Suppose that nominal GDP was $9000000.00 in 2005 in Orange County California. In 2015, nominal GDP was $11000000.00 in Orange County California. The price level rose 2.50% between 2005 and 2015, and population growth was 3.25%. Calculate the following figures for Orange County California between 2005 and 2015. Give all answers to two decimals. a

Part 1 Nominal GDP growth was %.

Part 2 . Economic growth was %.

Part 3 Inflation was %.

Part 4 Real GDP growth was %.

Part 5 Per capita GDP growth was %

Part 6 Real per capita GDP growth was %.

NEW YORK -- Herbalife, a Los Angeles-based health and nutrition company, bribed Chinese government officials for a decade to grow its overseas business and falsified accounting records to cover up the payments, U.S. prosecutors said Friday in announcing corruption charges against the publicly traded company.

Herbalife agreed to pay combined penalties of more than $123 million to resolve the charges, federal prosecutors said.

The company admitted to the conspiracy as part of a deferred prosecution agreement it reached with the U.S. Justice Department and the U.S. Attorney's Office in Manhattan.

The charges were brought under the Foreign Corrupt Practices Act, which prohibits bribery of foreign government officials or company executives to secure or retain business.

Herbalife did not immediately respond to a message seeking comment.

Company officials began paying off Chinese government officials in 2007 in a bid to obtain licenses from national and local authorities the company needed to sell health and nutrition products.

They also bribed a state-owned media outlet “for the purpose of removing negative media reports about Herbalife China,” prosecutors said.

Herbalife falsely recorded the improper payments as “travel and entertainment expenses,” prosecutors said.

Herbalife has long been embroiled in litigation and regulatory actions over its business practices, which have been compared by some to a pyramid scheme.

Prosecutors said the company also agreed to pay more than $67 million in disgorgement — repayment of ill-gotten gains — and prejudgment interest to the Securities and Exchange Commission.

Question - What are your thoughts about this company? Violations of the Foreign Corrupt Practices Act are alleged. Do you think such regulations/laws are outdated?

CA2-5 (Revenue Recognition Principle) After the presentation of your report on the examination of the financial statements to the board of directors of Piper Publishing Company, one of the new directors expresses surprise that the income statement assumes that an equal proportion of the revenue is recognized with the publication of every issue of the company’s magazine. She feels that the “crucial event” in the process of earning revenue in the magazine business is the cash sale of the subscription. She says that she does not understand why most of the revenue cannot be “recognized” in the period of the cash sale.

Instructions Discuss the propriety of timing the recognition of revenue in Piper Publishing Company’s accounts with:

(a) The cash sale of the magazine subscription.
(b) The publication of the magazine every month.
(c) Over time, as the magazines are published and delivered to customers.

On January 2, 2006, in the strategic committee meeting of the company, Christine Carmen Chairman, President and Chief Executive Officer said, we are optimistic about 2006 and the years beyond. The proposed projects presently under consideration will enable us efficiently to expand our productivity in order to meet ever-increasing customers demand with high quality engineered products and systems for defense, aerospace and industrial applications.

Carmen Corporation is a supplier of sophisticated, highly engineered products and systems for defense, aerospace and industrial applications. The Company has three business segments.

The Company's Defense segment provides integrated front-line war-fighting systems and components, including electronic warfare systems, reconnaissance and surveillance systems, aircraft weapons suspension and release systems and airborne mine countermeasures systems.

The Company's Communications and Space Products segment supplies antenna products and ultra-miniature electronics and systems for the remote sensing, communications and electronic warfare industries.

The Company's Engineered Materials segment supplies piezoelectric ceramic products for commercial and military markets and advanced fiber composite structural products for the aircraft, communication, navigation, chemical, petrochemical, paper, and oil industries.

