The opening case discusses the problems facing Apple due to a strengthened U.S. dollar. Because of economic performance that has been higher than other economies, the U.S. economy has encouraged more investment, which has contributed significantly to the appreciation of its currency value. Based on these monetary issues, the currency changes cost Apple nearly $5 billion in revenue. As a result, the company must adapt to these trends. to hedge against future increases in the value of the U.S. dollar. That stated, should the company hedge too much, Apple could be exposed to too much risk.

1-a) Although Apple's general business model appears strong, what risks have resulted due to currency fluctuations in the global exchange market?

1-b) What are the drivers behind the increased value of the U.S. dollar? Is it something that Apple can control? Explain your answer.

You are a newly appointed employee at Cumiciki Berhad as Senior Manager for Special Function in CEO Office. This company is generally based on healthy drink product. On the first day reporting to Chief Executive Officer (CEO), you are informed that the company experiencing decline in revenue. This is because of certain factors including domestic market has saturated. As part of your special task force, you are required to come out with analysis to identify what are the issues and to find a new market opportunity on the international market. Give some recommendations on the current problem and what kind of entry strategy to international market.

Your assignment should follow the guideline below:

1. Introduction [10 MARKS]

• - General idea about multinational corporation

• - How business in global market environment?

  2. Body [60 MARKS]

• - What do you understand by “Go global”?

• - Explain how globalisation impact on your company.

• - Elaborate about entry mode of your choice.

• - Describe about the challenges of multinational company in international

  market by using Porter’s Five Forces Model.

• - Recommend several strategies on how to compete at international level.

  3. Closing [10 MARKS]

  - Conclusion
  

Egor, a United States citizen, is engaged in numerous, diverse operations and pays U.S. income tax at a rate of 37%. Egor owns MY LLC, a disregarded entity for U.S. tax purposes. MY LLC manufactures the ubiquitous product, widgets. U.S. sales result in $100,000 of taxable U.S.-source income. Egor projects that he could earn approximately $100,000 of net income in the United Kingdom (the "U.K."), where the corporate income tax rate is 20%. To further limit his liability (widgets being a very dangerous product); Egor’s MY LLC forms a private limited company in the United Kingdom. The private limited company in the U.K. is not a "per se" entity and, therefore, Egor (via the MY LLC) would consider checking-the-box to treat the private limited company in the U.K. as a disregarded entity. Assume that both the withholding tax rate on any dividends from a U.K. private limited company to the United States is 15% and that the title on all widget sales passes in the U.K.

1. What is Egor's foreign tax credit position in Year 1 if the U.K. private limited company is not "checked" as a disregarded entity and pays a dividend of $80,000 to the MY LLC?
2. What is Egor's foreign tax credit position in Year 1 if the U.K. private limited company is not "checked" as a disregarded entity and does not pay a dividend?

Company: Citigroup

Company analysis:

1)Full company name; home office (city, state, country); name of CEO and name of President or indicate if same; stock symbol; stock exchange where stock is traded; closing stock price as of the Friday before the date the project is due.

2)History of the company. Where was the company founded and who was/were the founders? Indicate any major events in the company’s history like mergers or acquisitions?

3)What primary industry does this company compete in and who are their major competitors. Is there any public economic data that indicates their overall competitive position?

4)What is the enterprise level strategy (mission/vision/values). What does the company stand for? Substantiate this, if you can, with research and citations. What is their “Brand Promise”?

5)Corporate level strategy. What is this strategy and if there are portfolio businesses, name the top three held by this company?

MBA 6400 Case Study #1

Short-term investment returns: money market instruments Part of your responsibilities as a junior financial analyst is researching and identifying potential short-term liquid investment options for your firm. These investment vehicles are at times used by the firm during periods when their cash inflows exceed projections. The firm, at times, uses excess cash to purchase short-term debt instruments providing a low, but safe marginal return on invested capital.

Your Director, who reports to the firm's Chief Financial Officer (CFO) has come to you seeking your recommendation on short-term investment options for the upcoming year. The Director has asked for recommendations and a report illustrating your optimal analysis for investing $2.5m of excess cash.  

Current background info: We have a potential impending compound money market problem: The U.S. is issuing more debt, in part due to the recent tax cuts. Simultaneously, the Fed, China, Japan and to a lesser degree Russia have been reducing their holdings of U.S. Debt. Therefore, if the U.S. Treasury Department can't get entities to their positions holding U.S. debt, then the pressure to increase interest rates to make newly issued securities attractive increases. Increased interest rates at the Treasury means securities prices fall with cascading impacts.

