West Teleservice

Author(s):  
Mitchell Petersen ◽  
Robert O'Keef

West Teleservice, a telemarketing firm, is considering going public at the end of 1996. Asks students to price the IPO. During the previous 18 months, seven other telemarketing firms have gone public. Prior to this, there were no publicly traded telemarketing firms. The industry is in flux. Historically, wholly owned subsidiaries of telephone companies, banks, and insurance companies conducted telemarketing. However, cost cutting caused many of these firms to outsource the business. Thus, although total telemarketing business isn't growing very quickly, the outsourced portion is growing 50% per year.To introduce IPO valuations; to demonstrate the use and pitfalls of valuing firms with multiples–given this is the eighth firm to go public, there are seven other potential comparable firms; to construct a rough DCF; to demonstrate what assumptions must be implicit in the multiples to arrive at the same valuation; and to discuss the idea of mispriced equity, given some evidence suggesting that the price of equity is not sustainable.

2020 ◽  
Vol 5 (4) ◽  
pp. p68
Author(s):  
Wenjing Wang ◽  
Arthur S. Guarino

For many investors, dividends play a key role in evaluating the return of a common stock and the main reason for making the investment. For those investors, dividends are a necessary aspect since they are a vital source of income. But with the Covid-19 pandemic, many corporations have been adversely affected by a global economic slowdown. For publicly traded corporations, depending on its industry, dividends have been sharply affected to the point of either being reduced or suspended indefinitely. Using the Standard and Poor’s 500 stock index as a guide, stock analysts can possibly acquire a better understanding as to how reduced or suspended dividend income will affect different investors. The aim and purpose of this paper is to examine the affect the reduction and suspension of dividends will have as a source of needed income for private investors, pension funds, mutual funds, insurance companies, and real estate investment trusts.


2018 ◽  
pp. 5-16
Author(s):  
Victor Glass ◽  

This paper develops a real asset transaction approach for estimating the cost of capital for rural telephone companies whose financial assets are not publicly traded. The transaction approach uses the actual purchase prices of rural local exchange carriers (RLECs)’ properties and cash flows for estimating the rate of return required by buyers and sellers of RLEC properties. The transaction approach produces higher cost of capital estimates than a traditional approach using a weighted average of debt and equity costs of proxy companies traded on organized exchanges. The estimated difference is in line with the risk premium estimated for small non-traded companies estimated by Duff and Phelps Ibbotson.


2011 ◽  
Vol 13 (3) ◽  
pp. 67 ◽  
Author(s):  
Gregory Noronha ◽  
Kenneth Yung

<span>Most studies attribute the underpricing of initial public offerings of equity securities to the ex ante uncertainty resulting from the information differential between the firm going public and the market. Rund (1991, 1993), however, proposes that underpricing could result from underwriter price support in the early after-market. In this paper we examine firms that were once public, went private via leveraged buyout and then went public again. It is reasonable to expect that since these reverse LBOs (RLBOs) were once publicly traded, they should have less of an information differential with the market than firms going public for the first time. Our tests indicate that there is little or no information asymmetry between RLBOs and the market. We find that RLBO initial returns are more consistent with price support than with information asymmetry.</span>


Blood ◽  
2020 ◽  
Vol 136 (Supplement 1) ◽  
pp. 15-16
Author(s):  
Feng Wang ◽  
Shannon Ferrante ◽  
Eric M Maiese ◽  
Jenny Willson ◽  
Chi-Chang Chen ◽  
...  

