Question 1
Im doing my finance paper on Coca Cola and I need help with these questions. 1.Estimate the approximate yield to maturity of company debt and the after-tax cost of debt 2.Determine the approximate cost (required rate of return) of equity using the Capital Asset Pricing Model. 3.Determine the market values of the company debt, equity and assets. 4.Calculate the weighted average cost of capital. 5.Explain the significance of the company's WACC to its management. To simplify the calculations, you may assume that the yield to maturity of company debt is 6% unless you believe that that value is too high or too low. The after tax cost of debt may be calculated based on the tax rate you estimate that the company is paying based on a recent income statement. For the exercise you may assume that the market value of the debt is equal to the book value of the debt (total liabilities). The market value of the equity is equal to the number of shares outstanding times the current market price per share. The market value of the assets is equal to the market value of the debt plus the market value of the equity.,And of course my competitor is Pepsi Co (PEP) if that makes any difference at all,How much Longer please,Could u show calculations in how you came up with the figures
Question 2
Coca-Cola Blak was introduced to various international markets including the USA and discontinued in the US market in 2007. In this case you are to analyze a famous firm's product failure and in doing so demonstrate your understanding of a promotion strategy, what elements in the overall marketing strategy communicate about a product. Case Question Write a 2-3 page paper in which you respond to the following case question: Analyze the failure of Coca-Cola Blak in the U.S. market. Assume that Coca-Cola has decided to re-formulate the product's taste and re-launch it and you are in charge of the promotions campaign for the re-launch. Explain the issues and factors you would take into account and the elements you would include in developing your promotions strategy for the re-formulated product. In answering this case question aim to demonstrate your learning not only of the materials from MOD04, but also those from MOD01-03. Ensure that you repeat the case question in full and verbatim on the title page of your submission. Excluding your title and reference pages, your paper should be no more than three pages long. Please submit your case for grading by the end of this module. CASE EXPECTATIONS Use information from the background readings as well as the case articles and any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper. The following will be assessed in particular: Your demonstrated understanding of the marketing concepts central to the case question. Your demonstrated understanding of factors related to the development of an effective promotions strategy through the analysis you conduct in the context of the case. The criteria used for assessment will be those explained on the MOD01 Home page, namely: Focus. Breadth. Depth. Critical thinking. Effective and appropriate communication skills. Case-Related Readings and Video Clips Begin your analysis by reading or viewing the following sources: Choueke, M 2005 Coke plans coffee drinks in a bid to reach adult sector. Preview By:. Marketing Week, 12/15, 28:50. Viewed using Proquest database February 20, 2010. Hutson, L. 2006 Coca-Cola Blak's multiple flavors confuse, displease Spokesman-Review, The (Spokane, WA), 06/21. Viewed using Proquest database February 20, 2010. Anonymous 2006 Coca-Cola bl?k debuts worldwide in aluminum. Preview Packaging Digest, Jan, 43:1. Viewed using Proquest database February 20, 2010. Youtube.com (2008). coca cola blak. U.S. teaser advertisement. Viewed at Youtube.com February 20, 2010. Note that if you cannot view this or any of the other YouTu be videos, you can see stills from them and a summary in the Powerpoint presentation below. Youtube.com (2008). BLAK COFFEE - 35mm Coke Blak Spec Spot. Viewed at Youtube.com February 20, 2010. Note that if you cannot view this or any of the other YouTube videos, you can see stills from them and a summary in the Powerpoint presentation below. Youtube.com (2008). CocaCola BLAK Writer. Advertisement Viewed at Youtube.com February 20, 2010. Note that if you cannot view this or any of the other YouTube videos, you can see stills from them and a summary in the Powerpoint presentation below. Youtube.com (2008). CocaCola BLAK Musician. Advertisement Viewed at Youtube.com February 20, 2010. Note that if you cannot view this or any of the other YouTube videos, you can see stills from them and a summary in the Powerpoint presentation below. Youtube.com (2008). Anderson Cooper tries Coke Blak. Viewed at Youtube.com February 20, 2010. Note that if you cannot view this or any of the other YouTube videos, you can see stills from them and a summary in the Powerpoint presentation below. Youtube.com (2008). Coke Blak - KOTV. Viewed at Youtube.com February 20, 2010. Note that if you cannot view this or any of the other YouTube videos, you can see stills from them and a summary in the Powerpoint presentation below. Youtube.com (2008). Coca-Cola BLAK. Demonstration of pour qualities. Viewed at Youtube.com February 20, 2010. Note that if you cannot view this or any of the other YouTube videos, you can see stills from them and a summary in the Powerpoint presentation below. Anonymous (2007). Coca-Cola pulls coffee-flavoured cola off the U.S. market; [National Edition] National Post. Don Mills, Ont.: Sep 1. Viewed using Proquest database February 20, 2010. Note that if you cannot view this or any of the other YouTube videos, you can see stills from them and a summary in the Powerpoint presentation below. Freeman, J. (2008). Summary of Coke Blak videos on YouTube. TUI University. Note that if you cannot view any of the YouTube videos above, you can see stills from them and a summary in the Powerpoint presentation here.
