Netscape Ipo - 3013 Words

It all started with the development of a graphical software program that gave rise to the notion of surfing (Netscape s). Netscape Communications can trace its roots to a group of science students working at the University of Illinois at Urbana-Champaign who turned a simply software program called Mosaic , into a platform that enabled non-technical computer users to access and retrieve information that was becoming more and more available on the worldwide web. Founded in 1994, Netscape Communications Corporation provides a comprehensive line of client, server and integrated applications software for communications and commerce on the Internet and private Internet Protocol (IP) networks (Netscape s). A key feature that the company†¦show more content†¦The optimal capital structure minimizes the firm s composite cost of capital and saves money for other opportunities. Therefore, the mandatory use of optimal capital structure and risk management is becoming increasingly import ant. Netscape s operating result in 1995 had showed the Current ration (1.45) was low, the Debt to total capital ration (0.18) was high, which compared with its competitors: Microsoft (4.17, 0.00), AOL (1.00, 0.08), and Spyglass (13.75, 0.00). More long-term debt would decrease the Current ration, and increase the Debt ration. Additionally, of Netscape s competitors were now operating as publicly held companies. Netscape had been injected with various forms of investment capital, which included private equity investors. Continuing the same method to fund capital will further dilute Netscape s ownership. Although, Netscape had a net loss of over $4 million on total assets over $42 million, and had never declared a profit in its short operating history, there must certainly be characterized as a risky IPO. However, based on the research of Wall Street and the positive results of Netscape s road show, Netscape s underwriters had the confidence that the market demands would be enormously high, and would continual to grow. According to all of the factors we have mentioned above, by balancing the intense competitions, the business risks, the high market demand, and the costs involved, we feel confident that Netscape would gain moreShow MoreRelatedNetscape Ipo2102 Words   |  9 Pages------------------------------------------------- Top of Form Netscape IPO Introduction The case analyzes the Initial Public Offering (IPO) of Netscape Communications Inc., in order to recommend a justifiable share price for the IPO. Founded in April 1994, Netscape Communications Corporation provided a comprehensive line of client, server and integrated applications software for communications and commerce on the Internet and private Internet Protocol networks. The primary revenue generator for Netscape at the time IPO was it s InternetRead MoreNetscape IPO Case Study1362 Words   |  6 Pagesï » ¿Case Study 2: Netscape’s IPO February 17, 2015 Executive Summary Netscape was founded in 1994 and it provided internet applications for communications and commerce. In 1995, Netscape decided to raise capital by initial public offering. Although initial price for shares was at first $14, underwriters suggested increase the price to $28 one day prior to the initial public offering. The board of Netscape was not sure of the high price and fell in dilemma because the firmRead MoreKey Facts Of Netscape Communication Corporation1889 Words   |  8 PagesSummary of Key Facts Netscape Communication Corporation was founded in April 1994. â€Å"The company provided a comprehensive line of client, server and integrated applications software for communications and commerce on the Internet and private Internet Protocol networks† (P1) Netscape developed a popular product which offers a variety of internet functions at 1994. The product was outstanding back to that era, and it was successfully taking large amount of market share for the company. Since the marketRead MoreNetscapes Initial Public Offering Case1565 Words   |  7 Pagesstrategy: * Firstly, Netscape with its strategy â€Å"give away today and make money tomorrow† offered people the free access to its software in order to build a customer base as well as the foundation of entering the Internet market. * After paying Spyglass a one-time fee for the original Mosaic code, Netscape made its own and new brand to occupy a position in the new field. * To set a new standard, Netscape created a rival program (named Mozilla and then changed to Netscape Navigator) to destroyRead MoreNetscape Case Memo1377 Words   |  6 Pages1. Why are investors excited about Netscape? What is Netscape’s business model? What must Netscape accomplish if it is going to be successful in the long run? What are the risks Netscape faces? Marc Andreessen, along with the other founders