Therefore, the current interest rate environment is one where rates are expected to increase.

The analysis report to be presented to the Director is to include:

1. Your concise statement and recommendation of the specific short-term investment options that meets the firm's criteria.

2. A detailed summary of the investment asset and the parameters you will use in which to base your recommendation.

3. A detailed description of the upside and downside risk of each investment. The latter is of particular importance as the firm may decide to manage excess cash in one or more vehicles for longer than one year.

4. Source identifier for all investment selections

a. Example: website URL

5. A spreadsheet (embedded into the report) illustrating the following:

a. Asset category/classification

b. Specific money market instrument identifier i. Example: U.S. Treasury CUSIP

6. EAR for each investment

7. YTM for each investment

a. If held to maturity

b. If sold at the end of 12 months

8. Total return for investment portfolio if held to maturity

9. Spreadsheet model is to include all cell-based formulas for all calculations Your conclusion is to summarize the recommendation made in item #1 above Format for report.

Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement.

Listed below is information related to RRR Co’s manufacturing activities for the month of October 2020.

Ending Balance                       Beginning Balance

Materials Inventory                                                                 $197,000                                    $ 211,000

Work in Process Inventory                                                       59,000                                         78,000                    

Finished Goods Inventory                                                        91,000                                           82,000

During October 2020, RRR Company purchased $105,000 of raw materials and incurred direct labor costs of $77,100. The company applies overhead at a rate of 45% of direct labor cost. General, selling and administrative costs amounted to $36,100, and the company sold 39,400 units of its product at a price of $37.84 each.

Directions:

1. Prepare RRR’s schedule of cost of finished goods manufactured for October 2020.
2. Determine RRR’s cost of goods sold during October 2020.  
3. Prepare RRR’s income statement for the month ended October 31,2020 (ignoring interest expense and income taxes)

Cullumber Corporation had 102,000 common shares outstanding on December 31, 2019. During 2020, the company issued 12,000 shares on March 1, retired 6,800 shares on July 1, issued a 20% stock dividend on October 1, and issued 18,300 shares on December 1. For 2020, the company reported net income of $408,000 after a loss from discontinued operations of $64,000 (net of tax). The company issued a 2-for-1 stock split on February 1, 2021, and the company’s financial statements for the year ended December 31, 2020, were issued on February 28, 2021.

Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.75.)

The information below relates to a leasing arrangement between Summer Leasing Company and Talon Company, a lessee.
Inception date January 1, 2020
Lease term 6 years
Annual lease payment due at the beginning of
each year, beginning with January 1, 2020 $150,000
Fair value of asset at January 1, 2020 $760,000
Economic life of leased equipment 7 years
Residual value of equipment at end of lease term,
guaranteed by the lessee $65,500
Lessor’s implicit rate 10%
Lessee’s incremental borrowing rate 12%
January 1, 2020
The asset will revert to the lessor at the end of the lease term. The lessee has guaranteed the lessor a residual value of $65,500. The lessee uses the straight-line depreciation method for all equipment.
Instructions
(i) What is the lease liability for Talon Company?
(ii) Record the lease on Talon Company’s books at the date of inception.
(iii)Record the first year’s depreciation on Talon Company’s books.

The following information is related to Skysong Company for 2020.

Skysong Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Skysong sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.

Prepare a multi step income statement:

Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program. Ben currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $65,000 per year, and his salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $70,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $3,000 per year. Ben expects that after graduation from Wilton, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4 percent per year. Because of the higher salary, his average income tax rate will increase to 31 percent. The Bradley School of Business at Mount Perry College began its MBA program 16 years ago. The Bradley School is smaller and less well known than the Ritter College. Bradley offers an accelerated, one-year program, with a tuition cost of $85,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $4,500. Ben thinks that he will receive an offer of $92,000 per year upon graduation, with an $18,000 signing bonus. The salary at this job will increase at 3.5 percent per year. His average tax rate at this level of income will be 29 percent. Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $2,000 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.3 percent.

Please answer:

current salary______

years until retirement_____

salary increase______

tax rate____

Wilton

tuition per year____

books & supplies____

starting salary____

signing bonus____

salary increase_____

tax rate_____

Mount Perry

tuition per year____

books & supplies____

starting salary____

signing bonus____

salary increase_____

tax rate_____

Both schools

health insurance______

room & board_______

discount rate______