Introduction: Some novel cancer and supportive care therapies, such as chemotherapy, steroids, and immunotherapies, are known to cause eye-related side effects such as dryness or altered vision (Fu et al Oncotarget 2017). However, there is a paucity of evidence documenting their disease burden in practice. The aim of this retrospective, cohort study was to assess the incidence, and clinical and economic burden of managing ocular events (OEs) in patients receiving multiple myeloma (MM) treatment in clinical practice. Methods: A cohort of adult patients with MM was identified from a large U.S. insurance claims database (IQVIA PharMetrics® Plus database), which is sourced from commercial insurance companies. Incidence, outpatient care, emergency room (ER) visits, hospitalizations, and costs were assessed for 5 OEs of interest: keratopathy/keratitis, blurred vision/decreased acuity, dry eye, eye pain, and photophobia. These OEs were identified by cross-walking from MedDRA 'corneal disorders' codes to international classification of disease (ICD) codes, which were confirmed by clinical experts. Incidence of OEs was assessed as the proportion of patients with OE after MM treatment initiation who did not have diagnosis indicative of OE in the 12-month baseline period. Descriptive analyses were performed, and resource utilization and costs (in US dollars) were reported on a per-patient-per-month (PPPM) basis. A separate cohort of hematology patients (N=26,923) was identified from the same database. The results were benchmarked against this larger cohort of patients. Results: Of the 2120 patients with incident MM (mean [SD] age: 60.2 [9.8]) included in the cohort, 248 (11.7%) patients had at least 1 incident OE during an average of 29.8 months of follow-up after initial MM treatment. Proportion of patients with at least 1 incident OE was 7.4% in the benchmark hematology cohort. Dry eye (n=129, 6.1%), blurred vision/decreased acuity (n=73, 3.4%), and keratopathy/keratitis (n=52, 2.5%) were the most frequent OEs observed. The incidence remained largely constant across baseline demographic characteristics, comorbid conditions, and lines of MM therapies. Most incident OEs were diagnosed in the outpatient (OP)/physician's office setting by ophthalmologists (69.5%), except for blurred vision, which was predominantly diagnosed in non-ophthalmologist/non-optometrist setting. Median PPPM costs for managing OEs was $27, which is &lt;1% of median all-cause costs during the follow-up period (median total all-cause PPPM costs: $17,286; median MM-related PPPM costs: $13,851). These costs were predominantly contributed by OP care (median PPPM cost: $19), including prescriptions (median PPPM cost: $16). ER visits (median PPPM cost: $66) and inpatient visits (median PPPM cost: $16) were uncommon (Table). Median PPPM costs for managing these OEs in hematology cohort was $20. Conclusions: Incident OEs were observed in ~12% of patients receiving treatment for MM based on real-world data, with the most common OEs being keratopathy/keratitis, dry eye, and blurred vision. When evaluated from the perspective of median PPPM costs, the clinical and economic burden for treating OEs was very low when compared with total all-cause PPPM costs or MM-related PPPM costs. The vast majority of these OEs require only OP care. ER visits or inpatient care were extremely rare. Further real-world evidence is warranted to assess the relationship between OEs and MM treatment. Funding: GSK (study: 208295). Table. Median OE-related PPPM Costs (US Dollars) in Incident MM Cohort (N=2,120) Table Disclosures Wang: GSK: Current Employment, Current equity holder in publicly-traded company. Ferrante:GSK: Current Employment, Current equity holder in publicly-traded company. Maiese:GSK: Current Employment, Current equity holder in publicly-traded company. Willson:GSK: Current Employment, Current equity holder in publicly-traded company. Chen:GSK: Consultancy, Research Funding. Nunna:GSK: Consultancy, Research Funding. Sun:GSK: Consultancy, Research Funding. Kleinman:GSK: Consultancy; Eyeon Therapeutics, LLC.: Current equity holder in private company; Triphase Accelerator U.S Corporation: Consultancy; ONL Therapeutics, Inc: Consultancy; Revolution Medicines, Inc: Consultancy; Editas Medicine, Inc: Consultancy; Cleave Therapeutics, Inc: Consultancy; Coherus Biosciences, Inc: Consultancy; Synergy Research Inc: Consultancy; Zenith Epigenetics Ltd: Consultancy. Sansbury:GSK: Current Employment, Current equity holder in publicly-traded company.