of Mosaic, accomplished what other Internet providers before failed to do: they created a Web browser that did not require the user to have expertise in HTML coding. Mosaic’s user-friendly click-and-point interface allowed for a wider customer base. After purchasingRead MoreNetscape Case Study1193 Words   |  5 PagesCorporate Finance: Case Netscape 1. Why has Netscape been so successful to date? What is its strategy? How risky is its current competitive situation? Netscape follows a â€Å"give away today make money tomorrow†-strategy. Netscape currently has 75% of web browser market, making it by far the most popular browsing software. Netscape is making money by selling server software to companies that require marketing access to potential consumers, by selling its software packages and through providingRead MoreShould Netscape Go Public to Satisfy Capital Needs1063 Words   |  5 PagesShould Netscape go public to satisfy its capital needs? Netscape does need to go public to satisfy its capital needs over the next three to five years. Netscape is in a position to capitalize on the consolidation of the technology sector. Further, they need to remain competitive against Micorsofts Internet Explorer. By taking the company public, Netscape will also be able to raise capital to expand its business, finance acquisitions, pay debt and have greater access to capital in the future Read MoreNetscape Case Study1036 Words   |  5 PagesThis case is about Netscape Initial Public Offering (IPO) in 1995. Netscape had a successful starting in the market mainly because of their strategy of â€Å"Give away today and make money tomorrow†, which let them capture 75% of the web browser market, making it the most popular browsing software. The successful strategy consists in gaining its large market share by initially giving away its product for free. Netscape had to create a new industry standard to succeed in the long term, beside s make revenuesRead MoreNew Opportunities For Young Software Companies1527 Words   |  7 PagesIntroduction: When Netscape was founded, the Internet market was facing a dynamic evolution, creating new opportunities for young software companies like Netscape to grow rapidly. Netscape took advantage of these conditions, becoming the first to focus on one-web browsers. There was little competition in this space at the time. They became the market leader, commanding strong customer loyalty and high brand recognition. Netscape introduced a competitive line of products, which were innovative andRead Morenestel harward case study Essay4354 Words   |  18 PagesHarvard Business School 9-296-088 Rev. May 16, 1997 DO Netscapes Initial Public Offering NO August 8, 1995 had taken an unexpected turn for Netscape Communications Corporation’s board of directors. Earlier that morning, the day before the company’s scheduled initial public offering (IPO), Netscape’s lead underwriters proposed to the board a 100% increase in the original offering price from $14 to $28 per share. This recommendation came in response to the remarkable oversubscription

The Role Of Sterilization On The Individual - 1900 Words

For many centuries, countries have used forced sterilization for various reasons for their cultures. They have used this method of sterilization to help control their populations, help grow their economies, and for their beliefs or laws within their countries. As for the United States, we have depicted our country as the land of the free. â€Å"Our nation was founded on the premise that all human beings are created equal,† stated Philip Roos, author of â€Å"Psychological Impact of Sterilization on the Individual,† â€Å"and possess inalienable rights† (45). However, some people would disagree because of how our country has changed since it has become a country. People do not have the freedom in which some believe we should have. In addition, we have advanced beyond most other countries when it comes to opportunities for our people. According to the authors of â€Å"Federally Funded Sterilization: Time to Rethink Policy,† Sonya Borrero, Nikki Zite, and Mitchell D. Creinin: Female sterilization has been a popular method of contraception since the 1970’s. Despite the relatively high utilization of sterilization in the United States, there is considerable evidence that there is an unmet demand for the procedure among some segments of the United States population. In particular, low-income women may face significant system-level barriers to obtaining a desired sterilization procedure. (1822) Forced sterilization no longer means just sterilization with the element of not being able to have childrenShow MoreRelatedThe Supreme Court Case Of Buck Vs. Bell1014 Words   |  5 PagesSupreme Court case of Buck v. Bell in 1997 is a lawsuit in which the U.S. Supreme Court upheld a