RUNNING HEAD: TEAM 1 TASK 9 1
TASK 9
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
Memo to CFO
Executive Summary:
Goodwill is an intangible asset that is recorded when a company purchases another company. The amount the company pays beyond the book value of these assets is recorded as a separate asset known as “goodwill”. Acme Iron is considering buying Martin & Sons for $60 million. Martin & Sons has $4.2 million in net working capital. The firm has total assets with a book value of $48.6 million and a market value of $53.4 million. Goodwill is calculated by taking the sum of the market value of assets and net working capital and subtracting that number from the cash acquisition. Based on the following calculation, Acme’s amount of goodwill will be recorded on its balance sheet as $2.4 million. Goodwill is recorded as a noncurrent asset on the balance sheet. Acme does not have the liquidity available to finance this acquisition using cash, so they will have to issue debt or equity for the same. This will reduce liquidity risk. A liquidity issue could damage Acme’s finances to the point where bankruptcy is a potential. A company experiencing liquidity problems is an indicator that there are underlying problems in its practice and this leads to an investment risk.
Analysis:
Goodwill = cash acquisition – (market value of assets + net working capital).
= $60 million – ($53.4 million + $4.2 million)
= $60 million - $57.6 million
= $2.4 million
Goodwill recorded is $2.4 million.
I recommend that the whole consideration should not be paid in cash rather issue debt or equity for the same which reduces liquidity risk.
Yes, there is a liquidity issue which could damage their finances to the point that bankruptcy becomes a potential.
Conclusion:
Goodwill will be reported at $2.4 Million. Paying for this investment using debt or newly issued equity will reduce the liquidity risk of the investment, so this is recommended. This investment should not threaten bankruptcy as long as liquidity is maintained using the above recommended financing options.
RUNNING HEAD: TEAM 1 TASK 8 1
TEAM 1 TASK 8 7
TASK 8
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
Memo to CFO
Executive Summary:
It is the opinion of this advisory committee that a share repurchase be done instead of a dividend distribution. Strictly by increase in EPS, a share repurchase will add more value than a dividend distribution. As shown below, a dividend distribution of the $5,000,000 would add $0.3333 to EPS, while the share repurchase adds $0.3378 per share. This along with tax savings to our shareholders makes the share repurchase the better option. This is even more advisable if it is likely our share price will increase i ...
This ppt is prepared to make familiar with the dividend policy which includes Types of Dividend policy, Procedure for declaring dividend, Why do companies declare dividend
This ppt is prepared to make familiar with the dividend policy which includes Types of Dividend policy, Procedure for declaring dividend, Why do companies declare dividend
In this presentation, we discuss share repurchases and everything you need to know about them. We also present some insightful quotes from the world's best investors on the proper implementation of share repurchases in real-world scenarios.
Dividends of a corporation are declared by itsSolutionDividend.pdfaksamobilecare
Dividends of a corporation are declared by its
Solution
Dividends of a corporation are declared by its Board of Directors
A divedend is a distribution of a portion of a company\'s earnings, decided by the board of
directors, to a class of its shareholders. Dividends can be issued as cash payments as shares of
stock or other property.
Breking Down Dividend
The Dividend rate may be quoted in terms of the dollar amount each share receives(Dividend Per
Share OR DPS) or It can also be quoted in terms of a percent of the current market price, which
is referred to as the Dividend yield.
A company\'s net profits can be allocated to Shareholders via a dividend or kept within the
company as retained earnings. A Company may also choose to use net profits to repurchase their
own shares in the open markets in a share buyback. Dividends and share buy-backs do not
change the fundamental value of a company\'s shares. Dividend payments must be approved by
the shareholders and may be structured as a one-time special dividend, or as an ongoing cash
flow to owners and investors.
Mutual Fund and ETF shareholders are often entitled to receive accrued dividends as well.
Mutual funds pay out interest and dividend income received from their portfolio holdings as
dividends to fund shareholders. In addition, realized capital gains from the portfolio\'s trading
activities are generally paid out(Capital gain Distribution) as a year end Dividend.
Company that Issue Dividends
Start-ups and other high-growth companies such as those in the technology or biotechnology
sectors rarely offer dividends because all of their profits are reinvested to help sustain higher-
than-average growth and expansion. Larger, established companies tend to issue regular
dividends as they seek to maximize shareholder wealth in ways aside from Supernormal Growth.
Companies in the following sectors and industries have among the highest historical dividend
yields basic materials, Oil & Gases, Bank & FInancial, Healthcare & Phramacetucals.
Arguments for Issuing Dividends
The Bird-in-hand arguments
for dividend policy claims that investors are less certain of receiving future growth and capital
gains from the reinvested retained earnings than they are of receiving current (and therefore
certain) dividend payments. The main argument is that investors place a higher value on a dollar
of current dividends that they are certain to receive than on a dollar of expected capital gains,
even if they are theoretically equivalent.
In many countries, the income from dividends is treated at a more favorable tax rate than
ordinary income. Investors seeking tax-advantaged cash flows may look to dividend-paying
stocks in order to take advantage of potentially favorable taxation. The clientele effect
suggests especially those investors and owners in high marginal tax brackets will choose
dividend-paying stocks.
If a company has a long history of past dividend payments, reducing or eliminating the dividend
amount may s.
Fundamentals of Corporate Finance. Chapter 17 Payout Policy. 1) Wh.pdfammanelectronic
Fundamentals of Corporate Finance. Chapter 17 Payout Policy
. 1) What are the two ways corporations pay out cash to shareholders?
2) What companies are more likely to pay dividends?
3) What companies are not likely to pay dividends? Give examples.
4) Name and describe the 4 dividend dates.
5) What do states prohibit in regards to dividends?
6) Companies are not allowed to pay dividends past what point?
7) Describe stock dividends and stock splits.
8) What is stock repurchases?
9) Name and describe the 4 methods of stock repurchases.
10) What is green mail?
11) What are some manager’s dividend policies? Describe \"smoothing dividends\".
12) Describe good and bad news regarding stock dividends.
13) What does Modiligliani and Miller\'s argument state?.
Solution
1(I) Dividends: This is the most common way to payout cash to shareholders. Dividend is paid
annually & the decision to payout dividends totally depends upon the management of the
company.
(II) Repurchase of Shares: This is another way to payout cash. The repurchase can be done in
multiple ways. The most common way is to buy the shares back from the open market on the
prevailing prices. The other way is accelerated buy-back.
2) Companies with no better projects & future investment plans are more likely to payout
dividends as the company doesn’t have any future projects, which can earn higher return than the
market return & hence, they prefer to payout most of the profit through dividend.
3) Companies with a promising future projects, which have potential to generate higher returns,
are very less likely to pay dividends as it’s always better to invest in a project with higher returns
as it will stimulate growth & increase the value of the company.
4)(I) Declaration Date: The date, when dividends are announced by the board of directors.
(II) Date of Record: The date, on which the company will determine its shareholders, or
\"holders of record,\" and the company will use this date to establish to whom it will send
financial reports, proxy statements and other information.
(III) Ex-dividend Date: After the company sets the date of record, the ex-dividend date is set by
either the stock exchange or the National Association of Securities Dealers. If an investor
purchases a stock on or after its ex-dividend date, he or she will not receive the declared cash
dividend; instead, the seller of the stock will be entitled to that dividend. Investors who purchase
the stock before the ex-dividend date will receive the dividend.
(IV) Payment Date: The date, on which the declared dividend will be paid.
5) Legal-Capital: States prohibit corporations to pay cash dividends from its “Legal Capital”. It
refers to the sum of assets contributed to a company by shareholders when they are issued shares.
Capital Surplus Account: Corporation are prohibited from paying dividends using the funds from
the capital surplus account.
Retained Earnings: States also prohibit corporations from paying dividends using their ret.
250-500 words APA format cite references Check this scenario out.docxjeanettehully
250-500 words APA format cite references
Check this scenario out. Long term care can consists of servicing patients need at a patient's home, providing meals, transportation and in home therapy. Some long term care is within the home and some can be rehab. Lets say there is a growing need to extend those services to our growing need in elderly population. Part of that need is a demand for servicing the increasing population of the Hispanic community. We as a team need to meet with a cross- functional management team that can relay the need and services outside of the facility. We need hired people who are bilingual that can work the call center, deliver food, offer in home therapy, and provide transportation.