Question 3
Case 5.1 MERCK ACQUISITION OF MEDCO On July 28, 1993, Merck & Company, then the world?s largest drug manufacturer, announced that it planned to acquire, for $6.6 billion, Medco Containment Services Incorporated, the largest prescription benefits management company (PBM) and marketer of mail-order medicines in the United States. This merger reflected fundamental changes taking place in the pharmaceutical industry. GROWTH IN MANAGED CARE Perhaps the most significant change involves the growth of managed care in the health care industry. Managed care plans typically provide members with medical insurance and basic health care services, using volume and long-term contracts to negotiate discounts from health care providers. In addition, managed care programs provide full coverage for prescription drugs more frequently than do traditional medical insurance plans. Industry experts estimate that by the turn of the century, 90% of Americans will have drug costs included in some kind of managed health care plan, and 60% of all outpatient pharmaceuticals will be purchased by managed care programs. The responsibility for managing the provision of prescription drugs is often contracted out by the managed care organizations to PBMs. The activities of PBMs typically include managing insurance claims, negotiating volume discounts with drug manufacturers, and encouraging the use of less expensive generic substitutes. The management of prescription benefits is enhanced through the use of formularies and drug utilization reviews. Formularies are lists of drugs compiled by committees of pharmacists and physicians on behalf of a managed care organization. Member physicians of the managed care organization are then strongly encouraged to prescribe from this list whenever possible. Drug utilization reviews consist of analyzing physician prescribing patterns and patient usage. They can identify when a patient may be getting the wrong amount or kind of medicine and when a member physician is not prescribing from a formulary. Essentially, this amounts to an additional opportunity for managed care or PBM administrators to monitor costs and consolidate decision-making authority. The key aspect of the shift to managed care is that the responsibility for payment is linked more tightly to decision making about the provision of health care services than it is in traditional indemnity insurance plans. The implications for drug manufacturers are far reaching. With prescription decision-making authority shifting away from doctors to managed care and PBM administrators, drug manufacturers? marketing strategies similarly will shift their focus from several hundred thousand doctors to a few thousand formulary and plan managers. This, in turn, will result in a dramatic reduction in the sales forces of pharmaceutical manufacturers. Several other significant changes in industry structure are expected to occur. Many industry experts predict that managed care providers will rely on a single drug company to deliver all of its pharmaceutical products and services rather than negotiating with several drug companies. This will favor those firms with manufacturing, distribution, and prescription management capabilities. In addition, many experts believe that only a handful of pharmaceutical companies will exist on the international scene in a few years. They point to intense competition, lower profits, and a decrease in the number of new drugs in the ?research pipeline? as contributing factors. BENEFITS OF THE ACQUISITION Merck & Company and Medco Containment Services Incorporated believe that a merger between the two firms will create a competitive advantage that will allow for their survival. Merck executives identify Medco?s extensive database as the key factor motivating the merger. Medco maintains a computer profile of each of its 33 million customers, amounting to 26% of all people covered by a pharmaceutical benefit plan. Medco clients include 100 Fortune 500 companies, federal and state benefit plans, and 58 Blue Cross/Blue Shield groups and insurance companies. Numerous opportunities exist for Merck to utilize the information contained in Medco?s database. First, the database will allow Merck to identify prescriptions that could be switched from a competitor?s drug to a Merck drug. Merck pharmacists will then suggest the switch to a patient?s doctor. This prospect of increasing sales is enormous. Second, the database will allow Merck to identify patients who fail to refill prescriptions. The failure to refill needed prescriptions amounts to hundreds of millions of dollars in lost sales each year. Finally, Merck will be able to use Medco?s computerized patient record system as a real-life laboratory with the goal of proving that some Merck drugs are worth the premium price charged. This will take place by identifying who takes what pill and combining that information with the patient?s medical records. This might allow Merck to establish the supremacy of its products. Additional benefits of the merger include $1 billion annual savings in redundant marketing operations and a reduction in Merck?s sales force as a result of more precise marketing strategies brought