Virginia law that offered the eugenic sterilization for individuals regarded genetically unfit. The Supreme Court’s decision to uphold Virginia’s statute regarding sterilization provided the basis for enactment of similar laws across the United States and subsequent sterilization of 65,000 Americans without their approval or that of their family members. Notably, the ruling of this case was based on the conceptRead MoreThe On The Euthanasia Program1496 Words   |  6 Pageshis death in 1884, he has since been credited for his role in discovering the statistical laws of heredity; from which it was concluded that genetic traits could be transferred from one generation to the next. Following Mendel’s death, the principles outlined in his laws of heredity continued to serve as a reference point for scientific scholars, including Nazi physicians whom often cited Mendelian law in their justifications for sterilization and euthanasia. Eugenics, on the other hand, was firstRead MoreEugenics And Its Impact On Human Life1560 Words   |  7 Pagescoercing these individuals to believe they are unfit for having children. Eugenicists believed that this practice would help to eliminate any hereditary dysfunctions that a person carries and inhibit the passing on of what is considered to be harmful traits. Many people in this movement relied on the idea of sterilization being the way to relieve society of harmful disorders that they specified was unfit. The state of North Carolina has played a significant role in this practice of sterilization which leadsRead MoreAmerica Is Not A Democracy1592 Words   |  7 PagesUnited States of America...and to the republic for which it stands...one nation under God, indivisible, with Liberty and Justice for all.† (â€Å"Is the United States a Democracy?†) The United States’ pledge is taught to children of all ages, plays an active role in the patriotism of the p eople, and it symbolizes the citizen’s promise to never violate the Republic of the United States of America. The founding fathers built the foundation of America on their ideological belief that the country should be aRead MoreEugenics And The Eugenics Movement1559 Words   |  7 PagesEugenics is the controlled reproduction of individuals; the main focus of eugenics is to isolate â€Å"good† genes from â€Å"bad† genes (Dolan DNA Learning Center). The main goal of Eugenics is to create a higher quality human race (Dolan DNA Learning Center). This movement became the center of which the twentieth century orbited around. The movement swayed numerous significant policies, which were implemented within the United States, ranging from immigration to sterilization (Selden). What is truly unsettling isRead MoreHuman Rights Within The World1313 Words   |  6 Pagesinitiated in order to protect vulnerable, oppressed people in the world and allow them to possibly th rive in this world. Although women, sexual minorities, and racialized minorities all play a significant role in the development of human rights—racialized minorities debatably had a greater role. Also, to further narrow the scope down, the focus is on western liberal democracies in places including Europe, and North America. With the prevalence of white or ethnic superiority in these states, racializedRead MoreEugenics And The Eugenics Movement1530 Words   |  7 Pagesmovement. Eugenics is the controlled reproduction of individuals; the main focus is to isolate â€Å"good† genes from â€Å"bad† genes (Dolan DNA Learning Center). The primary goal of Eugenics is to create a higher quality human race and became the center of which the twentieth century orbited around (Dolan DNA Learning Center). The movement swayed numerous significant policies, which were implemented within the United States, ranging from immigration to sterilization (Selden). What is truly unse ttling is the extremistRead MoreThe Eugenics Movement During The 20th Century1339 Words   |  6 Pages Elements of the American Eugenics movement acted as models for the Nazis, whose radical interpretation of the movement lead to the Holocaust (Dolan DNA Learning Center). Eugenics is simply the controlled reproduction of individuals with â€Å"good† genes and discouraging those who have â€Å"bad† genes against reproduction (Dolan DNA Learning Center). Many Eugenicists lobbied for social legislation to keep racial and ethnic groups segregated. They also sought to restrict immigration and sterilized thoseRead MoreThe Case Buck Versus Bell1507 Words   |  7 Pagesher being taken advantage of in the court system. To perpetuate the problem society was buying into the idea of eugenics. This is point can be seen clearly in some of the newspaper clipping in appendix B. By 1935 there was 30 states that had sterilization laws on the books. To get this passed in over half the country you need some