1.      You have been asked to prepare a memo describing the effects and advantages or disadvantages of each of the following bond features on the coupon rate of a 20-year bond:   

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1.      You have been asked to prepare a memo describing the effects and advantages or disadvantages of each of the following bond features on the coupon rate of a 20-year bond:

 

        a.     The security or collateral provided with the bond

 

        b.     The seniority of the bond

 

        c.     A sinking fund provision

 

        d.    A call provision

 

        e.     Any positive covenants

 

        f.     Any negative covenants

       

g.     A conversion feature

       

h.     A floating rate coupon

 

 

The firm is also considering whether to issue coupon-bearing bonds or zero coupon bonds. The YTM in either case is expected to be 5.5% per annum. The coupon bond would have a 5.5% per annum coupon payable semiannually. The company’s tax rate is 35%.

 

 

2. How many of the coupon bonds must East Coast Yachts issue to raise the $40,000,000? How many of the zeroes must it issue?

 

 

 

 

3. In 20 years what will be the principal repayment due if East Coast Yachts issues the coupon bonds? If it issues the zeroes?

 

 

 

 

 

 

4. After considering all the relevant factors, what would you recommend the firm do?

 

 

 

 

 

 

East Coast Yacht Case:

 

CLOSING CASE

FINANCING EAST COAST YACHTS’ EXPANSION PLANS WITH A BOND ISSUE

After Dan’s EFN analysis for East Coast Yachts, Larissa has decided to expand the company’s operations. She has asked Dan to enlist an underwriter to help sell $45 million in new 30-year bonds to finance new construction. Dan has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features East Coast Yachts should consider and also what coupon rate the issue will likely have. Although Dan is aware of bond features, he is uncertain as to the costs and benefits of some of them, so he isn’t clear on how each feature would affect the coupon rate of the bond issue.

  1. You are Renata’s assistant, and she has asked you to prepare a memo to Dan describing the effect of each of the following bond features on the coupon rate of the bond. She would also like you to list any advantages or disadvantages of each feature.
    1. The security of the bond, that is, whether or not the bond has collateral.
    2. The seniority of the bond.
    3. The presence of a sinking fund.
    4. A call provision with specified call dates and call prices.
    5. A deferred call accompanying the above call provision.
    6. A make-whole call provision.
    7. Any positive covenants. Also, discuss several possible positive covenants East Coast Yachts might consider.
    8. Any negative covenants. Also, discuss several possible negative covenants East Coast Yachts might consider.
    9. A conversion feature (note that East Coast Yachts is not a publicly traded company).
    10. A floating rate coupon.

Dan is also considering whether to issue coupon-bearing bonds or zero coupon bonds. The YTM on either bond issue will be 5.5 percent. The coupon bond would have a 5.5 percent coupon rate. The company’s tax rate is 35 percent.

  1. How many of the coupon bonds must East Coast Yachts issue to raise the $45 million? How many of the zeroes must it issue?
  2. In 30 years, what will be the principal repayment due if East Coast Yachts issues the coupon bonds? What if it issues the zeroes?
  3. What are the company’s considerations in issuing a coupon bond compared to a zero coupon bond?
  4. Suppose East Coast Yachts issues the coupon bonds with a make-whole call provision. The make-whole rcall rate is the Treasury rate plus .40 percent. If East Coast calls the bonds in seven years when the Treasury rate is 4.8 percent, what is the call price of the bond? What if it is 6.2 percent?
  5. Are investors really made whole with a makre-whole call provision?
  6. After considering all the relevant factors, would you recommend a zero coupon issue or a regular coupon issue? Why? Would you recommend an ordinary call feature or a make-whole call feature? Why?

 

 Project Updated. Bid Only If you can answer it Correctly. Am taking a Corporate Finance Course.

Unit 1 db2

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Unit 1 db2

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.Consider an organization you work for, have worked for, or would like to work for.  Then, identify a country in which they do business or might do business outside of the United States. You also may select a company in contemporary business news that conducts business globally.Discuss the key differences in cultural variables between the United States and the country that are important when conducting business in the selected country. What are the implications of these differences for the practice of business? Consider political, economic, legal, educational, and social systems of the selected country. Refer to Intellipath, MUSE, and Beyond the Book references in creating your response. Include a response to the following questions in your discussion writing at least one paragraph for each bullet point:Describe globalization and its benefits to business operations.  What kind of management orientation style (ethnocentric, polycentric, regiocentric, geocentric) would you use to be most effective given the cultural attributes of the country?  How would you overcome the anticipated barriers to communication? Provide specific examples.

