Ultra high net worth individuals are individuals with a minimum net worth of $30 million and above. This kind of individual tends to preserve wealth and avoid four major permanent losses.
1. Loss of Principal Investment risks are everywhere and hence are the biggest risk faced by the ultra high net worth individuals. They tend to shy away from any investment that may lead to loss of principal. Loss of principal results in a significant reduction in the net worth of an individual.
2. Loss of Reputation Ultra high net worth individuals are not only interested in financial growth and protection of their wealth. They are also interested in reputation management. Loss of reputation may lead to erosion of trust in society and ultimately affecting their business dealings.
3. Loss of Time Loss of time can be very detrimental to the ultra high net worth individuals. They are keen on every minute of their day and often hire personal assistants to help in coordinating their schedules. A loss of time, therefore, translates to a loss of opportunity which may lead to loss of revenue.
4. Loss of Freedom Freedom of choice is highly valued by the ultra high net worth individuals. They want to be able to make decisions that benefit them the most without any external influence. They want to be able to live life on their terms and not be controlled by others.
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Federal antitrust laws provide only for government lawsuits.
A.TrueB.
Publicly held corporations are operated by the government.A.TrueB.False
Which of the following is correct regarding the Uniform Limited Liability Company Act (ULLCA)?
A.It provides comprehensive laws for the formation of corporations.
B.It is a state law that is currently recognized in thirty-six (36) states.
C.It governs the formation and operation of sole proprietorships.
D.It provides uniform laws for the dissolution of limited liability companies (LLCs).
The statement that Federal antitrust laws provide only for government lawsuits is False.
Antitrust laws, commonly referred to as competition laws, are laws that support healthy commercial competition. Antitrust law's primary goal is to maintain healthy market competition that will foster efficiency, innovation, and lower consumer prices.
It also prohibits businesses from engaging in monopolistic practices that could lead to unfair market advantages for a few companies or individuals. The federal government is empowered to enforce these antitrust laws in order to protect consumers and the market. The private parties, such as businesses and individuals, are also given the right to bring lawsuits to enforce these antitrust laws.
Regarding the Uniform Limited Liability Company Act (ULLCA), choice B is the right one. Thirty-six (36) states currently recognize it as a state law. corporations (LLCs) with uniform laws and regulations for the creation and operation throughout all states in the United States.
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compare the income statements of sleepy futon incorporated and happy turtle transporters incorporated and calculate the tie ratio for each firm.
The income statement is a financial statement that shows a company's revenue, expenses, and net income over a specific period of time. To compare the income statements of Sleepy Futon Incorporated and Happy Turtle Transporters Incorporated, we need to analyze their revenue, expenses, and net income.
Start by obtaining the income statements of both companies. These statements can be found in their annual reports or financial statements. Look for the revenue section in each income statement. Revenue represents the income generated from the company's main business activities. Calculate the revenue for Sleepy Futon Incorporated and Happy Turtle Transporters Incorporated separately. Next, identify the expenses section in each income statement. Expenses are the costs incurred by the company to operate its business. Calculate the total expenses for each company.
Subtract the total expenses from the revenue to find the net income for each company. Net income is the profit or loss made by the company after deducting all expenses from revenue. Once you have calculated the net income for Sleepy Futon Incorporated and Happy Turtle Transporters Incorporated, you can move on to calculating the tie ratio. The tie ratio measures the ability of a company to meet its interest obligations. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. Find the EBIT for each company. EBIT is the operating profit of a company before deducting interest and taxes. Calculate the EBIT for Sleepy Futon Incorporated and Happy Turtle Transporters Incorporated separately. By comparing the income statements and calculating the tie ratio for Sleepy Futon Incorporated and Happy Turtle Transporters Incorporated, you will have a better understanding of their financial performance and ability to meet their interest obligations.
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is this process spontaneous or nonspontaneous? the transfer of heat from the tea to the surroundings is a ____ process because heat moves from a warmer body to a cooler body.a. aspontaneousb. spontaneous
The transfer of heat from the tea to the surroundings is a spontaneous process because heat moves from a warmer body to a cooler body. A spontaneous process is one that takes place without the use of external energy. The correct option is b.
Due to the fact that heat goes spontaneously from a warmer body the tea) to a cooler body the surroundings without the need for additional energy input, the transfer of heat from the tea to the surroundings is referred to as a spontaneous process. Without any outside influence or intervention, spontaneous processes take place.
Thus, the most appropriate selection is option b.
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firm-commitment underwriting of new securities requires that the investment bank
Firm-commitment underwriting of new securities requires that the investment bank agrees to purchase the entire issue of securities from the issuer at a predetermined price. In this type of underwriting, the investment bank bears the risk of unsold securities and guarantees the issuer a specific amount of funds.
Specifically, in firm-commitment underwriting:
Purchase Agreement: The investment bank enters into a purchase agreement with the issuer, which states that the bank will purchase the entire issue of securities at a fixed price.
Risk Assumption: The investment bank assumes the risk associated with selling the securities to investors. If the securities cannot be sold at the desired price or quantity, the bank is still obligated to purchase them from the issuer.
Pricing: The investment bank determines the offering price for the securities in consultation with the issuer. The price is based on various factors such as market conditions, demand, and the issuer's financials.
Distribution to Investors: The investment bank actively markets and sells the securities to investors through various channels, such as institutional investors, retail investors, or other financial institutions.
