Question 1
1 FINA200 Winter 2011, Section W Case 3 - due Wednesday, April 6, 2011 Covering Chapters 9, 10, 13 - 15 _______________________________________________________ PLEASE NOTE ? THIS IS AN INDIVIDUAL ASSIGNMENT. ? YOU MAY SUBMIT THIS ASSIGNMENT IN MICROSOFT WORD 2007 (.docx), MICROSOFT WORD (.doc), MICROSOFT WORKS (.wps), PLAIN TEXT (.txt) OR WORD PERFECT (.wpd). ? PLEASE DO NOT SUBMIT YOUR ASSIGNMENT IN EXCEL. ? GO TO ASSESSMENT/CASE SUBMISSIONS AND UPLOAD THE FILE TO SUBMIT YOUR ASSIGNMENT. ? PLEASE QUOTE ALL SOURCES AND DO NOT COPY AND PASTE! _______________________________________________________ Rob and Ellen, both 60 years of age, were born in Quebec and have lived their entire lives in Canada. Rob has worked for a small pharmaceutical firm situated in Pointe Claire for the past 30 years. His salary in 2010 was $70,000. Ellen is a long-time administrator with the West Island English School Board (she has worked there for the past 22 years). Ellen's 2010 salary was also $70,000. This amount grew by 2% a year over the past 5 years. Their combined RRSP assets equal $100,000 and they would expect to withdraw 5% a year once they retire. While Rob is not a member of a registered pension plan, Ellen's defined benefit registered pension plan will pay an annual retirement benefit based on the following formula: Annual pension income = 2% X # of years X $ average salary ? Where the # of years is equal to her years of employment at the time of retirement, and ? $ average salary refers to the average salary earned over the last three years before retirement. 2 Rob expects to qualify for the maximum Quebec Pension Plan (QPP) retirement benefit based on his career average salary. Ellen expects to receive a lower amount, probably equal to about 1/2 of the maximum QPP amount. Ellen has just been reading the Ernst & Young Tax Alert found at: http://www.ey.com/Publication/vwLUAssets/Tax_Alert_2011_No_10/$FILE/TaxAlert2011No10.pdf Given the proposed changes to the QPP in the Quebec budget of March 17, 2011, she's come to consult with you about the impact these proposals would have on her CPP contributions and retirement income. Question 1 (45 marks) Please note: Research is required. Please quote your sources. a) How much would each be required to contribute to the QPP in 2011 based on their $70,000 salaries? Please show your calculations. (5 marks) b) How much pension income would each have received under the following plans if they had retired on January 1st, 2011? Assume this would have been their joint 60th birthday. (15 marks) ? Registered Pension Plan ? Quebec Pension Plan ? Old Age Security ? RRSP withdrawals ? Guaranteed Income Supplement c) How much would each be required to contribute to the QPP in 2015 based on the proposals contained in the March 17th, 2011 Quebec budget? Assume the base exemption remains the same and that the maximum pensionable earnings rise at a rate of 2% per annum. (5 marks) d) How much pension income would each receive under the following plans if they were to retire on January 1st, 2016 based on the proposals contained in the March 17th, 2011 Quebec budget? Assume that their salaries and payments under all public plans will rise by a rate of 2% per annum, while the balance of their RRSP would rise by 6% per annum. (15 marks) ? Registered Pension Plan ? Quebec Pension Plan ? Old Age Security ? RRSP withdrawals ? Guaranteed Income Supplement 3 e) Would they be better off to retire at 60 or 65? Please explain your reasoning. (5 marks) Question 2 (10 marks) In addition to the public pension plans, Rob and Ellen also have RRSPs. What options will they have when they retire if they want to draw money from their RRSPs? Identify one strength and one weakness of each option. Question 3 (15 marks) a) The couple's RRSP portfolio contains the AGF Canadian Large Cap Div-Classic fund. For this fund, look up and explain the load, MER, 1, 3, 5 and 10-year compound return and volatility rating. (10 marks) b) Is this an appropriate investment for the couple at this time? Please explain. (5 marks) Question 4 (20 marks) a) What two legal documents should the couple ensure are up-to-date if they want a sound estate plan? What would happen if either became incapacitated or died and didn't have any legal documents at all? Please quote your sources. (10 marks) b) Assume for now that Rob and Ellen were never married, but only common-law spouses. If one should die, would the other have the same rights in Quebec as a legal spouse? (Hint: Refer to the Quebec ruling with respect to Eric and Lola.) Please quote your sources. (10 marks) Question 5 (10 marks) The couple has no children and only $100,000 in RRSP investments. Would you recommend they have term or permanent life insurance? Please explain your reasoning.
