In: Economics
Question One
Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000.
i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of (iii) above?
v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge?
vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above?
In: Economics
Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000.
i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of (iii) above?
v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge?
vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above?
In: Economics
Management of AG Travel and Tour has identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum amount they are willing to pay for room and board is GHC 1800 and for entertainment is GHC 750. Although AG Travel and Tour is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000. i. How much will the hotel charge members of each group for the vacation package if it could identify the members in each group ii. How much will the profit for AG Travel and Tour be? iii. Since AG Travel and Tour is not able to identify members of each group, what price should it charge for each product iv. What will be the profit for AG Travel and Tour in the case of (iii) above v. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge? vi. What profit will AG Travel and Tour make if it charges the package price found in (v) above
In: Economics
Management of AG Travel and Tour has identified two groups of
individuals that would be interested in the vacation package
consisting of room and board and/or entertainment. The maximum
amount that group 1 is willing to pay for room and board is GHC
2500 and for entertainment is GHC 500. For group 2, the maximum
amount they are willing to pay for room and board is GHC 1800 and
for entertainment is GHC 750. Although AG Travel and Tour is not
able to identify members of either group, it does know that each
group values the components of the package differently. Assuming
there are an equal number of members in each group and that the
total membership in each group is a single individual. If the
marginal cost of providing the service (room and board and/or
entertainment) to each group is GHC 1000.
i. How much will the hotel charge members of each group for the
vacation package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of
each group, what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of
(iii) above?
v. If AG Travel and Tour wants to charge a package price, what is
the highest price it can charge?
vi. What profit will AG Travel and Tour make if it charges the
package price found in (v) above?
In: Economics
Research Case:
Sony is a Japanese multinational company that decided to expand its entertainment business in the United States. Sony purchased CBS Records and Columbia Pictures to form Sony Music and Sony Pictures. Because of these acquisitions, Sony assumed debt of $1.2 billion and allocated $3.8 billion to goodwill. On Sony’s Annual Report filed with the SEC, Sony reported only two industry segments: electronics and entertainment. Although Sony Music was profitable, Sony Pictures produced continued losses of approximately $1 billion. When Sony purchased the motion pictures operations, it projected a loss for only five years because it assumed that the motion pictures entertainment would become profitable. However, Sony suffered a significant loss after amortization and the costs of financing the acquisition for the past four years.
In the current year, Sony Pictures sustained a loss of nearly $450 million, double the amount that Sony had planned. To date, Sony Pictures has had total net losses of nearly $1billion. Early in the year, Sony declared that it had written down $2.7 billion in goodwill associated with the acquisition of Sony Pictures. Sony combined the results of Sony Music and Sony Pictures and reported them as Sony Entertainment. Little profit was shown in Sony Entertainment. Sony’s consolidated financial statements did not disclose the losses from Sony Pictures.
Questions
How should the write down of goodwill be reported? What information (if any) should be disclosed related to goodwill?
Since Sony has two businesses with different financial trends, should the consolidated financial statements provide specific segment disclosure information? What should the company disclose?
Reporting insufficient information or excluding required disclosures can be misleading or perceived as unethical. What ethical standards applicable to Sony’s reporting?
In: Accounting
(b) Explain the peformance of LTCM investment during 1994-1997.
(c) Explain the major trading strategy of LTCM investment.
(d) Explain why LTCM collapsed in 1998.
( Please give me a little bit long explaination)
In: Finance
Blue Ltd. has the following account balances at the end of the 2015 year.
|
Accounts payable |
30,000 |
Land |
100,000 |
|
Accounts receivable |
20,000 |
Long term debt |
115,000 |
|
Accumulated depreciation |
40,000 |
Prepaid expenses |
5,000 |
|
Building |
120,000 |
Repairs expense |
3,000 |
|
Cash |
5,000 |
Retained earnings (opening) |
86,800 |
|
Owners' capital |
140,000 |
Salaries expense |
155,000 |
|
Cost of goods sold |
315,000 |
Salaries payable |
10,000 |
|
Depreciation expense |
14,000 |
Sales |
520,000 |
|
Dividends |
3,500 |
Sales discounts |
1,800 |
|
Entertainment expense |
2,800 |
Sales returns and allowances |
4,000 |
|
Income tax expense |
10,500 |
Supplies |
1,000 |
|
Income tax payable |
5,000 |
Supplies expense |
1,200 |
|
Inventory |
165,000 |
Deferred revenue |
10,000 |
Retained earnings at the end of 2015 for Blue Ltd. is:
|
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|
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|
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|
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|
In: Accounting
What are a few of the typical investing activities for a company like Caesars Entertainment, developer and operator of high end hotels and casinos?
In: Accounting
In 2018, CBS Corporation submitted a below market bid to acquire Viacom. The rationale for the below market price bid stems from CBS’s due diligence of Viacom and numerous assumptions made by the Viacom management team about Viacom’s business prospects. In short, the CBS due diligence team discounted those statements made about Viacom’s business prospects by discounting the price offered. In addition to the perceived discounted price offered by CBS, there is a growing discord over who would run the combined CBS/Viacom entity. Shari Redstone of National Amusements is a majority shareholder in both CBS and Viacom. She has asked for CBS to acquire Viacom, but she believes that it is in the best interest of the new entity to be run by the current CBS CEO (Leslie Moonevs) and the number two position (COO and President) should be given to current Viacom CEO (Robert Bakish). However, CBS’s special advisory board believes that the current COO and President of CBS (Joe Ianniello) should have the number two position to ensure a smooth transition and continuity of operations. In response to the offer, Viacom’s advisory board has asked that CBS raise its bid by $2.8 billion. Company Backgrounds Viacom Inc . offers global media brands that create television programs, motion pictures, short-form content, applications, games, consumer products, social media experiences and other entertainment content. As of September 30, 2016, the Company offered its services for audiences in more than 180 countries. The Company operates through two segments: Media Networks and Filmed Entertainment. The Media Networks segment creates, acquires and distributes programming and other content for audiences The Media Networks segment provides entertainment content and related branded products for advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Animation, Insurge Pictures, Nickelodeon Movies, MTV Films and Paramount Television brands. CBS Corporation is a mass media company. The Company operates through four segments: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company's digital streaming services, CBS All Access and CBSN. The Cable Networks segment comprises Showtime Networks, which operates its subscription program services, Showtime, The Movie Channel, and Flix. The Publishing segment comprises Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Gallery Books. The Local Media segment comprises CBS TV Stations, it owns 30 broadcast TV stations; and CBS Local Digital Media. Its businesses span the media and entertainment industries, including the CBS TV Network, cable networks and content production and distribution.
Given the information from contained in the question and your limited understanding of CBS and Viacom, discuss four problems that may occur as a result of this acquisition based on the information contained in the question
In: Operations Management