Lester Electric Problem Solution

Problem Solution: Lester Electronics Lester Electronics, Inc. ( wreath), founded in 1978, is a small electronics beau monde that distributes electronic parts to repair facilities, small local distributors, and cardinal large domestic manufacturers that use capacitors in both consumer and industrial products. In 1978, coronal entered into an exclusive agreement to distribute Shang-wa Electronics (SE) products, a capacitor manufacturer. The contract must be renewed each year by both parties with a minimum order of whiz million dollars per year. The following will cover several of the issues, opportunities, goals, and visions of LEI which will help the company maintain and increase its revenue. placement Analysis Issue and Opportunity Identification John Lin, founder and chief executive officer (CEO) of Shang-wa Electronics, would like to retire in the near future. Lin wants to contribute the company confident that Shang-wa will continue to be operated by a talented management team. Lin believes that he will be satisfied if Shang-wa is purchased by Lester Electronics, Inc. If Lester Electronics, Inc is unable to secure financing for the acquisition, Shang-wa whitethorn be acquired by Transnational Electronics Corporation. Before Lester Electronics, Inc.

can act on and decide on means of financing the acquisition of Shang-wa, LEI must work jointly with Shang-wa to determine Shang-was survey. several(prenominal) avenues of financing are easy. Bernard Lester and his staff must analyze the available financing methods to determine which are most cost legal and will increase shareholders wealth, thus maximizing the encourage of the merger. maximise the value of the merger correlates with maximizing wealth where choosing to increase value will simultaneously increase shareholder wealth. Should the management team fail to diligently analyze the various forms of financing available, the value of LEI may be adversely affected. Ross, Westerfield, and Jaffe (2004), contend that managers should involve the... If you want to get a full essay, order it on our website: Ordercustompaper.com

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