Mid-Term Assignment
Written assignment (essay and calculations)
Activity brief
BCO322 – Budgeting and Control
Online campus
Professor: Senen Garcia | [email protected]
Description
Your knowledge will be tested on the content of week 1 to 6 of the course.
Format
This activity must meet the following formatting requirements:
· Font size 12
· 1200 - 2200 words
· Harvard Referencing System
Due date
Date: Monday 15 March 2021
Time: 14:00 CET
Weight towards final grade
This activity has a weight of 40% towards the final grade.
Learning outcomes
· Outcome One: Classification of costs
· Outcome Two: Cost of Finished Goods
· Outcome Three: Cost of Goods Sold
· Outcome Four: Job order and process costing
· Outcome Five: Cost Volume Profit Analysis-Cost per unit
· Outcome Six: Cost Volume Profit Analysis-Breakeven Analysis
· Outcome Seven:Cost Volume Profit Analysis-Margin of Safety
· Outcome Eight:Cost Volume Profit Analysis-operating income with different volumes
Assessment criteria
· Answers should be clear and well presented (Provide spacing between paragraphs, number your questions correctly)
· Remember to in-text reference and provide your referencing at the end.
· Referencing should be Harvard Style
· Show all calculations
· Cannot submit photos. May use MS Word, MS Excel, Adobe Acrobat, or similar software.
Questions:
QUESTION 1
1.1. Classification of costs
Using the code letters below, indicate in the space provided how each of the following costs should be classified for a pen manufacturing company:
Costs
____ (a) Property tax on the factory building.
____ (b) The chief financial officer's salary.
____ (c) Plastic used to manufacture pens.
____ (d) Janitors at the factory.
____ (e) Manufactured pens waiting to be sold to customers.
____ (f) Advertising logos.
____ (g) Partially completed pens.
QUESTION 2
2. The following information has been taken from the perpetual inventory system of Imperial Mfg. Co. for the month ended September 30:
2.1. What does the total amount of inventory to be included in Imperial's September 30th balance sheet amounts to:
2.2. What are the Total manufacturing costs charged (debited) to Work in Process during September:
2.3. Calculate the cost of finished goods manufactured in September
2.4. Calculate the cost of goods sold in September:
QUESTION 3
3.1. There are two distinct types of cost accounting systems: job order costing systems and process costing systems. How does management decide whether to use a job order costing system or a process costing system in any given manufacturing situation? Explain briefly.
3.2. Job order cost system
Century Pools designs and builds custom pools and spas to the customer's order and uses a job order system. The predetermined overhead rate for the current year is 60% of direct labor cost.
At the end of the current year, Century Pools' direct labor cost totaled $170,000 and actual overhead amounted to $105,000.
A pool built for F. Becker required $32 ...
Historical philosophical, theoretical, and legal foundations of special and i...
Mid-Term AssignmentWritten assignment (essay and calculations)
1. Mid-Term Assignment
Written assignment (essay and calculations)
Activity brief
BCO322 – Budgeting and Control
Online campus
Professor: Senen Garcia | [email protected]
Description
Your knowledge will be tested on the content of week 1 to 6 of
the course.
Format
This activity must meet the following formatting requirements:
· Font size 12
· 1200 - 2200 words
· Harvard Referencing System
Due date
Date: Monday 15 March 2021
Time: 14:00 CET
Weight towards final grade
This activity has a weight of 40% towards the final grade.
Learning outcomes
· Outcome One: Classification of costs
· Outcome Two: Cost of Finished Goods
· Outcome Three: Cost of Goods Sold
· Outcome Four: Job order and process costing
· Outcome Five: Cost Volume Profit Analysis-Cost per unit
· Outcome Six: Cost Volume Profit Analysis-Breakeven
Analysis
· Outcome Seven:Cost Volume Profit Analysis-Margin of Safety
· Outcome Eight:Cost Volume Profit Analysis-operating income
with different volumes
2. Assessment criteria
· Answers should be clear and well presented (Provide spacing
between paragraphs, number your questions correctly)
· Remember to in-text reference and provide your referencing at
the end.
· Referencing should be Harvard Style
· Show all calculations
· Cannot submit photos. May use MS Word, MS Excel, Adobe
Acrobat, or similar software.