Our audience will be the new management team. Each member of the coordination of care team of management will cover or be responsible for one of those areas. Our standpoint will be that we are the board of directors that would be talking with them.
Giving the above screnario my part of assignment is to come up with strategies of the transition and what methods may be needed?
.
2 DQ’s need to be answers with Zero plagiarism and 250 word count fo.docxjeanettehully
2 DQ’s need to be answers with Zero plagiarism and 250 word count for each question. Due in 6 hours TODAY! Please include all references if necessary.
Week One DQ1
Week One DQ3
To clarify... these ratios are part of the DuPont model, and the DuPont model considers liquidity as one of the factors to be evaluated, but at the end of the day, the DuPont model is all about return on equity... basically getting your money's worth. Given that, what are the elements of liquidity and how do they lead us into the discussion on equity? Why is this important to understand?
.
In this presentation, we discuss share repurchases and everything you need to know about them. We also present some insightful quotes from the world's best investors on the proper implementation of share repurchases in real-world scenarios.
Dividends of a corporation are declared by itsSolutionDividend.pdfaksamobilecare
Dividends of a corporation are declared by its
Solution
Dividends of a corporation are declared by its Board of Directors
A divedend is a distribution of a portion of a company\'s earnings, decided by the board of
directors, to a class of its shareholders. Dividends can be issued as cash payments as shares of
stock or other property.
Breking Down Dividend
The Dividend rate may be quoted in terms of the dollar amount each share receives(Dividend Per
Share OR DPS) or It can also be quoted in terms of a percent of the current market price, which
is referred to as the Dividend yield.
A company\'s net profits can be allocated to Shareholders via a dividend or kept within the
company as retained earnings. A Company may also choose to use net profits to repurchase their
own shares in the open markets in a share buyback. Dividends and share buy-backs do not
change the fundamental value of a company\'s shares. Dividend payments must be approved by
the shareholders and may be structured as a one-time special dividend, or as an ongoing cash
flow to owners and investors.
Mutual Fund and ETF shareholders are often entitled to receive accrued dividends as well.
Mutual funds pay out interest and dividend income received from their portfolio holdings as
dividends to fund shareholders. In addition, realized capital gains from the portfolio\'s trading
activities are generally paid out(Capital gain Distribution) as a year end Dividend.
Company that Issue Dividends
Start-ups and other high-growth companies such as those in the technology or biotechnology
sectors rarely offer dividends because all of their profits are reinvested to help sustain higher-
than-average growth and expansion. Larger, established companies tend to issue regular
dividends as they seek to maximize shareholder wealth in ways aside from Supernormal Growth.
Companies in the following sectors and industries have among the highest historical dividend
yields basic materials, Oil & Gases, Bank & FInancial, Healthcare & Phramacetucals.
Arguments for Issuing Dividends
The Bird-in-hand arguments
for dividend policy claims that investors are less certain of receiving future growth and capital
gains from the reinvested retained earnings than they are of receiving current (and therefore
certain) dividend payments. The main argument is that investors place a higher value on a dollar
of current dividends that they are certain to receive than on a dollar of expected capital gains,
even if they are theoretically equivalent.
In many countries, the income from dividends is treated at a more favorable tax rate than
ordinary income. Investors seeking tax-advantaged cash flows may look to dividend-paying
stocks in order to take advantage of potentially favorable taxation. The clientele effect
suggests especially those investors and owners in high marginal tax brackets will choose
dividend-paying stocks.
If a company has a long history of past dividend payments, reducing or eliminating the dividend
amount may s.
Fundamentals of Corporate Finance. Chapter 17 Payout Policy. 1) Wh.pdfammanelectronic
Fundamentals of Corporate Finance. Chapter 17 Payout Policy
. 1) What are the two ways corporations pay out cash to shareholders?
2) What companies are more likely to pay dividends?
3) What companies are not likely to pay dividends? Give examples.
4) Name and describe the 4 dividend dates.
5) What do states prohibit in regards to dividends?
6) Companies are not allowed to pay dividends past what point?
7) Describe stock dividends and stock splits.
8) What is stock repurchases?
9) Name and describe the 4 methods of stock repurchases.
10) What is green mail?
11) What are some manager’s dividend policies? Describe \"smoothing dividends\".
12) Describe good and bad news regarding stock dividends.
13) What does Modiligliani and Miller\'s argument state?.
Solution
1(I) Dividends: This is the most common way to payout cash to shareholders. Dividend is paid
annually & the decision to payout dividends totally depends upon the management of the
company.
(II) Repurchase of Shares: This is another way to payout cash. The repurchase can be done in
multiple ways. The most common way is to buy the shares back from the open market on the
prevailing prices. The other way is accelerated buy-back.
2) Companies with no better projects & future investment plans are more likely to payout
dividends as the company doesn’t have any future projects, which can earn higher return than the
market return & hence, they prefer to payout most of the profit through dividend.
3) Companies with a promising future projects, which have potential to generate higher returns,
are very less likely to pay dividends as it’s always better to invest in a project with higher returns
as it will stimulate growth & increase the value of the company.
4)(I) Declaration Date: The date, when dividends are announced by the board of directors.
(II) Date of Record: The date, on which the company will determine its shareholders, or
\"holders of record,\" and the company will use this date to establish to whom it will send
financial reports, proxy statements and other information.
(III) Ex-dividend Date: After the company sets the date of record, the ex-dividend date is set by
either the stock exchange or the National Association of Securities Dealers. If an investor
purchases a stock on or after its ex-dividend date, he or she will not receive the declared cash
dividend; instead, the seller of the stock will be entitled to that dividend. Investors who purchase
the stock before the ex-dividend date will receive the dividend.
(IV) Payment Date: The date, on which the declared dividend will be paid.
5) Legal-Capital: States prohibit corporations to pay cash dividends from its “Legal Capital”. It
refers to the sum of assets contributed to a company by shareholders when they are issued shares.
Capital Surplus Account: Corporation are prohibited from paying dividends using the funds from
the capital surplus account.
Retained Earnings: States also prohibit corporations from paying dividends using their ret.
250-500 words APA format cite references Check this scenario out.docxjeanettehully
250-500 words APA format cite references
Check this scenario out. Long term care can consists of servicing patients need at a patient's home, providing meals, transportation and in home therapy. Some long term care is within the home and some can be rehab. Lets say there is a growing need to extend those services to our growing need in elderly population. Part of that need is a demand for servicing the increasing population of the Hispanic community. We as a team need to meet with a cross- functional management team that can relay the need and services outside of the facility. We need hired people who are bilingual that can work the call center, deliver food, offer in home therapy, and provide transportation.
Our audience will be the new management team. Each member of the coordination of care team of management will cover or be responsible for one of those areas. Our standpoint will be that we are the board of directors that would be talking with them.
Giving the above screnario my part of assignment is to come up with strategies of the transition and what methods may be needed?
.
2 DQ’s need to be answers with Zero plagiarism and 250 word count fo.docxjeanettehully
2 DQ’s need to be answers with Zero plagiarism and 250 word count for each question. Due in 6 hours TODAY! Please include all references if necessary.
Week One DQ1
Week One DQ3
To clarify... these ratios are part of the DuPont model, and the DuPont model considers liquidity as one of the factors to be evaluated, but at the end of the day, the DuPont model is all about return on equity... basically getting your money's worth. Given that, what are the elements of liquidity and how do they lead us into the discussion on equity? Why is this important to understand?
.
270w3Respond to the followingStress can be the root cause of ps.docxjeanettehully
270w3
Respond to the following:
Stress can be the root cause of psychological disorders. Name four symptoms shared by acute and posttraumatic stress disorders.
What life events are most likely to trigger a stress disorder?
Traumatic events do not always result in a diagnosable
PSYCHOLOGICAL
disorder. What factors determine how a person may be affected by one such event?
What is the link between
PERSONALITY
styles and heart disease?
List and briefly describe four psychological treatments for physical disorders.
.
250 word response. Chicago Style citingAccording to Kluver, what.docxjeanettehully
250 word response. Chicago Style citing
According to Kluver, what are the ramifications of technology and globalization on global communication?
Compare Kluver’s arguments with endangered languages, and with the readings about the Digital Divide. How do they compare? From these readings, what are the general trends of communication?
