“US oil prices turned negative for the first time on record on Monday April 20th, 2020 after oil producers ran out of space to store the oversupply of crude left by the coronavirus crisis, triggering an historic market collapse which left oil traders reeling.” (The Guardian, April 20th, 2020) On April 21st, 2020 the US president Donald Trump tweeted: “We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan, which will make funds available so that these very important companies and jobs will be secured long into the future!”

a. Plot the price of oil (crude or brent) for the past 12 months period and explain the decrease in the price by using demand and supply framework.

Choose one existing incumbent that is being beaten by a challenger in business. In other words, identify and choose one incumbent that is struggling to survive in the market. Conduct a thorough analysis of the current conditions of this incumbent by referring to following relevant strategic analysis frameworks:

1. Porter’s Five Forces Model (refer to lecture 7) a. Degree of existing rivalry b. Threat of potential entrants c. Bargaining power of suppliers d. Bargaining powers of buyers e. Threat of substitutes

2. Stakeholders analysis (refer to lecture 7) a. Strategic stakeholder analysis b. Normative stakeholder analysis

3. Porter’s Value Chain Model (refer to lecture 7) a. Primary activities b. Support activities

4. PESTEL (Political, Economic, Social, Technological, Environmental, Legal),

5. SWOT (Strength, Weaknesses, Opportunities and Threats)

6. Technology cycle (refer to lecture 4) a. Era of ferment b. Era of incremental change

7. The Utterback and Abernathy Model or 3 Phases of innovation model (refer to lecture 4) a. Fluid Phase b. Transitional Phase c. Specific Phase

8. The McKinsey 7-S Model a. Hard elements (Strategy, Structure, System) b. Soft element (Shared Values, Skills, Style and Staff) .

Use at least 4 strategic analysis frameworks, identify and evaluate the current position of the incumbent and synthesize the findings. The first one (Porter’s Five Forces Model) is compulsory. In technology cycle and 3 phases of Innovation model, explain at which phase does the current position of the incumbent of our choice fall on. After assessing the incumbent’s current position, provide a detailed solution for this incumbent to re-emerge in the market. The solution has to be linked to innovation and new disruptive technologies. This will help to explain about the firm’s strategic intent. This solution should help to identify and explain the resources and capabilities required by the incumbent that helps to close the gap between its current position and its strategic intent. As part of the assessment, create a mind map to show the possible solutions.

hey there. can you write around 2000 words ( if possible plag free). that would be much appreciated.

1. The following table shows the data for Canada’s aggregate production function with constant return to scale and the output elasticity with respect to capital equal to 0.3.

a). Find the values of total factor productivity for the given years above.

I only used the Capital output elasticity(0.3) mentioned in the question here even though in my notes it mentions it being 0.7 in Canada

Y= (A)(K^αK*)(N^αN)

A= TFP, Y= GDP, K= Capital, N=Labor αK=Capital output elasticity, αN=Labor output elasticity

A= Y/(K^αK)(N^αN) THEREFORE

TFP(1961)= (264.5)/((525.6)^0.3(6.06)) = 6.65

TFP(1971)= (437.7)/((824.7)^0.3(8.08)) = 7.23

TFP(1981)= (647.3)/((1277.4)^0.3(11.31)) = 6.69

TFP(1991)= (808.1)/((1715.1)^0.3(12.86)) = 6.73

TFP(2001)= (1120.1)/((2071.1)^0.3(14.94)) = 7.59

TFP(2010)= (1325)/((2668.7)^0.3(17.04)) = 7.29

Just want to verify my numbers are correct here before moving forward?

b). Complete the following table by calculating the average annual growth rates (%) for GDP, capital stock, employment, and total factor productivity. While it is not necessary to show all your calculations, show the formulae you use, and also explain and illustrate how you obtain your answers.

An analyst is trying to value Jason’s Specialties (JS) stock. The analyst has collected data from the company and other sources to prepare the below financials, both actual and projected. Based upon these sources, the analyst expects the company’s free cash flows to grow at 4% on average. The analyst has estimated the company’s cost of capital (WACC) to be 16% and its cost of equity to be 21%. The risk-free rate is 2.3%..