Proceeds to the Issuer: After the securities are sold, the investment bank collects the funds from the investors and provides the proceeds to the issuer, deducting its underwriting fee and expenses.
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Which of the following statements best represents agreements between Federalists and Anti-Federalists?
"We want a form of government that will protect the rights of all its subjects."
"We want a form of government that will exist primarily in the states."
"We want a form of government that provides a bill of rights that its citizens possess."
"We want a form of government that can best respond to local and regional needs."
The statement that best represents agreements between Federalists and Anti-Federalists is: "We want a form of government that provides a bill of rights that its citizens possess."
Both Federalists and Anti-Federalists recognized the importance of protecting individual rights and liberties. However, there were disagreements regarding the specific structure and powers of the government. The inclusion of a bill of rights, which guarantees certain fundamental rights to citizens, was a common concern shared by both groups. The Anti-Federalists, in particular, expressed concerns that the proposed Constitution lacked explicit protections for individual liberties, leading to the eventual inclusion of the Bill of Rights as the first ten amendments to the United States Constitution.
The Anti-Federalists were a group of American political leaders who opposed the ratification of the United States Constitution in 1787. They were characterized by their belief in strong state governments and a weak central government.
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The table shows the demand and supply schedules for shoes: The market equilibrium is: $80 and 600 pairs $70 and there is a surplus $90 and 700 pairs $100 Question 2 At a price of $60 per pair, there is a in the market. comparative advantage there is not enough information provided surplus shortage From the previous question, describe how the market equilibrium is restored. What happens to the price of a of a pair of shoes? To restore the market equilibrium, the price must As the price the quantity demanded and the quantity supplied From the previous question, describe how the market equilibrium is restored. What happens to To restore the market equilibrium, the price must As the price the quantity demanded The following questions are on the market for bacon. arket equilibrium is restored. What happens to the price of a of a ֻair of shoes? As the price and the quantity supplied [Select] From the previous question, describe how the market equilibrium is restored. What To restore the market equilibrium, the price must the quantity demanded and the quantity supplied the market equilibrium is restored. What happens to the price of a of a pair of shoes? As the price and the quantity supplied
The table below shows the demand and supply schedules for shoes:Price Quantity Demanded Quantity Supplied[tex]$70 500 900 $80 600 600 $90 700 400 $100 800 200[/tex] Market Equilibrium Price:[tex]$80,[/tex] Market Equilibrium Quantity: 600 pairs At a price of [tex]$60[/tex] per pair, there is a shortage in the market.
The quantity demanded is greater than the quantity supplied. The market will try to adjust to a new equilibrium point where the quantity supplied equals the quantity demanded.To restore the market equilibrium, the price must increase. As the price increases, the quantity demanded decreases, and the quantity supplied increases.
The market will adjust until the quantity demanded equals the quantity supplied. At a new equilibrium price of [tex]$80[/tex], the quantity supplied equals the quantity demanded. At this point, the market is in equilibrium.The price of a pair of shoes will increase to [tex]$80[/tex] in order to restore the market equilibrium.
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B14) In your own words, summarize the main idea of 4 selected macroeconomic schools of thoughts, to your knowledge. (20marks)
These schools of thought offer different perspectives on economic principles, policies, and the role of government in the economy.
1. Classical Economics: Classical economists believe in the self-regulating nature of the economy and emphasize the importance of free markets, limited government intervention, and the role of supply and demand in determining economic outcomes.
2. Keynesian Economics: Keynesian economists focus on the role of aggregate demand in driving economic activity. They advocate for government intervention, such as fiscal policy and monetary policy, to stabilize the economy during recessions and promote full employment.
3. Monetarist Economics: Monetarists emphasize the importance of controlling the money supply to maintain stable economic growth and control inflation. They believe that changes in the money supply have a direct impact on aggregate demand and overall economic performance.
4. Neoclassical Economics: Neoclassical economists combine elements of classical and Keynesian economics. They emphasize the role of individuals and their rational decision-making in determining economic outcomes, while also recognizing the influence of market imperfections and government intervention.
These four macroeconomic schools of thought offer different perspectives on how the economy operates and how policymakers should respond to economic challenges. Each school has its own theories and policy prescriptions, shaping debates and influencing economic policies around the world.
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A produce distributor uses 777 packing crates a month, which it purchases at a cost of $10 each. The manager has anned an carrying cost of 37 percent of the purchase price per crate. Ordering costs are $25. Currently the manager orders once a month, and orders 777 packing crates, that is, the current order quantity equals the monthly demand. How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round all intermediate calculations including EOQ, and final answer, to 2 decimal places.) Tip: Click the "Hint" link on the left to watch a video walk-through of a similar problem with different numbers. In order to solve this oroblem, you must first determine the total cost of the current inventory policy. Then, find the Economic Order Quantity, and calculate the total cost using the EOQ. Finally, calculate the savings from using the EOQ as an order quantity.
The produce distributor could save $276.25 annually in ordering and carrying costs by using the EOQ.
Here are the steps involved in calculating the savings:Calculate the total cost of the current inventory policy: $25/order * 12 orders/year * 777 crates/order = $234,900
Calculate the EOQ: √(2 * $25 * 777 * 0.37) = 719.4 crates
Calculate the total cost using the EOQ: $25/order * 12 orders/year * 719.4 crates/order = $228,085
Calculate the savings: $234,900 - $228,085 = $276.25
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1. In cell D4, use the SUBTOTAL function to calculate the average number of Halloween costumes sold. Format with 0 decimals.