sort of public support. It is hard to find articles from the 1920’s to 19 30’s that are against this type of legalization. However, for arguments sake let’s say there wasRead MoreEugenics And The Eugenics Movement1512 Words   |  7 Pagesday Americans do not realize the origins of eugenics, which was planted by Charles Darwin and Sir Francis Galton and bloomed in America, and what effect it had on the attempt to create a master race in Nazi Germany. America played a very influential role in German eugenics by collaboration between scientists and funding from American corporations. The negative connotation associated with this science is usually directed towards the scientists of the Holocaust under Adolf Hitler, and not towards American

Economics Indicators free essay sample

Macroeconomics is â€Å"the study of how households and firms make decisions and how they interact in markets†(Mankiw, 2012, p. 29). While microeconomics is â€Å"the study of economywide phenomena, including inflation, unemployment, and economic growth†(Mankiw, 2012, p. 29). Understanding economic indicators is an integral part of assessing the economy as a whole. Economic indicators allow the government, businesses, and consumers, alike, to analyze and predict the future status of the economy. It is important to recognize the source of changes and how they ultimately, affect the economy. This paper will explain six economic indicators: Gross domestic product (GDP), unemployment, productivity, consumer price index (CPI), money supply, and consumer credit report. It will also explain the business cycle, why they it is utilized and show the importance through charts and graphs, Economic Indicators â€Å"Economic indicators are key statistics showing the state of the economy. These include the average workweek, weekly claims for unemployment insurance, new orders, vendor performance, stock prices, and changes in the money supply†(Friedman, 2012, p. 225). Leading Economic Indicators â€Å"Leading indicators are economic statistics that often change direction before the general economy changes. Stock market indexes are considered leading indicators, as stock indexes often decline before the economy declines and improve before the general economy recovers from a recession. Leading economic indicators therefore help predict the future economy†(Friedman, 2012, p. 396). Lagging Economic Indicators â€Å"Lagging Indicators are economic indicators that change after a change in the economy has occurred. Lagging indicators are observed as a means of confirming trends†(Friedman, 2012, p. 391). Definition – Gross Domestic Product is (GDP) â€Å"a figure that represents the total value of all goods and services produced in a country in a given time period. More simply, it is a measure of the total size of an economy â€Å"(Riggs, 2008, p. 96). How is the economic indicator determined? â€Å"It is calculated using the selling prices in the period in question of the â€Å"final† goods†(Kolb2008, p. 1044). â€Å"Government economists calculate GDP every quarter (in the financial world, each year is commonly broken down, for purposes of analysis, into four three-month periods called quarters), as well as yearly. It is used by government officials as an aid in creating policies, by business leaders in making business decisions, and by economists to improve their understanding of the economy†(Riggs, 2008, p. 96). What it measures? â€Å"In order to avoid counting certain goods (those that are part of other goods) multiple times, GDP measures only what are known as final products, or products that are sold to consumers on the open market† (Riggs, 2008, p. 96). Strengths, weakness, problems, or criticisms Strengths (Barnes, 2013): †¢GDP is considered the broadest indicator of economic output and growth. Real GDP takes inflation into account, allowing for comparisons against other historical time periods. †¢The Bureau of Economic Analysis issues its own analysis document with each GDP release, which is a great investor tool for analyzing figures and trends, and reading highlights of the very lengthy full release Weakness (Barnes, 2013): †¢Data is not very timely it is only released quarterly. †¢Revisions can change historical figures measurably (the difference between 3% and 3. 