We are planning to have 2000 customers each generating 100 USD revenue for a total revenue of 200000 USD (per day).

Q- What measure do you propose to bring it close to the planned number?

You wish to determine whether consumers have made substantial progress in reducing their credit card debt? Based on a sample of 1000 consumers in September 2001, and another sample of 1000 customers in September 2006, the average credit card debt 2711 in 2001 as compared to 2814 in 2006. The standard deviation of each sample was approximately 976. Using a level of significance of 0.1,

a. What are the null and alternative hypothesis? (How do yo know)

b. What is the critical value? (Explain and show work)

c. Which minitab output is appropriate for this problem? (How do you know)

d. What is your managerial conclusion? (why)

The following table contains annual returns for the stocks of ABC Corp. (ABC​) and Company B (B​). The returns are calculated using​ end-of-year prices​ (adjusted for dividends and stock​ splits). Use the information for ABC Corp. ​(ABC​) and Company B ​(B) to create an Excel spreadsheet that calculates the average returns over the​ 10-year period for portfolios comprised of ABC and B using the​ following, respective,​ weightings: (1.0,​ 0.0), (0.9,​ 0.1), (0.8,​ 0.2), (0.7,​ 0.3), (0.6,​ 0.4), (0.5,​ 0.5), (0.4,​ 0.6), (0.3,​ 0.7), (0.2,​ 0.8), (0.1,​ 0.9), and​ (0.0, 1.0). The average annual returns over the​ 10-year period for ABC and B are 15.03% and 12.78​% respectively.​ Also, calculate the portfolio standard deviation over the​ 10-year period associated with each portfolio composition. The standard deviation over the​ 10-year period for ABC Corp. and Company B and their correlation coefficient are 25.87%, 22.95​%, and 0.84123 respectively.

​(Hint: Review Table​ 5.2.) 

Year   ABC Corp.   Company B
2005   -5.3   17.2
2006   1.1   -8.1
2007   -32.7   -26.7
2008   -10.3   -3.4
2009   30.9   10.7
2010   24.9   9.9
2011   22.7   5.2
2012   52.1   42.3
2013   37.8   41.5
2014   29.1   39.2

Assume you are the marketing manager of a large electronic equipment manufacturing firm. It is the Spring of the year 2004. Your firm has pioneered an electronic book reader that mimics the reading experience on paper and the test-market results have indicated that the new product will be well received. However, as it is a completely new product on the market, the firm is unsure of adoption rates. You are in charge of a large geographical region in Asia and a third-party market research firm has indicated that the total market size is likely to be 280 million. The task of developing a reliable forecast now rests on your shoulders and you decide to put the learnings from your NPD class to work. As you do not have previous sales information to forecast, you decide to use a bass model based prediction by analogy.

There are two analogous products with their respective precalculated coefficients of innovation (p) and imitation (q). However, you decide to rate the products based on three factors using experts on a 10-point scale in order to use a weighted average technique to determine the final p and q to use. The following table shows the relevant numbers.

Given the information you have, what is the final coefficient of innovation you’d use to compute forecasts using the Bass model by analogy?

What is the final coefficient of imitation you’d use to compute forecasts using the Bass model by analogy?

Using those p and q suggested by the weighted average technique, and market size = 280 million, what will be your forecast of new product adoption for the first year (2004)?

What will be your sales forecast in millions for the year 2006 (third year from launch assuming the same parameters as in previous question)

When will the cumulative sales exceed 50 million units?

In the year 2006, how much of the total annual sales in millions can be attributed to the effect of imitation instead of innovation?

Financial Statement Disclosure:

International Clothiers Ltd. has offices in Canada, Bermuda, Europe and the United States. Each of the following events have occurred after the company’s 31 December 2017 year-end, but before their financial statements had been finalized:

a. On 27 January, International Clothiers Ltd entered into a long-term lease for a private airplane for the company president and CEO. The lease requires payments of US$75,000 per month for 60 months.

b. The board of directors met on 15 February 2018 and decided to discontinue its shoe division due to continuing losses and a change in business strategy.

c. One of the company’s major retail customers declared bankruptcy on 22 March. The retail customer accounted for 20% of International Clothier’s year-end receivables and 35% of International Clothier’s revenue in 20x7.

