Question 1
4/16/2010 Chapter 5. Ch05 P24 Build a Model A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: 20 Periods per year: 2 Periods to maturity: Coupon rate: 8% Par value: $1,000 Periodic payment: Current price $1,100 Call price: $1,040 Years till callable: 5 Periods till callable: a. What is the bond's yield to maturity? Peridodic YTM = Annualized Nominal YTM = Hint: This is a nominal rate, not the effective rate. Nominal rates are generally quoted. b. What is the bond's current yield? Current yield = Hint: Write formula in words. Current yield = / Hint: Cell formulas should refer to Input Section Current yield = (Answer) c. What is the bond's capital gain or loss yield? Cap. Gain/loss yield = - Hint: Write formula in words. Cap. Gain/loss yield = - Hint: Cell formulas should refer to Input Section Cap. Gain/loss yield = (Answer) Note that this is an economic loss, not a loss for tax purposes. d. What is the bond's yield to call? Here we can again use the Rate function, but with data related to the call. Peridodic YTC = Annualized Nominal YTC = This is a nominal rate, not the effective rate. Nominal rates are generally quoted. The YTC is lower than the YTM because if the bond is called, the buyer will lose the difference between the call price and the current price in just 4 years, and that loss will offset much of the interest imcome. Note too that the bond is likely to be called and replaced, hence that the YTC will probably be earned. NOW ANSWER THE FOLLOWING NEW QUESTIONS: e. How would the price of the bond be affected by changing the going market interest rate? (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. That is an oversimplification, but assume it anyway for purposes of this problem.) Nominal market rate, r: 8% Value of bond if it's not called: Value of bond if it's called: The bond would not be called unless r Attachment Preview: Ch5_Build_a_Model.xlsx Download Attachment 4/16/2010 Chapter 5. Ch05 P24 Build a Model A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume... 4/16/2010 Chapter 5. Ch05 P24 Build a Model A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: Periods per year: Periods to maturity: Coupon rate: Par value: Periodic payment: Current price Call price: Years till callable: Periods till callable: 20 2 8% $1,000 $1,100 $1,040 5 a. What is the bond's yield to maturity? Peridodic YTM = Annualized Nominal YTM = Hint: This is a nominal rate, not the effective rate. Nominal rates are generally quoted. b. What is the bond's current yield? Current yield = Current yield = Current yield = Hint: Write formula in words. Hint: Cell formulas should refer to Input Section (Answer) / c. What is the bond's capital gain or loss yield? Cap. Gain/loss yield = Cap. Gain/loss yield = Cap. Gain/loss yield = - Hint: Write formula in words. Hint: Cell formulas should refer to Input Section (Answer) Note that this is an economic loss, not a loss for tax purposes. d. What is the bond's yield to call? Here we can again use the Rate function, but with data related to the call. Peridodic YTC = Annualized Nominal YTC = This is a nominal rate, not the effective rate. Nominal rates are generally quoted. The YTC is lower than the YTM because if the bond is called, the buyer will lose the difference between the call price and the current price in just 4 years, and that loss will offset much of the interest imcome. Note too that the bond is likely to be called and replaced, hence that the YTC will probably be earned. NOW ANSWER THE FOLLOWING NEW QUESTIONS: e. How would the price of the bond be affected by changing the going market interest rate? (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. That is an oversimplification, but assume it anyway for purposes of this problem.) Nominal market rate, r: Value of bond if it's not called: Value of bond if it's called: 8% The bond would not be called unless r
Question 2
