Financial Management Assignment Example | Topics and Well Written Essays - 1500 words - 3

monetary Management - Assignment ExampleThe merger will help reduce the cost of production of coffee, which is the main reason why the Burger King Company lagged behind in the industry. To illustrate further on this synergy, the BKW has engraft an already established partner in the field of coffee, which is a vital breakfast menu in America. The Burger King Company does not need to establish its own coffee brand from scratch since it presently has a partner in that field. The partner already enjoys economic of sale from the massive client initiation it serves thus transferring the same to Burger King Worldwide. The merger will help BKW develop and strengthen the brand challenge to compete with McDonalds McCafe. The merger presents an opportunity for BKW to benefit from additional resources from Canada. This is beca put on Tim Hortons highly dominates Canadas market share of scorched goods (with more than 70%) in comparison to other American companies. Tim Hortons also has 75% of the coffee market, which is frequently more than the combined market shares of Starbucks and McDonalds in Canada. Burger King can take advantage of Tim Hortons lead and use it to enhance its dominance in the country.Looking deeper into growth and Revenue enhancement, the merger presents better opportunities for expansion. Having recorded yearly sales of at least 3 billion dollars last year, Tim Hortons enjoys an impressive growth rate and stabilise margins. On the other hand, Burger King has kept on struggling against domestic companies, despite its major comportment of in the country. The company is more likely to experience growth by venturing outside the U.S. In equipment casualty of revenue enhancement, the merger will enable measure inversion, thus allowing Burger King to enjoy lower unified tax in Canada. Tim Hortons enjoys a 15% federal tax rate and a 11.5% corporate tax rate in Ontario. These rates in Canada are significantly lower that the tax rates in America. A c ombined tax rate of 26.5%