Hello, can I please have your expertise on these questions for my corporate finance course? I've attached the files. Thank you very much.
Company Background
New Century Coffee (NCC) Company is a 124-store coffee retailer headquartered in Stockton and operating throughout 6 western states. Its stores are known for their stylish and artistic atmosphere, quick and friendly service, and social consciousness. One glaring, but intentional, omission from each location is a drive-through service channel. The company's model is to establish locations that serve as a gathering place for customers, as opposed to more traditional quick-service models that focus on volume and efficiency. Although NCC does not want to alter its traditional storefront appeal (nor does it want the expense of adding drive-throughs) it does want to add additional revenue streams by reaching new customers and servicing existing customers more frequently. To accomplish this, NCC is considering acquisition options to diversify its service channel. One opportunity that is under consideration was initiated by Portable Coffee Express CEO Marcy Chapman. Ms. Chapman founded and has grown Portable, a privately held company, into a flourishing 358 location drive-through and walk-up coffee stand business. Portable has a strong presence in NCC's three largest states (by location), but no presence in the other three states NCC operates in. However, Portable has many locations in large cities across the country, including New York, Chicago, Boston, Washington D.C., and Philadelphia.
Questions
4.) One financial option for NCC to buy Portable is to use a stock swap. What alternative merger proposals could NCC make to Portable shareholders to pay for the acquisition? Discuss at least
three.
5.) If Portable were a foreign-based company, what impact would this have on the analysis? Describe added costs, regulations, benefits, international cash flow factors, and risks (economical, political, currency, tariffs). Include each of these items in the discussion and give brief examples of each to support them.
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Extracted text: O SignI FINAN SPC Acade O FIN44 X Q Log in X Q Learni X * Log In x * Log In x SPC Financ X Mathv X SPC S X Signi AOL- a Solvec X -> O File C:/Users/Starleana91/Downloads/FIN4414%20Case%202%20instructions%20NCC-Portable.pdf I Apps HCc HawkNet - Hillsbor. y! Yahoo - login YouTube f Facebook - Log In o.. O Domino's Home Pa... FOX Full Episodes | Empi. Target : Expect Mor. 5 Ink Cartridges - Pri. HWet Seal | Clothing,. E Reading list FIN4414 Case 2 instructions NCC-Portable 1 / 3 200% To determine the viability of an acquisition of Portable Coffee Express by New Century Coffee Company, Ms. Chapman has provided recent financials for her company to NCC CFO Marisa Garcia. Mrs. Garcia has run cash flow forecasts for the consolidated company and estimated incremental cash inflows after taxes from the acquisition over the next 30 years (the relevant time horizon for the analysis). The pertinent financial data is included in the tables below. 1 Table 1: Estimated Incremental Cash Flows over Table 2: Portable Coffee Express Earnings 30 years for combined company $ 19,400,000 $ 19,100,000 $ 20,100,000 $ 22,550,000 $ 27,100,000 $ 28,200,000 (per yr.) Year 1 Year EPS Year EPS $ 1.85 $ 2.00 $ 2.20 $ 2.65 $ 2.95 $ 3.25 $ 3.45 $ 3.70 Year 2 2011 2015 Year 3 2012 2016 Year 4 2013 2017 Year 5 2014 2018 Year 6 - 30 3 8:45 AM O Type here to search 4) G 4/28/2021