Free

Business combination: GM Aquirse Ford Corp - Research Paper Example

Summary

This implies that the net income per share of common stocks and class B stocks of Ford Motor Corp. was $4.94. The total revenues generated by the company in 2011 were…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER93.2% of users find it useful

Business combination: GM Aquirse Ford Corp

Read Text Preview

Subject: Finance & Accounting
Type: Research Paper
Level: Masters
Pages: 1 (250 words)
Downloads: 2
Author: dallas76

Extract of sample "Business combination: GM Aquirse Ford Corp"

BUSINESS COMBINATION: GM ACQUIRES FORD CORP Table of Contents Table of Contents 2 GM ACQUIRES FORD CORP 3 References 4 GM ACQUIRES FORD CORP The net income that is attributable to Ford Motor Company was calculated as $20,213 million in the year 2011. This implies that the net income per share of common stocks and class B stocks of Ford Motor Corp. was $4.94. The total revenues generated by the company in 2011 were $136,264 million of which $128,168 was attributable towards its automotive section and $8,096 million towards the financial services offered by the company.

The total operating costs amounted to $129,321 million. Hence, the operating income of the company for the year 2011 can be calculated as $(136,264 - 129,321) or $6,943 million (Ford Motor Co., 2012).The weighted average cost of capital of the company has been calculated to be around 16%.The intrinsic value of the firm can be calculated as the present value of the cash flows of the company which are discounted by the required rate of return or weighted average cost of capital of the firm. It has been estimated that the intrinsic value of Ford Motor Corp.

is nearly double the price of its shares at present (Seekingalpha, 2012).The average number of outstanding shares Ford Motor Corp. as on 31 December 2011 was around 3,793 million. On that particular date the closing price of its common stock as recorded in the New York Stock Exchange (NYSE) was $10.76 per share. Hence, the market value of the firm can be calculated as around $40.81 billion as on 31 December 2012 (Ford Motor Co., 2012).The book value of the firm as represented in its financial statements was $15,071 million as at 31 December 2011 (Ford Motor Co., 2012).ReferencesFord Motor Co. (2012). 10−K: Annual report 2011.

Retrieved from http://services.corporate-ir.net/SEC/Document.Service?id=P3VybD1odHRwOi8vaXIuaW50Lndlc3RsYXdidXNpbmVzcy5jb20vZG9jdW1lbnQvdjEvMDAwMDAzNzk5Ni0xMi0wMDAwMDcvZG9jL0ZvcmRNb3RvckNvbXBhbnlfMTBLXzIwMTIwMjIxLnBkZiZ0eXBlPTImZm49Rm9yZE1vdG9yQ29tcGFueV8xMEtfMjAxMjAyMjEucGRm.Seekingalpha. (2012). Fords intrinsic value is roughly double its current share price. Retrieved from .

Cite this document

APA
MLA
CHICAGO

(“Business combination: GM Aquirse Ford Corp Research Paper”, n.d.)
Business combination: GM Aquirse Ford Corp Research Paper. Retrieved from https://studentshare.org/finance-accounting/1604466-business-combination-gm-aquirse-ford-corp

(Business Combination: GM Aquirse Ford Corp Research Paper)
Business Combination: GM Aquirse Ford Corp Research Paper. https://studentshare.org/finance-accounting/1604466-business-combination-gm-aquirse-ford-corp.

“Business Combination: GM Aquirse Ford Corp Research Paper”, n.d. https://studentshare.org/finance-accounting/1604466-business-combination-gm-aquirse-ford-corp.

Cited: 0 times

CHECK THESE SAMPLES OF Business combination: GM Aquirse Ford Corp

Creating the GM-Toyota

6 months later, in an interesting turn of events, gm decided to “join Toyota” by creating a joint venture with the Japanese carmaker.... The agreement was signed on 17th February 1983 by the chairmen of Toyota and gm and triggered one of the biggest and most controversial antitrust investigations in recent history.... The vital question was whether it was plausible that the joint venture would actually lead to an increase in domestic small cars that were manufactured more efficiently, with good insights that gm and other firms could use in their plants, or whether it could lead to the regulation of pricing and other conduct between gm and Toyota and merely supplant less-anticompetitive options that gm could have employed in order to realize its objectives....

8 Pages (2000 words) Term Paper

Strategic Management: Corporate strategy

8)Part II: Financial Performance of ford Motor Company and General MotorsPart III: Key Elements of the Strategies of ford Motor's and General Motors"Automobile companies need to compete on configuration, though U.... The mismatch between consumer desires and available product has been one of the biggest problems facing ford and General Motors.... Both companies are trying to do something about configuration, but ford is probably the more aggressive of the two....

11 Pages (2750 words) Essay

Search for Synergies in Business Realistic or Not

We shall consider in this paper the nature, content and the extent of synergy that may be generated in both these categories of business combination.... A few examplesFor instance, ford Motor Company's different brands have their own strengths and systems.... Four horses in combination will be able to pull over 30,000 pounds!... In order that the discussion would be both 'light-bearing' and fruit-bearing', it is advisable to define what we understand by the term synergy in business....

8 Pages (2000 words) Essay

Mergers and Acquisitons

A merger actually refers to a business combination of two or more firms in which only one firm survives and the other firm or firms go out of existence.... A merger takes place when the firms involved in the combination are of unequal size.... he term 'merger' is often abused, by being loosely applied to refer to any form of business combinations.... Safeway PLC was going through a troubled phase of business and was also struggling to cope up with the competition from the other retail giants in UK....

12 Pages (3000 words) Case Study

Genetically Modified Foods

This paper entitled "Genetically Modified Foods" deals with the impact of genetically modified food.... As the author puts it, the genetic manipulation of foods is one of the most divisive issues in the area of food production all over the world.... nbsp;… Through the process of selective breeding, “fruits of exotic taste, roses with specific colors and fragrances, and chickens that lay eggs that are lower in cholesterol content” (Daunert et al: p....

12 Pages (3000 words) Research Paper

Business Plan for Sara Jewelry: it maters Inc

nbsp;… The company, currently, is producing four varieties of products, necklaces, bracelets/bangles, earrings, rings, and nose rings, but their main focus is on product combination and customization.... The combination includes the mix and match of different individual items; it is more or less making a bundle deal rather than buying it individually.... The paper contains a business plan for "Sara for jewelry: it maters Inc".... nbsp; Opportunity and Strategy are the available opportunities for the proposed business: the increasing consumer preference toward classic designs; the regional growth in suppliers will benefit the company; the existence of the creation of a new product through customization; the increased number of technology users; and the increased demand in locally-made and reliable products....

9 Pages (2250 words) Case Study

Monsanto Company the Coming Age of Bio-technology

However, according to the study, the firm faces a combination of issues, comprising the lack of a patent ahead of 2000, for its key product, Roundup.... nbsp;… According to the paper the organization controls four business sections comprising of Agriculture, Searle, Industrial Chemicals, and The NutraSweet Organization.... his paper highlights that the management of the production of glyphosate and developing supply chains relationship would empower the image of the business and acceptance of its products heavily....

3 Pages (750 words) Case Study

The Analysis of General Motors

Since last few years, the automobile industry has shrunk to a certain extent; the sales for gm were already declining.... gm was not an exception to that.... In the month of February 2009, gm revenue fell by $ 31 billion.... gm started loosing on money in almost everywhere including Asia and Latin America where they used to make profits.... In some three or four months, gm wasted some $5 billion in cash.... Such a weak financials have enforced gm to announce its bankruptcy in the month of June 2009....

15 Pages (3750 words) Research Paper