Questions:
QUESTION 1
1.1. Classification of costs
Using the code letters below, indicate in the space provided how
each of the following costs should be classified for a pen
manufacturing company:
Costs
____ (a) Property tax on the factory building.
____ (b) The chief financial officer's salary.
____ (c) Plastic used to manufacture pens.
____ (d) Janitors at the factory.
____ (e) Manufactured pens waiting to be sold to customers.
____ (f) Advertising logos.
____ (g) Partially completed pens.
QUESTION 2
2. The following information has been taken from the perpetual
inventory system of Imperial Mfg. Co. for the month ended
September 30:
3. 2.1. What does the total amount of inventory to be included in
Imperial's September 30th balance sheet amounts to:
2.2. What are the Total manufacturing costs charged (debited)
to Work in Process during September:
2.3. Calculate the cost of finished goods manufactured in
September
2.4. Calculate the cost of goods sold in September:
QUESTION 3
3.1. There are two distinct types of cost accounting systems: job
order costing systems and process costing systems. How does
management decide whether to use a job order costing system or
a process costing system in any given manufacturing situation?
Explain briefly.
3.2. Job order cost system
Century Pools designs and builds custom pools and spas to the
customer's order and uses a job order system. The
predetermined overhead rate for the current year is 60% of
direct labor cost.
At the end of the current year, Century Pools' direct labor cost
totaled $170,000 and actual overhead amounted to $105,000.
A pool built for F. Becker required $32,000 of direct materials
and $6,500 of direct labor. It was completed in May of the
current year.
(a) Compute the total cost of the Becker pool as shown on the
job cost sheet at date of completion.
(b) Compute the amount of under- or over-applied
manufacturing overhead for Century's operations for the current
year.
QUESTION 4
4. Percula Farms raises marine fish for sale in the aquarium trade.
Each year, Percula obtains a batch of approximately one million
eggs from a local supplier. Percula’s manager is trying to decide
whether to use the farm’s facilities to raise Maroon Clownfish
or Queen Angelfish. Clownfish eggs cost $5,500 per batch,
while angelfish eggs cost $9,500 per batch. Due to differences
in needs, only one species may be raised at a time and only one
batch of fish can be raised in any 52-week period.
With current facilities, approximately 10 percent of clownfish
eggs and 5 percent of angelfish eggs can be successfully raised
to maturity. Clownfish take approximately 35 weeks to grow to
a salable size, while angelfish take 50 weeks. Angelfish also
require more care than clownfish. Each week, angelfish need
two complete water changes and 20 feedings, while clownfish
need only one water change and 15 feedings. Each feeding costs
$150 and each water change costs $1,000. Heating and lighting
costs equal $400 per week of rearing, regardless of which type
of fish is being raised. Fixed overhead costs for the year amount
to $80,000. Percula can sell clownfish for $4 each and angelfish
for $10 each.
Required:
a-1. Calculate the operating income from raising clownfish and
angelfish.
a-2. Which species should Percula raise to earn the highest
operating income for the year?
c. & d. Percula’s manager is considering the following
improvements, each of which will cost an additional $8,000 for
the year. Due to resource limitations, only one can be
implemented.
1. Purchasing a higher quality filter material that will
significantly improve water conditions in the rearing tanks. The
higher water quality will increase the survival rates to 12
percent for clownfish and 6 percent for angelfish. The need for
water changes will also be reduced to one each week for
5. angelfish. Due to the higher yields, feeding costs will increase
to $160 each.
2. Installing newer, more efficient equipment that will reduce
heating and lighting costs to $300 per week of rearing. The new
equipment will promote more stable conditions, increasing the
survival rates of clownfish to 10.5 percent and of angelfish to
5.5 percent. The slight change in survival rates is not expected
to increase feeding costs.
i. Calculate the operating income from raising clownfish and
angelfish with new filter material.
ii. Calculate the operating income from raising clownfish and
angelfish with new heating and lighting.
iii. Which option do you think will be more beneficial and
which fish species should be raised?
QUESTION 5
Blaster Corporation manufactures hiking boots. For the coming
year, the company has budgeted the following costs for the
production and sale of 30,000 pairs of boots.
