Scenario Donald Eagle Acquired Benning's at a Low Point.The Distributor of of Automotive

question 151

Essay

Scenario
Donald Eagle acquired Benning's at a low point.The distributor of automotive parts and accessories had been criticized for a number of wrongdoings.Without fully realizing the extent of Benning's problems, Mr.Eagle purchased the distributorship in hopes of turning it around."But the harder I work," Mr.Eagle admitted, "the more Benning's earlier problems seem to unfold."
onald Eagle began to rethink his strategy, trying to put a sound plan in place that would allow Benning's to move forward.
Might product stewardship be a major focus for Benning's under its new ownership
Explain.

---

Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) periodically until the maturity date, at which time the principal is repaid.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, calculated by considering all future coupon payments and the principal repayment.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often described as the weighted average time until all cash flows are paid.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.