asset purchases, possible corporate acquisitions, repayment of short-term debt, interest payments on long-term debt, dividend payments to shareholders and possible stock buybacks depending on the state of the stock they own. Moving on as for the financial flexibility of Deluxe Corporation, it can be concluded that the debt level of DC seems to be not appropriate which is only 5. 71% from the total capital. As what it stated in Ehibit 8, DC could borrow more debt since it cost of debt (Kd) is lower than its cost of equity (Ke). Besides, the minimum WACC is obtained at bond rating AAA (9. 86%) and the same goes the optimum debt level for Deluxe would borrow which is USD 807. 50M again at bond rating AAA. From there, by maintaining bond rating AAA, it can be seen that the minimum interest or total cost that DC need to bear is only USD 83. 81M. In a nutshell, again, it shows that DC can generate its fund in its lowest cost if it maintains AAA bond rating because through that type of bond rating, DC can generate funds by paying minimum cost of capital, quickly reach the breakeven point and can easily gain profit after that. However, this company has to diversify its business in order to stay around in this business world.

SCO vs. IBM :: Businesses Microsoft Essays

SCO vs. IBM Abstract On March 6, 2003, The SCO Group filed a $1 billion lawsuit [1] against IBM. The lawsuit alleges, among other things, that IBM has violated contractual obligations it has with SCO by incorporating parts of AIX (IBM’s UNIX derived operating system) into Linux – the open source version of UNIX. The lawsuit has not gone to court and, when it finally does, may take upwards of a year to settle. Nevertheless, a preliminary look is worthwhile. Since the time of the initial filing, the rhetoric has escalated and it has become clear that the ramifications of the suit are much broader than just IBM vs. SCO. SCO’s claims, should they be proven, would not only have a major impact on Linux, but could also claim other casualties – chief among them the Open Source movement. After some introductory material, this paper examines the potential effects and provides an ethical evaluation. If one assumes that SCO’s claims are valid, Linux is in serious trouble, and a black-eye will be placed on the face of the Open Source community that will not quickly heal. But, even if SCO prevails, it’s far from clear that they’ve â€Å"done the right thing†Ã¢â‚¬ ¦ Introduction On March 6, 2003, The SCO Group filed a $1 billion lawsuit against IBM. Central to the lawsuit is the claim that IBM has violated contractual obligations it has with SCO by releasing into the public domain AIX source code as part of enhancements the company has made to the Linux operating system. Why does SCO care? Because SCO claims to hold the copyright to the UNIX operating system [2]. AIX is a derivative of UNIX – not only is UNIX source code used as the basis for AIX but IBM (and a host of other UNIX vendors) readily admits this and pays licensing feeds to SCO. Linux, on the other hand, is open source. Its source code is freely available for usage, viewing and modification. SCO’s claim is simple – IBM is illegally distributing its intellectual property by placing it into Linux and thereby diluting the value of UNIX. Over the last few months, there have been a number of key developments that are beyond SCO and IBM’s current spat. Of particular interest: SCO stopped releasing its Linux distribution – asserting that the Linux is derived from code that is copyrighted by SCO [3].

Christian Ethics Essay

1.What is the difference between self-interest and selfishness? Why is this distinction important when considering the competitive market economy as appropriate for a society? a.Self-interest is when someone is trying to protect their interest, but they also take into account how it may affect others. Whereas selfishness is where one makes decisions based on one’s self with no regards to others. It’s important to decipher these two meanings when considering the competitive market and what may be appropriate for a society because if one is acting out based on self-interest, yes, they may be looking out for themselves, but they are also looking out for their customers. These are the type of people you can trust and want to invest your time and money into. People acting out of selfishness, figure out a way to get what they want and bail once they can’t make a profit anymore, leaving their customer in the dust. Also meaning, they’re going to be unreliable if a nd when times get tough and have no morals or obligations to the people who invest into them. 2.Does your textbook present only positive economics and avoid any normative economics? If not, give some examples of normative issues covered in your textbook. a.After reading Stapleford’s Bulls, Bears and Golden Calves, it is safe to say that any textbook for that matter doesn’t posess â€Å"only† positive economics and does in deed hold normative economics. As economist Roger Miller commented: â€Å"†¦the very choice of which topics to include in an introductory textbook involves normative economics. There is not a value-free, or objective, way to decide which topics to use in a textbook† (Stapleford, pg 43.) I decided to examine this a little further and came to find that in our Economics: Private and Public Choice by Gwartney and authors, it states in the Preface â€Å"This text addresses all of them and provides both economic analysis and empirical evidence that will enhance understanding of these critical issues†¦This thought was constantly on our minds as we revised this edition† (Gwartney, pg xix.) When I read that, personally that left the impression that these authors picked and chose what they thought was in the best interest of their students and even though they are stating the facts, they are also took into consideration when revising how it could help the reader relate to the information. 3.What did Adam Smith believe serves to curb self-interest in an economy? a.The one key thing that Smith believed controlled self-interest in the economy is competition. In one way or another, everyone has a desire for approval and it is because of this postivie judgement we seek also puts limits on our personal objectives. It is through competition amongst each other that promotes a controlled economy because it is not being run off of someone else’s personal agenda. If something appears to be hurtful or negative in the economy, then most likely it won’t succeed and people will move on to it’s compeititor. Whereas if something is highly valued and is seen as positive, chances are the business will thrive and they will be a customer for life. 4.What does it mean to seek the kingdom of God in a democratic capitalist economy? How can it be done? a.Democratic capitalism is neither the Kingdom of God nor without sin. But when we Christians seek the Kingdom of God, we seek â€Å"righteousness, peace and joy in the Holy Spirit† (Romans 14:17.) So when we seek the Kingdom of God in a democratic capitalist economy, we’re seeking to be â€Å"set free† from the temptations this earth has to offer, and focusing on the eternal life that awaits in God’s Kingdom. In order to do this though, requires us to be â€Å"enlightened† where we refocus our internal and external lives to his kingdom. â€Å"Jesus doesn’t ask us to set aside our self-interest; he just wants to keep us from making a poor investment† (Stapleford, pg 46.) References Gwartney, Stroup, Sobel, Macpherson. (2013). Economics: Private and Public Choice 14e. Mason, OH: South-Western. Stapleford, J. (2009). Bulls, Bears and Golden Calves. Madison, WI: IntraVarsity Press.

Advancement in Technology Increased the Use of Fossil Fuel

Throughout its existence, Earth has always satisfied the needs of living things. As time advanced, so did technology; which increased the use of fossil fuels, mechanics, and more of the Earth’s natural resources. Humans have left their mark in several ways such as, pollution, overpopulation, and deforestation. Though human efforts have been made to improve our ways of abuse to the earth, none could entirely secure the damage made. Pollution is, and has always been, a major issue in the world. It has affected the world on such an immense level that it is considered to be one of the main FUTURE challenges (SIKM 1). Pollution is the improper disposal of trash and waste items in an environment along with the admissions of chemicals. Though this seems like a minor situation, the disposal of trash builds up and contaminates the earth throughout time. There are 3 types of pollution; Trash (solid wastes), air/carbon, and water (occasionally noise/sound) (Uddin 1). In the past decade, pollution rates increased; some believe that it has something to do with the population rates as well. Overpopulation and the continuous population growth have contributed greatly to the earth’s human impact. Heavily overpopulated areas are considerably more corrupt because of their effects in the environment and their carelessness toward their own problems. (Cassils 2). As the numbers go up, so does the need for producing goods, the use of motorized vehicles, and the operation of buildings andShow MoreRelatedThe Effects Of Climate Change On Fossil Fuels1431 Words   |  6 Pageslargely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels.† (Google Dictionary). Due to our dependence on fossil fuels as our main source for energy and our carbon dioxide emissions over decades, climate change has rapidly emerged on Earth. Yet, we still have those who deny any scientific evidence of the effect of the dependence on fossil fuels. 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