Question 1
Operating leverage is best described as Select one: A. a measure of the extent to which an organization's operations are fixed. B. a measure of the extent to which an organization's costs financed by equity. C. a measure of the extent to which an organization's contribution margin is affected by sales mix of products. D. a measure of the extent to which an organization's operations are financed by debt. In a cost-volume-profit graph Select one: A. an increase in unit variable costs would decrease the slope of the total costs line. B. the total revenues line crosses the horizontal axis at the break-even point. C. an increase in the unit selling price would shift the break-even sales point to the left. D. an increase in the unit selling price would shift the break-even sales point to the right. Profitability analysis involves examining the relationships among all of the following except Select one: A. products. B. costs. C. profits. D. revenues. A firm can reduce is operating leverage by substituting Select one: A. debt for equity. B. equity for debt. C. direct labor for robotic equipment. D. direct materials for direct labor. A cost-volume-profit graph Select one: A. plots contribution margin on the X-axis and volume on the Y-axis. B. plots contribution margin on the Y-axis and volume on the X-axis. C. plots both revenue and total cost on the X-axis. D. plots both revenue and total cost on the Y-axis. Operating leverage is best described as Select one: A. a measure of the extent to which an organization's costs are fixed. B. a measure of the extent to which an organization's contribution margin is sensitive to levels of debt. C. a measure of the extent to which an organization's operations are financed by debt. D. a measure of the extent to which an organization's profits contribute to reductions in debt.
Question 2
I do have a question however, but could you help me with something else that is due this Saturday? Today is Tuesday, 03/08, I would need it to me by Friday to proof read and adjust with my information. It is an argumentative paper on "Are charter schools/vouchers detrimental to the American educational system?" Here are the instructions: Select one of the above issues and construct a six-to eight-page argument in which you use the following format. Your paper will have three parts: Thesis, Anti-thesis, and Synthesis. Mark each section clearly with a section header. The sources used in the two sections may overlap and need not be completely different. No orphan sources: if a source is in the reference list, it must be quoted in the text, either a direct quote or paraphrased; if a source is quoted in the text, it must be in the reference list. Popular websites such as Wikipedia are not considered suitable as academic sources. You are to use the Ashford online library databases for your academic resources. If you do want to use articles from the Web, start with Google Scholar. Part I: Thesis Part I is your thesis. Write a short essay (two-to three- pages) taking one side or the other on the issue you select. You want to state very clearly the reasons you are taking the position you take, but you don?t have to defend it thoroughly (that?s what Part III is for). Part II: Anti-thesis Part II is the anti-thesis. Write a critical analysis in reply (two-to three- pages) to your essay in Part I by imagining that you oppose what the writer of Part I has stated. Careful reasoning is required. YOU MUST USE AT LEAST 3-5 academic/scholarly sources in the formation of this section. Remember that you are playing the ?devil?s advocate,? but what every student must realize is that a sound critical thinker can argue any side of an argument because he/she is diligent and flexible in his/her thinking. Part III: Synthesis Part III is the synthesis (about two pages). Revisit Part I and, taking into account all the criticisms of Part II, write a thorough defense of your position. Again, like Part II, you must use at least 3-5 academic/scholarly sources in the formation of this section. Writing the Argumentative Paper The Argumentative Paper: Must be six-to eight-double-spaced pages in length and formatted according to APA style as outlined in the approved style guide. Must include a title page (in addition to the six-to eight- content pages) that includes the following in sequence: Title of paper Student?s name Course name Instructor?s name Date submitted Must include an introductory paragraph with a succinct thesis statement. Must address the topic of the paper with critical thought. Must conclude with a restatement of the thesis and a conclusion paragraph. Must use APA style as outlined in the approved APA style guide to document all sources. Must include a Reference page (in addition to the six-to eight-content pages) that is completed according to APA style as outlined in the approved style guide. I have the title page, just need the content paper and references used and correct citation. We use Turnitin to make sure it is original to avoid plagarism. Please let me know if this is something you would be willing to do. Thank You Rose " Tips for the Final Argumentative paper: ? General writing reminders: o Follow APA formatting (this includes using 12-point, Times New Roman font; double spacing; using proper margins and indents; developing an APA -formatted title page and reference page.) o Be sure to always meet the length requirement for your assignments. The length requirement