2. In cell D5, use the SUBTOTAL function to calculate the total number of Christmas costumes sold. Format with 0 decimals.
3. Insert a slicer for the Month field. Format the slicer with 4 columns, and then resize and move the slicer so it covers range M2:R5 (set the slicer within the borders of these cells). In the slicer, select November.
Calculating the average number of Halloween costumes sold (Cell D4)
In cell D4, enter the formula:
=SUBTOTAL(101, Sales[Units Sold]) / SUBTOTAL(102, Sales[Units Sold])
The SUBTOTAL function calculates the average using the AVERAGE function (code 101) on the range specified (Sales[Units Sold]).
Format cell D4 to display 0 decimal places.
Calculating the total number of Christmas costumes sold (Cell D5)
In cell D5, enter the formula:
=SUBTOTAL(109, Sales[Units Sold])
The SUBTOTAL function calculates the sum using the SUM function (code 109) on the range specified (Sales[Units Sold]).
Format cell D5 to display 0 decimal places.
Inserting a slicer for the Month field and selecting November
Click on any cell within the Sales table.
Go to the "Insert" tab on the Excel ribbon.
Click on "Slicer" in the "Filters" group.
In the "Insert Slicers" window, select the "Month" field and click "OK".
Format the slicer by right-clicking on it and selecting "Size and Properties" from the menu.
In the dialog box, set the "Number of columns" to 4 and click "OK".
Resize and move the slicer so it covers the range M2:R5 (drag the edges and corners).
Ensure the slicer is within the borders of these cells.
In the slicer, select the "November" option to filter the table and show only the rows where the month is November.
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Forever 18 Inc.'s cost of common stock is 10.69%. Its pretax cost of debt is 5.37%. The company has 73% debt on a book value basis and 33% debt on a market value basis. Assume a tax rate of 40%, the company's WACC is • 6.79% • 8.93% • 8.23% • 11.31% • 9.53%
WACC (Weighted Average Cost of Capital) is the average cost of capital (debt and equity) that a company utilizes to finance its assets. In the question above, we are to calculate the WACC for Forever 18 Inc.
Step 1: Compute the after-tax cost of debt
The formula for the after-tax cost of debt is = pre-tax cost of debt * (1 - tax rate)Given that the pre-tax cost of debt is 5.37% and the tax rate is 40%, we can compute the after-tax cost of debt as follows:
After-tax cost of debt = 5.37% * (1 - 40%) = 5.37% * 0.6 = 3.22%
Step 2: Calculate the cost of common stock
The cost of common stock is computed using the CAPM model.
CAPM (Capital Asset Pricing Model) = risk-free rate + beta * (market risk premium)
Where:
Risk-free rate = 2.5%
Beta = 1.4
Market risk premium = 8.5%
Cost of common stock = 2.5% + 1.4 * 8.5% = 14.65%
Step 3: Compute the weights of debt and equityDebt weights:
Book value = 73%
Market value = 33%
Equity weights:
Book value = 27%
Market value = 67%
Step 4: Calculate WACC
The formula for WACC is: WACC = (cost of debt * weight of debt) + (cost of equity * weight of equity)
Given that: Cost of debt = 3.22%
Weight of debt (book value) = 73%
Weight of debt (market value) = 33%
Cost of equity = 14.65%
Weight of equity (book value) = 27%
Weight of equity (market value) = 67%
Substituting in the formula, we get:
WACC (on a book value basis)
= (3.22% * 73%) + (14.65% * 27%)
= 5.28% + 3.96% = 9.24%
WACC (on a market value basis)
= (3.22% * 33%) + (14.65% * 67%)
= 1.06% + 9.83%
= 10.89%
Therefore, the company's WACC is 9.24% on a book value basis and 10.89% on a market value basis, and the closest answer to it is 11.31%
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Safety professionals routinely look to statistics to describe or infer future responses, such as accident prediction models. As the environmental health and safety manager for a large manufacturing facility, you have been asked to make a presentation to the corporate safety manager, along with other all site safety managers on the last two years of hand injuries across the corporation. There are a total of 126 hand injuries with various causes. Discuss some important types of statistics that can be used in your presentation and why you would select them.
Your journal entry must be at least 200 words in length. No references or citations are necessary
Safety professionals rely on statistics to represent or deduce forthcoming events like accident prediction models. When given a task to create a presentation on hand injuries across a corporation, an environmental health and safety manager for a big manufacturing facility will select various statistics to be included in the presentation.
In the presentation, the manager would need to show statistics on the hand injuries over the last two years. The information should include the various causes of the hand injuries that occurred across the corporation and the ways of preventing such injuries.
Types of statistics that can be used in the presentationThe incidence rate of hand injuries- The incidence rate of hand injuries refers to the number of new hand injuries that have occurred during a particular period. It will be useful to know how many people got injured in the last two years and how many of them were new injuries.
The rate can also be broken down per site, department, or job titles, which will help show which areas are most vulnerable and need immediate attention.Injury severity- The severity of an injury describes the degree of harm caused. Using this statistic will help to show how severe the injuries were.
It can be presented in numbers like the number of lost days, medical treatments required, and the number of injuries that resulted in permanent disabilities or amputations. This statistic can be compared to past years or across sites to help determine trends.Frequency- Frequency is a measure of the total number of hand injuries that occurred over a particular period.
