Please Use Your (own Words), Don’t Copy And Paste, Don’t Use Handwriting (use Keyboard).
Please use your (own words), don’t copy and paste, don’t use handwriting (use keyboard). i need (references) please answer the Q by good and perfect answers. In many businesses, employees are not only the most important assets and key enablers of future success but often the biggest expense (or rather investment). It is therefore important to understand to what extent employees add value to the financial performance of the organization. Employees are often a missing ingredient in accounting and finance (except as an expense) and with a little effort we can calculate the effects of people on financial performance. In the past, companies used over-simplified KPIs such as revenue per employee. If businesses are to understand the real profit impact of employees then we need to calculate human capital value added (HCVA). To get the HCVA we take all non-employee-related expenses away from the revenue generated and divide this (adjusted profit figure) by the number of full-time employees. HCVA therefore gives us the profitability of the average employee. Data Collection Method: The data for this can be easily extracted from the financial accounting systems or the financial statements. Formula: HCVA can be calculated by subtracting all corporate expenses except for pay and benefits from the revenue generated and dividing the adjusted profit by the average headcount. Exercise 1: (5 marks) If a company has the following figures: Revenue: $100,000,000 Total costs: $80,000,000 Employee costs: $30,000,000 ($20,000,000 in pay and $10,000,000 in benefits). Number of employees: 650 Calculate the HCVA for the company. Exercise 2: (5 marks) If a company has the following figures: Revenue: $250,000,000 Total costs: $200,000,000 Employee costs: $50,000,000 ($350,000,000 in pay and $15,000,000 in benefits). Number of employees: 500 Calculate the HCVA for the company. Is this a good HCVA? Why or why not?
What Are The Factors That Contribute To Credit Risk Of Corporate Bonds(please Explain In
What are the factors that contribute to credit risk of corporate bonds(please explain in detail)
Explain Relationship Between Credit Risk And Interest Risk Of Corporate Bonds( Discuss In Detail)
Explain relationship between credit risk and interest risk of corporate bonds( discuss in detail)
New-Project Analysis The Campbell Company Is Considering Adding A Robotic Paint Sprayer To Its
New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $1,030,000, and it would cost another $17,500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $542,000. The machine would require an increase in net working capital (inventory) of $9,000. The sprayer would not change revenues, but it is expected to save the firm $463,000 per year in before-tax operating costs, mainly labor. Campbell’s marginal tax rate is 30%. What is the Year 0 net cash flow? $ 1,003,500 What are the net operating cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1 $ Year 2 $ Year 3 $ What is the additional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)? Do not round intermediate calculations. Round your answer to the nearest dollar. $ If the project’s cost of capital is 15 %, what is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar. $ Should the machine be purchased?
A Project Has An Initial Cost Of $54,650, Expected Net Cash Inflows Of $14,000
A project has an initial cost of $54,650, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 11%. What is the project’s NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.
Suppose ABC Corporation Has An Obligation To Pay $70,000 And $60,000 At The End
Suppose ABC Corporation has an obligation to pay $70,000 and $60,000 at the end of 4 years and 9 years respectively. In order to meet this obligation, it plans to invest money by selecting from the following three bonds: Coupon Rate Maturity (years) Yield Bond 1 4% 2 7% Bond 2 5% 4 7% Bond 3 8% 10 7% All bonds have the same face value $1000. Assume that the annual rate of interest to be used in all calculations is 7%. Consider semi-annual compounding. (Keep your answers to 2 decimal places, e.g. xxx.12.) (a) Find the present value and duration of the obligation. Obligation price: ________ Obligation duration: __________ (b) Find the price for each of these bonds. Bond 1: ________ Bond 2: ________ Bond 3: ________ (c) Determine Macaulay durations D1, D2, and D3 of these three bonds, respectively. (Keep 2 decimal places.) D1: ________ D2: ________ D3: ________ (d) Can the Corporation choose bonds 1 and 2 to construct its portfolio? Justify your answer. (e) Suppose the Corporation decides to use bonds 2 and 3. Denote by V2 and V3 to be the amounts of money to be invested in the two bonds, respectively. To get an immunized portfolio, write down appropriate equations in V2 and V3 first, and solve for V2 and V3. V2: ________ V3: ________