Unit 2 – Individual Project

You are in the role of project manager for a coffee franchise global expansion project. You plan to expand into three different countries. The magnitude of the project requires you to prepare for the project kickoff meeting and business negotiations with the project team who are potential partners from Mexico, China, and Saudi Arabia. You understand that these cultures are vastly different. They have different business customs, social protocols, and languages, so conducting business with each country requires a customized approach.To prepare for your first outreach effort with each country, analyze the cultural similarities and differences that exist between the countries and the United States using Geert Hofstede’s Six Cultural Dimensions as discussed in class. Note that the three countries are characterized by collectivism while the United States has an individualist culture.Create a bar graph and/or table that summarizes the key cultural dimension comparison. Then, compare and contrast each country according to your findings. Discuss the implications of the relative cultural dimensions. How might they impact managing the global expansion project? Remember that you are adapting your approach from a United States centric view. (400-600 words).This assignment lays the foundation for IP4, where you will apply your findings to forming an effective global team.Step One:  Visit Geert Hofstede Cultural Dimensions Step Two:  Create a country comparison using the United States in first dropdown menu box to see the values for the six cultural dimensions. After selecting the United States, a second and a third country can be chosen in the second dropdown menu box. Keep the United States in the first box and then repeat for each country (Mexico, China, and Saudi Arabia) involved in the fast food expansion project to see a comparison of their scores.Step Three: Create a bar graph and/or table to highlight how the four countries compare to the United States by using the value scores under the comparison to create the bar chart.  How to make a bar chart on Microsoft Word:Click “Insert” tab  Click “Chart” in the Illustrations Group  Select “Bar”  Click “OK” to insert a chart and a spreadsheet will open alongside your Word document. The spreadsheet contains sample figures surrounded by a blue border. Column “A” contains data labels. The remaining columns contain data.  Click a corner of the border. Drag it down or up to add or remove items from the graph.Step Four:Using your findings:Explain Hofstede’s cultural dimensions.  Using the United States as a basis for comparison, evaluate each country’s similarities and differences relative to the franchise business deployment.  Discuss the implications for your initial communications within each country.  For example, what is the impact of collectivism relative to individualism regarding management communication?

unit 3 db

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.Idea:In preparing to launch the coffee franchises in China, Mexico, and Saudi Arabia, you are planning to visit each country to interview potential global team members.  You know it is important to be aware of the value differences and social customs in each country to develop trusting relationships to avoid potential conflicts. Compare and contrast your approach to doing business and building relationships among the global team members. Apply the readings, Intellipath, and library resources to respond to the following:Discuss collectivism and how it applies to China, Mexico, and Saudi Arabia.  Explain the role of relationship building in China, Mexico, and Saudi Arabia compared to the United States.  Explain the cultural value differences in time (monochronic versus polychronic cultures), approaches to decision making (objective or subjective approach), and individualism that could potentially occur during global operations.   What are some of the nonverbal behavior differences among the countries such as silence, eye contact, body movements, proxemics or interruptions that may affect doing business with your global team?

Histograms and Descriptive Statistics

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Histograms and Descriptive Statistics

Your first IBM SPPS assignment includes two sections in which you will:

1. Create two histograms and provide interpretations.

2. Calculate measures of central tendency and dispersion and provide interpretations.

Key Details and Instructions

• Submit your assignment as a Word document.

• Begin your assignment by creating a properly formatted APA title page. Include a reference list at the

end of the document if necessary. On page 2, begin Section 1.

• Write your report in narrative format, integrating your SPSS output charts and tables with your

responses to the specific requirements listed for this assignment. (See the Copy/Export Output

Instructions in the Resources area.)

• Label all tables and graphs in a manner consistent with APA style and formatting guidelines. Citations,

if needed, should be included in the text as well as in a reference section at the end of the report.

• Refer to the IBM SPSS Step-By-Step Guide: Histograms and Descriptive Statistics (in the Resources

area) for additional help in completing this assignment.

Section 1: Histograms and Visual Interpretation

Section 1 will include one histogram of total scores for all the males in the data set, and one histogram of

total scores for all the females in the data set.

Using the total and gender variables in your grades.sav data set, create two histograms:

• A histogram for male students.