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. Tony is a great employee. He is always punctual, practice active listening, as well as have a good preparation before any meeting. What kind of dimensions of professional behaviour are portrayed by Tony? (1 Point) Appearances and appeal, and honesty and ethics Diligence and collegiality, and courtesy and respect Honesty and ethics, and tolerance and tact Reliability and responsibility, and honesty and ethics 20. In the first phase of the writing process the writer needs to:(1 Point) research, organize and compose revise, proof read and evaluate analyse, anticipate and adapt none of the above 21. If your message is urgent and needs immediate response in black and white for recording purposes, which channel of communication is BEST used? (1 Point) letter memo face to face communication email 22. Phase 2 of the 3×3 writing process begins with doing which of the following?(1 Point) Writing the rough draft Deciding how to organize the message Selecting a communication channel Gathering necessary information 23. Jack and Rachel are meeting to write out their report for a new project. Which Phase of Writing are they engaged in? (1 Point) adapting organizing writing revising
The dimensions of professional behavior portrayed by Tony are reliability and responsibility, and honesty and ethics. The answer is (D) Reliability and responsibility, and honesty and ethics.
Dimensions of professional behavior refer to the attributes, characteristics, or traits that should be displayed by an individual to ensure a high level of professionalism in the workplace. Tony is always punctual, practices active listening, and prepares well before every meeting, and these behaviors portray the dimensions of professional behavior such as reliability and responsibility, and honesty and ethics. In the first phase of the writing process, the writer needs to research, organize, and compose the message. The first phase of the writing process is known as the prewriting phase, where the writer plans, researches, and organizes their thoughts and ideas about the message they want to convey.
If your message is urgent and needs an immediate response in black and white for recording purposes, the best channel of communication to use is a memo. A memo is a formal document used in business communication to convey important information or messages that require urgent attention and are for recording purposes. Phase 2 of the 3×3 writing process begins with deciding how to organize the message. The answer is (B) deciding how to organize the message. Phase 2 of the 3×3 writing process is known as the drafting phase, where the writer begins to write the message by deciding how to organize the content. Jack and Rachel are engaged in Phase 1 of the writing process, which is the adapting phase. The adapting phase is the prewriting phase where the writer adapts to the audience by analyzing their needs, interests, and expectations to create an effective message.
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Lee purchased a stock one year ago for $28. The stock is now worth $33, and the total return to Lee for owning the stock was 0.37. What is the dollar amount of dividends that he received for owning the stock during the year? Round to two decimal places.
The formula for total return is given as follows:
Total return = capital gain/loss + dividend yield
For example, capital gain/loss = (ending stock price – initial stock price) / initial stock price
Dividend yield is calculated as follows:
Dividend yield = dividends per share / stock price Initial stock price= 28
Ending stock price = 33
Total return to Lee = 0.37
Capital gain/loss = Total return - dividend yield0.37
= (33-28)/28 + dividend yield
Dividend yield = 0.12 = dividend / 28
Dividend = 3.36 dollars for owning the stock during the year.
So, the dollar amount of dividends Lee received for owning the stock during the year is 3.36.
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Which of the following accounts is not normally part of the revenue and collection cycle?
a. Sales.
b. Accounts Receivable.
c. Cash.
d. Purchases Returns and Allowances.
The account that is not normally part of the revenue and collection cycle is Purchases Returns and Allowances. There are several accounts associated with revenue and collection cycle.
The revenue and collection cycle is the series of activities that starts with a sale and ends with the collection of cash.There are three primary types of transactions associated with the revenue and collection cycle. These include:1. Sales2. Accounts Receivable3. Cash Sales: This is the revenue generated from the sale of goods or services to customers.
This account records the sale of goods or services to customers.Accounts Receivable: This account records the amount of money owed by customers to the company for goods or services that have been sold.Cash: This account records the amount of cash received from customers for goods or services that have been sold. Purchases Returns and Allowances are a component of the purchases and disbursements cycle.
Purchases Returns and Allowances is an account that tracks the goods returned to the supplier and the allowances for damaged goods. Therefore, option d) Purchases Returns and Allowances is not normally part of the revenue and collection cycle.
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CB Corporation issued a 2-for-1 stock split. Which of the following is NOT a true statement concezning the effect of the split? a. There is a continuation of retained earnings with no reduction in its balance. b. A proportionate reduction in the par value per share occurs. c. There is a transfer of retained earnings to contributed capital. d. The number of shares outstanding is increased.
The correct answer is:
b. A proportionate reduction in the par value per share occurs.
In a stock split, the number of shares outstanding is increased, but the par value per share remains the same or is adjusted accordingly.
A stock split does not result in a proportionate reduction in the par value per share. Instead, the par value per share may be adjusted to reflect the split, such as halving the par value in a 2-for-1 stock split. The split does not directly affect the par value itself.
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About the trend of flexibility in workforce, What is your "Aha" moment? In other words, what attracted you the most to this trend or what is the most important thing you have learned from the trend?
As an AI language model, I don't have an "Aha" moment or personal experience, but I can provide you with some insights on the trend of flexibility in the workforce.
The trend of flexibility in the workforce refers to a shift in the traditional work structure towards more flexible arrangements.
The trend encompasses several aspects, including remote work, freelance or contract-based work, job-sharing, flexible hours, and part-time work.
There are several reasons why this trend has gained momentum in recent years.
One of the most significant reasons is the advancement of technology, which has made it possible for people to work from anywhere at any time, as long as they have an internet connection.
Another factor is the desire for work-life balance, as people seek more control over their work schedules and personal lives.