Amazon is one of a number of companies (Sony is another) which have developed electronic devices which deliver books, newspapers and other printed matter without using paper. This is a growing market, with technology evolving rapidly. In the not too distant future it is thought that mobile phones and other devices will perform a similar service. How though are such devices priced? Case Question Write a 2-3 page paper in which you answer the following case question: Amazon's Kindle 2.0 was priced at $359 and delivery started in February 2009. The price was dropped to $300 in July after a newer model with a larger screen, the Kindle DX, was launched, priced at over $400. In January 2010 Apple announced the launch of the iPad, the lowest priced version of which was to sell for $499. Assume that you are in charge of the pricing of the Kindle models. Explain what methods are open to you to price your products and the factors that you should take into account in deciding on these prices. Then assume that you are responsible for deciding the future pricing of Kindle models over the next year. What prices are being charged now and what would you recommend Amazon charge? Why? In answering this case question aim to demonstrate your learning not only of the materials from MOD05, but also those from MOD01-04. 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. Place any detailed calculations in an appendix, (not counted in the page limit), after the references. Please submit your case for grading by the end of this module. CASE EXPECTATIONS It is expected that you will 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 pricing 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 Articles and Links Anonymous, (2010) iPad costs give Apple room to cut prices, says researcher. (2010, February). Network World Middle East. February 11. Retrieved February 22, 2010, from ProQuest Computing. (Document ID: 1962300801). Anonymous, 2009. Business: Well read; Electronic-book readers. The Economist. Feb 14. 390:8618. Viewed using the Proquest database February 20, 2010. Anonymous, 2009. AMAZON'S KINDLE 2 The Independent. Feb 13. Viewed using the Proquest database February 20, 2010. Anonymous, 2009. Amazon.com; Introducing Amazon Kindle 2. Telecommunications Weekly. Feb 25. Viewed using the Proquest database February 20, 2010. Anonymous, 2009. National Federation of the Blind; National Federation of the Blind Responds to Authors Guild Statement on the Amazon Kindle 2. Life Science Weekly. Feb 24. Viewed using the Proquest database February 20, 2010. MacMillan D. 2009. Amazon's Kindle 2: No iPod for Books. Business Week Online). Feb 10. Viewed using the Proquest database February 20, 2010. Amazon.com 2009 Kindle 2: Amazon's New Wireless Reading Device (Latest Generation). Viewed at Amazon.com on February 20, 2010. (If you have access to the Amazon.com website, you should read the consumer reviews there). Ryan Kim. (2009, August 10). New market may be turning a page. San Francisco Chronicle,p. DC.1. Retrieved February 20, 2010, from ProQuest Newsstand. (Document ID: 1824378911). Patel, N. (2009, June 19), Amazon Kindle DX review, viewed at http://www.engadget.com/2009/06/19/kindle-dx-review February 20, 2010.
Question 3
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: (Show calculations where applicable) Insurance $2,000 Mortgage interest 6,500 Property taxes 2,000 Repairs & maintenance 1,400 Utilities 2,500 Depreciation 14,500 During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexa?s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. 61. (LO4) Assuming Alexa receives $20,000 in gross rental receipts, answer the following questions: a. What effect does the rental activity have on her AGI for the year? b. Assuming that Alexa?s AGI from other sources is $90,000, what effect does the rental activity have on Alexa?s AGI? Alexa makes all decisions with respect to the property. c. Assuming that Alexa?s AGI from other sources is $120,000, what effect does the rental activity have on Alexa?s AGI? Alexa makes all decisions with respect to the property. d. Assume that Alexa?s AGI from other sources is $200,000. This consists of $150,000 salary, $10,000 of dividends, and $25,000 of long-term capital gain and net rental income from another rental property in the amount of $15,000.What effect does the Cocoa Beach Condo rental activity have on Alexa?s AGI?
