Question 1
? Assignment #3 ? California Clinics (due no later than February 9) California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm?s dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock. You are to write a 3-5 page report that answers the following: 1. What is the stock?s value? 2. Suppose the riskiness of the stock decreases, which causes the required rate of return to fall to 13%. Under these conditions, what is the stock?s value? 3. Return to the original 15% required rate of return and assume a dividend growth rate estimate increase to 7% per year, what is the stock value? 4. Explain how each of the four (4) fundamental factors that affect the supply and demand for investment capital, and hence, interest rates, (namely productive opportunities, time preferences for consumption, risk, and inflation) affects the cost of money. 5. Why is risk aversion so important to financial decision making? 6. Explain the three (3) techniques for solving time value problems. The format of the report is to be as follows: o Typed, double spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format. o Type the question followed by your answer to the question. o In addition to the 3-5 pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor?s name, the course title, and the date.
Question 2
The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 5% bonds with a face amount of $500,000 on November 1, 2013. The bonds sold for $442,215, a price to yield the market rate of 6%. The bonds mature October 31, 2033 (20 years). Interest is paid semiannually on April 30 and October 31. 1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2013? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Interest expense $ 2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2013? (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Bonds payable $ Interest payable $ 3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2014? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Interest expense $ 4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2014? (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Bonds payable $ Interest payable $
Question 3
C:16-2 Why is it important for a foreign national to ascertain whether he or she is a resident of the United States? C:16-8 What advantages does a cash method taxpayer gain by electing to accrue foreign taxes for foreign tax credit purposes? C:16-17 During the current year, Manuel, a nonresident alien, conducts a U.S. business. He earns $100,000 in sales commissions and $25,000 of interest income. What factor(s) do U.S. taxing authorities consider to determine whether the interest is investment income not subject to U.S. taxation or business income subject to U.S. taxation? C:16-39 Translation of Foreign Tax Payments. Arnie, a U.S. citizen who uses the calendar year as his tax year and the cash method of accounting, operates a sole proprietorship in Country Z. In Year 1, he reports 500,000 dubles of pretax profits. On June 1 of Year 2, he pays Country Z income taxes of 150,000 dubles for calendar Year 1. Duble-U.S. dollar exchange rates on various dates in Year 1 and Year 2 are as follows: December 31, Year 1 4.00 dubles _ $1 (U.S.) Year 1 average 3.75 dubles _ $1 (U.S.) June 1, Year 2 4.25 dubles _ $1 (U.S.) a. What is the U.S. dollar amount of Arnie?s foreign tax credit? In what year can Arnie claim the credit? b. How would your answer to Part a change if Arnie elected to accrue his foreign income taxes on December 31 of Year 1, and filed his Year 1 U.S. income tax return on April 15 of Year 2? c. What adjustment to the credit claimed in Part b would Arnie have to make when he pays his Country Z taxes on June 1 of Year 2? C:16-41 Foreign Tax Credit Limitation. Tucson, a U.S. corporation organized in Year 1, reports the following items for a three-year period. Foreign tax accrual $ 100,000 $ 120,000 $ 180,000 Foreign source taxable income 400,000 300,000 500,000 Worldwide taxable income 1,000,000 1,000,000 1,000,000 The foreign source and worldwide taxable income items are determined under U.S. law. a. What is Tucson?s foreign tax credit limitation for each of the three years (assume a 34% U.S. corporate tax rate and that income from all foreign activities fall into a single basket)? b. How are Tucson?s excess foreign tax credits (if any) treated? Do any carryovers remain after Year 3? c. How would your answers to Parts a and b change if the IRS determines that $100,000 of expenses allocable to U.S.-source income should have been allocable to foreignsource income? d. What measures should Tucson consider if it expects its current excess foreign tax credit position to persist in the long-run? C:16-44 Foreign-Earned Income Exclusion. Dillon, a U.S. citizen, resides in Country K for all of 2010. Dillon is married, files a joint return and claims two personal exemptions. The following items pertain to his 2010 activities: Salary and allowances (other than for housing)a $175,000 Housing allowance 28,000 Employment-related expensesb 7,500 Housing costs 30,000 Other itemized deductions 4,000 Country K income taxes 12,000 aAll of Dillon?s salary and allowances are attributable to services performed in Country K. bDillon claims the employment-related expenses as itemized deductions. What is Dillon?s net U.S. tax liability for 2010 (assume that Dillon excludes his earned income and housing cost amount)?
