TOPIC I chose:  How Gross National Income can be increased in poor countries for better Economic Development. for example: china, india etc. (See page 61 of the attached textbook)

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TOPIC I chose:  How Gross National Income can be increased in poor countries for better Economic Development. for example: china, india etc. (See page 61 of the attached textbook)

Signature Assessment (300 points): The signature assignment for this course will require research, academic writing, critical thinking, and analysis on a “current issue” facing the area of Managing in a Global Environment. Through this assignment, you will demonstrate your ability to conduct academic research. The signature assignment requires a minimum of 6000-words (approximately 20-pages) (not including cover page, abstract, table of contents, and references), double-spaced, APA formatted academic research paper. Please note that this course requires you to focus your research based on existing research literature from peer-reviewed articles (a minimum of 15 sources are required). The academic research paper will include the basic components of a non-empirical research paper which requires the following:

· An introduction

· A literature review; and

· A conclusion (recommendations and managerial implications)

a. What is the days sales outstanding?

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a. What is the days sales outstanding?
b. What is the average amount of receivables?
c. What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 45th day?

(16-10) The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 90, and it currently pays on the 10th day and takes discounts. However, it could forgo the discounts, pay on the 90th day, and thereby obtain the needed $500,000 in the form of costly trade credit.
What is the effective annual interest rate of this trade credit?

(16-11) Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales.
a. What is the length of the firm’s cash conversion cycle?
b. If Negus’s annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable?
c. How many times per year does Negus Enterprises turn over its inventory?

 

(16-12) Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler’s sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’s payables deferral period is 45 days.
a. Calculate Strickler’s cash conversion cycle.
b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA.
c. Suppose Strickler’s managers believe the annual inventory turnover can be raised to 9 times without affecting sales.What would Strickler’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?

(16-16) The Thompson Corporation projects an increase in sales from $1.5 million to $2 million, but it needs an additional $300,000 of current assets to support this expansion. Thompson can finance the expansion by no longer taking discounts, thus increasing accounts payable. Thompson purchases under terms of 2/10, net 30, but it can delay payment for an additional 35 days—paying in 65 days and thus becoming 35 days past  due—without apenalty because its suppliers currently have excess capacity. What is the effective, or equivalent, annual cost of the trade credit?

Chapter 9 Problems

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Chapter 9 Problems

9-11 The Krampf Lines Railway Company specializes in coal handling. On Friday, April 13, Krampf had empty cars at the following towns in the quantities indicated:

TOWN SUPPLY OF CARS
Morgantown 35
Youngstown 60
Pittsburgh 25

By Monday, April 16, the following towns will need the numbers of coal cars listed:

TOWN DEMAND FOR CARS
Coal Valley 30
Coaltown 45
Coal Junction 25
Coalsburg 20

Using a railway city-to-city distance chart, the dispatcher constructs a mileage table for the preceding towns. The result is shown in the table on this page. Minimizing total miles over which cars are moved to new locations, compute the best shipment of coal cars.

Table for Problem 9-11

TO FROM COAL VALLEY COALTOWN COAL JUNCTION COALSBURG
MORGANTOWN 50 30 60 70
YOUNGSTOWN 20 80 10 90
PITTSBURGH 100 40 80 30

9-13 Finnish Furniture manufactures tables in facilities located in three cities—Reno, Denver, and Pittsburgh. The tables are then shipped to three retail stores located in Phoenix, Cleveland, and Chicago. Management wishes to develop a distribution schedule that will meet the stores’ demands at the lowest possible cost. The shipping cost per unit from each of the sources to each of the destinations is shown in the following table:

TO FROM PHOENIX CLEVELAND CHICAGO
RENO 10 16 19
DENVER 12 14 13
PITTSBURGH 18 12 12

The available supplies are 120 units from Reno, 200 from Denver, and 160 from Pittsburgh. Phoenix has a demand of 140 units, Cleveland has a demand of 160 units, and Chicago has a demand of 180 units. How many units should be shipped from each manufacturing facility to each of the retail stores if cost is to be minimized? What is the total cost?

9-23 Four automobiles have entered Bubba’s Repair Shop for various types of work, ranging from a transmission overhaul to a brake job. The experience level of the mechanics is quite varied, and Bubba would like to minimize the time required to complete all of the jobs. He has estimated the time in minutes for each mechanic to complete each job. Billy can complete job 1 in 400 minutes, job 2 in 90 minutes, job 3 in 60 minutes, and job 4 in 120 minutes. Taylor will finish job 1 in 650 minutes, job 2 in 120 minutes, job 3 in 90 minutes, and job 4 in 180 minutes. Mark will finish job 1 in 480 minutes, job 2 in 120 minutes, job 3 in 80 minutes, and job 4 in 180 minutes. John will complete job 1 in 500 minutes, job 2 in 110 minutes, job 3 in 90 minutes, and job 4 in 150 minutes. Each mechanic should be assigned to just one of these jobs. What is the minimum total time required to finish the four jobs? Who should be assigned to each job?

