According to a recent news article in the Wall Street Journal (“Mercedes or Ford, It Costs a Lot More Than You Think,” Wall Street Journal, Sunday Journal, March 15, 2014), the average consumer spends more than $760 a month on his/her vehicle and related expenses. Purchase price of the car Finance charges on […]
Continue readingWhat is the balance sheet impact of Delta’s improvements to its LAX Terminal 5?
May 27, 2014 
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Delta Air Lines is partnering with the City of Los Angeles and Los Angeles World Airports (LAWA) to overhaul Terminal 5 at Los Angeles International Airport (LAX) for a total estimated cost of $240 million. The project is expected to start in 2015. Delta is contributing $12 million for check-in and lounge improvements and the […]
Continue readingHow will a stock split impact Under Armour’s stockholders’ equity?
May 23, 2014 0 Comments
On March 17, 2014, Under Armour, a company selling sports clothing, shoes, and accessories, announced a two-for-one stock split (see Under Armour press release dated March 17, 2014). Here is an excerpt from the Under Armour press release: “Baltimore, MD (March 17, 2014) – Under Armour, Inc. (NYSE: UA) today announced that its Board of Directors […]
Continue readingHow will cutting 18 months off the life of its Celebrex patent impact Pfizer’s profits?
May 20, 2014 0 Comments
Pfizer, headquartered in New York City, is one of the world’s largest pharmaceutical companies (as measured by revenues.) It holds patents on many of the drugs it manufactures. One of these patents gives Pfizer the exclusive right to market the painkiller, Celebrex. (Celebrex generated $1.9 billion in revenue in 2013.) In a recent patent ruling, […]
Continue readingHow will selling more trucks than cars affect automobile manufacturers’ profits?
May 16, 2014 0 Comments
According to a recent article in USA Today (“Crossovers, trucks beating cars in sales,” Alisa Priddle, Detroit Free Press, March 16, 2014), the sales mix for automobile manufacturers such as Ford and GM has shifted to a ratio of approximately 47% cars and 53% trucks. “Trucks” includes light trucks, crossovers, and SUVs. In 1980, cars […]
Continue readingWhat are the direct and indirect costs involved with manufacturing Oscars?
May 12, 2014 0 Comments
The Academy Awards is an annual American awards ceremony honoring achievements in the film industry. Winners receive a statue officially named the “Academy Award of Merit.” However, these statues are much better known by the nickname of “Oscars.” Each Oscar statue weighs 8.5 pounds and takes three to four weeks to manufacture. The statues have […]
Continue readingWhat are the characteristics of the $2 billion in bonds that Tesla Motors is issuing?
May 7, 2014 0 Comments
Tesla Motors, Inc., is an American company that designs, manufactures, and sells electric cars and components. It is publicly traded on the NASDAQ under the symbol TSLA. Tesla has plans to build a $4 to $5 billion battery production plant beginning in 2017. To help to pay for the new manufacturing facility, Tesla is issuing […]
Continue readingWhy might Ford be shifting some jobs from Mexico to the United States?
May 1, 2014 0 Comments
Ford is moving production of its 2016 Ford F-650 and F-750 medium-duty trucks to its Ohio Assembly Plant in Avon Lake, near Cleveland, Ohio. Currently those medium-duty trucks are produced in Mexico. Ford will be investing $168 million in the Avon Lake facility to retool the plant since it is currently set up to produce […]
Continue readingWhat is the balance sheet impact of the $400 million Netflix just borrowed?
April 28, 2014 0 Comments
In February 2014, Netflix took out a $400 million loan. Netflix is using these funds to help to create original programming, such as its hit series “House of Cards,” and to expand to Europe. Netflix is a publicly-held company trading on NASDAQ under the symbol NFLX. On March 10, 2014, Netflix common stock was selling […]
Continue readingHow will the 3.9% increase in FedEx Freight shipping rates impact the breakeven point for an Etsy jewelry artist?
April 24, 2014 0 Comments
FedEx Corp announced that it would be raising its shipping rates by an average of 3.9% on March 31, 2014. The rate change applies to FedEx Freight shipments within and between the United States, Canada, and Mexico. The FedEx Freight segment is a provider of less-than-truckload (LTL) freight services, which is the shipping of relatively […]
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