1. Which items listed under Current Assets and Current Liabilities are typically excluded from NOWC? What is JS’s NOWC in years 2019 and 2020?

ncome statement for the fiscal year ending January 1 (Millions of dollars)

Balance sheets for the fiscal year ending January 1 (Millions of dollars)

An analyst is trying to value Jason’s Specialties (JS) stock. The analyst has collected data from the company and other sources to prepare the below financials, both actual and projected. Based upon these sources, the analyst expects the company’s free cash flows to grow at 4% on average. The analyst has estimated the company’s cost of capital (WACC) to be 16% and its cost of equity to be 21%. The risk-free rate is 2.3%..

1. Compute the firm’s FCF (free cash flow) for year 2020.
2. Find the value of the firm using DCF method and price per share assuming that there are 10,000,000 shares issued and outstanding..

Income statement for the fiscal year ending January 1 (Millions of dollars)

Balance sheets for the fiscal year ending January 1 (Millions of dollars)

Consider an annuity for 10 years, whose payments vary in geometric progression. An annual effective interest rate of 6% is used. Obtain the financial value at t = 29/05/2010 of this annuity considering different cases:

1. Annual payments increasing 3% annually. First payment (€1,650; 29/05/2011).
2. Annual payments increasing 5% annually. First payment (€1,650; 29/05/2011).
3. Monthly payments increasing 0.3% monthly. First payment (€175; 29/06/2010).
4. Monthly payments, constant during the year and increasing 4% annually. First payment (€175; 29/06/2010).

Presented below is information related to equipment owned by ALALI Company at December 31, 2010.

                        Cost                                                        SAR 7,000,000

                        Accumulated depreciation to date                  1,500,000

                        Value-in-use                                                  5,000,000

                        Fair value less cost of disposal                       4,400,000

Assume that ALALI will continue to use this asset in the future. As of December 31, 2010, the equipment has a remaining useful of 4 years.

Instructions

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2010.

Prepare the journal entry to record depreciation expense for 2011.

The recoverable amount of the equipment at December 31, 2011, is SAR 5,250,000. Prepare the journal entry (if any) necessary to record this increase.

Bonalli Shoe Company has been facing increased competition from overseas shoemak- ers. Its total assets and stockholders’ equity at the beginning of 2010 were $690,000 and $590,000, respectively. A summary of the firm’s data for 2010 and 2011 follows.

Required:

Use (1) liquidity analysis and (2) profitability analysis to document Bonalli Shoe Company’s declining financial position.

1. Suppose the base year is 2005, and the only goods in the economy are apples and bananas. In 2005 both apples and bananas cost $1, and 100 apples and 100 bananas are produced. In 2006, apples cost $20 and bananas cost $5, and 50 apples and 200 bananas are produced.

1. What is nominal GDP in 2005?                     
2. What is real GDP in 2005?                             
3. What is the GDP deflator in 2005?                

In 2006?              

In 2006?              

In 2006?              

4. Suppose the fixed basket of goods is 1 apple and 2 bananas.
5. What is the level of the CPI in 2005?                   In 2006?              
6. What is the CPI inflation rate from 2005 to 2006?               

2. What are the three effects that bias the measurement of CPI?

3. Which of the three effects listed in part c does each of the following illustrate?
   1. US households in 2010 spent a larger fraction of their income on televisions than they did in 1950.                                                                                         
   2. All televisions available in 2010 had higher resolution than any televisions available in 1950.                                                                                              
   3. In 1950, no US household had a plasma screen television, but in 2010 they are widely available.                                                                                          

4. Suppose the average television purchased in 1950 cost $200, and the average television purchased today costs $700.
   1. What is the percentage change in the average television price?

2. Taking into account the effects in part c, is this percentage increase likely an underestimate or overestimate of the true change in the cost of televisions?   

3. Why?                                                                                                        

5. Suppose CPI is as follows in each year:

Suppose in the year 2007 you are considering a job offer that pays $50,000 in 2007, plus a 10% (compounding) raise in each of the next three years.

1. What nominal salary will you make in each year?

2. What will your real salary be in each year, using a 2007 base year?

3. What will your real salary be in each year, using a 2009 base year?

4. In what year was your real salary highest?
5. Does your answer to 4 depend on the base year selected?                         
6. Suppose instead your contract gave you $50,000 in 2007, plus a cost of living adjustment equal to the percentage change in CPI. Compute the nominal wage in each year.

In what years is this contract better than the original one?