Budgeted Costs
Budgeted
Costs
per Pair
Percentage
of Costs
Considered
Variable
Direct materials
$
630,000
$
7. 20
Totals
$
2,250,000
$
75
Required:
a. Compute the sales price per unit that would result in a
budgeted operating income of $900,000, assuming that the
company produces and sells 30,000 pairs. (Hint: First compute
the budgeted sales revenue needed to produce this operating
income.)
Assume that the company decides to sell the boots at a unit
price of $121 per pair.
b-1. Compute the total fixed costs budgeted for the year.
b-2. Compute the variable cost per unit.
b-3. Compute the contribution margin per pair of boots.
b-4. Compute the number of pairs that must be produced and
sold annually to break even at a sales price of $121 per pair.
QUESTION 6
Sonic Charge, is a newly organized manufacturing business that
plans to manufacture and sell 60,000 units per year of a new
product. The following estimates have been made of the
company’s costs and expenses (other than income taxes).
10. Required:
a. What should the company establish as the sales price per unit
if it sets a target of earning an operating income of $700,000 by
producing and selling 60,000 units during the first year of
operations? (Hint: First compute the required contribution
margin per unit.)
b. At the unit sales price computed in part a, how many units
must the company produce and sell to break even? (Assume all
units produced are sold.)
c. What will be the margin of safety (in dollars) if the company
produces and sells 60,000 units at the sales price computed in
part a?
d. Assume that the marketing manager thinks that the price of
this product must be no higher than $60 to ensure market
penetration. Will setting the sales price at $60 enable Ionic
Charge to break even, given the plans to manufacture and sell
60,000 units?
Rubric: written assignment
Criteria
Accomplished (A)
Proficient (B)
Partially proficient (C)
Borderline (D)
11. Fail (F)
Problem identification
The business issue has been correctly identified, with a
competent and comprehensive explanation of key driving forces
and considerations. Impact on company operations has been
correctly identified. Thorough analysis of the issue is presented.
The student correctly identified the issue(s), taking into account
a variety of environmental and contextual drivers. Key case
information has been identified and analyzed.
The student correctly identified the case (issues), considering
obvious environmental/contextual drivers. There is evidence of
analysis, but it lacks depth.
The student correctly identified the issue(s) but analysis was
weak. An absence of context – the work is basically descriptive
with little analysis.
The student failed to correctly identify the issue(s); analysis
was incorrect or too superficial to be of use; information was
misinterpreted.
Information gathering
The student showed skill in gathering information and analyzing
it for the purposes of filling the information gaps identified.
Comprehensive and relevant.
Relevant information gaps were identified and additional
relevant information was found to fill them. At least two
different types of sources were used. The student demonstrates
coherent criteria for selecting information but needs greater
depth.
The student correctly identified at least one information gap and
found relevant information, but which was limited in scope.
Some evidence of sound criteria for selecting information but
not consistent throughout. Needs expansion.
An information gap was identified and the student found
additional information to fill it. However, this was limited in
scope. Weak criteria for the selection of necessary information.
Information was taken at face value with no questioning of its
relevance or value. Gaps in the information were not identified
12. or were incorrect.
Conclusions
The student evaluated, analyzed, synthesized all information
provided to create a perceptive set of conclusions to support the
decisions and solutions.
The student evaluated, analyzed and synthesized to create a
conclusion(s) which support decisions and solutions.
The student reached conclusions, but they were limited and
provided minimal direction for decision-making and solutions.
The conclusion was reasonable but lacked depth and would not
be a basis for suitable strategy development.
The student formed a conclusion, but it was not reasonable. It
was either unjustified, incorrect or unrelated to the case in
hand.
Solution
s
The student used problem solving techniques to make
thoughtful, justified decisions about difficult and conflicting
issues. A realistic solution was chosen which would provide
maximum benefit to the company. Alternative solutions were
explored and ruled out.
The student used problem solving techniques to make
appropriate decisions about complex issues. Relevant questions
were asked and answered. A realistic solution was chosen.
Alternatives were identified, explored and ruled out.
The student used problem-solving techniques to make
13. appropriate decisions about simpler issues. The solution has
limited benefit but does show understanding of implications of
the decision. Alternatives were mentioned but not explored.
The student used problem solving techniques to make decisions
about simpler issues but disregarded more complex issues.
Implications of the decision were not considered. Alternatives
were not offered.
The student formed a conclusion, but it was not reasonable. It
was either unjustified, incorrect or unrelated to the case in
hand.