2020 ◽  
Author(s):  
Charlie Eaton

Abstract I argue that growth in private equity and publicly traded ownership of US for-profit colleges has created new shareholder-value pressures for schools to maximize returns for investors. Privately held firms, which had long dominated the sector, were converted to private equity ownership through 88 buyouts since 1987. Private equity managers then used IPOs to establish 20 of 35 publicly traded firms that operated in the sector. I use longitudinal panel analyses of 14,212 federally qualified colleges to show that schools under these ownership forms featured unusually high debts and low graduation rates for students. The results (a) provide some of the most robust evidence to date that shareholder value strategies of cost-cutting and implicit contract violations can adversely affect non-labor stakeholders; and (b) help to theorize the growing but understudied role of private equity as a transitional ownership form that spreads shareholder value strategies to privately held firms.


Author(s):  
Petter Gottschalk ◽  
Hans Solli-Saether

To comprehend the value that information technology provides to organizations, we must first understand the way a particular organization conducts business and how information systems affect the performance of various component activities within the organization. Understanding how organizations differ is a central challenge for both theory and practice of management. For a long time, Porter’s (1985) value chain was the only value configuration known to managers. Stabell and Fjeldstad (1998) have identified two alternative value configurations. A value shop schedules activities and applies resources in a fashion that is dimensioned and appropriate to the needs of the client’s problem, while a value chain performs a fixed set of activities that enables it to produce a standard product in large numbers. Examples of value shops are professional service organizations, as found in medicine, law, architecture and engineering. A value network links clients or customers who are or wish to be interdependent. Examples of value networks are telephone companies, logistic and postal services, retail banks and insurance companies.


Author(s):  
Petter Gottschalk

To comprehend the value that information technology provides to organizations, we must first understand the way a particular organization conducts business, and how information systems affect the performance of various component activities within the organization. Understanding how firms differ is a central challenge for both theory and practice of management. For a long time, Porter’s (1985) value chain was the only value configuration known to managers. Stabell and Fjeldstad (1998) have identified two alternative value configurations. A value shop schedules activities and applies resources in a fashion that is dimensioned and appropriate to the needs of the client’s problem, while a value chain performs a fixed set of activities that enables it to produce a standard product in large numbers. Examples of value shops are professional service firms, as found in medicine, law, architecture, and engineering. A value network links clients or customers who are, or wish to be interdependent. Examples of value networks are telephone companies, retail banks, and insurance companies.


2020 ◽  
Vol 18 (3) ◽  
pp. 423
Author(s):  
Aprih Santoso

The objectives of this study are: analyze and empirically test the effect of investment decisions on the profitability of going public insurance companies listed on the Indonesia Stock Exchange in 2013-2018; analyze and empirically test the effect of investment decisions on the value of go public insurance companies listed on the Indonesia Stock Exchange in 2013-2018 and analyze and test empirically the effect of profitability on the value of go public insurance companies listed on the Indonesia Stock Exchange in 2013-2018. The type of data used is secondary data in the form of annual financial statements of listed companies listed on the Indonesia Stock Exchange. The population of this research is publicly listed insurance companies listed on the Indonesia Stock Exchange in 2013-2018. The sampling technique was carried out using purposive sampling, the sample of which went public insurance companies listed on the Indonesia Stock Exchange in 2013-2018 totaling 60 issuers. Data analysis techniques used are descriptive statistical tests, classic assumption tests, multiple linear regression tests, mediation variable tests and model feasibility tests. Based on the results of research testing concluded that: (1) Investment decisions have a negative and significant effect on profitability. (2) Investment decisions have a positive and significant effect on company value. (3) Profitability has a positive and significant effect on firm value. (4) Profitability cannot mediate between investment decisions and firm value. Variation of investment and profitability decision variables used in this model is able to explain variations in the variable value of companies going public insurance listed on the Indonesia Stock Exchange 2013-2018 64%, while the rest is influenced or explained by other variables not included in this research model.


2006 ◽  
Vol 26 (2) ◽  
pp. 105-136 ◽  
Author(s):  
Dennis K. K. Fan ◽  
Raymond W. So ◽  
Jason J. Yeh

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