Readings
Jandt, Fred E. (editor) Intercultural Communication: A Global Reader. Thousand Oaks, CA: Sage. 2004
“Globalization, Informatization, and Intercultural Communication,” Kluver, Jandt pages 425-437
“Part II: Language,” Introduction, Jandt pages 99-102
“Babel Revisited,” Mühlhäusler, Jandt pages 103-107
“Africa: The Power of Speech,” Bâ, Jandt pages 108-111
http://en.wikipedia.org/wiki/Digital_divide
http://www.endangeredlanguages.com/
.
250+ Words – Strategic Intelligence CollectionChoose one of th.docxjeanettehully
250+ Words – Strategic Intelligence Collection
Choose one of the following topics and respond per the Forum guidance:
1) What is the role of the Collection Management function? Does the CIA model work, given that analysts are separated from the National Clandestine Service
--or--
2) Why are some collection methods considered principally strategic, supporting the strategic analysis process? How would you define "strategic intelligence collection?"
.
2–3 pages; APA formatDetailsThere are several steps to take w.docxjeanettehully
2–3 pages; APA format
Details:
There are several steps to take when submitting a claim form to the insurance company for reimbursement. The result of a
clean claim
is proper reimbursement for the services the facility has provided.
In this assignment, you will be addressing the claims submission process and the follow-up.
Include the following in your submission:
List all of the information that is important before the claim can be submitted.
Discuss some of the reasons why a claim may be rejected.
What steps should be taken to check the claim status?
.
250 Word Resoponse. Chicago Style Citing.According to Kluver, .docxjeanettehully
250 Word Resoponse. Chicago Style Citing.
According to Kluver, what are the ramifications of technology and globalization on global communication?
Compare Kluver’s arguments with our readings last week on endangered languages, and with our readings about the Digital Divide.
How do they compare?
From these readings, what are the general trends of communication?
Readings:
http://en.wikipedia.org/wiki/Digital_divide
“Globalization, Informatization, and Intercultural Communication,” Kluver, Jandt pages 425-437
Jandt, Fred E. (editor) Intercultural Communication: A Global Reader. Thousand Oaks, CA: Sage. 2004
Last weeks reading:
“Part II: Language,” Introduction, Jandt pages 99-102
“Babel Revisited,” Mühlhäusler, Jandt pages 103-107
“Africa: The Power of Speech,” Bâ, Jandt pages 108-111
“Research and Context for a Theory of Maori Schooling,” Penetito, Jandt pages 173-188
Explore www.endangeredlanguages.com and watch the video at
http://youtu.be/Bn2QbwcjmOI
.
250 word mini essay question.Textbook is Getlein, Mark. Living wi.docxjeanettehully
250 word mini essay question.
Textbook is: Getlein, Mark. Living with Art, 9th Ed., New York: McGraw-Hill, 2010.
Please Cite in MLA format.
1. Distinguish between the Paleolithic and Neolithic Periods in terms of time and cultural developments.
2. Compare and contrast specific examples of artifacts, practices, and systems of belief.
3.Discuss why art survives or does not. Include the four reasons Getlein cites for how art survives, giving an example of art work from both the Paleolithic and Neolithic Periods that meet one of these requirements.
4. What types of art work or materials would not likely survive?
5. How might this affect our opinion of a culture?
.
250 word discussion post--today please. Make sure you put in the dq .docxjeanettehully
250 word discussion post--today please. Make sure you put in the dq that the research paper focused around recent Civil Rights in the Mississppi Area
How do you define Mississippi?
In your post, identify your thesis and the sources you used to prove your argument. Discuss how you came to define Mississippi and what conclusions you made about the state. Make sure to point out the general areas of History that you discuss and what events, people, or ideas were especially important to your interpretation of Mississippi History. What readings, from Bond, Busbee, or another source you found, profoundly influenced your view of the state? Overall, has your view of Mississippi changed or mostly stayed the same? What can we learn about Mississippi today from your paper? Is Mississippi as a "closed society" (Silver, 1964) an accurate way to look at the state? Has this been true at some point in the past, but is no longer true? What time period is most crucial to understanding Mississippi and best defines it?
Some examples of different periods in Mississippi History are:
pre-European Mississippi
colonial Mississippi
territorial Mississippi
antebellum Mississippi
Civil War/Reconstruction Mississippi
Jim Crow Mississippi
Mississippi during the Civil Rights Movement
Post Civil Rights Mississippi
.
2By 2015, projections indicate that the largest category of househ.docxjeanettehully
2
By 2015, projections indicate that the largest category of households will be composed of
·
[removed]
childless married couples and empty nesters
·
[removed]
married couples with children
·
[removed]
single-parent families
·
[removed]
singles living with nonrelatives
3
Which of the following elements of sociocultural environment can be associated with the growing demand for social surrogates like social networking sites, television, and so on?
·
[removed]
Views of nature
·
[removed]
Views of others
·
[removed]
Views of ourselves
·
[removed]
Views of organizations
Wabash Bank would like to understand if there is a relationship between the advertising or promotion it does and the number of new customers the bank gets each quarter. What type of research is this an example of?
·
[removed]
Secondary
·
[removed]
Exploratory
·
[removed]
Causal
·
[removed]
Qualitative
5
Which strategy does this exemplify? Kayak and Orbitz provide their customers with a variety of travel options including flight reservations, vacation packages, flight and hotel options with or without car rentals, and cruise offerings.
·
[removed]
Diversification
·
[removed]
Promotional
·
[removed]
Differentiation
·
[removed]
Focus
A company's sales potential would be equal to market potential when which situations exists?
·
[removed]
The marketing expenditure of the company is reduced to zero.
·
[removed]
The company gets 100 percent share of the market.
·
[removed]
Industry marketing expenditures approach infinity for a given marketing environment.
·
[removed]
The market is nonexpandable.
Marketing is considered both an art and a science. How do the 4Ps, or marketing mix, help us bridge the gap between art and science?
·
[removed]
Marketing focuses on sales as the primary goal.
·
[removed]
Marketing is involved with price as the major factor.
·
[removed]
Marketing is about advertising.
·
[removed]
Marketing balances the need for data with that of creativity.
In the U.S., consumer expenditures on homes and other large purchases tend to slow down during a recession because
·
[removed]
of steady supply of loanable funds in the economy during recession
·
[removed]
consumer borrowing increases during recession
·
[removed]
of stringent credit policies adopted by the Fed before the onset of recession
·
[removed]
the consumers have a high debt-to-income ratio
Which of the following statements demonstrates behavioral loyalty towards a brand?
·
[removed]
Myfavorite Laundry detergent is so easy to use.
·
[removed]
I always buy Myfavorite Laundry detergent when purchasing laundry detergent.
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[removed]
My friends agree Myfavorite Laundry detergent is the best.
·
[removed]
Myfavorite Laundry detergent smells good.
When Apple introduced iTunes, a new market was opened. Which of the following describes this type of innovation?
·
[removed]
Operational excellence
·
[removed]
Value capture
·
[removed]
Presence
·
[removed]
Value chain
11
Which of.
29Answer[removed] That is the house whe.docxjeanettehully
29
Answer:
[removed]
That is the house "where I grew up."
The words in quotes make up an adjective clause. An adjective clause does
what an adjective does: it modifies the noun "house." Adjective clauses
begin with that, which, where, who, whom, or whose. Type the first word
followed by a space and the last word of the adjective clause in the
following sentence:
The doctor examined a man whose hands were colder than the rest of
his body.
30
Answer:
[removed]
That is the house "where I grew up."
The words in quotes make up an adjective clause. An adjective clause does
what an adjective does: it modifies the noun "house." Adjective clauses
begin with that, which, where, who, whom, or whose. Type the first word
followed by a space and the last word of the adjective clause in the
following sentence:
Mrs. Carnack has a cousin whom she would like us to meet.
31
Answer:
[removed]
That is the house "where I grew up."
The words in quotes make up an adjective clause. An adjective clause does
what an adjective does: it modifies the noun "house." Adjective clauses
begin with that, which, where, who, whom, or whose. Type the first word
followed by a space and the last word of the adjective clause in the
following sentence:
Who was the person who won the track meet?
32
Answer:
[removed]
That is the house "where I grew up."
The words in quotes make up an adjective clause. An adjective clause does
what an adjective does: it modifies the noun "house." Adjective clauses
begin with that, which, where, who, whom, or whose. Type the first word
followed by a space and the last word of the adjective clause in the
following sentence:
The restaurant where there was music was almost deserted.
33
Answer:
[removed]
That is the house "where I grew up."