Consider The Following Three Bonds: Bond Coupon Rate Maturity (years) Price A 0% 1.0
Consider the following three bonds: Bond Coupon Rate Maturity (years) Price A 0% 1.0 $947.5572 B 7% 1.0 $1,014.8980 C 5% 1.5 $981.4915 Assume that coupons are paid every 6 months and the face values of all the bonds are $1,000. (a) Determine the spot rate curve. (That is, determine s0.5, s1, and s1.5 in yearly terms.) (Keep 4 decimal places, e.g. 0.1234) s0.5: s1: s1.5 : (b) Suppose that the 0.5- and 1.5-year zero-coupon bonds are available. Determine their respective prices. (Keep 2 decimal places, e.g. xxx.12) PZ0.5: PZ1.5: (c) Determine the forward rate f 0.5,1 (in yearly term) on a 6-month Treasury bill 6 months from now. (Keep 4 decimal places, e.g. 0.1234) (d) Determine the forward rate f0.5,1.5 (in yearly term) on a 12-month Treasury bill 6 months from now. (Keep 4 decimal places, e.g. 0.1234) (e) Price the 1.5-year coupon bond 6 months from now. (Keep 2 decimal places, e.g. xxx.12)?
A Project Has An Initial Cost Of $35,200, Expected Net Cash Inflows Of $11,000
A project has an initial cost of $35,200, expected net cash inflows of $11,000 per year for 9 years, and a cost of capital of 10%. What is the project’s NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent. $__ A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 10%. What is the project’s IRR? Round your answer to two decimal places. __ %
PLEASE ANSWER IN EXCEL FORM WITH THE CELL FORMULAS USED TO SOLVE EACH OF
PLEASE ANSWER IN EXCEL FORM WITH THE CELL FORMULAS USED TO SOLVE EACH OF THE YELLOW BOXES. I NEED TO KNOW HOW EACH YELLOW BOX IS CALCULATED.
Delta CEO Bastian Wondered How He Should Respond To Increased Global Competition, Including The
Delta CEO Bastian wondered how he should respond to increased global competition, including the threat posed by rapidly expanding Persian Gulf carriers and the European ultra-low cost competi-tors, all of which are making inroads into Delta’s profit sanctuary on international routes. Meanwhile, the domestic U.S. airline industry is getting more consolidated, and thus making the few remaining competitors more potent. In addition, the U.S. also has its share of ultra-low cost competitors such as Spirit Airlines and Allegiant Air. Will they be expanding and making inroads to Delta’s routes? At the same time, customer service has become much more important given the recent high-profile inci-dents. Customers and regulators are becoming increasing vocal in demanding better customer service. He could also see changing demographic trends would drive changes, and Delta’s strategy needed to adapt to meet the needs of new consumer groups. Importantly, looming demographic shifts repre-sented an opportunity to offer new products and services. Sipping his Diet Coke, and looking at the A-380 flight by Korean Air taking off, Ed Bastian won-dered, what does Delta need to address all these threats, and what would Delta need to do to create a competitive advantage? He needed to outline proposals to present to the next Board of Directors meet-ing concerning new products and services Delta should offer. How could Delta be better positioned to meet emerging challenges and opportunities, both domestically and globally? Ed Bastian started to type on his laptop… Delta CEO Bastian wondered how he should respond to increased global competition, including the threat posed by rapidly expanding Persian Gulf carriers and the European ultra-low cost competi-tors, all of which are making inroads into Delta’s profit sanctuary on international routes. Meanwhile, the domestic U.S. airline industry is getting more consolidated, and thus making the few remaining competitors more potent. In addition, the U.S. also has its share of ultra-low cost competitors such as Spirit Airlines and Allegiant Air. Will they be expanding and making inroads to Delta’s routes? At the same time, customer service has become much more important given the recent high-profile inci-dents. Customers and regulators are becoming increasing vocal in demanding better customer service. He could also see changing demographic trends would drive changes, and Delta’s strategy needed to adapt to meet the needs of new consumer groups. Importantly, looming demographic shifts repre-sented an opportunity to offer new products and services. Sipping his Diet Coke, and looking at the A-380 flight by Korean Air taking off, Ed Bastian won-dered, what does Delta need to address all these threats, and what would Delta need to do to create a competitive advantage? He needed to outline proposals to present to the next Board of Directors meet-ing concerning new products and services Delta should offer. How could Delta be better positioned to meet emerging challenges and opportunities, both domestically and globally? Ed Bastian started to type on his laptop… As infored person about the difficulties Delta is facing in the marlet, what would be your recomendation to the CEO of delta, to improve, delta’s maket share, profitability and its competative advantage? ( only basd on information given on first post)