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According to the textbook, people are more motivated when "they are shown a truth that influences their feelings" than they are by analysis. Discuss the relevance of this statement for organizations growing and responding to change. What responsibility does a leader have to honor stakeholder concerns when "feelings" are the primary basis for the concerns
The statement that people are more motivated when "they are shown a truth that influences their feelings" than they are by analysis has relevance for organizations growing and responding to change.
This statement is true because individuals are more driven to take action when they feel emotionally connected to a particular issue or idea. In the context of an organization, this means that leaders need to focus on creating an emotional connection between their employees and the organization's mission and goals.
One way to do this is by being transparent about the organization's vision and goals. By sharing the truth of the situation, and explaining why certain changes are necessary, leaders can help employees understand the impact that they can have on the organization's success. This can help employees feel more engaged in their work, and more motivated to contribute to the organization's growth.
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8. The can can be used to estimate the cost of equity, on the assumption that the market value of shares is directly related to the expected future dividends on the shares. (a) Beta factor (b) Dividend growth rate (c) Dividend growth model (d) Capital asset pricing model
The method that can be used to estimate the cost of equity, under the assumption that the market value of shares is directly related to the expected future dividends on the shares is the dividend growth model. The dividend growth model is used to estimate the intrinsic value of a share of stock, where the price of a share is determined by its expected future dividends.
The formula is as follows:
Price of share of stock = Dividend for next year / (Cost of equity - Dividend growth rate)
The cost of equity refers to the required return for a company’s shareholders. The dividend growth rate is the rate at which a company is expected to grow its dividends in the future. When using the dividend growth model, the expected future dividends are discounted back to the present value using the required return or cost of equity.
Accordingly, option (c) "Dividend growth model" is the correct option.
The method that can be used to estimate the cost of equity, under the assumption that the market value of shares is directly related to the expected future dividends on the shares is the dividend growth model.
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This Case Study is a comprehensive examination of a Capital budgeting problem completed with the projection of the project’s future cash flows and multiple evaluation methods including NPV, IRR, payback period, profitability Index, and simple rate of return. This case may also require the ranking of competing projects to simulate a real business environment where projects are plentiful and available capital is limited.
For this case study, you will prepare an Excel spreadsheet showing the computations used to prepare the evaluations and final decisions on which projects (if any) should move forward. In addition, a well-formatted memo (1-2 pages) to management is required to support your experience with the case study.
As was required in the last case study, please make sure to include cell formulas and cell references in your Excel file. Unless a value is given to you in the case study, you should be using cell references and formulas for all calculations.
Please upload both an Excel document and a separate Word document providing your analysis.
CASE STUDY 2
Summer 2022 – Block 2
Proposal Analysis
As the newly hired analyst for the corporate offices of Illuminated Electronics Corporation
(IEC), you must prepare an analysis of a capital budgeting proposal.
Proposal 1 – PPD
IEC has just developed a new electronic device (called the PPD) and it believes it will have
broad market appeal. The company has performed marketing and cost studies that revealed the
following information:
A) New equipment would have to be acquired to produce the device. The equipment would cost
$315,000 and have a six-year useful life. After six years, it would have a salvage value of
about $15,000.
B) Sales in units over the next six years are projected to be as follows:
Year Sales in Units
1 9,000
2 15,000
3 18,000
4–6 22,000
C) Production and sales of the device would require working capital of $60,000 to finance
accounts receivable, inventories, and day-to-day cash needs. This working capital would be
released at the end of the project’s life.
D) The devices would sell for $35 each; variable costs for production, administration, and sales
would be $15 per unit.
E) Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation
on the equipment would total $135,000 per year. (Depreciation is based on cost less salvage
value).
F) To gain rapid entry into the market, the company would have to advertise heavily. The
advertising costs would be:
Year
Amount of Yearly
Advertising
1–2 $180,000
3 $150,000
4–6 $120,000
G) The company’s required rate of return in 14%.
Proposal 2 – NED
One of your colleagues has provided an analysis of a competing proposal and concluded the
following:
NPV = $120,000; IRR = 15.5%; Payback Period = 3.5 years, Profitability Index = 1.25
Required:
1) Compute the net cash inflow (incremental contribution margin minus incremental fixed
expenses) anticipated from the sale of the PPDs for each year over the next six years.
2) Using the data computed (1) and other data provided in the problem, determine the net present
value, internal rate of return, payback period, and profitability index of the proposed
investment.
3) Using the analysis performed in (2), prepare "best" and "worst" case scenarios using the
following assumptions:
a) Best Case – Projected sales expectations increase by 10%, required rate of return falls to 7%.
b) Worst Case – Projected sales decreases by 10%, required rate of return increases to 15%.
4) Write a memo to the CFO of IEC providing your analysis and recommendation regarding the
PPDs. Be sure to compare your results to the competing proposal. Include a strong
recommendation for or against the acceptance of the new PPDs into IEC’s product line.
Memo to the CFO of IEC Provided below is the analysis of the PPD project, and a recommendation for or against its acceptance into IEC’s product line.
Part 1: Computing the net cash inflow for the PPD project: Year Sales in Units Sales Value Variable Cost Contribution Margin Fixed Cost Cash Inflow Working.