The words in quotes make up an adjective clause. An adjective clause does
what an adjective does: it modifies the noun "house." Adjective clauses
begin with that, which, where, who, whom, or whose. Type the first word
followed by a space and the last word of the adjective clause in the
following sentence:
Find a boy whose eyes are green.
34
Answer:
[removed]
That is the house "where I grew up."
The words in quotes make up an adjective clause. An adjective clause does
what an adjective does: it modifies the noun "house." Adjective clauses
begin with that, which, where, who, whom, or whose. Type the first word
followed by a space and the last word of the adjective clause in the
following sentence:
The tale that was told that night was never forgotten.
35
Answer:
[removed]
That is the house "where I grew up."
The words in quotes make up an adjective clause. An adjective clause does
what an adjective does: it modifies the noun "house." Adjective clauses
begin with that, which, where, who, whom, or whose..
250 words discussion not an assignementThe purpose of this discuss.docxjeanettehully
250 words discussion not an assignement
The purpose of this discussion is to gain a more complete awareness of the extent of socio-environmental influences impacting the development of adolescents. Triandis (as cited in Coon and Kemmelmeier, 2001) states, "Individualism and collectivism are broadly defined cultural syndromes that encompass a number of elements, including values, norms, goals, and behaviors" (Coon and Kemmelmeier, 2001, p. 348).
Consider the audio piece in this unit's studies (also linked in the Resources) that compares two teens' viewpoints of life within their cultural domains. This piece highlights the impact of family, community, and cultural beliefs and values on an individual's development. For your initial post in this discussion, explore these influences by addressing the following questions:
How does exposure to media influence the manner in which adolescents develop?
How does exposure to peers influence development in both systems?
Using the reading from the textbook on risky behaviors, how might adolescents' influences and understanding of risk be different, based on their culture and expectations of self?
The optional reading in this unit's studies may provide additional information to support your post, if you choose to use it.
Response Guidelines
Respond to one learner by supporting his or her analysis of the two teens with additional information you have acquired outside of the textbook. Cite and reference your source with proper APA formatting. Be sure to address concepts in the post and find any similarities in your thinking as well.
Reference
Coon, H. M., Kemmelmeier, M. (2001). Cultural orientations in the United States: (Re)Examining differences among ethnic groups.
Journal of Cross-Cultural Psychology, 32
(3), 348–364. Thousand Oaks, CA: Sage.
.
25. For each of the transactions listed below, indicate whether it.docxjeanettehully
25. For each of the transactions listed below, indicate whether it is an operating (O), investing (I) or financing (F) activity on the statement of cash flows. Also, indicate if the transaction increases (+) or decreases (-) cash. 12 points
Transaction Type of Activity Effect on Cash
A) Paid dividends to the owners
B) Purchased equipment by paying cash
C) Issued stock for cash
D) Paid wages to employees
E) Repaid the bank loan
F) Collected cash on account from customers
.
250-word minimum. Must use textbook Jandt, Fred E. (editor) Intercu.docxjeanettehully
250-word minimum. Must use textbook: Jandt, Fred E. (editor) Intercultural Communication: A Global Reader. Thousand Oaks, CA: Sage. 2004 and articles provided. MLA citation.
Levi-Strauss and Hofstede portray culture as a dichotomy. What are the implications of such a dichotomy? How do these variants affect you when you attempt to communicate with other cultures? Likewise, how do these variants affect your audience when you attempt to communicate with them?
.
250-500 words APA format cite references Check this scenario o.docxjeanettehully
250-500 words APA format cite references
Check this scenario out. Long term care can consists of servicing patients need at a patient's home, providing meals, transportation and in home therapy. Some long term care is within the home and some can be rehab. Lets say there is a growing need to extend those services to our growing need in elderly population. Part of that need is a demand for servicing the increasing population of the Hispanic community. We as a team need to meet with a cross- functional management team that can relay the need and services outside of the facility. We need hired people who are bilingual that can work the call center, deliver food, offer in home therapy, and provide transportation.
Our audience will be the new management team. Each member of the coordination of care team of management will cover or be responsible for one of those areas. Our standpoint will be that we are the board of directors that would be talking with them.
Giving the above screnario my part of assignment is to come up with strategies of the transition and what methods may be needed?
.
250+ Words – Insider Threat Analysis Penetration AnalysisCho.docxjeanettehully
250+ Words – Insider Threat Analysis / Penetration Analysis
Choose one of the following. The first is insider threat analysis and the other is the threat presented by hostile intelligence operations. Be challenging and show what you know.
Topic 1
Insider threats come from individuals who operate inside friendly intelligence and national security organizations who purposefully set out to cause disruption, destruction, and commit crimes to those ends. Please read
Insider Threat IPT
and
Solving Insider Threat
in the Course Materials Folder. Using the web or the online library choose a high profile case of insider threat (cyber, intelligence, military) and draft a 350 word summary of the case highlighting successes or failures of
analysis
in bringing resolution to the case. What analysis methods can you discern? What do think could have been done differently to improve the analysis?
--or--
Topic 2
Complete reading
Foreign Espionage Threat
and
Observations on the Double Agent
and
Social Courtesy
. In the penetration of a hostile intelligence service analysis is central to identifying, pursuing, and preparing the recruitment of an agent. In 350 words please research the Oleg Penkovsky, Aldritch Ames, or Jonathan Pollard cases. Provide a summary of the role of analysis in the recruitment and running of these agents from the perspective of their handlers (the US/British, Soviet Union, and Israel, respectively). You'll need to conduct additional research on the web or in the online library to help you develop a factual understanding of the case you choose.
.
250 wordsUsing the same company (Bank of America) that you have .docxjeanettehully
250 words
Using the same company (Bank of America) that you have using in previous weeks, please review its cashflow sheet The statement of cash flows is divided into three parts: (1) operational cash flows, (2) financing cash flows, and (3) investment cash flows. Discuss the primary components of each of these sections of the cash flow statement:
Operational cash flows:
Use the direct method, which focuses on the sources of cash and the uses of operating cash such as cash from customers minus cash payment for expenses and payments to creditors.
Financing cash flows:
This should include cash received as the owner’s investment and cash withdrawals by owners.
Investing cash flows:
These include cash from investing activities (in other companies or securities) and any cash paid to make these investments.
.
250 mini essay questiontextbook Getlein, Mark. Living with Art, 9.docxjeanettehully
250 mini essay question
textbook: Getlein, Mark. Living with Art, 9th Ed., New York: McGraw-Hill, 2010 Please include citations in MLA format.
First, describe the shift in the Roman Empire that created Byzantium in the East and what would eventually become Europe in the West and explain the impact of this political, religious, and social split on the art produced in these regions in this era. Provide specific examples of particular works of art or architecture to illustrate your points.
Second, trace the subsequent development of art in the East and the West from the Early through the High and Late Middle Ages by citing specific works of art or architecture and describing characteristic features these works exemplify. Be sure to include the each of the following terms in your discussion:
-animal style
-Carolingian
-Romanesque
-Gothic
.
22.¿Saber o conocer… With a partner, tell what thes.docxjeanettehully
22.
¿
Saber
o
conocer
…?
With a partner, tell what these people know, using
saber
or
conocer
.
Natalia [removed] al suegro de Mirta. Ella [removed] dónde vive él, pero no [removed] su número de teléfono.
David [removed] muchas ciudades de España, pero no [removed] hablar español.
Estela [removed] muchos poemas de ese poeta, pero no [removed] ninguno de memoria.
Roberto [removed] a la familia que da la fiesta de Año Nuevo, pero no [removed] dónde es la fiesta.
Yo [removed] que Lorca es un poeta español.
.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
1. RUNNING HEAD: TEAM 1 TASK 9
1
TASK 9
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
2. Memo to CFO
Executive Summary:
Goodwill is an intangible asset that is recorded when a company
purchases another company. The amount the company pays
beyond the book value of these assets is recorded as a separate
asset known as “goodwill”. Acme Iron is considering buying
Martin & Sons for $60 million. Martin & Sons has $4.2 million
in net working capital. The firm has total assets with a book
value of $48.6 million and a market value of $53.4 million.
