Question 1
. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Suppose that Sports Baseball has 30,000 shares of stock. What is the dividends per share figure? (Points: 3) 5.0 8.75 5.25 8.50 4. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Assuming a tax rate of 30%, what is the EBIT and taxable income for the year? (Points: 3) $1,000,000 and $800,000 respectively $575,000 and $375,000 respectively $565,000 and $365,000 respectively $425,000 and $225,000 respectively None of the above 5. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 " - Sent to Finance Expert Tutor on 10/29/2010 at 8:35pm You asked: "TCO 1) Select all items that will be included in Sports Baseballs, Inc. Balance Sheet. For this exercise you will be choosing more than one option for your answer: (Points: 3) Accounts receivable Cost of goods sold Net working capital Interest expense Taxes Current assets Notes payable Cash on hand Consulting revenues,they are mulitple choice ant the last one is pick several answers
Question 2
Based on the information available, which three candidates would you select for this two-year assignment to Dublin and Dubai? Why? What kind of training should be provided prior to departure (or prior to selecting the candidate for the role)? Should the company be responsible for housing payments? Should they select candidate #1? Based on your research, have you found that companies should pay for private education (or for international schools) for children of expats? Identify and describe other competitive benefits that can be offered when assigning expats to a global post. What are some of the challenges that the selected candidate(s) face(s) when assigned to this new post in Dublin and Dubai, or when the assignment comes to an end? Does the compensation awarded commensurate with the level of the global responsibility? Provide practical examples and related facts to support your answers,The Scenario Mary Wright is a human resources consultant for a Telecommunications company in Miami, Florida, USA. Recently her company decided to expand its operations overseas in the Arab Emirates, in Dubai. Mary has worked for the company for more than seven years, possesses a Master?s degree, is fluent in four languages (English, Spanish, Arab, and French), and has the required management expertise to move on to a much greater role. Due to Mary?s extensive professional background and dedication to the company, her company has identified her as a strong contender to support their expansion efforts in Dubai and has offered Mary to fill the role of VP of Human Resources and Employee Relations. Mary will report to the newly appointed COO in Dubai. Mary has accepted this new role and professional challenge and is expected to move to Dubai in 90 days. Her new assignment overseas includes a compensation and benefit package that is quite competitive and exceeds all of her expectations. Mary has never visited Dubai but has been always attracted to that part of the world. This first new assignment will give her the opportunity to work as an expatriate abroad and build a strategic IHRM partnership in Dubai and other regions. She has been directed by the COO to develop, train, and position a team of both home and host country professionals, attract, recruit and select qualified global talent, set new performance management standards, develop a competitive compensation package, develop a competency based program, and introduce an IHRM strategic plan to serve as a global model to lead a transformational vision of change and chart the course of the organization into the future. This new business model is expected to gain global market share and increase bottom line results across the globe. Working in Dubai - Etiquette NOTE: For more information, refer to the Working in Dubai - Etiquette link located in the course Webliography. Your Role Please read the You Decide carefully, and refer to this situation when answering the second Discussion question this week. Your role is to analyze this scenario and present your findings by responding to five (5) of the following set of ten (10) questions: What challenges will Mary face when starting her new role in Dubai considering the fact that she has never visited this country before? What country and business barriers will Mary be faced with when adapting and introducing her own management style in her new post? What impact will culture, mandated legal regulations, religion, politics, demographics, religion, language, and economic stability have on Mary?s IHRM strategic development plan and approach in a new country like Dubai? What programs can Mary introduce to attract, recruit, retain, and select qualified global talent in Dubai? What are the professional competencies necessary for a global leader like Mary seeking to work in a foreign country like Dubai and other regions? What training and development tools will be necessary to ensure the success and adaptation of this new assignment prior to leaving USA and while being assigned in Dubai? What performance management standards are required to ensure that this new assignment as a VP of HR meets both the IHRM and business expectations to transform and lead the organization vision into the future? Describe what type of global model you would recommend to create a cohesive culture where your foreign counterparts and employees feel valued, empowered and a sense of ownership in Dubai and other regions? What competency based programs and internal opportunities (promotions) can you introduce to ensure that women are promoted to key management positions within an organizational environment that has been dominated by men? Identify and describe what compensation and benefit package can be developed for an expatriate being assigned to a foreign post, such as Dubai?