BCO123 ACCOUNTING II Task brief & rubrics
Task
• This is an assignment to be done individually.
• You must answer all the questions in the proposed problems.
• Submission file format: Word document with all the answers,
clearly identifying all steps, results, journals, ledger accounts
and including
comments when requested.
14. Submission: Week 7– Via Moodle (Turnitin). Deadline: 14
March 2021 at 23:59.
Weight: This task is a 30% of your total grade for this subject.
This task assesses the following learning outcomes:
• Know how to classified current liabilities and long-term
liabilities
• Understand how to book a note payable and its interest
• Understand how to book bonds
Problem 1
On January, 2009 Maryland Company borrowed 145,000 EUR
cash from Caixa Bank. The terms of the note were 5 years at 8%
interest rate.
15. You made yearly payments of 36.316,19 EUR for 5 years.
Instructions
1. Prepare an amortization table (20 points)
Date beginning balance cash payment interest expense to
principal ending balance
2. Prepare the journal entry for Maryland to record the notes
issuance. (10 points)
3. Prepare the journal entries to record 1st year and 2nd year
payment (one journal entry for each year) (20 points)
Problem 2
The following are selected items from the financial statement of
Monster Pin company.
16. Instructions
Please confirm:
how much does Monster Pin Company have in current
liabilities? (5 points)
how much does Monster Pin Company have in long term
liabilities? (5 points)
Problem 3
Journalize the following entries
On October 1st, 2008, the Company Issued $15,000,000 of 7
year 10% bonds dated October, 1 2008, receiving cash of
$12,375,800 . (5 points)
Interest is paid semiannually on September 30 and March 30.
On December 31, 2008. Recorded the bond discount
17. amortization for 3 months using the straight line method. (10
POINTS)
On March 31, 2009 . paid the semiannual interest bonds. (5
Points)
On September 30, 2009. Paid semiannual interest bonds (5
points)
On December 31, 2009. Recorded the bond discount
amortization for 12 months using interest line method. (5
points)
On October 1, 2015. Recorded the retirement of the Bonds. ( 10
points)
Rubrics
Descriptor
9-10 The student demonstrates an excellent understanding of the
concepts.
18. 8-8.9 The student demonstrates a good understanding of the
concepts.
7-7.9 The student demonstrates a fair understanding of the
concepts.
6-6.9 The student demonstrates some, but insufficient
understanding
of the concepts.
3-5.9 The student demonstrates insufficient understanding of
the
concepts. They may mention some relevant ideas or concepts,
although it is clear that the relationship between them is not
understood by the student.
1-2.9 The student demonstrates insufficient understanding of
the
concepts and does not mention any relevant ideas or concepts.
0 The student leaves the question blank or cheats.
95% of the grade based on the approach, calculations and
comments, and 5% based on the presentation and look & field of
the spreadsheet.
19. Points are at the end of each question
BCO223 SOCIAL MEDIA MARKETING MIDTERM Task
brief & rubrics
Task: written summative assignment
Develop the following questions around Social Media
This time controlled assignment is a written submission exam
and will be released on Friday 12
th
of March (Week 7).
Students are required to answer the following questions
regarding Social Media Marketing
Choose a brand that you know well to answer questions nº 1,
3,4,5,6
20. 1. What is the difference between a brand advocate and an
Influencer? Could you think how would you work with both as
part of your social
media brand campaign?
2. What job within the Social Media arena do you see yourself
working in? Describe the job. Why do you think you could be a
good candidate
for this type of position?
3. What is the main advantage of using Social media for Market
research? Explain an example on how to use Social media to
find out useful
information about your brand and brand users.
4. Define the main advantages of permission vs interrupting
marketing strategies. Use the brand you have chosen to
illustrate your point with
an example.
5. What would you do to analyse competitor’s activity online?
21. 6. How would you react If the strongest competitor would
launch in 2021 a product/service with a superior competit ive
advantage than yours
and is comparing in most of the platform Competitor X product
vs your product, showing who that Competitor X is the clear
winner. Could
you think of any real example in any category of products?
7. Explain the social media Cycle and the main differences vs
traditional marketing.