Goodwill is calculated by taking the sum of the market value of
assets and net working capital and subtracting that number from
the cash acquisition. Based on the following calculation,
Acme’s amount of goodwill will be recorded on its balance
sheet as $2.4 million. Goodwill is recorded as a noncurrent
asset on the balance sheet. Acme does not have the liquidity
available to finance this acquisition using cash, so they will
have to issue debt or equity for the same. This will reduce
liquidity risk. A liquidity issue could damage Acme’s finances
to the point where bankruptcy is a potential. A company
experiencing liquidity problems is an indicator that there are
underlying problems in its practice and this leads to an
investment risk.
Analysis:
Goodwill = cash acquisition – (market value of assets + net
working capital).
= $60 million – ($53.4 million + $4.2 million)
3. = $60 million - $57.6 million
= $2.4 million
Goodwill recorded is $2.4 million.
I recommend that the whole consideration should not be paid in
cash rather issue debt or equity for the same which reduces
liquidity risk.
Yes, there is a liquidity issue which could damage their finances
to the point that bankruptcy becomes a potential.
Conclusion:
Goodwill will be reported at $2.4 Million. Paying for this
investment using debt or newly issued equity will reduce the
liquidity risk of the investment, so this is recommended. This
investment should not threaten bankruptcy as long as liquidity
is maintained using the above recommended financing options.
RUNNING HEAD: TEAM 1 TASK 8
1
TEAM 1 TASK 8
7
4. TASK 8
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
5. Memo to CFO
Executive Summary:
It is the opinion of this advisory committee that a share
repurchase be done instead of a dividend distribution. Strictly
by increase in EPS, a share repurchase will add more value than
a dividend distribution. As shown below, a dividend distribution
of the $5,000,000 would add $0.3333 to EPS, while the share
repurchase adds $0.3378 per share. This along with tax savings
to our shareholders makes the share repurchase the better
option. This is even more advisable if it is likely our share price
will increase in the near future, possibly due to successful
invested projects. These shares can also be used in new ways
such as starting a benefit/incentive program for employees, or
changing our capital structure to improve our WACC. This
being said, if these funds could be better used as investments in
projects, then this may be the better option as it may show a
weak management of the funds if a share repurchase is used
over reinvestment. Also, if we are trying to establish consistent
dividends, then that may also be a consideration. Overall
though, with these two factors in mind, we still recommend the
stock repurchase over a dividend distribution.
Analysis:
Given: Available capital $ 5,000,000
Stock available at $25 a share.
Number of shares outstanding from Task 5 are
15,000,000
Number of shares repurchased.
$ 5,000,000/25 = 200,000 shares.
Number of Shares will be outstanding after the stock repurchase
is completed.
6. = 15,000,000 – 200,000 = 14,800,000 shares.
If Dividend is Distributed:
$5,000,000/15,000,000 = $0.3333 per share
If Shares are Repurchased:
Current Value per share = $25
Total Market Cap: $25 x 15,000,000 = $375,000,000
New distribution of market cap: $375,000,000/14,800,000 =
$25.3378 per share
Increase in Value: $0.3378 per share
Benefits of repurchasing shares:
1. It prevents a decline in the value of a stock by reducing the
supply of the stock.
2.With the reduction in outstanding shares, the Earnings Per
Share (EPS) of the company improves. This is a good indication
of the company’s profitability and may boost its share price in
the long run.
3. A repurchase announcement may be viewed as a positive
signal that management believes the shares are undervalued.
4. Stockholders have a choice if they want cash, they can tender
their shares, receive the cash, and pay the taxes, or they can
keep their shares and avoid taxes. on the other hand, one must
accept a cash dividend and pay taxes on it.
5. If the company raises the dividend to dispose of excess cash,
this higher dividend must be maintained to avoid adverse stock
price reactions. A stock repurchase, on the other hand, does not
obligate management to future repurchases.
6. Repurchased stock, called treasury stock, can be used later in
mergers, when employees exercise stock options, when
convertible bonds are converted, and when warrants are
exercised. Treasury stock can also be resold in the open market
if the firm needs cash.
7. Repurchases can be varied from year to year without giving
off adverse signals, while dividends may not.
8. Repurchases can be used to produce large-scale changes in
capital structure.
Cons of repurchases:
7. 1. A repurchase could lower the stock’s price if it is taken as a
signal that the firm has relatively few good investment
opportunities. A repurchase can signal stockholders that
managers are not engaged in empire building, where they invest
funds in low-return projects.
2. The repurchase was primarily to avoid taxes on dividends,
then penalties could be imposed. Such actions have been
brought against closely-held firms, but to our knowledge
charges have never been brought against publicly held firms.
3. Selling shareholders may not be fully informed about the
repurchase hence they may make an uninformed decision and
may later sue the company. to avoid this, firms generally
announce repurchase programs in advance.
4. The firm may bid the stock price up and end up paying too
high a price for the shares. in this situation, the selling
shareholders would gain at the expense of the remaining
shareholders. this could occur if a tender offer were made and
the price was set too high, or if the repurchase was made in the
open market and buying pressure drove the price above its
equilibrium level.
5.It may indicate that the company doesn’t have any profitable
opportunities to invest in, which may send a bad signal to long
term investors looking for capital appreciation.
6, It may also give a negative signal about the company’s
confidence and promoters may decide to sell their stake.
7.The buyback process is time-consuming and requires
disclosures to stock exchanges and approvals from regulatory
bodies. It also involves hiring investment bankers, which
becomes an expensive affair for the company
Dividend provides a regular stream of cash for investors. It
allows the shareholder to remain invested in the company and
still receive regular cash flows. Cash dividend can be a big
incentive for investors who rely heavily on their investments to
meet their living expenses, especially retired investors who may
not have another source of income.
Dividends are straightforward: the company pays a certain
8. amount for each stock held, usually on a quarterly basis
Since the size of a dividend payout is smaller compared to a
buyback, it allows the company to maintain a conservative
capitalization structure every quarter rather than just hold large
piles of cash.
Repurchased stock is clearly a more the tax-efficient way to
return capital to shareholders because the investor doesn’t incur
any additional tax on the buyback sale process. Tax is only
applicable on the actual sale of shares, whereas dividends
attract tax in the range of 15% to 20%. In some countries,
dividend payments also attract a Dividend Distribution Tax
(DDT), which means for every $1.00 paid to shareholders, the
company must pay $1.20 or $1.30 depending on the DDT rate.
This process favors the concept of buybacks more than cash
dividends.
Buybacks are a less direct way of returning cash to
shareholders. Under a share buyback, a company purchases a
certain number of its own shares. It may do this on the open
market, like everyone else, or by making a tender offer to
shareholders, usually at a slight premium to the market price. It
then cancels the purchased shares, reducing the total number
outstanding and so making each share worth that much more.
Conclusion:
The number of shares will be outstanding after the stock
repurchase is completed. Stockholders have a choice if they
want cash, they can tender their shares, receive the cash, and
pay the taxes, or they can keep their shares and avoid taxes. If
the company raises the dividend to dispose of excess cash, this
higher dividend must be maintained to avoid adverse stock price
reactions. A stock repurchase, on the other hand, does not
obligate management to future repurchases.
References
9. Corporate Finance Institute. (2019). Dividend vs. Share
Buyback/Repurchase. Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/finan
ce/dividend-vs-share-buyback-repurchase/
Fraser, Chad. (2012, June 3). Dividends vs. Share Buybacks:
The Pros and Cons. Retrieved from
https://www.thestar.com/business/personal_finance/2012/06/03/
dividends_vs_share_buybacks_the_pros_and_cons.html
RUNNING HEAD: TEAM 1 TASK 7
1
TEAM 1 TASK 7
4
10. TASK 7
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
Memo to CFO
11. Executive Summary:
Dividends are issued to the company’s shareholders and can be
paid either in cash or by issuing additional shares of stock.
Dividends can impact the company’s market price and financial
statements. They impact the shareholders’ equity section of the
balance sheet, specifically, the retained earnings. After all of
the company’s obligations have been paid, the amount of money
the company has left is called the retained earnings. During this
task, we were asked to evaluate the impact of issuing a
dividend. The company cannot grow significantly by
distributing dividends and relying on growth from either
internal earnings or by raising debt. The company should not
use the income to distribute dividends, and should look for
raising equity and retire debt.