• A histogram for female students.

Copy the histogram output from SPSS and paste it into a Word document. Below the histograms in your

Word document, provide an interpretation based on your visual inspection. Correctly use all of the following

terms in your discussion:

• Skew.

• Kurtosis.

• Outlier.

• Symmetry.

• Modality.

Comment on any differences between males and females regarding their total scores. Analyze the strengths

and limitations of visually interpreting histograms.

Section 2: Calculate and Interpret Measures of Central Tendency and Dispersion

Using the grades.sav file, compute descriptive statistics, including mean, standard deviation, skewness, and

kurtosis for the following variables:

• id

• gender

• ethnicity

• gpa

• quiz3

• total

Copy the descriptives output from SPSS and paste it into your Word document. Below the descriptives

output table in your Word document:

• Indicate which variables are meaningless to interpret in terms of mean, standard deviation, skewness,

and kurtosis. Justify your decision.

• Next, indicate which variables are meaningful to interpret. Justify your decision.

• For the meaningful variables, do the following:

◦ Specify any variables that are in the ideal range for both skewness and kurtosis.

◦ Specify any variables that are acceptable but not excellent.

◦ Specify any variables that are unacceptable.

◦ Explain your decisions.

• For all meaningful variables, report and interpret the descriptive statistics (mean, standard deviation,

skewness, and kurtosis).

Submit both sections of your assignment as an attached Word document.

Resources

Histograms and Descriptive Statistics Scoring Guide.

• Includes all relevant output; no irrelevant output is included. No errors in SPSS output.

• Evaluates the concepts of skew, kurtosis, outliers, symmetry, and modality for two histograms.

• Analyzes the strengths and limitations of examining a distribution of scores with a histogram.

• Includes all relevant output; no irrelevant output is included. No errors in SPSS output.

• Evaluates meaningful versus meaningless variables reported in descriptive statistics.

• Evaluates descriptive statistics.

• Without exception, communicates in a manner that is scholarly, professional, and consistent with the expectations for members

in the identified field of study.

IBM SPSS Step-by-Step Guide: Histograms and Descriptive Statistics [DOC]. Copy/Export Output Instructions.

APA Style and Format.

Case Analysis on Closing Cases: 

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Case Analysis on Closing Cases:  The purpose of closing cases is to give the students the opportunity as a to apply business concepts to real life situations regarding international business management. Case studies are designed to introduce the students to specific and real international business situations closely related to trade theories and to enable them to understand the forces behind global business operations. They offer the students the opportunity to develop their skill in analyzing the possible implications of cross-border business decisions. Further, they serve an integrative function as well as to allow the faculty member and the students to examine global business management problems and issues more closely. Finally, they highlight the nature of the ethical dilemma and social responsibility concerns of host countries. Closing cases will be worked up by teams; each individual will complete their analysis paper on weeks 2, 4 and 6. Make sure that you touch on the important aspects of the case as it relates to the material in the chapter. Chapters selected by the team must be from the current week’s or the immediately

Q.1  Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $156,000 on sales of $2,010,000. Division B is able to make only $28,800 on sales of $329,000. Based on the profit margins (returns on sales), which division is superior?

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Q.1  Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $156,000 on sales of $2,010,000. Division B is able to make only $28,800 on sales of $329,000. Based on the profit margins (returns on sales), which division is superior?

Q.2. Database systems is considering expansion into a new product line. Assets to support expansion will cost $380,000. It is estimated that Database can generate $1,410,000 in annual sales, with an 8 percent profit margin. What would net income and return on assets (investment) be for the year?

Q.3. Polly Esther Dress Shops Inc. Can open a new store that will do an annual sales volume of $837,900. It will turn over its assets 1.9 times per year. The profit margins on sales will be 8 percent. What would net income and return on assets (investment) be for the year?

Q.4. Billy’s Crystal stores Inc. has assets of $5,960,000 and turns over assets 1.9 times per year. Return on assets is 8 percent. What is the firms profit margin(Return on sales)?

Problem 4-8

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Problem 4-8

Fill the following table for cookies sold in a bakery. Indicate by a checkmark which customer requirements and which technical requirements are related. Use “√” to show the relation and “x” to indicate that there is no relation.

 

Technical Requirements
  Customer Requirements Ingredients Handling Preparation
  Taste
  Appearance
  Texture/Consistency