Question 4
BAM 510 Human Resource Management Multiple Choice Questions (Enter your answers on the enclosed answer sheet) 1) Union membership has declined over the past several years for all of the following reasons EXCEPT: a. union member wages are significantly lower than non-union employees. b. employees felt that unions were not doing a good enough job of representing them. c. local unions have lacked the money to spend money on organizing efforts. d. jobs that have been traditionally unionized are moving overseas. e. small businesses and the service industry have grown which are both typically non-union environments. 2) All of the following are accurate about the Railway Labor Act EXCEPT: a. the National Railroad Adjust Board is used to settling minor disputes. b. it created the National Mediation Board to settle disputes. c. it defines major and minor disputes. d. lockouts can be used to settle major disputes. e. it applies to only common carrier rail services. 3) The Taft-Hartley Act of 1947: a. requires all major disputes to use a mediator to be resolved. b. established the National Labor Relations Board. c. has a provision that employees cannot be forced to join a union. d. is also known as the National Labor Relations Act. e. gives more power to unions rather than employers. 4) Right to work laws exist in ________________ states. a. 13 b. 22 c. 30 d. 50 e. 25 5) Which of the following acts established the Federal Mediation and Conciliation Service? a. Taft-Hartley Act b. National Labor Relations Act c. Landrum-Griffin Act d. Wagner Act e. Norris-LaGuardia Act Unit 4 Examination 210 BAM 510 Human Resource Management 6) The Federal Mediation and Conciliation Service: a. is an agency that deals with unfair labor practices and secret ballot elections. b. handles strikes which impact an entire industry and threaten the economy. c. is monitored by a board of union stewards from across the country. d. prevents labor-management disputes from impeding the free flow of commerce. e. establishes the employee ?bill of rights.? 7) PQR Manufacturing has a secret ballot election coming up on Friday morning at 9 a.m. Thursday night, the management team of PQR holds one final presentation to explain to employees why they should be against the union. Based on this information, which statement is most accurate? a. Employees must attend the meeting during their break time. b. The employer is not permitted to have this meeting since it is less than 24 hours until the election. c. Employees must inform the employer as to how they intend to vote. d. Union literature can be displayed at the meeting to present the union?s view. e. Employees are required to attend this meeting. 8) A union is permitted to: a. have other employees lobby their coworkers throughout the work day to support the union. b. campaign on company property no matter what type of employer it is. c. dismiss any grievances it believes have no merit. d. require only union members be hired to work for the employer. e. require the employer to hire more employees than are typically needed to perform the work. 9) All of the following are accurate statements in regard to neutrality agreements EXCEPT: a. management is prevented from speaking to employees about the impacts a union can have. b. more than 30% of eligible employees must sign cards in order for the bargaining unit to be recognized. c. the NLRB does not get involved in certifying the union when this agreement exists. d. employers prefer this process because the union loses its rights. e. this process has a high success rate for the unions. 10) Which of the following requires management and unions to use good faith bargaining when dealing with each other? a. Landrum-Griffin Act b. Norris-LaGuardia Act c. Labor Management Relations Act d. National Labor Relations Board e. Taft-Hartley Act Unit 4 Examination 211 BAM 510 Human Resource Management 11) All of the following are important to a successful negotiation process EXCEPT: a. knowing that arbitration may need to be used if neither party can agree. b. understanding the expectations of the other party. c. realizing that failure to agree may result in a strike. d. continually being prepared with statistical and financial information to support your side of the bargaining. e. accepting that when an impasse occurs facilitation is not an option. 12) The third party that has been called in to help the union and management come to an agreement has asked that they continue to negotiate late into the evening as it appears they may be getting closer to an agreement. This is an example of: a. mediation. b. conciliation. c. integration. d. distribution. e. arbitration. 13) Both the labor and management have presented the items they would like to see included or excluded from the contract. A third party has reviewed all of the information and determined what items will be part of the final contract and their decision cannot be altered. This is an example of: a. conciliation. b. distribution. c. integration. d. mediation. e. arbitration. 14) Community Hospital recently hired two RNs who are now promoting a union to their coworkers. The hospital recently found out that these two employees were actually employees of the union paid to organize their hospital. The two RNs are known as: a. union shoppers. b. free riders. c. scabs. d. salts. e. union stewards. Unit 4 Examination 212 BAM 510 Human Resource Management 15) Labor management issues at a federal level are handled by the: a. Weingarten Act. b. Occupational Health and Safety Administration. c. AFL-CIO. d. Federal Labor Relations Authority. e. National Labor Relations Board. 