Gandhara College of Education, Takht-i-Bhai ECN ECN 124 You and your friend decide throw a scrabble pizza party. You don't know how many pizzas to order, so you want to obtain an estimate of slices each... Share Question

Questions and Answers > Gandhara College of Education, Takht-i-Bhai ECN ECN 124 You and your friend decide throw a scrabble pizza party. You don't know how many pizzas to order, so you want to obtain an estimate of slices each... Share Question

Gandhara College of Education, Takht-i-Bhai ECN ECN 124 You and your friend decide throw a scrabble pizza party. You don't know how many pizzas to order, so you want to obtain an estimate of slices each...Share Question ...[Show More]

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SLOVO PRODUCTS VALUAT Natural Toys (NT) is a successful manufacturer of wooden toys and wood fur- niture for children. Though it has some overseas markets, all of its productionfacilities are in the United States, and its market is Overwhelmingly in the United States. It is therefore ironic that it is considering the purchase of Slovo Wood Products, a government-owned company located in Lithuania. Lithuania declared independence from the Soviet Union on March 11, 1990, and the last Soviet troops left in 1993. Lithuania is now a democratic nation which embraces private property and free enterprise. The transition was not without pain—the industrial output of state enterprises fell an estimated 60 percent—but the privatized companies are now expanding. The government has not been able to sell every company: Slovo Wood Products is one of the remaining firms. When Slovo's customers got a chance to buy relatively cheap, high-quality competing foreign products, they turned away from Slovo in droves. Slovo has struggled to stay alive, and its current existence can best be described as zombie-like. The company made no profits in 1995, though they were able to cover their cash costs. The operating rate has been deteriorating as the old machinery breaks down more and more often, and the plant now runs only a third of the time because of frequent breakdowns. The government is anxious to get rid of this facility; it has offered to sell the company for $1 million which will go directly into the company to purchase new equipment and increase working capital. Slovo, however, will come encumbered with $10 million in 20-year debt which bears an 8 percent rate of interest. This is not a market-determined rate, but rather represents special concessionary financing which is offered as part of the deal. Basically, the government has been loaning Slovo money for years, and this is a "work out" to them. That is, the gOvernment gives a lower-than-market interest rate and generous repayment terms. There is no sinking fund required on the debt

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SLOVO PRODUCTS VALUAT Natural Toys (NT) is a successful manufacturer of wooden toys and wood fur- niture for children. Though it has some overseas markets, all of its productionfacilities are in the United States, and its market is Overwhelmingly in the United States. It is therefore ironic that it is considering the purchase of Slovo Wood Products, a government-owned company located in Lithuania. Lithuania declared independence from the Soviet Union on March 11, 1990, and the last Soviet troops left in 1993. Lithuania is now a democratic nation which embraces private property and free enterprise. The transition was not without pain—the industrial output of state enterprises fell an estimated 60 percent—but the privatized companies are now expanding. The government has not been able to sell every company: Slovo Wood Products is one of the remaining firms. When Slovo's customers got a chance to buy relatively cheap, high-quality competing foreign products, they turned away from Slovo in droves. Slovo has struggled to stay alive, and its current existence can best be described as zombie-like. The company made no profits in 1995, though they were able to cover their cash costs. The operating rate has been deteriorating as the old machinery breaks down more and more often, and the plant now runs only a third of the time because of frequent breakdowns. The government is anxious to get rid of this facility; it has offered to sell the company for $1 million which will go directly into the company to purchase new equipment and increase working capital. Slovo, however, will come encumbered with $10 million in 20-year debt which bears an 8 percent rate of interest. This is not a market-determined rate, but rather represents special concessionary financing which is offered as part of the deal. Basically, the government has been loaning Slovo money for years, and this is a "work out" to them. That is, the gOvernment gives a lower-than-market interest rate and generous repayment terms. There is no sinking fund required on the debt.

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Questions and Answers > Gandhara College of Education, Takht-i-Bhai ECN ECN 124 You and your friend decide throw a scrabble pizza party. You don't know how many pizzas to order, so you want to obtain an estimate of slices each... Share Question

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Please write a short essay of 80 - 120 words on the next topic: What is the story of your hometown?

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