Analysis: Ayoub
Earning For 2015 = $4,697,000
Earning for the Year
$4,697,000.00
Less: Dividend
$3,000,000.00
Retention
$1,697,000.00
Retention Ratio
$1,697,000/$4,697,000 = 36.13%
Total owner's equity
12. $170,423,000.00
Earning for the Year
$4,697,000.00
Return on Equity
$4,697,000/$170,423,000 = 2.76%
Internal Growth Rate = Retention Ratio*ROE
=0.3613*0.0276 =0.00997188*100=0.997188 = 1%
Dividend Payout ratio affects the growth rate of business, as
dividend payout ratio increase retention ratio goes down
consequently internal growth rate will decrease. Dividend
decision should be made based on availability of return and
class of shareholders. If Shareholders belong to high class
profile then they might not find interest in dividend, while
lower and middle-class shareholders are interested in the
dividends to meet their routine expenses.
Conclusion:
After a profitable period, an organization can (at the decision-
making level of the board of directors) pay a portion of its
dividends to investors as profits, and keep the rest of held
income. Note that either activity (dividends or retained
earnings) meets the textbook meaning of a profit making the
organization's central goal: increasing owner’s value.
RUNNING HEAD: TEAM 1 TASK 6
1
TEAM 1 TASK 6
4
13. TASK 6
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
Memo to CFO
Executive Summary:
Capital budgeting investment decisions are very important
in any organization. These decisions involve assessing many
14. factors in order to determine which projects are appropriate for
the company to pursue. Equipment is required in order to run a
business. Although it is not necessary to purchase each and
every item, significant decisions must be made to determine
whether to buy or lease items. The advantages and
disadvantages of buying and leasing must be considered in order
to come to a conclusion. Acme Iron is considering leasing a
new computer. We completed an in-depth analysis to determine
should Acme Iron lease or purchase the equipment. After
completing calculations for NPV, we determined that it is
cheaper to lease than to purchase as the NPV of lease is lower
than that of Purchase.
Analysis:
What is the after-tax cash flow from leasing relative to the
after-tax cash flow from purchasing in years 1-9?
For years 1-9:
After-tax cash flow leasing: (-10,000)(1-0.3) = -$7,000
After-tax cash flow purchasing:
Depreciation = $70,650/9 = $7,850 per year
After tax depreciation = $7,850*(1 - 0.3) = $5,495
Add back depreciation: $5,495 + $7,850 = $13,345
What is the after-tax cash flow from leasing relative to the
after-tax cash flow from purchasing in year 0?
The after tax cash flow for leasing is -$10,000.00 and the after
tax cash flow for purchasing would equal.= $70,650 -
$10,000(1 - .30) = $63,650
What is the NPV of the lease relative to the purchase?
To find the NPV, we simply use the cash flows and the discount
rate of 8%:
For leasing: - $10,000 + -$70,000/(1.08) + $70,000/(1.08^2) +
... $7,000/(1.08^9)
NPV of lease: -$53,728.22
For purchasing: -$70,650 + $13,345/1.08 + $13,345/(1.08^2) +
... $13,345/(1.08^9)
NPV of purchase: $12,714
15. What would the after-tax cash flow in year 9 be if the asset had
a residual value of $500 (ignoring any possible risk
differences)?
After-tax cash flow in year 9 with residual value of $500:
Depreciation = ($70,650 - $500)/ 9 = $7,794.44
$8,294.44(1-0.3) + $7,794.44 = $13,600.55
Do you have a recommendation?
Considering that the NPV results are favorable for the project,
it is recommended that investment in the project is valuable.
GivenIndustry AvgCompetitor 1ACME IronShares
Outstanding25,000,000.00200,000,000.0015,000,000.00Stock
Price$27.75$35.00$27.50Market
Capitalization693,750,000.00700,000,000.00412,500,000.00Deb
t & Equity
(2015)675,000,000.00695,455,000.00300,423,000.00WACC13%
15%12%EBIT17,975,000.0018,255,000.0010,742,000.00Net
Earnings15,000,000.0015,000,000.007,045,000.00
Price per shareTo compute the P/E ratio and market
capitalization for everyone.P/E ratio = price per share / earnings
per share (EPS)Industry AvgCompetitor 1ACME IronShares
Outstanding25,000,00020,000,00015,000,000Stock
Price$27.75$35.00$27.50Market
Capitalization$693,750,000.00$700,000,000.00$412,500,000.00
Debt & Equity
(2015)675,000,000695,455,000300,423,000WACC13%15%12%
EBIT17,975,00018,255,00010,742,000Net
Earnings15,000,00015,000,0007,045,000EPS = Net earnings/No
of shares0.60.750.4696666667P/E ratio$46.25$46.67$58.55
EVA,MVAEVA is the calculation of what profits remain after
the cost of company’s capital-both debt and equity-are deducted
16. from operating profit.Economic Value Added = (Return on
Capital Invested – WACC) (Capital Invested)As per the given
information, WACC is given, and then,Calculation of Return on
operating capital = (NOPAT / Operating Capital) X 100.NOPAT
= Net Operating Profit After Tax.ParticularsIndustry Average
($)Competitor 1 ($)ACME Iron ($)Operating
EBIT17,975,000.0018,255,000.0010,742,000.00Less: Tax
(nil)NOPAT17,975,000.0018,255,000.0010,742,000.00Operatin
g Capital as said in the given problem:ParticularsIndustry
Average ($)Competitor 1 ($)ACME Iron ($)quity &
Debt675,000,000.00695,455,000.00300,423,000.00Return on
operating capital (ROOC) = (NOPAT / Operating Capital) X
100.Sl.NoParticularsIndustry Average ($)Competitor 1
($)ACME Iron
($)1NOPAT17,975,000.0018,255,000.0010,742,000.002Equity
& Debt (Operating
capital)675,000,000.00695,455,000.00300,423,000.003ROOC
(1/2)*1002.6629629632.62490024523.5756250354Approximate
to334Economic Value Added = (Return on Capital Invested –
WACC) (Capital Invested)Sl.NoParticularsIndustry Average
($)Competitor 1 ($)ACME Iron
($)1ROOC3%3%4%2WACC13%15%12%3Capital
Invested675,000,000.00695,455,000.00300,423,000.004EVA (1-
2)*3-87,750,000-104,318,250-36,050,760Computation of the
Market Value Added (MVA):This is the difference between the
stock market capitalization of a company and the capital that
has been invested in it.Market Value Added (MVA) = Market
Capitalization – Capital Invested.Sl.NoParticularsIndustry
Average ($)Competitor 1 ($)ACME Iron ($)1Market
Capitalization693,750,000.00700,000,000.00412,500,000.002Ca
pital
Invested675,000,000.00695,455,000.00300,423,000.003Market
Value Added (1-2)18,750,000.004,545,000.00112,077,000.00
RUNNING HEAD: TEAM 1 TASK 5
1
17. TEAM 1 TASK 5
2
TASK 5
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
18. Memo to CFO
Executive Summary:
ACME Iron’s current market capitalization is $412,500,000.
This is roughly $287 Million or 41% less than both the industry
average and our competitor. Also, our earnings per share are
lower as well, likely due to a lower profit margin. This being
said, our team has found several factors of ACME Iron that are
outcompeting both the industry and our competitors. Our P/E
ratio is about 26% better than our competitor and the industry,
which means investors are optimistic for our future prospects.
That being said, it is important to not grow unchecked or this
faith may cause significant value loss if we lose the faith of the
investors. Our MVA and EVA are both higher than our
competitor and the industry. Our MVA is especially noteworthy
as it is 498% and 2,366% larger than the industry and our
competitor respectively. Also, ACME Iron’s EVA is higher than
both the industry average and our competitor $43 Million and
$59 Million respectively. This being said, ACME’s EVA is still
negative, so steps should be taken to remedy this. Overall, these
are excellent signs for the company and could be referenced to
show value and justification for the investments made.
Analysis:
Compute the P/E ratio and market capitalization for everyone.
Compute the MVA and EVA for all.
Please see attached excel sheet for calculations.
Compare and contrast the ratios; what do the ratios convey to
the investing public? How would you present these internally
and externally? Make recommendations to management from
your analysis.
19. Ratio
Industry Average
Competitor 1
ACME Iron
P/E Ratio
46.25
46.67
58.55
Capital Turnover
2.2
2.1
2.3
Earnings per share (EPS) for ACME Iron is less than the
industry and competitor 1 which shows that equity investors get
less earnings on each share they have invested in compared to
peers. The cause of this could be due to lower profitability
parameters, which would need to be further evaluated. Although
ACME Iron’s had the lower EPS at 0.47, the company has the
higher P/E ratio at 58.55. ACME’s P/E ratio is high then the
industry’s P/E ratio of 46.25, which could possibly mean the
company is over hauled. Competitor 1 has a P/E ratio of 46.67
which is fairly valued to industry. ACME’s higher P/E ratio
could also be due to the future outlook for ACME is positive as
price is discounted future earnings and investors are optimistic.