for this assignment is six to eight pages of text. This does not include the title and reference pages. o Always proofread your assignments before submitting them for grading; it is also recommended that you use a spell check. o Avoid the use of personal pronouns (these can include: I, me, my, myself, you, we, and our) o When choosing a topic for this assignment from the given list keep in mind that you may not want to choose a topic that you feel strongly about. Choosing a topic that you are passionate about can hinder your ability to effectively see the opposing viewpoint and may cause you to construct an argument based on the logical fallacies rather than scholarly sources. o Be sure that you have an introduction and conclusion. ? This paper should be written in three distinct sections: thesis, anti-thesis, and synthesis. These sections should be clearly marked with section headers. Each section should be at least two pages in length and no more than three pages in length. o Thesis: ? This should be the first section of the paper. In this section of the essay, you will state your stance on the topic at hand. For example, if you were arguing that abortion should be legal, you would state your case for abortion remaining legal in this section of the paper. ? Do not address opposing arguments in this section. ? This section should be two pages in length. o Anti-thesis: ? This is the second section of the paper. In this section, you would state the opposing arguments. For example, if in the thesis you argued for abortion to remain legal, you would know address why others say abortion should not be legal. ? Do not refute the opposing arguments. Your stance on the issue should not be discussed in this section. ? ? Use scholarly sources to support the opposing argument. You need to use at least three sources in this section of the assignment. ? This section should be two to three pages in length. o Synthesis: ? This is the final section of the assignment. This section should refute the arguments of the anti-thesis. You would not use the same arguments you used in the first section of the paper but rather tell the opposition why the arguments are wrong. For example, in a paper arguing for abortion, the synthesis section would use scholarly sources to explain why the opposition's arguments are not valid. ? Use scholarly sources to refute the opposing argument. You need to use at least three sources in this section. The sources that you use can be the same sources that you used in the anti-thesis section of the assignment. ? This section should be two to three pages in length. Research and Citation Information: o Using external research to supplement your ideas and arguments is very effective and required in this assignment. However, it is critical that your sources are considered academic in nature. o Remember that with any source it is important to evaluate it in terms of its credibility as this can only add to your authority on the subject. Examples of sources to avoid: Do not use Wikipedia. Its open policy that enables anyone with a computer to edit information makes the site highly unreliable. Mistakes can be made accidentally, or even purposely. Never use Wikipedia for this reason. Avoid using any .com website even popular news .com Web sites such as cnn.com or msnbc.com are not considered academic in nature. If no author is listed, question the relevancy of the source Again, this will typically deal with non-academic Web sites; if you find an article through a Web site, but no author is listed, consider its relevancy; to be considered an academic source, an article, journal, etc., should be peer reviewed. An article with no author listed in all likelihood did not undergo a peer review. Avoid using personal interviews as a primary source. Again these are not peer-reviewed sources, and while the person being interviewed may be an expert in his/her field there is no way to verify the information as accurate. For example, in the field of psychology there can be numerous approaches and philosophies on certain theories. It would be difficult to distinguish which ideas are the personal opinions of the speaker and which are the generally accepted principles in the field. o When researching sources make sure that they come from credible sources (journals/websites), credible authors (what authority does the writer have regarding your topic?), and updated publication dates. Credible sources include the following: ? Primary sources written by experts in the field of study ? Secondary sources supported by research in primary sources ? Credible sources (experts in the area of study) ? Relevant research (materials are pertinent to the area of study) o Citing sources within your text and on your reference page is important and should be done as to avoid plagiarism. The Ashford Writing Center http://ashfordwritingcenter.com/ has detailed information for correct citation practices in APA format. You can also search the internet for other sources pertaining to proper APA formatted citations. ? For websites, in-text citations should not include the URL. Use the author name, title of the article or website. Follow formatting in The Little, Brown Handbook or Ashford Guide (Last name, 2006). ? A source's URL should only be given in the reference page entry. Example: Last-name, F.I. (2006). Website name where information was found. Retrieved December 6, 2007 from http://www.website.com/academic.