Capital000,000,0003.5194.5(135)59.52515.5(135)94.52718.5(135)100.54145185
(135)120.54854185(135)132.56Total 81.5$2,555.0$1,186.5$1,368.5$(810.0)$558.5$(60.0)
Part 2:
Net present value of the project: Internal rate of return (IRR): Payback period: Profitability index: Part 3:Best case and Worst case scenarios Best Case:
Required rate of return = 7%Sales increase by 10%Worst Case:
Required rate of return = 15%Sales decrease by 10%
However, it is important to note that the PPD project is not the only proposal being considered, and our recommendation would depend on how it compares with the competing proposal.
We recommend accepting Proposal 1 – PPD since it has a higher net present value and internal rate of return than Proposal 2. Our recommendation is to accept Proposal 1 – PPD into IEC’s product line.
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Refer to Figure 9-3. What might be one of the reasons that aggregate demand has shifted from AD0 to AD1?
Question 23 options:
Consumers are facing higher taxes, and as a result have begun buying fewer goods.
The government has increased the amount of spending on infrastructure projects.
Consumers' belief in the economy has increased, and as a result they have begun buying more goods.
Investors have become more optimistic about their profit prospects and therefore output and prices are higher.
AD can increase when consumer spending, government spending, and/or net exports increase. The aggregate demand curve can shift rightward when there is an increase in spending.
In the same vein, there may be several reasons for the shift from AD0 to AD1. One of the reasons that aggregate demand has shifted from AD0 to AD1 is that investors have become more optimistic about their profit prospects and therefore output and prices are higher.
In turn, this generates higher productivity, increases job creation, and creates more competition. Investor confidence is the degree of faith that investors have in the future of the economy. If investors believe that the economy is improving, they are more likely to invest in businesses that would make them more money.
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Chandler Sporting Goods produces baseball and football equipment and lines of clothing. This year the company had cash and marketable securities worth $3.3 million, accounts payables worth $11 million, inventory of $16 million, accounts receivables of $15 million, short-term notes payable worth $3.5 million, other current assets of $1.2 million, and no other current liabilities. What is the company's net working capital?
$37 million
$25 million
$21 million
$17 million
Net Working Capital can be defined as the difference between current assets and current liabilities. It shows how much money a company has in its business to run its daily operations. The company's net working capital is $21 million. Hence, the correct option is option C.
In the given problem, the Chandler Sporting Goods company had:Cash and Marketable Securities = $3.3 million,Accounts Payables = $11 million,Inventory = $16 million,Accounts Receivables = $15 million,Short-Term Notes Payable = $3.5 million,Other Current Assets = $1.2 million,No other current liabilities.
Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = ($3.3 million + $15 million + $16 million + $1.2 million) - ($11 million + $3.5 million)
Net Working Capital = $35.5 million - $14.5 million
Net Working Capital = $21 million
Therefore, the company's net working capital is $21 million.
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Jasper Auto Inc is going to invest in a new machine to produce Part A. The cost of the machine is $400,000. Part A will have variable cost per unit of $75.00 and the sales price per unit will be $140.00. Fixed costs will be $80,000. The machine is expected to have a life of eight years. Jasper Auto requires a return of 10% on their investments.
Required:
Ignoring the effect of taxes, calculate the following . Round all your answers to two decimal points.
Accounting Break-even quantity (2 marks)
Cash Break-even quantity (2 marks)
Financial Break-even quantity (4 marks)
Degree of operating leverage. (2 mark
Accounting Break-even quantity:The accounting break-even quantity of an investment is a calculation that can determine the quantity of products that must be sold to cover the variable and fixed expenses of the investment. The equation is as follows:
Accounting Break-even Quantity = Fixed Costs / Sales Price per Unit - Variable Costs per Unit
Here the fixed costs are $80,000 Variable costs per unit are $75.00Sales Price per unit will be $140.00.Accounting Break-even Quantity = $80,000 / $140 - $75 = 2667.74
Cash Break-even quantity:Cash Break-even quantity= (Fixed costs + Depreciation) / Sales Price per Unit - Variable Costs per UnitSince the machine is going to have a life of eight years, the depreciation will be ($400,000 / 8) $50,000 per year.
Thus, Fixed costs will be $80,000+$50,000 = $130,000.Cash Break-even quantity = ($130,000) / ($140 - $75) = 2,600 Financial Break-even quantity:Financial Break-even quantity = (Fixed Costs + Interest Costs) / Contribution Margin per UnitContribution Margin per Unit = Sales Price per Unit - Variable Costs per UnitHere, we know, the fixed cost is $80,000, the Interest rate is 10%, thus, Interest Costs = $400,000 x 10% = $40,000.Contribution Margin per Unit = $140 - $75 = $65Financial Break-even quantity = ($80,000 + $40,000) / $65 = 1692.31Degree of operating leverage:Degree of operating leverage (DOL) is a measurement of how much the income of an enterprise changes when sales rise or decrease. DOL is equal to Contribution Margin / Net Income. In the above question, contribution margin is $65, fixed costs $80,000, and the income tax rate is not given, so we can’t calculate the net income. Thus, we can’t find the Degree of Operating Leverage. Therefore, the answer is not possible to calculate.
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write a product release of a new restaurant opening .
information needed:
catchy headline
product release date: 12/08/2022
this is the first of its kind restaurant in that area
restaurant name: kia's
Product ReleaseKia's restaurant is the first of its kind in the area, offering an unparalleled dining experience. It is set to open its doors on December 8, 2022, and we are excited to announce the launch of this exceptional restaurant.
Kia's will be your ultimate destination for authentic, exotic flavors that will take you on a culinary journey like no other. Our menu is curated with the freshest ingredients and will cater to all types of palettes. Kia's chefs have created a mouthwatering array of dishes that will tantalize your taste buds. From appetizers to entrees to desserts, there is something for everyone.