Question 2
"Could you inform me right away if cannot complete or do not accept the assignment. I am willing to $200.00 for your time and work. Thank you (also need swot) Case Analysis:l analyze the case studies. Papers must be a minimum of 6 pages but not more than 10 typed double-spaced pages. Tables, charts, and graphs MUST be used to augment the narrative but will not be counted as part of the written page requirement. ? The case has a specific set of questions that must be addressed during the analysis; however, simply answering the questions does not constitute a complete case analysis. Make sure the your case analysis satisfies the criteria in Case Analysis Grading Rubric (Table 1a), (Table 1b). Simply answering the questions does not satisfy the Case Analysis Grading Rubric criteria. ? You may use other sources of information in addition to the textbook. Suitable sources of information include case videos, other strategic management textbooks, web-based analysis tools (see the attached Guide to Case Analysis.pdf), and scholarly journals form the strategic management body of knowledge (CAUTION: practitioner oriented Internet periodicals, articles, and wikis are NOT acceptable sources). ? Properly format papers, list references, and use in-text citations in accordance with APA guidelines. ? Will be upload writing assignments on Turnitin.com. Please follow 1 thru 9 1. Read the case twice, once for an overview and once to gain full command of the facts; then take care to explore ALL of the case exhibits. 2. Make a list of the problems and issues that have to be confronted in your analysis. 3. Do enough number crunching to discover the story told by the data presented in the case. Look for opportunities to apply the concepts and analytical tools in the text chapters. 4. Be thorough in your diagnosis of the situation (make a one- or two-page outline of your assessment before starting the writing process). 5. Support any and all opinions with well-reasoned arguments and numerical evidence; don't stop until you can purge "I think" and "I feel" from your assessment and, instead, are able to rely completely on "My analysis shows." 6. Develop charts, tables, and graphs to expose more clearly the main points of your analysis. (Avoid assumptions, but state any assumptions that are required). 7. Prioritize your recommendations and make sure they can be carried out in an acceptable time frame with the available skills and financial resources. 8. Review your recommended action plan to see if it addresses all of the problems and issues you identified. 9. Avoid recommending any course of action that could have disastrous consequences if it doesn't work out as planned; therefore, be as alert to the downside risks of your recommendations as you are to their upside potential and appeal ASSIGNMENT QUESTIONS: 1. Discuss competition in the search industry. Which of the fi ve competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? 2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to fi ve years? 3. What are the key factors that defi ne success in the industry? What are the key competencies, capabilities, and resources of successful search engine companies? 4. Describe Google?s business model. What are the company?s revenue-cost-profi t relationships? What strategies has Google relied upon to build competitive advantage in the industry? 5. Have Google?s business model and strategy proven to be successful? Should investors be impressed with the company?s fi nancial performance? How does the company?s fi nancial performance compare to that of Microsoft and Yahoo? Please conduct a fi nancial analysis to support your position?you may wish to use the fi nancial ratios presented in Table 1 of Chapter 4 as a guide in doing your fi nancial analysis of the company. 6. What are the company?s key resource strengths and competitive capabilities? What competitive liabilities and resource weaknesses does it have? What opportunities exist? What threats to its continued success are present? 7. What recommendations would you make to Google?s top-management team to sustain its competitive advantage in the search industry? How should it best capitalize on its strategic initiatives in mobile search, cloud computing, and its auctioning system for traditional media ads? 10. Table 1a. Case Analysis Grading Rubric: Simply answering the questions does not constitute a complete case analysis! Make sure your case analysis satisfies the criteria in Table 1a, the instructor will grade case papers based on these criteria (see Table 1b). Qualities & Criteria Below Expectations (Poor/Fail) Meets Expectations (Satisfactory) Exceeds Expectations (Accomplished) Report Format/Organization (Weight 10%) ? Cover page (2%) Report does not include a cover page with required information (Title, Course Name & Number, Due Date, Student Name). Report includes a cover page with most required information (Title, Course Name & Number, Due Date, Student Name). Report includes a cover page with all required information (Title, Course Name & Number, Due