9-33 Bechtold Construction is in the process of installing power lines to a large housing development. Steve Bechtold wants to minimize the total length of wire used, which will minimize his costs. The housing development is shown as a network on this page. Each house has been numbered, and the distances between houses are given in hundreds of feet. What do you recommend?

#2 Mini Case: The Conch Republic Electronics, Part 1 (Will provide textbook scanned documents):

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#2 Mini Case: The Conch Republic Electronics, Part 1 (Will provide textbook scanned documents):

Case Study:

After you have completed the readings for chapter 10, you should be ready to complete this assignment. Return to the case study on p.341-342 of the text and reread it carefully. As you are thinking about your response, please remember that one thing about cases – usually the quick answer is not the correct one. You need to be able to decide what the issues at hand are and what information is really critical to giving the correct advice.

Use the questions at the end of the case for guidance, but remember you may add to your explanations. One thing that student’s tend to do with a case is bring in more information than what is needed – stick to the facts as presented in the case and the chapter readings.

Please prepare and submit a 1-3 page response including synthesis of chapter readings and applications to corporate organizational structure.

Upon Completion of this mini-case, you will demonstrate your ability to:

Apply the calculations for payback analysis of a capital project.

Apply the calculations for profitability analysis of a capital project.

Apply the calculations for a NPV analysis of a capital project.

Apply the calculations for a IRR analysis of a capital project.

 

Make an appropriate recommendation based on the facts presented.

MBA 520 Module Eight Cost of Capital Worksheet

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MBA 520 Module Eight Cost of Capital Worksheet

Review the questions below and use the data provided in the question to solve the calculation. As you work through each equation, think about where the data for your company maybe found to make the same calculations and how the information from these calculation can inform your recommendations for your final project. Use the non-graded discussion board in this module to ask questions of your peers to inform your responses to the questions below.

 

 

1. What is the market interest rate onXYZ’s debt and its component cost of debt?

Coupon rate 12%
Coupons per year 2
Years to maturity 15
Price $1,153.72
Face value $1,000
Tax rate 40%
   

 

Market Interest Rate =

 

Cost of Debt =

 

2. What is the firm’s cost of preferred stock?

Nominal dividend rate 10%
Dividends per year 4
Par value $100
Price $111.10

 

Cost of Preferred Stock =

 

3. What isXYZ’s estimated cost of common equity using the CAPM approach?

β 1.2
rRF 7%
RPM 6%

 

Estimated Cost of Common Equity =

 

4. What is the estimated cost of common equity using the DCF approach?

Price $50
Current dividend $4.19
Constant growth rate 5%

 

Estimated Cost of Common Equity =

 

5. What is the bond-yield-plus-risk-premium estimate for XYZ’s cost of common equity?

“Bond yield + RP” premium 4%
market interest rate onXYZ’s debt 10%
   

Bond-yield-plus-risk-premium estimate =

 

6. What is your final estimate for rs?

METHOD ESTIMATE
CAPM 14.20%
DCF 13.80%
rd + RP 14.00%

 

Estimate =

 

7. XYZ estimates that if it issues new common stock, the flotation cost will be 15%. XYZ incorporates the flotation costs into the DCF approach. What is the estimated cost of newly issued common stock, considering the flotation cost?

% Flotation cost 15%
Net proceeds after flotation $42.50

 

Cost of Newly Issued Common Stock

8. What isXYZ’s overall, or weighted average, cost of capital (WACC)?  Ignore flotation costs.

Wd 30% rd (1 – T) 6.00%
wp 10% rp 9.00%
wc 60% rs 14.00%

 

 

 Did Corzine act appropriately? How would you characterize his behavior legally, ethically, and managerially? What other choices did he have?

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Did Corzine act appropriately? How would you characterize his behavior legally, ethically, and managerially? What other choices did he have?

Did Ms. O’Brien behave appropriately? Realistically, what other choices did she have?

Should the actions of either Corzine or O’Brien (or both or neither) be considered criminally negligent? Unethical? Bad judgment? Other?

What role should (or might have) the firm’s Ethics and Compliance Officer played in this drama?