Question 1
1-what is the benchmark and where does it come from? 2-what are the main economic risks and other risks for a fund manager? 3-what should you look for in a good fund manager? 4- what is a risk budget and how should it work? 5-how would you expect the var methodology to work on a bank credit portfolio? 6-describe the relation between a credit spread and a credit risk reserve? 7- what is the state of the irish economy and associated economic risks?(feel free not to answer this question if you don?t find enough data) 8- what are the political risks for the irish economy? feel free not to answer this question if you don?t find enough data) 9- what are the credit risks for the irsh state as a borrower? feel free not to answer this question if you don?t find enough data p.c answer those questions in three pages overall,1-what is the benchmark of maco risk inviroment and where does it come from? 2-what are the main economic risks and other risks for a fund manager? 3-what should you look for in a good fund manager? 4- what is a risk budget and how should it work? 5-how would you expect the var methodology to work on a bank credit portfolio? 6-describe the relation between a credit spread and a credit risk reserve? 7- what is the state of the irish economy and associated economic risks?(feel free not to answer this question if you don?t find enough data) 8- what are the political risks for the irish economy? feel free not to answer this question if you don?t find enough data) 9- what are the credit risks for the irsh state as a borrower? feel free not to answer this question if you don?t find enough data p.c answer those questions in three pages overall","those data may help,"those data may help,"those data may help
Question 2
On March 1, 2010, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2012. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2010, 2011, and 2012 are given below. 2010 2011 2012 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 Using the percentage-of-completion method, complete the schedules below to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2010, 2011, and 2012. (Ignore income taxes.) (For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).) 2010 Costs to date (12/31/10) $ Estimated costs to complete Estimated total costs $ Percent complete % Revenue recognized $ Costs incurred Profit recognized in 2010 $ 2011 Costs to date (12/31/11) $ Estimated costs to complete Estimated total costs $ Percent complete % Revenue recognized in 2011 $ Costs incurred in 2011 Loss recognized in 2011 $ 2012 Total revenue recognized $ Total costs incurred Total profit on contract Deduct profit previously recognized Profit recognized in 2012 $ Using the completed-contract method, complete the schedule below to compute the profit or loss to be recognized as a result of this contract for the years ended December 2010, 2011, and 2012. (Ignore incomes taxes.) (If answer is zero please enter 0, do not leave any fields blank.) 2010 $ 2011 $ 2012 $
Question 3
D I S C U S S I O N Q U E S T I O N S 1. Is Figure 11?1 a realistic model of the evaluation and control process? (page 330) 2. What are some examples of behavior controls? Output controls? Input controls? 3. Is EVA an improvement over ROI, ROE, or EPS? 4. How much faith can a manager place in a transfer price as a substitute for a market price in measuring a profit center?s performance? 5. Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are control and creativity compatible? D I S C U S S I O N Q U E S T I O N S 1. Why should you begin a case analysis with a financial analysis? When are other approaches appropriate? 2. What are common-size financial statements? What is their value to case analysis? How are they calculated? 3. When should you gather information outside a case by going to the library or using the Internet? What should you look for? 4. When is inflation an important issue in conducting case analysis? Why bother? 5. How can you learn what date a case took place
Question 4
Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations. March 1 Birch invests $150,000 cash along with office equipment valued at $22,000 in the company. 2 The company prepaid $6,000 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $6,000.) 3 The company made credit purchases for $3,000 in office equipment and $1,200 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. 9 The company completed a $7,500 project for a client, who must pay within 30 days. 13 The company paid $4,200 cash to settle the account payable created on March 3. 19 The company paid $5,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,000.) 22 The company received $3,500 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $3,820 on credit. 29 Birch withdrew $5,100 cash from the company for personal use. 30 The company purchased $600 of additional office supplies on credit. 31 The company paid $200 cash for this month's utility bill. Record these transactions using the following titles: Cash, Accounts Receivable, Office Supplies, Prepaid Insurance, Prepaid Rent, Office Equipment, Accounts Payable, S. Birch, Capital, S. Birch, Withdrawals, Services Revenue, and Utilities Expense
Question 5
4 Assume the following regarding variables versus fixed-nature-of-income-statement operating expenses for the existing business: a. 80% of wage benefits is variable and 20% is fixed. b. 100% of fuel expenses, purchased transportation, and operating supplies is variable. c. 100% of operating taxes is fixed. d. 20% of insurance and claims is fixed; the balance is variable. e. Assume depreciation, even with new expenditures, is fixed as the retirement of written-off assets, equaling new equipment. 5 There will be new spending areas reflected on future budgets to reflect added satellite warehouse costs and space rental and costs of running the locations. a. In the first year, add $10 million of inflation, space rental, and operating costs at 25% of revenues from the new initiative. b. In the second year, add $10 million space rental, with inflation at the same variable percentage of sales. c. In the third year, add $7.5 million of the variable percentage of sales. 6 In marketing, budget accounts have been added for new incurred costs. We will continue our present promotion and launch a new program, with the assistance of our marketing partner, the ABC Marketing Agency. They will advise us on the type, frequency, and content of new messages. Assume 100% of the existing budget is fixed with respect to volume along with new expenses. We expect incremental expenses, with $5 million of inflation in the first three years. 7 Our existing sales force, comprised of four national account managers, will call on clients such as Wal-Mart?, Sears?, and Best Buy?. Existing expenses are assumed to be 100% fixed in relation to revenue. To tap into specialized markets, our strategy is aimed at adding four industry-specific managers, each with a salary base of $50,000 and 2% commission of generated revenues. 8 The human resources budget will not change substantially aside from added hiring, recruiting, training, and drug testing fees. Assume 10% of expenses is fixed; the balance is variable with volume. 9 Assume current assets and liabilities are variable. Expect an addition of $10 million to operating property, spent in the first year. Our payment to vendors, suppliers, and taxes will be in thirty-day terms. We expect all payments to be in sixty-day terms. 10 Assume revenue growth from our existing business will grow at 8% versus 10% in past years. Our new strategy, however, adds incremental consulting revenues of $3.5, $4.5, and $6.5 million in the first, second, and third years. New warehousing will add revenue of $10, $30, and $40 million in the first, second, and third years. All new revenue will be subject to commissions for industry-specific managers. 15 Complete the first year pro forma statements (income statement and balance sheet) using the above assumptions.