Date, Student Name) and format rivals professional quality. ? Font, spacing, & margins are in accordance with syllabus paragraph 1, 1b, & 1c (2%) Report not composed using required font, is not double-spaced, and does not have one-inch margins. Report missing one of the required elements: not Arial 11 font, is not double-spaced, or does not have one-inch margins. Report composed in required Arial 11 font, is double-spaced, has one-inch margins, and format rivals professional quality. ? Page requirement (2%) Less than required page limitation and no tables, charts, or graphics. Meets page limitation, but insufficient tables, charts, or graphics. Meets or exceeds page limitation and has a perfect balance of tables, charts, or graphics. ? Organization (2%) Report does not include table of contents (TOC), introduction, body, and conclusion sections. TOC, introduction, body, and conclusion sections exist, but transitions are not clear or evident. TOC, introduction, body, and conclusion headers used and transitions evident, appropriate, & seamless. ? Structure, logic, & flow of document (2%) Report?s structure & logic not evident; content is fragmented and disjointed; information presented is not aimed at addressing the key components, content does not flow nor does it directly support the key components, nor does the information presented seem to serve a useful purpose in terms of a focused case analysis. Structure & logic is evident, but not all information flows with purpose; most content and information presented addresses key components, but some is not clearly linked to the key components; the case analysis is somewhat unfocused. Report?s structure & logic are seamless; all issues are clearly defined; all content and information presented flows with purpose and directly supports the key components; the case analysis is focused and clear. Identify/Define Issues (Weight 20%) Vague statement of issues confronting the firm or no issues identified. Most of the major issues confronting the firm are presented; some minor issues that are not important. Full and complete set of important issues confronting the firm are covered precisely and concisely. Breadth/Depth of Analysis (Weight 30%) ? External analysis (10%) (Description of external change drivers: political, economic, demographic, technological, social, legal, etc) Limited discussion of external factors and/or strategic management concepts covered in class. Most external concerns described, & prioritized; vague connections with the issues and/or loosely tied to pertinent strategic management concepts covered in class. Excellent list of external concerns: described, prioritized, and show systemic connections with the issues. Clear discussion of pertinent strategic management concepts covered in class. ? Internal analysis (10%) (Analysis of the functional departments & relationships: finance, marketing, R&D, manufacturing, HR, etc.) Limited discussion of Internal factors and/or strategic management concepts covered in class. Most internal concerns described, & prioritized; vague connections with the issues and/or loosely tied to pertinent strategic management concepts covered in class. Excellent list of internal concerns: described, prioritized, and show systemic connections with the issues. Clear discussion of pertinent strategic management concepts covered in class. ? Integration of information (10%) (Internal Strengths & Weaknesses, external Opportunities & Threats) No comparison or integration of internal and external (I/E) factors. Cross tabulation or other integrated presentation of I/E factors, but separate listing of internal and external factors. Integrated presentation of factors with clear implications for strategy; clearly related to defined issues and provides the foundations for recommendations. Recommendations (Weight 20%) ? Strategic alternatives or scenarios (5%) (possible future scenarios and/or alternative recommendations for responding to strategic needs) No alternatives provided; no scenarios presented. Only a single alternative/scenario, well described, but only vaguely related to organizational issues and I/E analysis. Multiple alternatives/scenarios considered, well described, clearly related to organizational issues and I/E analysis. ? Decision criteria (5%) (basis for strategic alternative selection) No criteria identified; limited discussion of strategic management concepts covered in class. 