about by Medco?s database and the industry emphasis on marketing to plan managers instead of doctors. Merck & Company?s acquisition of Medco Containment Services Incorporated is essentially an attempt to increase market share in an industry with decreasing prices by capitalizing on the most valuable asset in the pharmaceutical industry?information. It also is intended to increase its competitive position in the growing managed care arena by aligning itself with a PBM. Merck & Company?s strategy was quickly emulated when British drug maker SmithKline Beecham announced plans to acquire Diversified Pharmaceutical Services Incorporated, one of the four largest drug wholesalers in the United States, from United Healthcare for $2.3 billion, and Roche Holdings Limited reported that it planned to acquire Syntex Corporation. Also, in the summer of 1994, Eli Lilly and Company announced its intention to acquire PCS Health Systems from McKesson Corporation for $4 billion. These mergers were not only a reaction to the changing industry structure but caused the change to accelerate. QUESTIONS C5.1.2 What is the role of prescription benefits management (PBM) companies?
Question 4
wo main benefits of activity-based costing are more accurate product cost information and more detailed information on costs of activities and the drivers of these costs. (Points : 1) True False 2. Jurassic Manufacturers produces flooring material. Fixed costs are $5,000 per month. Sales price for one unit of product is $50, and the variable cost per unit is $30. If Jurassic wishes to earn an operating income of $2,000, how many units need to be sold? (Points : 1) 270 300 320 350 3. Equival Company wishes to sell truck axles to car manufacturers. The current market price of the axles is $400, and Equival knows it must accept the market price. Currently, it costs the company $330 to produce each axle. The company wishes to make a profit equal to 20% of the price. Which of the following strategies should Equival adopt to achieve its objective? (Points : 1) Raise the price to $410. Reduce its production costs by $10 per unit. Increase the production costs by $20 per unit. Use advertising to increase the volume of sales. 4. Activity-based costing systems combine many various elements of overhead into a single cost pool. (Points : 1) True False 5. Total variable costs change in response to changes in the volume of production. (Points : 1) True False 6. Jenny was reviewing the water bill for her doggy day spa and determined that her highest bill, $1,700, occurred in July when she washed 800 dogs and her lowest bill, $900, occurred in November when she washed 400 dogs. What was the variable cost per dog associated with Jenny's water bill? (Points : 1) $0.67 $1.00 $0.50 $2.00 7. Fixed costs per unit decrease as production levels decrease. (Points : 1) True False 8. Activity-based costing focuses on a single predetermined overhead rate for cost analysis. (Points : 1) True False 9. JB Company has fixed costs of $300,000. Total costs, both fixed and variable, are $378,000 when 40,000 units are produced. How much is the variable cost per unit? (Please round to the nearest cent.) (Points : 1) $9.45 $2.78 $7.50 $1.95 None of these is correct 10. Activity-based costing systems and traditional costing systems will produce the same results for product cost and profitability, although they use different methods of calculation. (Points : 1) True False,I cancelled the assignment. If I need to adjust my question if I cannot have my money return. I don't need it answered until Monday night. Here is the new assignment E19-19 Impact on breakeven point if sale price, variable costs, and fixed costs change Dependable Drivers Driving School charges $250 per student to prepare and administer written and driving tests. Variable costs of $100 per student include trainers? wages, study material, and gasoline. Annual fixed costs of $75,000 include the training facility and fleet of cars. Requirements. !. For each of the following independent situation, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information b. Decrease sales price to $220 per student c. Decrease variable costs to $50 per student d. Decrease fixed costs to $60,000 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the break point in units.,Please disregard the 10 questions. I have already answered them. I sent a second question. Could you please just work on that for me. I do not need answer until 10/31/2011. Here is the question again. E19-19 Impact on breakeven point if sale price, variable costs, and fixed costs change Dependable Drivers Driving School charges $250 per student to prepare and administer written and driving tests. Variable costs of $100 per student include trainers? wages, study material, and gasoline. Annual fixed costs of $75,000 include the training facility and fleet of cars. Requirements. !. For each of the following independent situation, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information b. Decrease sales price to $220 per student c. Decrease variable costs to $50 per student d. Decrease fixed costs to $60,000 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the break point in units.