ACME has a higher capital turnover than the industry and
competitor 1, which is a bad indicator that means ACME is
taking more working capital to generate the same levels of
sales. NOPAT for ACME is lesser than industry and competitor
1. Market Value Added (MVA) for ACME is better than
industry and competitor 1. This suggests that there is effective
management and robust operational efficiency. It seems as if
ACME is creating better value for shareholders despite their
lower EPS. Although all three (Industry, Competitor 1, and
ACME) have negative Economic Value Added (EVA), ACME
has better absolute EVA.
20. Internally, management should focus on improving the negative
EVA and implement better operation parameters. Management
should also discuss EPS since it is lower than their peers. The
market may start understanding the overvaluation and drub the
shares if ACME continues to provide EPS at this rate. This
could possibly result in a decline of MVA and P/E ratios.
Externally, in order to display further interest in the company
shares, ACME should assess the company’s performance to
provide better value for investors. This could result in the
company’s value going up and improve the MVA and P/E ratios.
Conclusion:
According to the analysis given, ACME is outperforming its
competitors within the current sector. Additionally, the
evaluation of ratios indicate that ACME is also outperforming
its competitors, but this is an area of improvement in the current
market. Despite this fact, ACME investors will rest assured that
this venture is worthwhile. Current ACME owners and managers
have to be compelled to review what the ratios indicate an
appearance for methods to enhance their numbers within the
future.
RUNNING HEAD: TEAM 1 TASK 4
1
TEAM 1 TASK 4
2
21. TASK 4
Team 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
Memo to CFO
22. Executive Summary:
After an NPV and Real Options analysis, we have concluded
that the new enterprise system is worth the investment. The
projected Good scenario and the Real Options analysis projected
a net present value of $42 Million and $2 Million respectively.
So, therefore the positive NPV indicates that the project should
be undertaken. It should be noted that if the market demand or
the implementation difficulty shows a higher potential for the
Bad scenario, then the project should not be undertaken. The
Bad scenario NPV was -$38 Million, so this is certainly a risk
to be noted. That being said, in this time of considerable
uncertainty, our analysis still shows that the project should be
undertaken as it will in all likelihood generate cash flows to
more than make up for the investment.
Analysis:
See attached excel sheet for calculations
The following analysis used the Net Present Value of the
aforementioned Good and Bad scenarios. We also used the Real
Options Approach. Using a discount rate of 10 % for the Good
and Bad scenarios for the cash flow amounts of $15 million and
$2 million, we found that the “Good” NPV is $42,168,507 and
the “Bad” NPV is -$37,710,866. Therefore, the Good scenario
resulted in a positive NPV, so this indicates that our
organization should proceed with the investment . However, the
Bad scenario resulted in a negative NPV, which shows that the
project should not be undertaken. To give better context to this
measure, we used the Real Options approach, utilizing the 10%
markdown rate and yearly cash streams of $8.5 million ($15
million*50%+$2 million*50%=$8.5 million), discounted for 10
years, minus the $50 million beginning speculation, the NPV
totaled at a positive $2,228,820.
Conclusion:
Based on the analysis provided above, the project will in all
likelihood generate a positive NPV and should therefore be
23. undertaken. The Good scenario provided an NPV of
$42,168,507 and the Real Options Method resulted in an NPV of
$2,228,820. However, the Bad scenario resulted in an NPV of -
$37,710,866. If the expected probability of the bad scenario
increases, then the project may not be worth the investment.
Even with this stipulation, the project should be undertaken
given the positive NPV of both the Good scenario analysis and
the Real Options Approach.
NPVNet Present Value and Real ValueGood
ResultsTime012345678910Cash flows-
$50,000,000$15,000,000$15,000,000$15,000,000$15,000,000$1
5,000,000$15,000,000$15,000,000$15,000,000$15,000,000$15,
000,000Bad ResultsTime012345678910Cash flows-
$50,000,000$2,000,000$2,000,000$2,000,000$2,000,000$2,000,
000$2,000,000$2,000,000$2,000,000$2,000,000$2,000,000Good
ResultsBad ResultsNPV$42,168,506.59NPV-
$37,710,865.79Real Options012345678910Cash flows-
$50,000,000$8,500,000$8,500,000$8,500,000$8,500,000$8,500,
000$8,500,000$8,500,000$8,500,000$8,500,000$8,500,000Real
Options$2,228,820.40
Sheet1Year0123456789101112131415161718192021222324252
627282930Cash Inflows/Outflows-
$1,000,000$100,000$100,000$100,000$100,000$100,000$100,0
00$100,000$100,000$100,000$100,000$100,000$100,000$100,0
00$100,000$100,000$100,000$100,000$100,000$100,000$100,0
00$100,000$100,000$100,000$100,000$100,000$100,000$100,0
00$100,000$100,000$100,000Depreciation$33,333.33$33,333.3
3$33,333.33$33,333.33$33,333.33$33,333.33$33,333.33$33,33
3.33$33,333.33$33,333.33$33,333.33$33,333.33$33,333.33$33,
333.33$33,333.33$33,333.33$33,333.33$33,333.33$33,333.33$
33,333.33$33,333.33$33,333.33$33,333.33$33,333.33$33,333.3
3$33,333.33$33,333.33$33,333.33$33,333.33$33,333.33Income
Before Taxes-
26. Memo to CFO
Executive Summary:
This presentation will present the undertaking the board
necessary leadership process inside ACME Iron. It considers
any necessary money related to anticipating capital structure
and Weighted Average Cost of Capital (WACC) for the
organization also. A case of how undertakings are approved and
picked dependent on the average return for the venture will be
shown in the paper. We will talk about keeping the hazard at an
adequate dimension and giving expected returns, which will
enable ACME to accomplish more tasks and develop at a
quicker rate. Finally, the paper will break down and finish up
the significant need to alter money streams and record for
expansion, cost of capital and opportunity costs inside venture
the executives when taking a gander at outside factors. Any
investigation without outside factors may prompt choices being
made on tasks that do not increase the value of ACME Iron.
Addition to Executive Summary:
In this analysis, we take a look at the profitability of the
potential new loading ramp project. We primarily used net
present value to discount the new cash flows it will provide
back to the present. We took our Weighted Average Cost of
Capital (WACC) of 10% into account as the discount rate and
27. also considered the tax implications of the investment and
subsequent savings. The analysis showed an NPV of
$91,307.96, so with this positive NPV the project should be
accepted. Please note, the discounted payback period is 17.89
years, so this project will not truly become profitable for a long
time. That being said, the project will indeed make money over
the life of the plant and should be funded.
Analysis:
It is important to use WACC in order to make decisions on
capital projects. We were given a project opportunity to
construct a new loading ramp for Acme’s single iron mill. The
initial cost of the investment is $1 million. Efficiencies from
the new ramp are expected to reduce costs by $100,000 for the
life of the plant which is currently estimated at another 30
years. Based on an after-tax cost of debt of 8% and a cost equity
of 12%, the WACC for this particular project is 10%. This is
assuming that debt and equity are funded equally, both at 50%.
WACC (Discount Rate) Calculation:
WACC = We*Re + Wd*Rd*(1-T) =
WACC= We*Re + Wd*(after-tax cost of debt)
= 0.5*0.12 + 0.5*0.08 = 0.06 + 0.04 = 0.10 or 10%
We are able to use the WACC as the discount rate to determine
if the NPV is positive or negative.
NPV Analysis
See attached spreadsheet
https://docs.google.com/spreadsheets/d/1DfgXjJBqXTXRGpA0l
Bu2_rmo_3oV_Rw8I5BgBuL1AUA/edit?usp=sharing
Conclusion:
Based on the information provided, we came to the conclusion
that the WACC for ACME Iron is 10%. Using the
simple/general payback period, the project we evaluated will
take ten years to recover the initial investment. However, if we
take taxes and discount rates into consideration, the project has
a payback period of 17.89 years. Normally, if there is a positive
NPV, a project will be accepted and if there is a negative NPV,
28. the project will be rejected. In our analysis of NPV, we
determined that the NPV of the proposed loading ramp is
$91,307. Since we have a positive NPV, the project will be
accepted. With this, two things should be noted. First, the large
discounted payback period means the ramp will not be truly
profitable for a long time, though our analysis does indeed show
that it will be profitable over the life of the plant. Secondly,
this analysis assumes no loss in opportunity costs. If another
project involving the ramp presents itself, another analysis will
need to be conducted. With all this in mind, we recommend
moving forward with the proposed ramp project.