1-2 poorly defined criteria. Only vague reference to course concepts covered. Clear, well defined, multiple criteria, key factors. Clear and obvious reference to course concepts. ? Evaluation & measurement (5%) (identification & measurement of key indicators of performance and change) No performance evaluation criteria; limited discussion of strategic management concepts covered in class 1-2 poorly measurable criteria (e.g., specific, behavioral, objective, measurable criteria). Only vague reference to course concepts. Measurable criteria for all key areas, clear reference to course concepts. ? Implementation & transition management (5%) (strategy for reducing resistance to change & facilitating transition for various stakeholders) No consideration of implementation or transition plan evident. Listed suggestions for and implementation and transition and sufficiently explained rationale. implementation or transition plan considers all stakeholders, organizational culture, stages of transition, & dealing with resistance. References, Citations, & APA Style (Weight 10%) Report not uploaded or checked using Turnitin.com, references not listed and/or in-text citations not provided for paraphrased or directly quoted content. References and citations do not follow APA guidelines. Report not uploaded or checked using Turnitin.com, but all references not listed and/or in-text citations not in accordance with APA formatting guidelines. Report uploaded on Turnitin.com, originality report reviewed, all references listed in accordance with APA formatting guidelines, and all paraphrased or directly quoted content properly cited using APA style in-text citations. Quality of Writing (Weight 10%) Poor sentence and paragraph structure with numerous (>10) spelling, grammar, and punctuation errors. Sound sentence and paragraph structure with few (
Question 3
Question 1 (True/False Worth 5 points) In computing the present and future value of multiple cash flows, each cash flow is discounted or compounded at the same rate. True False Question 2 (True/False Worth 5 points) The constant-growth dividend model cannot be used if the growth in dividends is expected to be zero into the identifiable future. True False Question 3 (Multiple Choice Worth 5 points) Sao Paulo Sporting Goods is getting ready to produce a new line of soccer equipment by investing $1.5 million. The investment will result in additional cash flows of $435,000, $782,500, and $1,000,000 over the next three years. What is the payback period for this project? 3 years 2.3 years 1.6 years more than 3 years Question 4 (Multiple Choice Worth 5 points) Which of the following tools would be most appropriate for understanding which of two stocks to invest in a single holding portfolio? the coefficient of variation for each of the two stocks the correlation coefficient between the two stocks the covariance between the two stocks the beta of the two stocks Question 5 (True/False Worth 5 points) Multiples analysis is a market approach to valuing a business. True False Question 6 (True/False Worth 5 points) The APR is the annualized interest rate using compound interest. True False Question 7 (True/False Worth 5 points) Investment banks are large commercial banks located in major U.S. financial centers that transact in both the national and international money markets. True False Question 8 (Multiple Choice Worth 5 points) The financial plan addresses the following issue(s): Where is the company headed? What capital resources does the management need to get there? How is the firm going to pay for the resources needed? All of the above. Question 9 (Multiple Choice Worth 5 points) ______________ provides an estimate of the expected cash flows as well as information on the distribution of the cash flows that the project is likely to produce. Simulation analysis Sensitivity analysis Scenario analysis None of the above Question 10 (Multiple Choice Worth 5 points) Andrade Corp has debt of $2,834,950, total assets of $5,178,235, sales of $8,234,121, and net income of $812,355. What is the firm?s return on equity? 7.1% 34.7% 28.1% None of the above Question 11 (True/False Worth 5 points) Firms generally issue publicly traded shares for a specific project. True False Question 12 (Multiple Choice Worth 5 points) The process of converting future cash flows to its present value is time value of money discounting compounding none of the above Question 13 (True/False Worth 5 points) The largest noncash charges are depreciation and amortization expenses. True False Question 14 (Multiple Choice Worth 5 points) The value of a business is determined by the magnitude of the cash flows that it is expected to produce. the timing of those cash flows. the likelihood that the cash flows will be realized. All of the above. Question 15 (Multiple Choice Worth 5 points) The Rule of 72 is a rule that can be used to determine the amount of time it takes to double an investment. is fairly accurate for interest rates between 25 and 50 percent. states that the time to double your money (TDM) approximately equals 72/I, where 72 represents the years it takes to double your investment. None of the above. Question 16 (Multiple Choice Worth 5 points) An underlying assumption of the text is That most people who start a business do so to avoid unemployment taxes. That most people who start a business do so because they want to increase their wealth. That everyone starts a business to contribute to the GDP of the nation a and b Question 17 (Multiple Choice Worth 5 points) Calculating the present and future values of multiple cash flows is relevant for businesses only. for individuals only. for both individuals and businesses. None of the above. Question 18 (True/False Worth 5 points) Compound interest consists of both simple interest and interest on interest. True False Question 19 (True/False Worth 5 points) Capital budgeting projects may be classified as independent, mutually exclusive, or contingent. True False Question 20 (True/False Worth 5 points) Bonds with a call provision sell at lower market yields than comparable noncallable bonds. True False
