AFM373 Lecture Notes - Lecture 3: Oshawa Group, Discounted Cash Flow, Sobeys

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM373
• Professor: Alan Douglas

Document Summary

Empire, founded by j. w. sobey in 1907, is a diversified holding company with interests in food distribution, real estate and corporate investment activities. The driving force of the company is the support and operation of the sobeys retail grocery business. Sobeys is the largest food retail and distribution company in atlantic canada and had begun to expand into ontario and quebec. Empire generated 95% of its 1998 revenue from the food distribution business, which is comprised of five operating groups: retail, wholesale, food service, drug and industries. The retail operations were supported by the acquisition, development, and management of property portfolios by the real estate group. E(cid:373)pi(cid:396)e"s (cid:272)o(cid:396)po(cid:396)ate i(cid:374)(cid:448)est(cid:373)e(cid:374)t a(cid:272)ti(cid:448)ities (cid:272)o(cid:373)p(cid:396)ised of p(cid:396)i(cid:373)a(cid:396)il(cid:455) lo(cid:374)g-term investments (approximately 76%), which provided the company with both geographic and industry diversifications. Oshawa, a competitor of empire, is a food retail, wholesale and distribution company.