Formalities:
o Timed controlled assessment. This assessment must be
launched 48 hours before the deadline.
o Word: Students will not have a specific word count
o Answer using 1 page maximum per question
o Cover, Table of Contents, References and Appendix are
22. excluded of the total word count.
o Font: Arial, size 11
o Text alignment: Justified
o The in-text References and the Bibliography have to be in
Harvard’s citation style.
Submission: Week (7) – Via Moodle (Turnitin). Submission
deadline Sunday 14th March
Weight: This task is a 40% of your total grade for this subject.
It assesses the following learning outcomes:
Outcome 1: Understanding brand advocates and influencers
Outcome 2: Understanding how to analyse competitors online
Outcome 3: Understanding the use of social media in customer
and market research
23. Outcome 4: Understanding differences vs the Social media
dynamic and cycle vs traditional marketing
Rubrics
Exceptional 90-100 Good 80-89 Fair 70-79 Marginal fail 60-69
Knowledge &
Understanding
(20%)
Student demonstrates
excellent understanding of
key concepts and uses
vocabulary in an entirely
appropriate manner.
Student demonstrates
good understanding of the
task and mentions some
24. relevant concepts and
demonstrates use of the
relevant vocabulary.
Student understands the
task and provides minimum
theory and/or some use of
vocabulary.
Student understands the task
and attempts to answer the
question but does not
mention key concepts or uses
minimum amount of relevant
vocabulary.
Application (30%) Student applies fully
relevant knowledge from
the topics delivered in
class.
Influencer, brand advocate,
touchpoints, Social media
cycle, permission and
interruption marketing
25. Student applies mostly
relevant knowledge from
the topics delivered in
class.
Influencer, brand advocate,
touchpoints, Social media
cycle, permission and
interruption marketing
Student applies some
relevant knowledge from
the topics delivered in
class. Misunderstanding
may be evident.
Influencer, brand advocate,
touchpoints, Social media
cycle, permission and
interruption marketing
Student applies little relevant
knowledge from the topics
delivered in class.
Misunderstands are evident.
Influencer, brand advocate,
touchpoints, Social media
26. cycle, permission and
interruption marketing
Critical Thinking
(30%)
Student critically assesses
in excellent ways, drawing
outstanding conclusions
from relevant authors.
Student critically assesses
in good ways, drawing
conclusions from relevant
authors and references.
Student provides some
insights but stays on the
surface of the topic.
References may not be
relevant.
Student makes little or none
critical thinking insights, does
not quote appropriate
27. authors, and does not
provide valid sources.
Communication
(20%)
Student communicates
their ideas extremely
clearly and concisely,
respecting word count,
grammar and spellcheck
Student communicates
their ideas clearly and
concisely, respecting word
count, grammar and
spellcheck
Student communicates
their ideas with some
clarity and concision. It
may be slightly over or
under the wordcount limit.
Some misspelling errors
may be evident.
28. Student communicates their
ideas in a somewhat unclear
and unconcise way. Does not
reach or does exceed
wordcount excessively and
misspelling errors are
evident.
BCO225 CONSUMER BEHAVIOR Task brief &
rubrics
Task – Midterm timed assignment
Students have 48 hours to submit their final timed assignment
individually to the submission point available on Moodle.
Within this timespan, they need to write
a document in which they address all questions below. Please
include all details and address all questions asked in this brief.
29. 1. What are the four main factors that affect consumer behavior
from a marketing perspective? Which one would you say is the
most important one for a
company targeting teenagers in Spain? Why?
2. Identify at least two (and a maximum of four) different
market segments for a cosmetics distribution company (think
about B2B, B2C, segmentation
practices, consumer profiles…). Choose one of these market
segments and explain the buying-decision process of an average
buyer persona step by step.
3. What is green marketing and why is it important from the
perspective of consumer behavior? Find an example and explain
why it is a good (or bad) case
of green marketing. What is greenwashing? How can a company
avoid it?
Remember that is important that you justify your answers and
include in-text citations throughout the submitted document, as
30. seen in class, as well as a list of
references. This directly affects the quality and credibility of
your work.
Formalities:
• Wordcount: 1 page answer per question (please respect font
and line spacing indications).
• Cover, Table of Contents, References and Appendix are
excluded of the total wordcount.
• Font: Arial 11 pts.; line spacing 1.5.
• The in-text References and the Bibliography must be in
Harvard’s citation style.