Carmen Corporation has the following financial statements:

Its established common stock’s dividend payout ratio after the preferred stock dividends payment is 50 percent and it is expected to grow at a constant rate of 9 percent in the future. The tax rate is 40 percent and investors requiring a rate of return of 15% on the common stock.

Preferred stock is trading at a price of $40 per share, with a dividend of $4.8. The 30-year long-term debt with a par value of $1,000 was issued 10 years ago with a coupon rate of 8%. The bonds can be refinanced at the market interest rate of 10 percent today.

Carmen has the following investment opportunities:

Although the average project in the Defense Segment was substantially riskier than communications and Space Products segment and Engineered Materials segment, the project evaluation process did not formally incorporate risk considerations. This lack of risk consideration was more evident in the Communications and Space Products segment and Engineered Materials segments, since their productions, earnings, and profits were highly correlated and fluctuated with the economy. As a result, these segments provided a very stable income to the company. On the other hand, the Defense segment provides military products and professional services to the United States and allied governments, and their prime defense contractors and as a result, the earnings and profits of the Defense segment tended to be tied to the world geo-political environment.

Carmen has gathered the following beta for each segment based on comparable companies:

Project             Defense           Com. Space     Eng. Materials                        

Beta                 1.50                 1.20                 0.80                

The risk-free rate is 5% and rate of the market risk premium 9.0%.

1) Calculate the required rate of return for each project?

2) Compare the required rate of return with expected rate of return, according to the risk characteristics of each project; which project is appropriate to take?

On January 2, 2006, in the strategic committee meeting of the company, Christine Carmen Chairman, President and Chief Executive Officer said, we are optimistic about 2006 and the years beyond. The proposed projects presently under consideration will enable us efficiently to expand our productivity in order to meet ever-increasing customers demand with high quality engineered products and systems for defense, aerospace and industrial applications.

Carmen Corporation is a supplier of sophisticated, highly engineered products and systems for defense, aerospace and industrial applications. The Company has three business segments.

The Company's Defense segment provides integrated front-line war-fighting systems and components, including electronic warfare systems, reconnaissance and surveillance systems, aircraft weapons suspension and release systems and airborne mine countermeasures systems.

The Company's Communications and Space Products segment supplies antenna products and ultra-miniature electronics and systems for the remote sensing, communications and electronic warfare industries.

The Company's Engineered Materials segment supplies piezoelectric ceramic products for commercial and military markets and advanced fiber composite structural products for the aircraft, communication, navigation, chemical, petrochemical, paper, and oil industries.

Carmen Corporation has the following financial statements:

Its established common stock’s dividend payout ratio after the preferred stock dividends payment is 50 percent and it is expected to grow at a constant rate of 9 percent in the future. The tax rate is 40 percent and investors requiring a rate of return of 15% on the common stock.

Preferred stock is trading at a price of $40 per share, with a dividend of $4.8. The 30-year long-term debt with a par value of $1,000 was issued 10 years ago with a coupon rate of 8%. The bonds can be refinanced at the market interest rate of 10 percent today.

Carmen has the following investment opportunities:

Part II Although the average project in the Defense Segment was substantially riskier than communications and Space Products segment and Engineered Materials segment, the project evaluation process did not formally incorporate risk considerations. This lack of risk consideration was more evident in the Communications and Space Products segment and Engineered Materials segments, since their productions, earnings, and profits were highly correlated and fluctuated with the economy. As a result, these segments provided a very stable income to the company. On the other hand, the Defense segment provides military products and professional services to the United States and allied governments, and their prime defense contractors and as a result, the earnings and profits of the Defense segment tended to be tied to the world geo-political environment.

Carmen has gathered the following beta for each segment based on comparable companies:

Project             Defense           Com. Space     Eng. Materials                        

Beta                 1.50                 1.20                 0.80   

The risk-free rate is 5% and rate of the market risk premium 9.0%.

1)Calculate the required rate of return for each project?

2)Compare the required rate of return with expected rate of return, according to the risk characteristics of each project; which project is appropriate to take?