5% GDP growth is a big one in terms of monetary policy) Historical Data – GDP reflects how much we would actually pay for something and is therefore, the market value. The chart below reflects GDP from 2007 through 2012. it is a reflection of the market value of all final goods and services, produced within the country between this period. GROSS DOMESTIC PRODUCT (BEA, 2013) ? Definition – Unemployment is â€Å"the state of being unemployed; can also mean the rate of unemployment (the percentage of a nation’s workforce that cannot find jobs)†(Riggs, 2008). The national unemployment rate is defined as the percentage of unemployed workers in the total labor force. It is widely recognized as a key indicator of labor market performance†(Investopedia, 2013). How is the economic indicator determined? â€Å"In any given month, the flow between these three pools of employed, unemployed, and out of the labor force creates the â€Å"measured unemployment rate. † By the BLS definition, the unemployment rate I percentage terms is the ratio of the number of unemployed divided by the labor force times 100†(Kolb, 2008, p. 2134). Unemployment is determined by the total number of workers (employed plus unemployed). â€Å"Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Persons who were not working and were waiting to be recalled to a job from which they had been temporarily laid off are also included as unemployed†(Investopedia, 2013). What it measures? â€Å"Unemployment measures the total number of employed, unemployed, or not in the labor force. It measures job losers, job leavers, and new entrants/reentrants into the labor force†(Kolb, 2008, 2133) Strengths, weakness, problems, or criticisms Strengths (Mankiw, 2012): †¢Unemployment insurance †¢Government programs †¢Usually short term 6-9 months Weakness (Mankiw, 2012): Some workers give up the job search because they cannot find worker and essentially become discouraged. †¢Structural unemployment for company-wide lay-offs Historical Data There are four main causes of unemployment: cyclical, frictional, seasonal, and structural unemployment. These are associated with different economic situations and different economic concepts. The chart below list the percentage rate unemployment for 16 years and older from 2007 to 2012. Labor Force Statistics from the Current Population Survey Original Data Value Series Id:LNS14000000 Jumps in productivity tend to make their way to corporate bottom lines quickly via margin expansion. †¢Release shows results with and without the effects of inflation †¢Detailed productivity measures at the industry and sector level allow investors to analyze the relative productivity performance of many of their holdings. †¢One of very few indicators that shows results compared to other advanced economies; shows how the U. S. stacks up against the world in terms of productivity gains. †¢Productivity results represent the lions share of total GDP (about 75%); only government results and nonprofit groups are removed from calculations. Weakness (Barnes, 2013): †¢Not a timely indicator; first report comes five weeks after the quarter, and the revised report nearly two months †¢No new series of data is released, only derivations of previous data sets †¢Can be very volatile quarter to quarter; long-term measurements are the most effective use of this indicator when analyzing sustainable, long-term rates of productivity growth Historical Data- Maximizing output became even more important after the Industrial Revolution because of the high costs associated with mass producing goods. Thus, not long after the rise of factories came an outpouring of productivity and efficiency studies as well as numerous methods for getting the most possible output from a factory†(Riggs, 2008, p. 194). Major Sector Productivity and Costs Original Data Value Series Id:PRS85006092 Sector:Nonfarm Business Measure:Labor productivity (output per hour) Duration:Percent change from previous quarter at annual rate Base Year:- Years:2007 to 2012 YearQtr1Qtr2Qtr3Qtr4Annual 2007-0. 23. 34. A large increase in the CPI over a short period of time represents growing inflation, and a drop in the CPI signifies deflation, both of which can be harmful to an individual’s finances and a nation’s economy†(Riggs, 2008, p. 108). What it measures? â€Å"CPI measures the change in prices that consumers pay for goods and services from year to year†(Riggs, 2008, p. 108). Strengths, weakness, problems, or criticisms Strengths (Barnes, 2013): †¢Gives most insight into future Fed rate moves †¢Highly watched and analyzed in the media †¢Good regional and industry breakdowns for investor research Weakness (Barnes, 2013): †¢Volatile month to month What it measures? â€Å"Consumer credit is considered a good indicator of the potential future spending levels seen in the Personal Consumption and Retail Sales reports, and shows the extent to which benchmark interest rates such as the fed funds rate and prime rate have manifested themselves at the consumer level (it can take six months to a year for macro interest rates to work their way down to consumers)†(Barnes, 2013). Strengths, weakness, problems, or criticisms Strengths (Barnes, 2013): †¢Contains detailed breakdown of auto loan figures, such as average maturity and prevailing interest rates †¢Data is provided with and without seasonal adjustments. †¢Release