Chiquita’s Big Deal

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Chiquita Brands International that it had agreed to acquire Fyffes, an Irish fruit and produce distributor, in an all-stock deal that valued Fyffes at about $526 million. The new firm will be called ChiquitaFyffes and will be the world’s largest producer and distributor of bananas. It is expected that the firm will have about $4.6… Read more »

Humans are Bad at Understanding Compound Interest

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Maybe you haven’t even thought about your retirement, but according to Matthew O’Brien, you should. This is particularly true if you are contributing to a 401 (k). Questions: 1. What should you look at rather than the returns when picking your 401(k) funds? 2. According to O’Brien, what do 1.25 % annual fees for retirement… Read more »

Easy Come, Easy Go… It’s only Money (and Stock)

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Facebook’s largest acquisition ever was announced this week. The company said it would pay at least $16 billion for WhatsApp, a text messaging application with 450 million users around the world who pay little or no money for it. The purchase price dwarfs the $1 billion Facebook paid for Instagram, the photo-sharing service. Questions: 1…. Read more »

Think before you Speak

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AOL recently altered its 401(k) program, by switching matching payments to one lump sum at year-end instead of throughout the year. The change was implemented, according to CEO, Tim Armstrong, because of soaring medical costs that arose in part from two families with “distressed babies.” Questions: 1. What is a 401(k)? 2. What was Armstrong’s… Read more »

FDA Cracks Down on Scary Imports That Impact Public Safety

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India is the second largest exporter of over-the-counter and prescription drugs to the U.S. However, the FDA has recently increased their inspections of these manufacturers due to falsified drug test results, safety lapses, and the sale of fake medicines. Questions: 1. What percentage of U.S. over-the-counter and generic prescription drugs are supplied by India manufacturers?… Read more »

What is a Super Bowl Ad Worth?

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Derek Thompson presents evidence on both sides of the debate about whether Super Bowl ads are a waste of money or worthwhile advertising venues. Questions: 1. Rather than the price you pay for the advertisement, what does Mr. Thompson say that Super Bowl advertising is all about? 2. What is this year’s Super Bowl ads… Read more »

A Cost Benefit Analysis of Super Bowl Commercials

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Advertisers paid up to $4 million for a 30-second spot during the Super Bowl. This article examines the Go Daddy spot and the potential cost effectiveness of the company’s Super Bowl ads. Questions: 1. According to the article, how many customers does it take to break even and what amount on average must they spend?… Read more »

Sometimes Plans Just Don’t Work Out

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Although it was an excellent strategy to run a two-minute Bob Dylan ad at the end of the third quarter, the moment of peak Super Bowl excitement, the Seahawks stole the show early in a 36-0 blowout. Questions: 1. How much did the 2-minute ad cost Chrysler? 2. According to the article, when will the… Read more »

No Symbolic Message of Contrition for Jamie Dimon

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What a difference a year makes for Jamie Dimon! Last year, he had half of his paycheck cut to a measley $11.5 million for an embarrassing multi-million dollar trading blowup that resulted in $1 billion in fines. This year, after Chase paid the feds $20 billion in penalties for transgressions committed on Dimon’s watch, JPMorgan’s… Read more »

Tax breaks disappearing in 2014

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Unless Congress extends the tax deductions that are set to expire at the end of 2013, credits and deductions benefiting everyone from teachers and students to homeowners are scheduled to expire. Questions: 1. Which of these eight deductions will affect you personally? 2. Which of these eight deductions will affect your parents and other family… Read more »