Question 1
(TCO 1) Why is maximization of the current value per share a more appropriate financial management goal than profit maximization? (Points : 3) Because by maximizing the current stock value you also maximize the company?s profit for the year. Because this criterion is non-ambiguous. Because financial managers always act in the best interest of shareholders. B and C (TCO 1) Book values are different to market values because: (Points : 3) Book values reflect the value of the asset based on generally-accepted accounting principles. Book values are used in the company's balance sheet. Book values do not reflect the amount someone is willing to pay today for an asset. All of the above For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Suppose that Sports Baseball has 30,000 shares of stock. Assume a tax rate of 30%. What is the EPS figure? (Points : 3) 8.50 8.75 9.0 9.15 For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Assuming a tax rate of 30%, what is the operating cash flow for the year? (Points : 3) $1,260,000 $962,000 $962,500 $1,265,000 Can not be determined with the information given
Question 2
Deer Valley Lodge, a ski area near Salt Lake City, has plans to eventually add five new chairlifts. Suppose that one of the lifts costs $2.2 million and preparing the slope and installing the lift cost another $1.48 million. The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the lodge needs the extra capacity. (Assume Deer Valley will sell all 300 lift tickets on those 40 days). Running the new lift will cost $500 a day for the entire 200 days the lodge is open. Assume that lift tickets at Deer Valley cost $65 a day and added cash expenses for each skier day are $9. The new lift has an economic life of 20 years. 1) Assume that the before tax required rate of return for Deer Valley is 14%. Compute the before tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. 2) Assume that the after-tax required rate of return for Deer Valley is 8%, the income tax rate is 40%, advise the managers of Deer Valley about whether adding the lift will be profitable investment. 3) What subjective factors would affect the investment decision?
Question 3
On June 15, 2013, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C. for $260 million. The expected completion date is April 1 of 2015, just in time for the 2015 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2013 2014 2015 Costs incurred during the year $ 60 $ 80 $ 65 Estimated costs to complete as of 12/31 140 60 ? -------------------------------------------------------------------------------- Required: 1. Determine the amount of gross profit or loss to be recognized in each of the three years using the percentage-of-completion method. (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) 2. How much revenue will Sanderson report in each of three years using the percentage-of-completion method? (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) 3. Determine the amount of gross profit or loss to be recognized in each of the three years using the completed contract method. (Enter your answers in millions.) 4. Determine the amount of revenue, cost, and gross profit or loss to be recognized in each of the three years using the cost recovery method that is required by IFRS. (Enter your answers in millions.) 5. Suppose the estimated costs to complete at the end of 2014 are $110 million instead of $60 million. Determine the amount of gross profit or loss to be recognized in 2014 using the percentage-of-completion method. (Enter your answer in millions. Do not round intermediate calculations.)
Question 4
? Activity Instruction To complete this assignment, use the Honeymoon Destinations case study that you read in the studies in this unit, the Honeymoon Destinations Codebook document, and the Honeymoon Destinations Codebook Errata document provided in the Resources. Note that there are three discrepancies between the data in the case codebook from the reading and the data in the Honeymoon Destinations Codebook document. These exceptions are outlined in the Honeymoon Destinations Errata document. Use the data in the Excel file provided in the Resources to complete this assignment. Todd Bobzien and Clayton Rose have engaged you to analyze data gathered via their direct-mail survey. The responses of the 91 people who returned the survey are represented in the 54 variables in the Honeymoon Destinations Codebook document. (Refer to the data codebook in the "Honeymoon Destinations" reading in this unit's studies for an explanation of what each of the variables appearing in the spreadsheet represents.) Todd and Clayton would like you to investigate the following: 1. In the beginning, they need to focus their marketing and distribution to as few channels as possible, and they want to know what the very best channels would be, based on what the data suggests. 2. Clayton believes that the individuals in their target group (those with higher incomes) would be willing to spend at least fifteen dollars on a video, and he wants you to test that hypothesis. 3. Todd is less interested in testing a hypothesis than he is in developing an estimate for what people would be willing to pay. He would like 95 percent confidence intervals for the average price people would be willing to pay: one for the higher-income group, one for the lower-income group. Analyze the 91 survey responses to provide answers to Todd's and Clayton's three questions. Write a management report that contains your findings and recommendations. Complete your report in a Word document, copying in whatever Excel output and graphics you need to support your report. This output needs to be placed within the text and must be legible and suitable for inclusion in a management report. Refer to the scoring guide prior to submission to ensure you meet all evaluation criteria. Submit your case analysis and report for grading and instructor feedback. Note: Your instructor may also use the Writing Feedback Tool to provide feedback on your writing. In the tool, click the linked resources for helpful writing information.
Question 5
Hi its been a while I have a research paper for you for the research proposal you did on global environment she said the research proposal was good. I am attaching all the info that you need . Good luck don't hesitate to ask me any questions. Research Paper (Due Week 7) The research paper will consist of an objective examination of a liberal arts topic related to living in a global community. Learners may research some aspect of culture?politics, social change, music, film, art, theatre, literature, science, or religion?in a country other than the United States or learners may focus on an aspect of American culture that has implications for the global community. The Components of a Research Paper A research paper as a ?review of the literature? is an integration of what academic scholars and experts have written on a given subject. Therefore, in writing a paper, you are not so much adding to the available information on a subject as making use of information that is already known. However, you can be original in the selection and organization of the material which you have researched, and in the conclusions which you arrive at as a result of the research. The components that are required in Ottawa University research papers are the Introduction, the Body, the Conclusion, and the References page. In simple terms, the Introduction is a brief statement to readers describing the issue to be researched and what lies ahead in the paper. The body of the paper, made up of your researched information (usually in three sections or more), integrates the information you have gathered to ?answer? your research question. The conclusion is your brief summary, or restatement, and the conclusions that you have reached from your research. The reference list informs your readers where you obtained your information. All sources used in your research paper are documented on your References page. In addition, your instructor may require an additional Discussion section to demonstrate your critical thinking in analyzing the information available on your topic. Remember from high school English composition class: ? Introduction?tell them what you?re going to tell them ? Body?tell them (the body is actually your research-based answer to your research question) ? Conclusion?tell them what you told them ? References?tell them where you got what you told them I am going to give you as much information as you need.