Question 4
Question #1 (8 points) If a CMA is confronted by an ethical dilemma, what does the IMA Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management recommend the person do? Be specific in your response. Question #2 (15 points) Consider the following information, prepared based on a capacity of 60,000 units: Category Cost per Unit Variable manufacturing costs $12.00 Fixed manufacturing costs $3.50 Variable marketing costs $4.00 Fixed marketing costs $2.50 Capacity cannot be added and the firm currently sells the product for $25 per unit. Consider each of these scenarios independent of each other. a) The company is currently producing 60,000 units per month. A potential customer has contacted the firm and offered to purchase 10,000 units this month only. The customer is willing to pay $23 per unit. Since the potential customer approached the firm, there will be no variable marketing costs incurred. Should the company accept the special order? Why or why not? Be specific. b) The company is currently producing 45,000 units per month. A potential customer has contacted the firm and offered to purchase 10,000 units this month only. Since the potential customer approached the firm, there will be no variable marketing costs incurred. What is the minimum amount that the firm should be willing to accept for this order? c) The company is considering selling 1,000 units that are in danger of becoming obsolete. What is the minimum price it would be willing to take for the 1,000 units? Question #3 (10 points) List and describe three ways a firm can determine long-run prices. As part of your answers, be sure to describe when each method would be most appropriate and the strengths and weaknesses of each method. Question #4 (44 points) Consider the following information: Q1 Q2 Q3 Beginning inventory (units) 0 J 300 Budgeted units to be produced 3,800 4,200 4,100 Actual units produced 4,000 4,000 Q Units sold A 4,000 R Variable manufacturing costs per unit produced $125 $125 $125 Variable marketing costs per unit sold $40 $40 $40 Fixed manufacturing costs $600,000 $600,000 $600,000 Fixed marketing costs $250,000 $250,000 $250,000 Selling price per unit $400 $400 $400 Variable costing operating income B $90,000 S Absorption costing operating income C K $130,500 Variable costing beginning inventory D $12,500 T Absorption costing beginning inventory E L U Variable costing ending inventory F M $12,500 Absorption costing ending inventory G N $27,500 PVV H O V Allocated fixed manufacturing costs I P $615,000 There are no price, efficiency, or spending variances, and any production-volume variance is directly written off to cost of goods in the quarter in which it occurs. Complete the missing figures from the above Table. Q1 Q2 Q3 A J Q B K R C L S D M T E N U F O V G P H I Question #5 (15 points) a) What is the goal of the EOQ model? b) Why does a firm hold ?safety stock?? c) What costs are a firm trying to balance when it decides on how much safety stock to hold? Question #6 (8 points) What is the justification for using backflush costing? Be specific!
Question 5
Correct the following on my excel HW Tab 2---Mathematical process and interpretation should be located outside the question text-box. I should be able to click on each respective answer and see the mathematical process in the fx-bar. Part of the grade on the course final is assigned to the actual mathematical performance. I recommend using the NORMDIST function for 2a. 2b--You are striving to attain the probability between two amounts; therefore, you would subtract Normdist results for 300 and 180. 2C? I recommend using the NORMINV function. Tab 3---I should be able to click on the answer and see the process preformed in the FX bar. One method is to attain a z-value using the formula (Z = ( Xbar - ? )/ ( ?/sqrt(n)) and then standardize the z-value by using the NORMSDIST function in excel and subtract the result from 1 (1-NORMSDIST(z)) or you can use the NORMDIST function. You will need X, which is the value for which you want the distribution, the arithmetic mean of the distribution, the STD DEV of x-bars(= ?/sqrt(n)), and for Cumulative, you can either enter True or 1.--- Then 1-NORMDIST(X, Mean, STDEV, Cumulative). Both Methods produce the same result. Tab 5---I should be able to click on each respective limit and see the process in the fx-bar. I recommend using the Confidence interval utility n>= 30 (Proportions) found in the "briefcase" as well as the tutorial had students working with this utility. Copy and paste only the specific utility used to the homework. You will need n, p-bar, and confidence level for the input.