Question 3
Valuing ConocoPhillips?s Acquisition of Burlington Resources. You have recently been hired as an equity analyst by Wall Street Valuation Consultants and have been assigned the task of valuing the proposed acquisition described in the following press release: Houston, Texas (December 12, 2005) ? ConocoPhillips (NYSE: COP) and Burlington Resources Inc. (NYSE: BR) announced today they have signed a definitive agreement under which ConocoPhillips will acquire Burlington Resources in a transaction valued at $33.9 billion. The transaction, upon approval by Burlington Resources shareholders, will provide ConocoPhillips with extensive, high-quality natural gas exploration and production assets, primarily located in North America. The Burlington Resources portfolio provides a strong complement to ConocoPhillips?s global portfolio of integrated exploration, production, refining, and energy transportation operations, thereby positioning the combined company for future growth. In his letter to Conoco shareholders contained in the company?s 2005 annual report, CEO Jim Mulva described the rationale for the proposed Burlington acquisition as follows: Burlington?s near-term production profile is robust and growing, plus Burlington possesses an extensive inventory of prospects and significant land positions in the most promising basins in North America, primarily onshore. With this access to high-quality, long-life reserves, the acquisition enhances our production growth fro both conventional and unconventional gas resources. Specifically, our portfolio will be bolstered by opportunities to enhance production and gain operating synergies in the San Juan Basin of the United States and by an expanded presence and better utilization of our assets in Western Canada. In addition to growth possibilities, these assets also provide significant cash generation potential well into the future. Beyond adding to the production and reserves, Burlington also brings well-recognized technical expertise that, together with ConocoPhillips?s existing upstream capabilities, will create a superior organization to capitalize on the expanded asset base. We do not anticipate that the $33.9 billion acquisition will require asset sales within either ConocoPhillips or Burlington, nor should it change our organic growth plans for the company. We expect to achieve synergies and pretax cost savings of approximately $375 million annually, after the operations of the two companies are fully integrated. We anticipate immediate and future cash generation from this transaction that will aid in the rapid reduction of debt incurred for the acquisition and go toward the redeployment of cash into strategic areas of growth. Burlington shareholders will vote on the proposed transaction at a meeting on March 30, 2006. However, at an analysts? meeting, CEO Mulva hinted that the price ConocoPhillips paid for Burlington might be viewed as high by some: In terms of acquisition, mergers and acquisitions, it really becomes more and more of a seller?s market, and terms and conditions are not that attractive to buyers. Your task is to answer the following basic question: Is Burlington Resources worth the $35.6 billion offered by ConocoPhillips? Although you are new to the exploration and production (E&P) industry, you have quickly learned that the method of multiples, or market-based comparables, and specifically the ratio of enterprise value (EV) to EBITDAX are typically used as benchmarks to value E&P companies. EBITDAX stands for ?earnings before interest, taxes, depreciation and amortization, and exploration expenses.? EBITDAX differs from EBITDA in that it adds back exploration expenses in addition to depreciation and amortization ? hence the term ?EBITDAX.? (a) Using the method of multiples based on enterprise value to EBITDAX, the P/E ratio. And the enterprise value to EBITDA ratio, what should the acquisition price be for Burlington Resources shares? Use the following companies as comparables for your analysis: Chesapeake Energy, XTO Energy, Devon Energy, and Apache. Year-end 2004 balance sheets and income statement summary information as well as market capitalization data are provided in Exhibit P8-11.1 (pp. 304-307) (attached excel sheet) for Burlington Resources and each of the comparable firms. (b) Which of the four firms used as comparables do you think is the best comparison firm for Burlington Resources? Why? (c) Based on your analysis of comparables, did ConocoPhillips pay too much or find a bargain? Explain your answer. (d) What additional information would help you with this analysis?