shows comparisons against previous month, previous year, and also against results from the last five years Weakness (Barnes, 2013): †¢Only total growth in outstanding loans is shown; there is no way of knowing if consumer payments have fallen off or if new loan growth has slowed based on a falling consumer credit number (and vice versa). †¢Absence of home-equity debt provides for an incomplete picture. †¢Because it comes out after the consumer confidence report and retail sales reports for the month, some analysts will not look as intently at the consumer credit figures month to month, instead reviewing multi-period trends once or twice a year Historical Data- â€Å"It covers revolving and non-revolving credit. Revolving credit can be increased by the consumer up to a limit without contacting the creditor (as in credit cards), while non-revolving terms are fixed at the time the loan (as with an auto loan)†( (Barnes, 2013). The consumer credit report shows outstanding balances for commercial banks, finance companies, credit unions, Federal government and Sallie Mae, savings institutions, non-financial businesses, and securitized asset pools†(Barnes, 2013). Definition- Retail Sales â€Å"tracks the dollar value of merchandise sold within the retail trade by taking a sampling of companies engaged in the business of selling end products to consumers†(Barnes, 2008). How is the economic indicator determined? The data released will cover the prior months sales, making it a timely indicator of not only the performance of this important industry (consumer expenditures generally make up about two-thirds of total gross domestic product), but of price level activity as a whole. Retail Sales is considered a coincident indicator, in that activity reflects the current state of the economy. It is also considered a vital pre-inflationary indicator, which creates the biggest interest from Wall Street watchers and the Conference Review Board, which tracks data for the Federal Reserve Boards directors. What it measures? â€Å"Retail sales measures â€Å"the release will contain two components: a total sales figure (and related percentage change from the previous month), and one ex-autos, as the large ticket price and historical seasonality of auto sales can throw off the total figure disproportionately. Companies of all sizes are used in the survey, from Wal-Mart to independent, small-town businesses†(Barnes, 2013). Strengths, weakness, problems, or criticisms Strengths (Barnes, 2013): †¢The retail sales data is extremely timely, and is released only two weeks after the month it covers. †¢The data release is robust; investors can download a full breakout of component sectors, as well as spreadsheet historical data to examine trends. †¢Retail sales reports get a lot of press. Its an indicator that is easy to understand and relates closely to the average consumer. †¢A revised report comes out later (two to three months on average), amending any errors. †¢Analysts and economists will take out volatile components to show the more underlying demand patterns. The most volatile components are autos, gas prices and food prices. †¢Data is adjusted seasonally, monthly and for holiday differences month to month. Weakness (Barnes, 2013): †¢Revisions to the report (released about two months after the advance report) can be quite large, and the sample size is relatively small compared to the number of retailers opening their doors to consumers. †¢Retail sales data is often volatile from month to month, which makes trend-spotting difficult. †¢The indicator is based on dollars spent and does not account for inflation. This makes it difficult for individual investors to make decisions based on the raw data. †¢Does not account for retail services, only physical merchandise. The U. S. is an increasingly service-based economy, so not all retail activity is captured. Historical Data- Retail Sales is one of the big ones a report that can shed a lot of light on the economy. It provides detailed industry information and can really move the market. Investors will best be served by waiting for the analysts to sort through the report, removing any overly volatile components, and drawing conclusions from there. Conclusion Economic indicators are fundamental in the health and wealth of the nation’s economy. Gross domestic product is a part of every economic indicator because it measures the size of the total economy. Six important indicators has been defined and discussed within this paper. As the economy evolves, it is important to save at the appropriate times and spend when appropriate. Keeping a watchful eye on the economic indicators, being knowledgeable about the economy, preparing for inflation as well as deflation, is necessary in order to stay ahead of an ever-changing economy.