The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1) to 2011 (period 24) follows.

Develop a linear trend equation for this time series to forecast the budget (in billions of dollars). (Round your numerical values to three decimal places.)

T_t =

(c)What is the forecast (in billions of dollars) for period 25? (Round your answer to two decimal places.)

$    billion

A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to increase their annual revenue by approximately $10 million over the past 10 years. But increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown.

(b) Using Minitab or Excel, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.)

T_t =

(c) Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.)

$  million

The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1) to 2011 (period 24) follows.

Develop a linear trend equation for this time series to forecast the budget (in billions of dollars). (Round your numerical values to three decimal places.)

T_t =

(c) What is the forecast (in billions of dollars) for period 25? (Round your answer to two decimal places.)

$  billion

A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to increase their annual revenue by approximately $10 million over the past 10 years. But increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown.

Using Minitab or Excel, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.)

T_t =

(c) Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.)

$  million

Case: D13/06

The Taxpayer is a pioneer of nuclear medicine in Hong Kong. From 1980 to 1983, the Taxpayer was in private practice as a doctor. From about 1983 to 1989, he helped in the establishment of nuclear medicine services in a number of Hong Kong government hospitals. Sometime in 1989, the Taxpayer began to work in Country A as an Associate Professor at the Department of Radiology of the University B. Subsequently, he became the Chief of Nuclear Medicine Division and a Clinical Professor of Radiology at University B.

Dr H was a student of the Taxpayer back in about 1988. In around 1994, Dr H became the Chief of the Nuclear Medicine Division of the Department of Radiology and Radiotherapy (‘the Department’) of a Hong Kong private hospital (‘the Hospital’). In the later half of 1998, the Hospital wanted to expand its Nuclear Medicine Division with the purchase of a Cyclotron and a Positron Emission Tomography (‘PET’) scanner. Those were the latest medical technology. Dr H then approached the Taxpayer and persuaded him to come back from the Country A to work at the Department.

The contractual arrangement between the Hospital, Dr H and the Taxpayer may be seen to be somewhat unusual. The contractual arrangement was established via two companies, SA and

W. SA was a private company incorporated in Hong Kong on 28 July 1994. At all material times, Dr H and his wife were the only shareholders and directors of SA. W was a shelf company (incorporated in Hong Kong) acquired by the Taxpayer and it was activated on the 1 December 1998. On that day, the Taxpayer’s two brothers-in-law became shareholders and directors of W. They did so as the Taxpayer’s nominees. It is undisputed that the Taxpayer was at all material times the only beneficial owner and in control of W.

By a contract dated 27 October 1998 and signed on 2 December 1998 between SA and W (‘Contract C’), W agreed to procure the Taxpayer to work at the Department for five years from 1 December 1998 to 30 November 2003. Under Contract C, W was entitled to a monthly remuneration of not less than HK$220,000 and bonuses if certain gross receipt targets were met. By a contract dated 10 November 1998 between SA and the Hospital (‘Contract D’), SA agreed to assign Dr H and the Taxpayer to work at the Department for a five year period which mirrored that of Contract C. Under Contract D, SA was entitled to a remuneration of HK$440,000 per month and bonuses when certain gross receipt targets were met.

By an employment contract dated 1 December 1998 (‘Contract E’), the Taxpayer was employed by W to provide managerial and consultative services for a term of 10 years commencing on 1 December 1998. Under Contract E, W would pay the Taxpayer an annual salary of not less than HK$456,000 plus various allowances and benefits.

Under s 9A(1), the IRD believed that the relevant person was the hospital and the relevant agreement was Contract D. The IRD referred to s 9A when determining the taxability of the remuneration derived by W for the provision of taxpayer’s services to the hospital:

s 9A(3)(a): whether the agreement provided for various kinds of leave, allowances, pension entitlements, accommodation, etc. In respect of this section, both the IRD and the Taxpayer agree that s 9A(3)(a) has been satisfied

s 9A(3)(b): whether the tax authority is satisfied that the Taxpayer carried out the same or similar services for others during the term of Contract D

s 9A(3)(c): whether the tax authority is satisfied that the Taxpayer was subject to control or supervision commonly exercised by employer

s 9A(3)(d): whether the tax authority is satisfied that the Taxpayer was paid periodically and on a basis commonly used in employment contracts

s 9A(3)(e): whether the tax authority is satisfied that the Hospital had a right to cause the Taxpayer’s services to cease to be carried out in a manner, or for a reason, commonly provided for in relation to the dismissal of an employee under a contract of employment

s 9A(3)(f): whether the tax authority is satisfied that the Taxpayer held out to the public as an officer or employee of the Hospital

s 9A(4): whether the tax authority is satisfied that the Taxpayer was not in substance an employee of the Hospital

Question 1

Who was the relevant individual?

Question 2

To whom the remuneration for the Taxpayer’s services was paid?