Mickey Company manufactures three different sizes of stuffed teddy bears (large, small and medium d corresponding costs for the month of January 2004 are given below: large medium small projected unit sales 3,000 5,000 4,000 $ $ $ price per unit 40 30 20 variable cost per unit --direct material 12 10 8 --direct labour 8 5 3 --support costs 5 3 2 fixed cost per unit 2 2 2 total unit cost 27 20 15 It takes 20, 15 and 10 machine hours to manufacture 100 units of large, medium and small teddy bears, respectively. The company has a monthly machine hour capacity of 2,050 machine hours and this machine hour capacity cannot be increased for at least a year. Required: b) Determine how many units Mickey Company should produce of each size to maximise its profits c) Suppose that a foreign firm has offered to buy 2,000 large teddy bears at $45 each. Determine the opportunity costs for this order. d) Suppose that the available machine hour capacity is reduced to 1,550 machine hours due to machine break down. How many units of each size should Mickey Company produce to maximise its profits?

You are well aware of the risks that you face when you buy shares in a company that has shares with different voting rights. Assume that you have no choice but to buy non-voting shares in a company that has both voting and non-voting shares. Which of the following would you view as least dangerous to you (from a corporate governance standpoint)?

• A. Voting shares are not traded and held entirely by CEO
• B. Voting shares are traded, but concentrated in the hands of CEO
• C. Voting shares are traded and widely dispersed across shareholders.
• D. Voting shares are traded and held by CEO and by government-controlled institutions.
• E. Voting shares are traded and held by activist investors.

Required information

[The following information applies to the questions displayed below.]

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

1. What is Adger’s revenue variance, employee salaries and wages spending variance, travel expenses spending variance, and other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

2. What amount of revenue, employee salaries and wages, travel expenses, and other expenses would be included in Adger’s planning budget for May?

3. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

4. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

5. What net operating income would appear in Adger’s flexible budget for May?

On October 1, 2021, a company sells $800 of gift cards to customers. The gift cards expire one year from the date of sale. By October 1, 2022, $750 of the gift cards have been redeemed and the sales recorded at the time of redemption. What entry, if any, should the company record on October 1, 2022?

A) Debit Sales Revenue, $50; credit Cash, $50. B) Debit Cash, $750; credit Sales Revenue, $750. C) Debit Deferred Revenue, $50; credit Sales Revenue, $50. D) No journal entry is necessary.

Early in 2010, Danielle, the chief financial officer for Sam Manufacturing, was given the task of assessing the impact of a proposed risky investment on the firm’s stock value. To perform the necessary analysis, Danielle gathered the following information on the firm’s stock. During the immediate past 5 years (2005–2009), the annual dividends paid on the firm’s common stock were as follows:

Currently, the required return on the common stock is 15%. Danielle’s research indicates that if the proposed investment is undertaken, the 2010 dividend will rise and the annual rate of dividend growth will increase to 14%. She feels that in the best case, the dividend would continue to grow at this rate each year into the future and that in the worst case, the 14% annual rate of growth in dividends would continue only through 2012, and then, at the beginning of 2013, would return to the rate that was experienced between 2005 and 2009. As a result of the increased risk associated with the proposed risky investment, the required return on the common stock is expected to increase by 3% to an annual rate of 18%, regardless of which dividend growth outcome occurs.

Armed with the preceding information, Danielle must now assess the impact of the proposed risky investment on the market value of Sam’s stock. To simplify her calculations, she plans to round the historical growth rate in common stock dividends to the nearest whole percent.

Required

a. Find the current value per share of Sam Manufacturing’s common stock.

b. Find the value of Sam’s common stock in the event that it undertakes the proposed risky investment and assuming that the dividend growth rate stays at 14% forever. Compare this value to that found in part a. What effect would the proposed investment have on the firm’s stockholders? Explain.

c. On the basis of your findings in part b, do the stockholders win or lose as a result of undertaking the proposed risky investment? Should the firm do it? Why?

d. Rework parts b and c assuming that at the beginning of 2013 the annual dividend growth rate returns to the rate experienced between 2005 and 2009.