WACC And Optimal Capital Structure F. P Products Inc. Is Considering Changing Its Capital
WACC and Optimal Capital Structure F. P Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as follows: Market Debt- to-Value Ratio (wd) Market Equity-to-Value Ratio (ws) Market Debt- to-Equity Ratio (D/S) Before-Tax Cost of Debt (rd) 0.0 1.0 0.00 7.0% 0.2 0.8 0.25 8.0 0.4 0.6 0.67 10.0 0.6 0.4 1.50 12.0 0.8 0.2 4.00 15.0 F. Pierce uses the CAPM to estimate its cost of common equity, rs and at the time of the analaysis the risk-free rate is 5%, the market risk premium is 5%, and the company’s tax rate is 40%. F. Pierce estimates that its beta now (which is “unlevered” because it currently has no debt) is 1.3. Based on this information, what is the firm’s optimal capital structure, and what would be the weighted average cost of capital at the optimal capital structure? Do not round intermediate calculations. Round your answers to two decimal places.
A Project Costs $3 Million, And Is Expected To Generate $1 Million In Cash
A project costs $3 million, and is expected to generate $1 million in cash flows for the next 4. If the opportunity cost of capital is 15%, the project’s return would plot: above the security market line. on the security market line, with a beta of 1.0. on the security market line. below the security market line.
Identify The Effect On The Financial Statement On The Following Senarios: B) The Clients
identify the effect on the financial statement on the following senarios: b) the clients business mainly dues with cash sales which is more susceptible to theft than credit sales. and state how the auditor can reduce the risk
Identify The Effect On The Financial Statement On The Following Senarios: C) Confirmation Of
identify the effect on the financial statement on the following senarios: c) confirmation of receivables by a new audit staff fails to detect material misstatement. and state how the auditor can reduce the risk
Question 251 Pts The United States Department Of Labor Has Ruled That Employees Were
Question 251 pts The United States Department of Labor has ruled that employees were economically dependent on the employer to be classified as independent contractors. True False Question 321 pts The process of prioritizing how important an issue is to eat stakeholder is called Stakeholder Materiality. True False
Ying Import Has Several Bond Issues Outstanding, Each Making Semiannual Interest Payments. The Bonds
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote Maturity Face Value 1 5.8 % 105.56 6 years $ 52,000,000 2 7.4 114.32 9 years 47,000,000 3 7.3 112.87 16.5 years 67,000,000 4 6.6 102.11 26 years 74,000,000 If the corporate tax rate is 22 percent, what is the aftertax cost of the company’s debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Titan Mining Corporation Has 6.1 Million Shares Of Common Stock Outstanding, 210,000 Shares Of
Titan Mining Corporation has 6.1 million shares of common stock outstanding, 210,000 shares of 3.4 percent preferred stock outstanding, and 95,000 bonds with a semiannual coupon rate of 5.1 percent outstanding, par value $1,000 each. The common stock currently sells for $75 per share and has a beta of 1.05, the preferred stock has a par value of $100 and currently sells for $81 per share, and the bonds have 15 years to maturity and sell for 105 percent of par. The market risk premium is 6.8 percent, T-bills are yielding 2.8 percent, and the company’s tax rate is 21 percent. a. What is the firm’s market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. If the company is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows? (
Kiosk Corp. Produces Vending Machines And Places Them In Public Buildings. The Company Has
Kiosk Corp. produces vending machines and places them in public buildings. The company has obtained permission to place one of its machine in a local library. The company makes two types of machines. One distributes soft drinks, and the other distributes snack foods. Kiosk expects both machines to provide benefits over a 12-year period, and each has a required investment of $5,200. The firm uses a 6.35% cost of capital. Management has constructed the following table of estimates of annual cash inflows for pessimistic, most likely, and optimistic results.