Question 3

Besides s 9A(3)(a), all of s 9A(3)(b) to (f) have not been satisfied. Has s 9A(4) been satisfied?

Calculate the following for each of the years listed

A. Debt/ Equity ratio

B. Debt/asset ratio

C.Profit Margin (as a %)

D. Gross Margin (as a %)

E. Calculate the change in profit margin over each year

Exhibit 1: Iggy’s Financial Statements, 1994-1999

Apple Computer has a market capitalization (market value of equity) of $420 billion.
The company has no debt outstanding, a cash balance of $140 billion and is in two
businesses, computers and entertainment, with the computer business having a value
three times that of the entertainment business. The computer business has an
unlevered beta of 1.50 and the entertainment business has an unlevered beta of 1.20.
a. Estimate the beta for Apple’s stock, given its current standing. (1 point)
b. Assume that Apple is considering entering the television business. The median
regression beta for companies in this business is 0.988, the median debt to
equity ratio for these companies is 50% and the median cash as a percent
of firm value is 5%. Estimate the unlevered beta of being in the television
business. (The marginal tax rate for all firms is 40%) (1 point)
c. Now assume that Apple plans to borrow $80 billion to augment their cash
balance and do the following:
? Invest $ 70 billion on the iTV, a flat panel, high-resolution
television, thus entering the television business.
? Pay a special dividend of $100 billion
Estimate the beta of Apple’s equity after this transaction. (The marginal tax
rate is 40%) (3 points)

In FY 2007, what Lovallo & Sibony counter-balancing practice did the Blockbuster Board deploy? What cognitive bias was the practice intended to address? What is Blockbuster's value proposition and what L&S cognitive bias best describes it? Select the single best available answer from those presented below.

A) Shaking things up by firing Mr. Antioco and hiring Mr Keyes as CEO; Anchoring and insufficient adjust bias; a value-priced entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience; inappropriate attachment.

B) Purchased MovieLink, LLC; Champion bias; a value-priced entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience; inappropriate attachment.

C) Shaking things up by firing Mr. Antioco and hiring Mr Keyes as CEO; Anchoring and insufficient adjust bias; 4,855 stores in the United States; Overconfidence.

D) Purchased MovieLink, LLC; Excessive Optimism; a value-priced entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience; inappropriate attachment.

In FY 2007, what Lovallo & Sibony counter-balancing practice did the Blockbuster Board deploy? What cognitive bias was the practice intended to address? What is Blockbuster's value proposition and what L&S cognitive bias best describes it? Select the single best available answer from those presented below.

A) Shaking things up by firing Mr. Antioco and hiring Mr Keyes as CEO; Anchoring and insufficient adjust bias; a value-priced entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience; inappropriate attachment.

B) Purchased MovieLink, LLC; Champion bias; a value-priced entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience; inappropriate attachment.

C) Shaking things up by firing Mr. Antioco and hiring Mr Keyes as CEO; Anchoring and insufficient adjust bias; 4,855 stores in the United States; Overconfidence.

D) Purchased MovieLink, LLC; Excessive Optimism; a value-priced entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience; inappropriate attachment.

Digicel’s objective is to be the leading communications and entertainment platform in each of the markets it serves by focusing on maintaining and improving its position, by providing customers with wider mobile coverage, more innovative products and features, a superior customer experience and better value compared to its competitors.

Required: note the organization’s stated objectives and identify at least 3 key challenges and 3 key benefits. Also, explain briefly why do you consider the objectives to be key challenges and/or benefits?

Bringing IBM to the industry of sports of entertainment will benefit sports teams such as the raptors to efficiently analyze basketball statistics in order to determine the right players to go with making the ideal definition of what a dream team is to a coach. My only concern is that what if all teams in a sports league uses IBM Watson? If all teams used Watson, would it ruin the love for the game or enhance it? If there's one thing that people hate when it comes to sports, its to see the team that they are supporting are nowhere close in the contention for a championship. Having said that, IBM Watson would be able to help that team, improve that team in order to give them a fighting chance. This will enhance the love for the game. However, if all teams used IBM Watson, it could leave many teams disappointed. The reason why sports teams would use Watson is to improve their team in order to win a championship. The issue with that is that there can only be one champion. It would cost a team about $80 a month to use IBM Watson as a tool assuming that they would require the highest premium account in order to go through so much data regarding many different players. Now, I know that $80 a month is nothing compared to what teams play for players, but it can definitely be costly when the goals of the team are not being met. By spending money for IBM Watson to improve the performance and efficiency of the team, and are unsure whether or not the team will be guaranteed a championship victory, it is a gamble. Anyways, that's my take on IBM in terms of sports.

Please address any concerns for I would like to know what others take on this concern.

Costings for the use of IBM Watson provided here.
https://www.ibm.com/watson-analytics/pricing

Regression Equation: Slope:  

Intercept:  

Equation of the predicted line: