If the convertibles are taken as equity, the capital structure will be around 28.6% in two years not counting new retained earnings, and this is close to the target capital structure that UniHost has. It is recommended therefore that those two options are undertaken in order to finance the expansion of UniHost. The convertible will need to be more than the $75 million -- more is possible so a this issue should net around $85 million. The company is unable to finance with just equity and convertibles, so some amount of debenture will be required, so it would be difficult for UniHost to undertake its growth strategy and avoid the restrictive covenants that will prohibit it from further growth. Future expansion needs can be met, however, with an equity issue, since the company knows that in today's difficult market it can raise $40 million. Using the two forms of debt therefore allows UniHost to pursue its growth strategy and move close to its desired capital structure.
Appendix a
UniHost -- Cash Flow Projections
1998
1999
2000
Cash Flow from Existing Opertions1
Operating Cash Flow
34011
35371
36786
Cash Flow from New Operations2
Operating Cash Flow
Toronto Hotel
0
Comfort Inns
0
2000
Clarion Strategy
0
13500
20250
Clarion Reflag
0
Total New Operating Cash Flows
0
25125
35875
Capital Expenditures3
New Furniture and Fixtures
-1190
-1237
-1287
Toronto Hotel
-85000
0
Supply Chain Characteristics There are five critical characteristics of supply chain in relation to the personal computer analysis. One of the essential characteristics of supply chain is the view of the process as an important asset. This makes it important for the organization to incorporate supply chain within the products and marketing strategies. Another critical characteristic is integration of new technologies with the aim of minimizing the cost of provision of
Currently, the economy is not faring very well. With that being the case, there are more people shopping at discount department stores. That would seem like a good thing, but it is not necessarily as good as it would appear at first glance. Instead of being a boon for discount department stores across the country, it is simply another reason for more people to get into the market and try
This is significant, because it shows how in the next three years, the airlines are going to face increasing amounts of competition, in a number of different markets. This is because the industry is targeting the same demographics of business and leisure travelers. As a result, the increased amounts of deregulation, will affect the industry in the future, as increased amounts of competition will more than likely mean lower
This continues the cycle of relying on production efficiencies and build-to-order strategies as an attempt to break the cycle of disruptive innovations (Ervolina, Ettl, Lee, Peters, 2009). All of these factors lead to a task-based analysis of the computer peripherals market that continue to illustrate how fragmented and highly cost-driven it has become. Figure 1 shows the market share of the computer peripherals industry from a product standpoint. Computer monitors
The decrease in 2006 is obvious to most all product categories and it can be explained through the economic crisis in the U.S. And the general reduction of industrial activities and corporate profits. The communications and telecommunications subsector has also been subjected to changes in 2006 as compared to 2005, registering both increases as well as decreases, as shown by the figures below (millions of dollars): Product Product Name 2006 Code 3342101 Telephone
Industry Analysis of the United States Oil & Gas Industry This report is an industry analysis on the United States oil & gas industry but does not delve into the industry related exploration and production pre-refining activities. The focus will be on the major producers such as Shell, Mobil, Texaco, Gulf and Exxon and how they are affected by the 5-forces model analysis. The report also analyzes the competition structure of the major
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now