Question 4
ACC 400 FINAL EXAM The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below. Westward Corporation Westward Corporation Balance Sheet Income Statement December 31, 2009 For the Year Ended December 31, 2009 Assets Revenues $2,000,000 Current assets Expenses Cash and temporary Cost of goods sold 1,080,000 investments $ 30,000 Selling and administrative Accounts receivable 70,000 Expenses 495,000 Inventories 120,000 Interest expense 30,000 Total current assets 220,000 Total expenses 1,605,000 Property, plant, and Income before income taxes 395,000 equipment (net) 780,000 Income tax expense 140,000 Total assets $1,000,000 Net income $ 255,000 Liabilities and Stockholders' Equity Current liabilities $ 80,000 Long-term liabilities 300,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,000,000 Westward Corporation Westward Corporation Balance Sheet Income Statement December 31, 2008 For the Year Ended December 31, 2008 Assets Revenues $2,500,000 Current assets Expenses Cash and temporary Cost of goods sold 1,750,000 investments $ 40,000 Selling and administrative Accounts receivable 90,000 Expenses 500,000 Inventories 150,000 Interest expense 30,000 Total current assets 280,000 Total expenses 2,280,000 Property, plant, and Income before income taxes 220,000 equipment (net) 800,000 Income tax expense 77,000 Total assets $1,080,000 Net income $ 143,000 Liabilities and Stockholders' Equity Current liabilities $ 140,000 Long-term liabilities 320,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,080,000 Select data from fiscal year 2007: Inventory: $100,000 Total assets: $900,000 Stockholders? Equity: $540,000 Instructions 1. Compute the following listed ratios for 2009 and 2008 showing supporting calculations. (5.2 points) a. Current ratio b. Debt to total Assets c. Times interest earned d. Inventory turnover e. Profit margin ratio f. Return on common stockholders' equity g. Return on assets 2. Perform horizontal and vertical analysis on Westward?s financial statements, show your results. (3.0 points) 3. Assess the financial performance of Westward, given the analysis tools used in questions 1 and 2 above. (5.3 points) 4. If the company wanted to perform industry comparison analysis, what references would you recommend it use? (1.5 points)
Question 5
Using a spreadsheet program (Microsoft Excel) to solve all the problems given below. The Excel sheet should be an active sheet ? means the formula should be enabled in each cell, DO NOT just copy & paste the values or manually input the values in the cells. PROBLEM # 1: You have just turned 26, and you intend to start saving for your retirement. You plan to retire in 40 years at age when you turn 65. During your retirement you would like to have an annual income of $140,000 per year for the next 27 years after retirement. Calculate how much you would have to save between now and age 68 in order to finance your retirement income. Make the following assumptions: -All savings draw compounded interest of 10 percent per year. - You make the first payment today and the last payment on the day of your turn 68 (43 annual end of the year payments). - You make the first withdrawal when you turn 68 and the last withdrawal when you turn 94 (26 annual withdrawals). PROBLEM # 2: You are offered an asset that costs $6000 and has cash flows of $1000 every three months (end of period) of the next 10 years. a. If your cost of capital is 9.2 percent, should you purchase it? b. What is the IRR of the asset? c. What is the NPV of the asset? (Setup cash flows in Excel spreadsheets and use following Excel Financial functions, IRR and NPV to obtain your answers.) PROBLEM # 3: You just took a $20,000, three-year loan. Payments at the end of each quarter are flat (equal in every quarter) at an interest rate of 8 percent. Calculate the appropriate loan table, showing the breakdown in each year between principal and interest. PROBLEM # 4: Use Excel, construct an amortization table for the following mortgage. In the amortization table, provide all the information listed below. (Assuming interest is compounded monthly and payments are due at the end of the month). For a 30-year Fixed-rate-level-payment mortgage (FRM) of $350,000 with the annual mortgage rate of 9.25% Compute and illustrate the following in an amortization table: Monthly Payment of the mortgage. - Mortgage Balance Remaining at the end of each month (Total 180 months) - Principal Repayment for each month. - Interest Expenses for each month, each year, and the life of the loan. Problem # 4: HINTS: Create in Excel the following: Year-InterestRate -Monthly Int. rate- # of Periods-Loan Amount- Present Value -Future Value.