Submission: Week 7 – Via Moodle (Turnitin). Sunday 14th of
March 2021. 23:59h (Barcelona’s time).
Weight: This task is 40% of your total grade for this subj ect.
It assesses the following learning outcomes:
31. • Outcome 1: understand the processes that guide consumer
perceptions, attitudes, learning & memory and choices and
behavior.
• Outcome 2: evaluate the different perspectives that
characterize the study of consumer behavior.
Rubrics
Exceptional 90-100 Good 80-89 Fair 70-79 Marginal fail 60-69
Knowledge &
Understanding (Q1)
(30%)
Student demonstrates
excellent understanding of
key concepts regarding
32. consumer behavior and
theory as reviewed in class.
The provided answer
follows an excellent
reasoning.
Student demonstrates
good understanding of the
consumer behavior topics
being discussed. The
provided answer is well
justified.
Student understands
consumer behavior to a
satisfactory extent
although minimum
information is included.
The answer provided by
the student includes some
arguments.
Student understands the task
and attempts to answer the
question but does not
33. mention key concepts or uses
minimum amount of relevant
vocabulary. The answer is not
well argued.
Application (Q2)
(30%)
Student reflects on
relevant knowledge
applying it to these specific
questions concerning
consumer behavior in an
excellent manner.
Decision-making is well
explained step by step.
Student demonstrates
knowledge of key
consumer behavior topics
when applying it to these
more practical cases.
Decision making is well
explained.
34. There are some
misunderstandings or
missing information when
applying knowledge to
these consumer behavior
cases, but satisfactory
overall. Decision making is
briefly explained.
Student applies little relevant
knowledge when answering
these questions. Decision
making is only outlined.
Misunderstands are evident.
Critical Thinking
(Q3) (30%)
Student defines the key
concepts successfully and
further develops examples
and recommendations
providing excellent
insights.
35. Student defines both key
concepts and examples and
recommendations are
included to a good extent.
Student defines key
concepts adequately but
does not fully develop
examples or
recommendations.
Student fails to demonstrate
a critical approach towards
the required concepts, not
including an example or
recommendation or
developing them vaguely.
Communication
(10%)
Student communicates
their ideas extremely
clearly and in-text citations
are adequately included in
36. throughout the document
and in the list of
references.
Student communicates
their ideas clearly and
pertinent in-text citations
are included.
Student communicates
their ideas with some
clarity and references are
included to a satisfactory
extent, although they need
to be reviewed.
Student communicates their
ideas in a somewhat unclear
and unconcise way.
References are not
adequately included.
37. COURSE CODE BBA223 COURSE NAME SERVICE
MANAGEMENT Task brief & rubrics
Task 2
This assessment is part 2 of the overall assessment for this
module.
You are requested to develop a service design project. The
project must include:
• Describe the service concept
o Idea, goals and objectives
o Service Package
o Buyer persona
• SWOT analysis
• Define strategy
o Marketing – 7P’s Extended (1 Strategy for each)
o Customer Service
o Productivity
• Conclusions
38. Formalities:
• Prepare a service design project and upload via Moodle.
• Word-Count 1500-2000 Words
Submission: Please submit by Week 7. Due Sunday 14th March
at 23:59 CEST.
Weight: This task is a 35% of your total grade for this subject.
It assesses the following learning outcomes:
• Outcome 1: To demonstrate a good understanding of service
economy.
• Outcome 2: To be able to critically evaluate and analyze a
SWOT analysis
• Outcome 3: To be able to describe the main components of
service economy.
39. Rubrics
Exceptional 90-100 Good 80-89 Fair 70-79 Marginal fail 60-69
Knowledge &
Understanding
(20%)
Student demonstrates
excellent understanding of
key concepts and uses
vocabulary in an entirely
appropriate manner.
Student demonstrates
good understanding of the
task and mentions some
relevant concepts and
demonstrates use of the
relevant vocabulary.
Student understands the
task and provides minimum
theory and/or some use of
40. vocabulary.
Student understands the task
and attempts to answer the
question but does not
mention key concepts or uses
minimum amount of relevant
vocabulary.
Application (30%) Student applies fully
relevant knowledge from
the topics delivered in
class.
Student applies mostly
relevant knowledge from
the topics delivered in
class.