Question 4
Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30). Apr. 2 Purchased $14,500 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60. 3 Sold merchandise on credit to Brooke Page Alistair, Invoice No. 760, for $5,100 (cost is $2,100). 3 Purchased $1,480 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM. 4 Issued Check No. 587 to World View for advertising expense, $927. 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,400 (cost is $7,600). 6 Received an $95 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3. 9 Purchased $10,995 of store equipment on credit from Hal?s Supply, invoice dated April 9, terms n/10 EOM. 11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $13,200 (cost is $7,500). 12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice, less the discount. 13 Received payment from Page Alistair for the April 3 sale, less the discount. 13 Sold $8,500 of merchandise on credit to Page Alistair (cost is $4,300), Invoice No. 763. 14 Received payment from Paula Kohr for the April 5 sale, less the discount. 16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $9,200. Cashed the check and paid employees. 16 Cash sales for the first half of the month are $61,990 (cost is $41,200). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.) 17 Purchased $11,200 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30. 18 Borrowed $58,000 cash from First State Bank by signing a long-term note payable. 20 Received payment from Nic Nelson for the April 11 sale, less the discount. 20 Purchased $970 of store supplies on credit from Hal?s Supply, invoice dated April 19, terms n/10 EOM. 23 Received a $800 credit memorandum from Grant Company for the return of defective merchandise received on April 17. 23 Received payment from Page Alistair for the April 13 sale, less the discount. 25 Purchased $11,290 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60. 26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice, less the return and the discount. 27 Sold $3,080 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,640). 27 Sold $9,700 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $5,110). 30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,200. 30 Cash sales for the last half of the month are $78,100 (cost is $65,200). Assume that Wiset Co. uses the perpetual inventory system.
Question 5
My plan should be based on a non-carbonated drink company. Assignment 3: Part C: Your Marketing Plan Due Week 8 and worth 280 points From the start of this course, you have accessed the Interactive Marketing Plan tool and used the step-by-step guide to complete Part C of your marketing plan. You are required to submit a marketing plan for a hypothetical product-based company. Your plan must include the company's social media strategy, and information collected from Steps 6-7 of the Interactive Marketing Plan, located in the course shell. Note: Some elements may not be covered in the Interactive Marketing Plan and will require additional research. Note: You may create and / or make all necessary assumptions needed for the completion of this assignment. Write a six to seven (6-7) page paper in which you: 1.Develop the company's branding, pricing, and distribution strategy. 2.Provide the following marketing strategy information: a.Classify the company's major competitors as inter- or intra-competitors. Categorize the competitors' major strengths and weaknesses. b.Develop the differentiation strategy in relation to the closest competitor. c.Establish whether the company's intention is to be a leader or follower within the industry. d.Assess the level of impact that the salient macro-environmental issues (e.g., legal, technological, social, and economic, etc.) and trends with which the company must contend could potentially have on the company's marketing strategy. e.Discuss the marketing research tools that you used in your marketing strategy. 3.Construct an implementation strategy for your hypothetical company in which you specify the essential activities and responsibilities. Include a timetable for completion of each component of your strategy. 4.Develop a five (5) year expansion plan that includes future profitability and market share growth. Include necessary graphs to explain your plan. 5.Specify two (2) social media and / or media tools that you would use as you develop your plan. Justify each of your chosen tools. 6.Choose two (2) performance standards, two (2) monitory methods, and two (2) financial controls that you would implement that differ from the standards that you had provided in Assignment 1. Justify your choices. 7.Assess the potential for your company's overall performance in relation to the marketing plan objectives. 8.Suggest the integrated marketing communications that are most relevant for your marketing plan. Relate each marketing communication to your company's advertising strategy. 9.Use at least five (5) academic resources that address sustainability and monitoring of effective marketing plans and determine the applicability for your hypothetical company. These resources should be industry specific and relate to your chosen product / service. Note: Wikipedia and other Websites do not qualify as academic resources.