At a meeting of the board of directors of Barby Limited it was decided :

1. To redeem the redeemable preference shares of the company on 30 September 2006.

2. To achieve this by a fresh issue of the maximum number of ordinary shares of permissible without the necessity of calling a meeting of shareholders.

3. That the issue price for the proposed issue would be R1, 20 per share

4. That the redemption should be made in such a way that would have the minimum effect on distributable reserves.

5. That after the redemption and the issue have been made, a proposal be put to the shareholders in a general meeting that increased the authorized share capital by an amount sufficient to allow capitalisation issue of one ordinary share for every two ordinary shares already held. This is also to be arranged so that there is a minimum effect on distributable reserves.

The following information has been extracted from the accounting records of Barby Limited at 31 August 2006

80 000 ordinary shares of no par value - stated capital R72 500

25 000 12% redeemable preference shares of R2 each 50 000

Share premium account 2 500

Surplus on revaluation of land 50 000

Retained earnings 65 000

Notes

1. The redeemable preference shares are redeemable at a premium of 20c per share at any time at the option of the company.

2. The authorized share capital of the company is: • 100 000 ordinary shares of no par value; and • 25 000 redeemable preference shares of R2 each.

3. The directors have the power to issue unissued shares.

4. The company has sufficient cash, together with the proceeds of the fresh issue, to make any payments which may be required.

5. The company earned a net income after taxation of R5 000 for the month of September 2006.

6. Expenses related to the share issue amount to R1 000.

7. The year end of the company is 31 March.

Required

(a) Record the journal entries required to give effect to the redemption and the fresh issue of shares on 30 September 2006, in accordance with the directors' decisions in point 1 to 4.

(b) Prepare the 'Capital Employed section of the balance sheet, as it would appear immediately after the redemption and fresh issue. Presentation must comply with requirements of the Companies Act. Show all working separately.

(c) Illustrate by means of a pro forma journal entry the effect of the directors' decision (point 5), if it should be confirmed by the shareholders.

(d) Give one good reason for the elaborate provision made by the Companies Act regulating the procedure for the redemption of redeemable preference shares.

3. (Revenue Management) Berkeley Bed and Breakfast has 12 rooms, the room price is $200 per night, the marginal cost of cleaning, etc., for having a room occupied is $30, and it costs the B&B $100 to turn away customers who have reservations. Customers with reservations have a 5% chance of canceling, without penalty. Assume there are no walk-ins (all customers reserve in advance). How many reservations should be accepted to maximize the expected profit? (Hint: This will require a little bit of trial and error, and this is not a newsvendor problem.)

On August 1, 2017, the following were the account balances of B&B Repair Services.

During August, the following summary transactions were completed.

Adjustment data:

1. A count shows supplies on hand of $960.
2. Accrued but unpaid employees' salaries are $1,540.
3. Depreciation on equipment for the month is $320.
4. Services were performed to satisfy $800 of unearned service revenue.
5. One month's worth of advertising services has been received.
6. One month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual interest rate. (Hint: Use the formula from Illustration 4-18 to compute interest.)

Instructions

(a) Enter the August 1 balances in the ledger accounts. (Use T-accounts.)

(b) Journalize the August transactions.

(c) Post to the ledger accounts. B&B's chart of accounts includes Prepaid Advertising, Interest Receivable, Service Revenue, Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.

(d) Prepare a trial balance at August 31.

(e) Journalize and post adjusting entries.

(f) Prepare an adjusted trial balance.

(h) Journalize and post closing entries and complete the closing process.(g) Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31.

(i) Prepare a post-closing trial balance at August 31.

13. Answer the following 3 questions for number 13.

What are the benefits accruing to a company that is traded in the public securities markets?

What are the disadvantages to being public?

How does a leveraged buyout work? What does the debt structure of the firm normally look like after a leveraged buyout? What might be done to reduce the debt?