D. Paul Inc. Forecasts A Capital Budget Of $700,000. The CFO Wants To Maintain
D. Paul Inc. forecasts a capital budget of $700,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and she also wants to pay a dividend of $350,000. If the company follows the residual dividend model, how much income must it earn, and what will its dividend payout ratio be?
Jayla Just Landed An Internship With Acme Incorporated In The Payroll Department. She Was
Jayla just landed an internship with Acme Incorporated in the payroll department. She was excited because these internships usually turned into a full time job after graduation. Jayla was hired by Deon, the head of the Payroll Department. He told her about their policies and stressed the need for maintaining strict confidentiality regarding employee salaries and pay scales. Several years ago we had an intern who violated the confidentiality policy and was given a negative internship summary, explained Deon. I understand, sir, Jayla responded. Jayla was determined to learn as much as she could about the job. She made sure she was always on time, followed all of the policies and procedures, and got along well with her co-workers. She started to feel like she fit in at Acme and dreamed of the day when she worked there permanently. However, one day while studying the books, Jayla began to notice abnormalities in one of the salespeople’s salary. Greg, one of the senior sales representatives, made three times as much as the next highest earning salesperson in the company. Jayla assumed he must be a spectacular salesperson and worked efficiently. She often overheard Mia, the General Manager, and Deon praise Greg for his sales numbers. She also noticed the three of them would often go to lunch together. One morning, Deon handed a stack of client folders to Jayla. He explained, These are the clients for the salespeople for the week. They will come to you when they need more work, and they are only to take the files on top of the pile. You are in charge of making sure the salespeople don’t pick and choose the files. This is how we keep things fair among the sales force. I will make sure the files are distributed fairly, Jayla promised. She was excited to be trusted with this responsibility, and she made sure she did her best. Mary, one of the salespeople, came by to get files for the week. They made small talk as Mary looked into her files. She looked disappointed. You didn’t get any good clients Jayla asked. Nope, not a one, replied Mary, which is just my luck! She threw down the files in exasperation. Jayla was concerned and asked, What’s the matter I’m sorry, she replied, It’s just that my sales have been slipping, and my paychecks are much smaller than they used to be. If my pay decreases much further, I may lose my health benefits. My daughter is asthmatic, and she has been in and out of the hospital over the last few months. Jayla looked at Mary sympathetically and tried her best to console her. The next week, before the salespeople started coming into the office to pick from the pile, Jayla had some documents for Deon to sign. When she arrived at his office, the door was slightly open. She peeked in and saw Deon and Greg going through the stack of clients. Jayla watched as Greg rifled through the pile and picked out files. Thanks, Deon. These are the top clients for the week, Greg said. No problem, Greg, Deon responded Anything for my favorite brother-in-law. Just keep up the good work. Jayla stood there, mouth open. She turned to walk back toward her desk. She could not believe what she just saw. The boss was giving Deon all the good clients, while the rest of the salespeople had no choice in which they were assigned. Jayla knew this favoritism was a serious conflict of interest. Then she thought of Mary and her situation. What am I supposed to do Jayla wondered. If I say something to Deon, he will give me a bad evaluation. If I say anything to Mia, I may get fired. And I definitely can’t say anything to the other salespeople. There would be a riot. Saddened, she sat at her desk and wondered what to do. QUESTION: 1. is it worse to participate in unethical behavior or to condone it? 2. What would you do? Why?
You Are The Financial Analyst Fir The Firm Named Sixties Wine That Distributes California
You are the financial analyst fir the firm named Sixties Wine that distributes California wine in Italy.Your firm routinely hedges its exposure to the EUR In the past, the firm has used long position in EUR put options to accomplish its hedging objectives. Due to a change in market liquidity conditions, the firm finds that it is no longer possible to use EUR put options. One your colleague recommends that the firm use short posiions in call options on the EUR and makes the claim that “short positions in call options on the EUR are identical to long positions on put options” Critically examine this statement
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