16) Due to changing economic conditions, unions are: a. offering fixed salaries to union members. b. paying a portion of union member dues. c. decreasing their involvement in political campaigns to save costs. d. requiring mandatory overtime as part of their contracts. e. using more variable pay plans in their contracts. 17) HR challenges with which an organization must align its HR practices are all of the following EXCEPT: a. company characteristics b. labor force trends c. performance evaluation systems. d. ethics e. regulatory issues 18) Which of the following decisions must be made for every job within an organization? a. Whether the job should be part time or full time. b. How the job should be designed. c. Whether contingent labor can be used to fill the job. d. The types of KSAs required to perform the job. e. All of the above. 19) Susan is an excellent graphic designer. She is very creative and always receives outstanding feedback from her customers. In addition, she is dedicated and works hard to complete assignments so that she can take on additional work. However, Susan?s company cannot afford to upgrade the graphic design software she currently uses and therefore her work is starting to suffer because she does not have the latest technology in order to continue to enhance her work product. This is an example of a(an): a. powerful connection. b. internal alignment. c. external alignment. d. deadly combination. e. uniqueness. Unit 4 Examination 213 BAM 510 Human Resource Management 20) All of the following statements are true about outsourcing EXCEPT: a. tasks that do not add strategic value can be outsourced. b. not outsourcing can sometimes increase an organization?s costs depending on the nature of the task. c. these agencies are often the experts and can work more efficiently on a particular task. d. it allows the organization to focus on what it does best to achieve its competitive advantage. e. work is sent to another area of the organization to be completed by specialists. 21) Which of the following statements is most accurate when describing the relationships an organization has with its employees? a. A quid pro quo relationship involves a strong commitment on the part of both the organization and the employee. b. When employees make a unique contribution they tend to have a relational type of relationship with their organization. c. Relationships that have an economic focus are also more social in nature. d. An emotional connection is found in those relationships which are based on a ?fair day?s work for a fair day?s pay.? e. Both the employee and employer have a high level of concern for each other when the relationship is focused narrowly on the performance of a specific task. 22) In order to map its employment portfolio, an organization must: a. use contingent labor for all narrowly focused jobs since that is the more cost effective method. b. outsource all positions which require a unique combination of KSAs. c. must weigh the strategic value and uniqueness that each job brings to the organization to determine what type of employment relationship will be created. d. focus on building relational relationships in order to remain competitive. e. define its financial position and then determine what employment arrangements it can afford. 23) A large health care system is currently using a marketing consultant to help them with their marketing and branding strategy so that it can position itself better in its local market. This consultant would be most likely considered a(an): a. core employee. b. job-based employee. c. contingent worker. d. alliance worker. e. alliance partner. Unit 4 Examination 214 BAM 510 Human Resource Management 24) Which of the following pair of employee type and HR systems is most accurate? a. Contract worker and collaborative-based system b. Job-based and productivity-based system c. Core employee and productivity-based system d. Job-based and compliance-based system e. Contract worker and alliance partnership 25) Which of the following pair has matched an HR practice with an HR activity most appropriately? a. Managing employee attitudes and behaviors with an intensive recruitment process b. Work force planning by using an equipment training program c. Managing employee competencies with a competitive compensation program d. Work design by using a complete and specific job description e. Work design by using an employee orientation program
Question 5
Ratio Analysis of Coca-Cola Company (KO) Excel file is attached and Links to Coca-Cola and PepsiCo (its competitor) 10-K forms are below. I can use sources like Hoover's and Dun and Bradstreet and need to provide a copy of the source. SIC Code is 2080 Beverages I have extreme limited time and my brain is overloaded to even think straight. Due date is tonight, will take any help I can get!! Here are instructions: * Complete the ratio summary page. This page must only include the results of your ratio calculations. Do not show calculations on this page. You must complete the analysis for your company, your competitor, and the industry norms. Follow the format given. You will have to do a little searching for the industry norms. The best resource is Dun and Bradstreet's Industry Norms and Key Business Ratios. * Complete the calculations page. You must show all of your calculations here. Complete for your company and competitor. * Complete the Analysis of Results page. You must analyze each section of the ratio analysis individually and then write an overall conclusion. * Submit the Excel worksheet along with a copy of the Industry Norm source. Please help! Links to 10-Ks Coca-Cola (KO) 10-K: http://assets.coca-colacompany.com/c4/28/d86e73434193975a768f3500ffae/2012-annual-report-on-form-10-k.pdf Pepsi Co (PEP) http://www.sec.gov/Archives/edgar/data/77476/000144530513000278/pepsico201210-k.htm
