BLC offers its customers two lawn maintenance services. One service is for a one-year maintenance plan at a cost of $180. Customers can earn a 5% discount from this price if they pay before BLC’s calendar fiscal year for maintenance services to be performed in the following year. The second service offered by BLC is a three-year maintenance plan that sells for $500. The first year’s maintenance service for this three-year plan will be delivered before BLC’s fiscal year end. No discount for early payment is offered for the second plan.

a) Prepare the summary journal entry for the cash sale of 180 one-time plans for the current year, 100 discounted one-time plans for the following year, and 280 three-year maintenance plans.

b) Determine the statement of financial position (SFP) classification of the unearned portion of the revenue collected.

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?

13. Briefly describe the three-stage model of memory, and explain how the memory stages interact. Also, explain how flashbulb memories demonstrate that emotions and memories are interrelated. In your opinion, how does this overlap between emotions and memories contribute to the accuracy of one’s memories?

USE THE INFORMATION BELOW FOR PROBLEMS 1-4

An analyst wishes to estimate the share price for Ashley Corporation. The following information

is made available:

Estimated profit margin = 15%

Total asset turnover = 2

Financial leverage = 1.2

Estimated dividend payout ratio = 75%

Required rate of return = 14%

Estimated EPS = $2.50

1. Calculate the firm's ROE.

2. Calculate the firm's sustainable growth rate.

3. Calculate the firm’s P/E multiple.

4. Calculate the firm’s estimated share price.

USE THE INFORMATION BELOW FOR PROBLEMS 5-8

At the end of the year 2004 the Office Equipment Industry had free cash flow to equity (FCFE)

of $2.50 per share. The following annual growth rates in FCFE are projected:

Year

Growth Rate

2005

10%

2006

15%

2007

20%

2008

25%

2009

20%

2010

15%

2011

10%

2012

7%

From year 2013 onward growth in FCFE is expected to remain constant at 5% per year. The

industry has a beta of 0.90 and the current industry price is $105. Currently the yield on 10-year

Treasury notes is 5% and the equity risk premium is 4%

5. Calculate the required rate of return on equity. (Hint: derived from CAPM)

6. Calculate the present value now (Year 2004) of FCFE during the period of increasing growth

(that is for years 2005 to 2008).

7. Calculate the present value now (Year 2004) of FCFE during the period of constant growth

(that is for years 2013 onwards).

8. Calculate the intrinsic value of the industry now (Year 2004).

Question 2 A survey released by New Zealand Health in 2015 revealed that:

• almost one in three adults (aged 15 years and over) were obese (31%)

• a further 35% of adults were overweight but not obese

• 47% of Māori adults were obese • 66% of Pacific adults were obese

• adults living in the most deprived areas were 1.7 times as likely to be obese as adults living in the least deprived areas*

• the adult obesity rate increased from 27% in 2006/07 to 31% in 2014/15

Imagine you are in charge of designing an effective social marketing advertising campaign to reach the target group of Maori and Pacific Island obese young adults aged between 18 and 30 that changes their attitudes towards healthy eating, exercise and fast food.

a) What would you advise to change their attitude through affecting the cognitive component of the attitude?

b) What would you advise to change their attitude through affecting the emotional component of the attitude?

Justify your answers using attitude theories and concepts

Explain the relationship between elasticity and total revenue for all three categories of elasticity

What are three software design and development factors which contribute to system errors and failures? What are three management and use problems which contribute to system errors and failures?

Q. what is the difference between Black-litterman and Stutzer’s 2004 optimisation approach ?