Question 5
1. A sport preference poll yielded the following data for men and women. Use a 5% significance level and test to determine if sport preference and gender are independent. Sport Preferences of Men and Women Basketball Football Soccer Men 20 25 30 75 Women 18 12 15 45 38 37 45 120 What is the test value for this hypothesis test? Answer: Round your answer to two decimal places. What is the critical value for this hypothesis test? Answer: Round your answer to two decimal places. What is the conclusion for this hypothesis test? Choose one. 1. There is sufficient evidence to support the claim that one's sport preference is dependent on one's gender. 2. There is not sufficient evidence to support the claim that one's sport preference is dependent on one's gender. Answer: Enter only a 1 or 2 for your answer. 2. A company has observed that there is a linear relationship between indirect labor expense (ILE) , in dollars, and direct labor hours (DLH). Data for direct labor hours and indirect labor expense for 18 months are given in the file ILE_and_DLH.xlsx Treating ILE as the response variable, use regression to fit a straight line to all 18 data points. Based on your results, If direct labor hours (DLH) increases by one hour, the indirect labor expense (ILE), on average, increases by approximately how much? Place your answer, rounded to 2 decimal places, in the blank. Do not use any stray punctuation marks or a dollar sign. For example, 34.56 would be a legitimate entry. 3. Q-Mart is interested in comparing its male and female customers. Q-Mart would like to know if the amount of money spent by its female charge customers differs, on average, from the amount spent by its male charge customers. To answer this question, an analyst collected random samples of 25 female customers and 22 male customers. Based on these samples, on average, the 25 women charge customers spent $102.23 and the 22 men charge customers spent $86.46. Moreover, the sample standard deviation of the amount charged by the 25 women was $93.393, and the sample standard deviation of the amount charged by the 22 men was $59.695. Suppose, using a 10% level of significance, you wish to know if there is sufficient evidence for Q-Mart to conclude that, on average, the amount spent by women charge customers differs from the amount spent by men charge customers. That is suppose you wish to test H0: versus H1: Assuming that the amounts spent by female and male charge customers at Q-Mart are normally distributed, based on the procedure advocated by Bluman, what is/are the critical values that you would use to conduct this test of hypothesis? Place your answer, rounded to 3 decimal places, in the blank. If there are two critical values, place only the positive value in the blank. For example, 2.035 would be a legitimate entry. 4. A popular retail store knows that the purchase amounts by its customers is a random variable that follows a normal distribution with a mean of $30 and a standard deviation of $9. What is the probability that a randomly selected customer will spend between $20 and $35 at this store? Place your answer, rounded to 4 decimal places, in the blank. For example, 0.3456 would be a legitimate entry. 5. If a sample has 20 observations and a 95% confidence estimate for is needed, the appropriate value of the t-multiple required is . Place your answer, rounded to 3 decimal places, in the blank. For example, 4.567 would be a legitimate entry. 6. The annual returns, in percentages, on stocks A and B for three possible states of the economy are given in the table below. Economy State Probability StockA StockB Good 0.5 40 20 Average 0.3 20 40 Bad 0.2 10 8 If one invested in StockA, what would be the standard deviation of the percentage return? Place your answer, in percent rounded to 1 decimal place, in the blank. For example, a standard deviation of 10.39 percent would be reported as 10.4. Do not use a percent sign. 7. A survey determines that mint chocolate chip is the favorite ice cream flavor of 6% of consumers. An ice cream shop determines that of 190 customers, 15 customers stated their preference for mint chocolate chip. Find the P-value that would be used to determine if the percentage of customers who prefer mint chocolate chip ice has increased at a 5% level of significance. P-value: Round your answer to four decimal places as necessary. 8. A daily lottery is conducted in which two winning numbers are selected out of 100 numbers. How many different combinations of winning numbers are possible? Place your answer in the blank. Do not use any decimal places or commas. For example, 45 would be a legitimate entry.