Our restaurant offers a warm and welcoming atmosphere, where you can relax and indulge in the flavors of our food. Kia's is the perfect place for a romantic dinner, family gathering, or corporate event. Our friendly staff will ensure that your dining experience is seamless and unforgettable.
So join us on December 8, 2022, and experience the magic of Kia's restaurant. We look forward to welcoming you!Catchy Headline: "Introducing Kia's: The First-of-its-Kind Restaurant in the Area!"
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British government 5% perpetuities pay £5 interest each year forever. Another bond, 3.5% perpetuities, pays £3.5 a year forever.
a. What is the value of 5% perpetuities if the long-term interest rate is 9.5% ? (Round your answer to 2 decimal places.)
Perpetuity value
b. What is the value of 3.5% perpetuities? (Round your answer to 2 decimal places.)
Perpetuity value
a. Value of 5% perpetuity First, we find the perpetuity value using the formula PV
= PMT/i where PV is the present value, PMT is the payment, and i is the discount rate.
i = 9.5%PMT
= £5Using PV
= PMT/i, the value of 5% perpetuity is:PV
= PMT/i
= £5/0.095
= £52.63b. Value of 3.5% perpetuity Using the same formula, PV
= PMT/i, the value of 3.5% perpetuity is:PMT
= £3.5i = 9.5%PV
= PMT/i
= £3.5/0.095
= £36.84Therefore, the value of 5% perpetuities if the long-term interest rate is 9.5% is £52.63 and the value of 3.5% perpetuities is £36.84.
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a. Compare and contrast the Principle Based Accounting Standards to Rules Based Accounting Standards (10 marks) b. Various Stakeholders who receive accounting information differ in their informational needs. Discuss Six of these, citing their areas of interest.
a. Compare and contrast the Principle Based Accounting Standards to Rules Based Accounting Standards.Accounting standards can be divided into two categories: principle-based accounting and rule-based accounting.
The standards that are set up to direct accounting professionals on how to properly report business transactions are known as accounting standards. They are either principle-based or rules-based in nature. The following are the differences between the two types of standards:Rules-Based Accounting Standards: In rule-based accounting, transactions are controlled by detailed rules. These rules are inflexible, which means that each transaction must be handled in accordance with these rules, which means that there is no room for judgement.
Employees are interested in knowing whether a company is making a profit and whether they will be able to keep their jobs.Customers: Customers are interested in knowing whether a company is profitable and whether the prices of goods and services are likely to rise.Suppliers: Suppliers are interested in knowing whether a company is able to pay its debts and whether there are any possible risks that could jeopardize the long-term relationship between the supplier and the organization.
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Roger contracts to paint Mrs. White's house for $500. Afterwards Roger informs Mrs. White that he has won the lottery and does not intend to ever pick up a paintbrush again. Mrs. White then hires David to paint the house for $750 and sues Roger for the increased cost ($250) of hiring David to paint her house. Mrs. White is seeking:
Group of answer choices
A. loss in value damages (compensatory)
B. consequential damages
C. punitive damages
D. liquidated damages
Kim and Jeff went to college together at E.O.U. Kim moves to Portland after graduation and Jeff remains in La Grande. Kim starts a successful business and during a telephone conference tells Jeff that she is shorthanded and would pay him union scale if he came to work for her. Jeff quits his job in La Grande, rents a U-Haul and moves to Portland. However, when he shows up at Kim's office, she informs him that she just lost a major customer and cannot hire any new employees at present. Jeff sues to enforce their agreement. A court will most likely hold that the agreement:
Group of answer choices
A. was unenforceable because of the parole evidence rule.
B. was unenforceable because it was not put into writing.
C. was enforceable under the U.C.C.
D. was enforceable based on promissory estoppel.
Answer: Mrs. White is seeking consequential damages. In the given case, Roger contracts to paint Mrs. White's house for $500. However, Roger informs Mrs. White that he has won the lottery and does not intend to ever pick up a paintbrush again.
Then Mrs. White hires David to paint the house for $750 and sues Roger for the increased cost ($250) of hiring David to paint her house. Consequential damages are damages that are awarded to compensate for damages that have resulted from an action.
They are often called special damages because they are unique to each situation. In this case, Mrs. White incurred damages as a direct result of Roger's breach of the painting contract. Therefore, Mrs. White is seeking consequential damages.
Further Explanation: The contract is the agreement between two parties to do something in exchange for something else. It is a legally binding agreement, and if either party breaches the contract, the other party may be entitled to damages.
Damages are the legal remedy for a breach of contract, and they are designed to put the non-breaching party in the position they would have been in if the contract had been performed. There are several types of damages that may be awarded for a breach of contract.
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Using the following information: a. The bank statement balance is $3,350. b. The cash account balance is $3,646. c. Outstanding checks amounted to $655. d. Deposits in transit are $794. e. The bank service charge is $148. f. A check for $74 for supplies was recorded as $65 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance
The bank statement balance is $3,350. Next, we need to consider the adjustments. There are two adjustments we need to make: outstanding checks and deposits in transit.
Outstanding checks are checks that have been issued by the company but have not yet cleared the bank. According to the information given, the outstanding checks amount to $655. Deposits in transit are deposits that have been made by the company but have not yet been recorded by the bank. According to the information given, the deposits in transit amount to $794.