Student applies some
relevant knowledge from
the topics delivered in
class. Misunderstanding
may be evident.
41. Student applies little relevant
knowledge from the topics
delivered in class.
Misunderstands are evident.
Critical Thinking
(20%)
Student critically assesses
in excellent ways, drawing
outstanding conclusions
from relevant authors.
Student critically assesses
in good ways, drawing
conclusions from relevant
authors and references.
Student provides some
insights but stays on the
surface of the topic.
References may not be
relevant.
Student makes little or none
42. critical thinking insights, does
not quote appropriate
authors, and does not
provide valid sources.
Communication
(30%)
Student communicates
their ideas extremely
clearly and concisely,
respecting word count,
grammar and spellcheck
Student communicates
their ideas clearly and
concisely, respecting word
count, grammar and
spellcheck
Student communicates
their ideas with some
clarity and concision. It
may be slightly over or
under the wordcount limit.
43. Some misspelling errors
may be evident.
Student communicates their
ideas in a somewhat unclear
and unconcise way. Does not
reach or does exceed
wordcount excessively and
misspelling errors are
evident.
BCO222 Business Finance 2 Task brief & rubrics
Task: Midterm
· individual
· Submission file type: .pdf
Formalities:
· Wordcount: no word limits applied. Asnwers should be
adequately explained.
· Font: Arial 12,5 pts.
· Text alignment: Justified.
· The in-text References and the Bibliography have to be in
Harvard’s citation style.
44. Submission: Week 7 – Via Moodle (Turnitin). Sunday, 14th of
March, time 23:55.
Weight: This task is a 30% of your total grade for this subject.
It assesses the following learning outcomes:
· Understanding cost of capital calculations
· Ability to apply capital budgeting criteria (NPV, IRR and
others) to evaluate investment opportunities
· Ability to calculate project free cash flows (FCF)
Question 1 (10 points)
You have an investment opportunity that requires an initial
investment of $5000 today and will pay $6000 in one year.
What is the IRR of this opportunity?
Question 2 (20 points)
You are considering investing in a start-up company. The
founder asked you for $200,000 today and you expect to get
45. $1,000,000 in nine years. Given the riskiness of the investment
opportunity, your cost of capital is 20%.
What is the NPV of the investment opportunity? Should you
undertake the investment opportunity? Calculate the IRR and
use it to determine the maximum deviation allowable in the cost
of capital estimate to leave the decision unchanged.
Question 3 (40 points)
Bill Clinton reportedly was paid $10 million to write his book
My Way. The book took three years to write. In the time he
spent writing, Clinton could have been paid to make speeches.
Given his popularity, assume that he could earn $8 million per
year (paid at the end of the year) speaking instead of writing.
Assume his cost of capital is 10% per year.
a.What is the NPV of agreeing to write the book (ignoring any
royalty payments)? (30 points)
b.Assume that, once the book is finished, it is expected to
generate royalties of $5 million in the first year (paid at the end
of the year) and these royalties are expected to decrease at a
rate of 30% per year in perpetuity. What is the NPV of the book
with the royalty payments? (10 points)
46. Question 4 (30 points)
You are given the following information for XYZ Corp.
Long-term debt outstanding:EUR 300,000
Current yield to maturity (Rd)8%
Number of shares of common stock10,000
Price per shareEUR 50
Book Value per shareEUR 25
Expected rate of return on stock (Re)15%
4.1. Calculate XYZ’s company cost of capital (Ra). Assume no
taxes. (20 points)
4.2. How would Re and the cost of capital change if XYZ's
stock price rises to EUR 75 due to surge in profits? Business
risk is unchanged. (10 points)
47. Rubrics
Descriptor
9-10
The student demonstrates an excellent understanding of the
concepts.
8-8.9
The student demonstrates a good understanding of the concepts.
7-7.9
The student demonstrates a fair understanding of the concepts.
6-6.9
The student demonstrates some, but insufficient understanding
of the concepts.
3-5.9
The student demonstrates insufficient understanding of the
concepts. They may mention some relevant ideas or concepts,
although it is clear that the relationship between them is not
understood by the student.
48. 1-2.9
The student demonstrates insufficient understanding of the
concepts and does not mention any relevant ideas or concepts.
0
The student leaves the question blank or cheats.
Points are stated at the end of each question.