RUNNING HEAD: TEAM 1 TASK 2
1
TEAM 1 TASK 2
2
TASK 2
Team 1:
29. Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
Memo to CFO
Executive Summary:
Team one was asked to examine ACME Iron’s current capital
structure and determine the Weighted Average Cost of Capital
(WACC). Comparing data from similar companies within the
industry, we calculated a WACC of 5.75%.
Analysis:
During the analysis of ACME Iron’s current capital structure,
we found that the company’s debt-to-equity ratio is 0.8235. The
30. ratio computation was dividing the 2015s debt of 140,350,000
by the equity of 170,423,000. The industry’s average debt-to-
equity ratio is 0.05-0.29. Therefore, ACME Iron’s debt-to-
equity ratio falls in that range. The company’s debt accounts for
45% of financing and equity accounts for 55%. The weighted
average cost of capital for ACME Iron is 5.75%.
Conclusion:
It is advisable to lessen debt and increase equity as our Debt-to-
Equity ratio is unusually high compared to our competitors.
This shows inherent risk in our company, which will deter
investors, raise our fixed return rates due to high beta, and raise
our overall cost of capital. Also, currently our WACC is 5.75%
and should be used in any capital budgeting decisions as our
discount rate. This will change if the above suggestion is acted
upon.
Capital Structure and Weighted Average Cost of Capital
Calculations
After-tax cost of debt:
Rd(1-t)
8% (1-40%)= 4.8%
Cost of equity:
Cost of equity= 6.55%
Proportions of debt and equity in the firm:
Equity = 170,423,000
Debt = 130,000,000 + 10,350,000 = 140,350,000
Debt-to-Equity Ratio = 140,350,000/170,423,000 = 0.8235
Debt/(Debt + Equity) = 140,350,000/310,773,000 = 0.4516
31. Equity/(Debt + Equity) = 170,423,000/310,773,000 = 0.5484
How do we compute the WACC in this circumstance? Why do
we need to be concerned with the WACC?
WACC is computed as:
0.4516 * 0.048 + 0.5484 * 0.0655 = 0.0576
WACC = 5.75%
Calculating the WACC requires knowing the values of the
proportion of debt, proportion of equity, cost of debt, cost of
equity, and tax rate. We should be concerned with the WACC
because it is an essential indicator of the company’s overall cost
of capital deployed in managing the business. It provides data to
the company so that it can use it as a way to measure how to
fund new projects. Decisions of investing in new projects use
models like NPV and IRR derived from the company’s current
cost of capital and the return a project will generate over its
lifespan. WACC helps investors determine if an investment
should be increased, decreased, or discontinued.
Any insights into the capital structure of ACME Iron?
With financing of 45% debt and 55% equity, it seems like this is
a proper balancing of the two financing options. If this is a
purposeful decision, this means ACME Iron is not worried about
covering their debt costs. However, this will look like a large
amount of risk to outside investors. The industry average Debt-
to-Equity ratio is between 0.05 and 0.29 (CSIMarket, 2019).
With a debt to equity ratio of 0.8235, they have significantly
more debt than their competitors. This means that they use more
debt to cover their projects, so if the company experiences
losses or liquidation , the stockholders will get significantly
less due to the preferential payment to lenders. Overall, it may
be advisable to add more equity and lessen debt to attract
investors and present the company as more stable
(Kenton & Hayes, 2019).
32. References
CSIMarket. (2019, June 4). Iron & Steel Industry Financial
Strength Information.
Retrieved from
https://csimarket.com/Industry/industry_Financial_Strength_Rat
ios.php?ind=107
Kenton, W. & Hayes, A. (2019, May 19). Debt-to-Equity Ratio -
D/E Definition. Retrieved
from https://www.investopedia.com/terms/d/debtequityratio.asp
TASK 1
Group 1:
Adetolani Adeosun
Lawrence Henderson
Ayoub Mfinanga
Brittany Raines
Matthias Wurster
33. Capital Asset Pricing Model (CAPM):
2015 Iron Producers
Total Assets
Total Liabilities
Total Owner's Equity
Net Sales
Gross Profit
Net Income
Beta
ACME Iron
$459,225,000
34. $288,802,000
$170,423,000
$247,500,000
$145,500,000
$7,045,000
Unknown
Mount Gibson Iron Limited
$589,957,000
$93,133,000
$496,824,000
$266,269,000
$48,727,000
$99,129,000
0.86
Universal Stainless & Alloy Products
$353,320,000
$116,309,000
$237,011,000
$255,927,000
$37,826,000
$10,662,000
1.378
Paul Mueller Company
$130,188,000
$102,560,000
$27,628,000
$201,210,000
$50,946,000
$2,639,000
0.62
BC Iron Limited
$124,488,000
$17,332,000
$107,156,000
$64,032,000
$16,236,000
36. (Anglo American Financial Report)
BC Iron Limited. (2017). Annual Report 2017. Retrieved from
https://www.infrontanalytics.com/fe-en/32095AA/BC-Iron-
Limited/Beta
(BC Iron Financial Report)
Cleveland-Cliffs Inc. (2018). 2018 Annual Report. Retrieved
from
http://s1.q4cdn.com/345331386/files/doc_financials/annual/CLF
_2018_AnnualReport.pdf
(Cleveland-Cliffs Financial Report)
FTSE Russel. (2019). United States Steel Corp. Mergent Online.
Retrieved from
http://www.mergentonline.com.ezproxy.umuc.edu/competitors.p
hp?compnumber=66193
(Database to better find Comparable Companies. Data for
Universal Stainless & Alloy Products and Mueller (Paul) found
here)
Infront Analytics. (2019, May 29). Levered/Unlevered Beta of
Anglo American PLC. Retrieved
from https://www.infrontanalytics.com/fe-en/30018KS/Anglo-
American-plc/Beta
(Anglo American Beta)
Infront Analytics. (2019, May 28). Levered/Unlevered Beta of
BCI Minerals Limited.
Retrieved fromhttps://www.infrontanalytics.com/fe-
en/32095AA/BC-Iron-Limited/Beta
(BC Iron Beta)
Infront Analytics. (2019, May 28). Levered/Unlevered Beta of
Cleveland-Cliffs Inc. Retrieved
fromhttps://www.infrontanalytics.com/fe-en/32178NU/Cliffs-
37. Natural-Resources-Inc-/Beta
(Cleveland-Cliffs Beta)
Infront Analytics. (2019, May 29). Levered/Unlevered Beta of
United States Steel Corporation.
Retrieved from
https://www.infrontanalytics.com/fe-en/33847NU/United-
States-Steel-Corporation/Beta
(US Steel Beta)
Market Watch. (2019, May 2019). Mount Gibson Iron Ltd.
Retrieved from
https://www.marketwatch.com/investing/stock/mgx?countrycode
=au
(Mount Gibson Beta)
Mining Global. (2015, June 4). Top 10 Iron ore producers based
on 2015 guidance. Retrieved
From https://www.miningglobal.com/mining-sites/top-10-iron-
ore-producers-based-2015-guidance
(Found names of top 10 iron ore companies)
Mount Gibson Iron Limited. (2018). 2018 Annual Report.
Retrieved from
https://www.mtgibsoniron.com.au/wp-
content/uploads/2018/10/Mt-Gibson-2018-Annual-
Report-Hi-Res.pdf
(Mount Gibson Financial Report)
United States Security and Exchange Comission. (2019,
February 12). Form 10-K for United
States Steel Corporation. Retrieved from
https://www.ussteel.com/sites/default/files/annual_reports/USS
%20Form%2010-K%20-
38. %202018.pdf
(US Steel Financial Report)
Yahoo! Finance. (2019, May 29). Paul Mueller Company.
Retrieved from
https://finance.yahoo.com/quote/muel
(Beta for Paul Mueller Company)
Zacks. (2019, May 29). Universal Stainless & Alloy Products,
Inc. Retrieved from
https://www.zacks.com/stock/chart/USAP/fundamental/beta
(Beta for Universal Stainless & Alloy)