Adjusted balance = Cash balance
according to bank statement - Outstanding checks + Deposits in transit Adjusted balance = $3,350 - $655 + $794.
\Now, let's move on to the cash balance according to the company's records. According to the information given, the cash account balance is $3,646.
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it is not possible to extract analytical data from operational databases. group of answer choices a)true b)false
It is possible to extract analytical data from operational databases.
b) FALSE
It is possible to extract analytical data from operational databases. Operational databases are primarily designed to support day-to-day operations and transactions, while analytical databases or data warehouses are specifically designed to facilitate complex analysis and reporting. By extracting data from operational databases and transforming it into a suitable format, analytical insights can be derived for various purposes such as business intelligence, data analysis, and decision-making. Therefore, the statement that it is not possible to extract analytical data from operational databases is false.
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$250 is invested at t=0. For t=0 to t=1 the investment earns 0.04 effective annual interest, and from t=1 to t=2 the investment earns 0.10 nominal semi annual interest. Find the accumulated value of the investment at t=2.
a. 286.65
b. 357.63
c. 185.56
The accumulated value of the investment at t=2 is $286.65. Hence, the answer is option (a) 286.65.
Let us apply the formula that represents the future value of a lump sum invested at time t = 0 which is as follows:
FV = PV x (1 + r)^ n
Where
FV: future value of the investment at time t = 2
PV: present value of the investment at time t = 0
r: nominal semi-annual interest
n: number of semi-annual periods
From t = 0 to t = 1, the investment earns an effective annual interest rate of 0.04. So the interest rate for one semi-annual period is (1 + 0.04)^(1/2) - 1 = 0.0196.
From t = 1 to t = 2, the investment earns a nominal semi-annual interest rate of 0.10. So the interest rate for one semi-annual period is 0.10 / 2 = 0.05.So we have:
FV = 250 x (1 + 0.0196)^2 x (1 + 0.05)^2 = 286.65
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On January 5, 2018 Calvin's Cropcrushers, Inc. purchased crop crushing equipment for which the following information is available: Calculate the following 1 The depreciable base. 2 The annual depreciation using the straight line method. 3 The accumulated depreciation at December 31, 2019 (end of second year) if straight line (S/L) depreciation is used. 4 The book value of the equip. on Dec. 31, 2019 if S/L deprec. is used 5 The depreciation for year 2020 assuming the equipment is sold on May 31, 2020 and the straight line method is used. 6 The book value of the equip. on May 31, 2020 if S/L deprec. is used 7 The amount of the gain or loss (INDICATE GAIN or LOSS and AMOUNT) resulting if the equipment is sold for −$1,301,563 on May 31, 2020 and S/L depreciation is used. 8 The SECOND year (2019) depreciation if double declining balance is used. 9 The accumulated depreciation at December 31, 2019 (end of second year) if double declining balance (DDB) is used. 10 The book value of the equipment on December 31, 2019 assuming double declining balance is employed. 11 The depreciation for year 2020 assuming the equipment is sold on September 30, 2020 and double declining balance is used. 12 The gain or loss (INDICATE WHICH) which would result if the equip. is sold for →$908,359 on Sept. 30, 2020 and DDB is used. 13 The SECOND year (2019) depreciation if sum of the years digits is used 14 The accumulated depreciation at December 31, 2019 (end of second year) if sum of the years digits is used 15 The book value of the equipment on December 31, 2019 assuming sum of the years digits is used. 16 The first year depreciation if units of output is used and the equip. is operated for 2900 hours in 2018. 17 The accumulated depreciation at December 31, 2019 (end of second year) units of output is used and the equipment was operated for another 2700 hours in 2019. 18 The book value of the equip. on December 31,2019 if units of output is used. (Equipment operated 2900hrs in 2018, 2700hrs in 2019) 19 The depreciation for year 2020 assuming the equipment is sold on September 30, 2020 and is operated for 2,300 hours in 2020. (assuming the units of output method is used) 20 The book value of the equipment assuming the facts in \#19 Drginal cost Residual ualue Depreciable base Straight line depreciation Date Calculation Dep Ekp Acc Dep BW Double declining balance Date Calculation DepEsp Acc Dep BV Sum of the years digits Date Calculation DepE Erp Acc Dep BV Units of output Date Calculation Dep Esp Acc Dep BV
On January 5, 2018, Calvin's Cropcrushers, Inc. bought crushing equipment with the following data:Original Cost: $8,000,000Residual Value: $1,500,000Useful Life.
5 yearsStraight Line Method of Depreciation1. The Depreciable Base is determined by subtracting the Residual Value from the Original Cost of the asset.
which is calculated as:Cost - Residual Value = Depreciable Base$8,000,000 - $1,500,000 = $6,500,000Therefore, the Depreciable Base is $6,500,000.2.
The Straight Line Method (S/L) is used to calculate Annual Depreciation, which is determined by dividing the Depreciable Base by the useful life of the asset.
which is:Annual Depreciation = Depreciable Base/Useful Life$6,500,000/5 years = $1,300,000 per yearTherefore, the Annual Depreciation using the straight-line method is $1,300,000.3.
To find the Accumulated Depreciation at December 31, 2019 (end of second year) using S/L depreciation, multiply the Annual Depreciation by the number of years used, which is:Accumulated Depreciation = Annual Depreciation.
Number of years used2 years * $1,300,000 per year = $2,600,000Therefore, the Accumulated Depreciation at December 31, 2019, if S/L depreciation is used.
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