Question 3
The attach assignment contains how Questions 3 and 9 actually look. 1. Stock Values. Metroplex Corporation will pay a $3.04 per share dividend next year. The company pledges to increase its dividend by 3.8 percent per year indefinitely. If you require an 11 percent return on your investment, how much will you pay for the company's stock today? 2. Stock Valuation. Suppose you know that a company's stock currently sells for $47 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? 3. Calculating Payback. What is the payback period for the following set of cash flows? Year Cash Flow 0 -$6,400 1 1,600 2 1,900 3 2,300 4 1,400 4. Calculating Payback. An investment project provides cash inflows of $765 per year for eight years. What is the project payback period if the initial cost is $2,400? What if the initial cost is $3,600? What if it is $6,500? 5. Calculating NPV and IRR. A project that provides annual cash flows of $28,500 for nine years costs $138,000 today. Is this a good project if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? 6. Cost-Cutting Proposals. Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $560,000 is estimated to result in $210,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $80,000. The press also requires an initial investment in spare parts inventory of $20,000, along with an additional $3,000 in inventory for each succeeding year of the project. If the shop's tax rate is 35 percent and its discount rate is 9 percent, should the company buy and install the machine press? 7. Calculating Returns. Suppose a stock had an initial price of $91 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $102. Compute the percentage total return. 8. Calculating Yields. In Problem 1, what was the dividend yield? The capital gains yield? 9. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return and standard deviation for the two stocks: Rate of Return if State occurs State of Probability of Stock A Stock B Economy State of Economy Recession .15 .05 -.17 Normal .65 .08 .12 Boom .20 .13 .29 10. Calculating Cost of Equity. The Down and Out Co. just issued a dividend of $2.40 per share on its common stock. The company is expected to maintain a constant 5.5 percent growth rate in its dividends indefinitely. If the stock sells for $52 a share, what is the company's cost of equity? 11. Calculating WACC. Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 6 percent, and the cost of debt is 8 percent. The relevant tax rate is 35 percent. a. What is Mullineaux's WACC?
Question 4
""Walters Audio Visual, Inc., offers a stock option plan to its regional managers. On January 1, 2011, options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date, $8 per share. Options cannot be exercised prior to January 1, 2013, and expire December 31, 2017. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Because the plan does not qualify as an incentive plan, Walters will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The income tax rate is 40%. REQUIRED: (1)Determine the total compensation cost pertaining to the stock option plan. (2)Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31, 2011 (3)Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31, 2012. (4)Record the exercise of the options and their tax effect if all of the options are exercised on March 20, 2016, when the market price is $12 per share. (5)Assume the option plan qualifies as an incentive plan. Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31, 2011 (6)Assuming the option plan qualifies as an incentive plan, record the exercise of the options and their tax effect if all of the options are exercised on March 20, 2016, when the market price is $11 per share. " "
Question 5
Assignment 2: Transfers to a Corporation Imagine you are a CPA. A client engages you to determine how best to transfer property and perform services to a corporation in exchange for stock with minimal exposure to taxes and risk of an IRS audit. Assume that the client is forming this corporation with two other people who also plan to contribute property and services to the corporation. Using the Internet or Strayer databases, research the rules regarding the transfer of property and services to a corporation in exchange for stock. Include a review of the IRS to determine its level of interest and audits conducted related to this area. Write a three to four (3-4) page paper in which you: Based on your research, determine the types and methods of transfers that will most likely trigger a taxable event for your client. Indicate how you are likely to present this information to your client. Based on your research, evaluate which types of transfers are most likely to increase the risk of an IRS audit and the impact of the advice given to your client. Recommend the most advantageous types and methods of property and service transfers to your client in exchange for stock to minimize any tax liability and risk of audit. Support your recommendations with examples. The specific course learning outcomes associated with this assignment are: Evaluate tax planning strategies related to liquidating distributions, acquisitions, and reorganizations. Create an approach to tax research that results in credible and current resources. Use technology and information resources to research issues in organizational tax research and planning. Write clearly and concisely about organizational tax research and planning using proper writing mechanics.
