Questions
Thomson Reuters (TR) reports on a consolidated basis. It generates approximately $16KB worth of annual revenues....

Thomson Reuters (TR) reports on a consolidated basis. It generates approximately $16KB worth of annual revenues. It recently entered into a venture with another firm (Blackstone) to create a new company in which TR would hold approximately 45% of the stock of NewCo; and Blackstone would hold 55% of the stock (of the NewCo). TR then sold one line of business that typically generated about $8B of revenues to TR for approximately $20B.  

Since TR no longer owns the former business and is not a controlling owner of the NewCo how will this likely impact TR going forward?

How does this impact the financial statements (journal entries) ?

In: Accounting

Alpha Inc. is contemplating on investing in a manufacturing facility in China. As a consultant, you...

Alpha Inc. is contemplating on investing in a manufacturing facility in China. As a consultant, you are charged with doing the financial analysis for this project. You expect the cash flows (in Chinese RMB) for this project to last indefinitely. You estimated the following cash flows for 2019-2024 and that the cash flows will grow at a constant rate starting 2025. (12 points)  

Year

FCF

Other Data

2019

-80,000,000 RMB

Growth rate of RMB FCF starting 2025 = 3%

2020

9,000,000 RMB

Cost of Capital for similar U.S. Projects (WACC) = 15%

2021

10,000,000 RMB

Inflation in the U.S. = 2%

2022

2023

2024

12,000,000 RMB

16,000,000 RMB

20,000,000 RMB

Inflation in China = 6%

Spot rate = 6.5 RMB/USD

  1. What is the appropriate discount rate you should use to discount the RMB cash flows?
  2. What is the RMB NPV and IRR for this project? (If Excel is used, please cut and paste it here, showing all the cash flows and answers to this question.)
  3. What is the USD NPV for this project? (Please show your calculation converting RMB NPV to USD NPV
  4. What are the i) RMB cost of capital and ii) RMB NPV if inflation in China rises to 7% and the U.S. inflation drops to 1%

Please attach your spreadsheet

In: Finance

MXN is the symbol for the Mexican Peso. MXN/USD .05. A 2020 Toyota Supra costs $49,000...

  1. MXN is the symbol for the Mexican Peso. MXN/USD .05. A 2020 Toyota Supra costs $49,000 in the U.S. and 1,200,000 Mexican Pesos in Mexico. Based on this information, please answer the following questions.
  1. What is USD/MXP in real currency exchange rate terms?
  2. Is the USD over or undervalued?
  3. Where am I better off buying the Toyota Supra? In Mexico or in the U.S.?
  4. Based on the official/nominal MXN/USD currency exchange rate, what would I expect to pay for the Supra in Mexico?
  5. Based on the real cost of the same car in both countries, if Purchasing Power Parity (PPP) were to hold true, what would USD/MXN be?
  6. Based on the nominal currency exchange rate, if Purchasing Power Parity (PPP) were to hold true, what would I expect to pay for the Supra in the U.S.?

2) Lizzy owns a costume jewelry store in South Africa. She imports most of her jewelry from Zambia. She reads in the newspaper that Zambia is expected to lower interest rates. Is she better off waiting until Zambia actually lowers interest rates before she imports more jewelry from Zambia or should she import more jewelry now, before interest rates decline in Zambia? Explain your answer.

In: Finance

1. What does it mean biologically to be human? How can evolution explain both the unity...

1. What does it mean biologically to be human? How can evolution explain both the unity and diversity of human phenotypes? Use specific examples of evidence and some version of the following terms in your answer: neutral genetic variation, evolution, natural selection, drift/bottleneck/founder effect, migration, mutation, and species/population/lineage.

In: Biology

Which of the following is not true for allelic diversity: Select one: It can be used...

Which of the following is not true for allelic diversity:

Select one:

It can be used to infer past demographic processes like founder events

It can be used to detect recent population genetic bottlenecks

It can be related to future adaptive potential

All of the listed statements are true

When low, it can buffer populations against inbreeding depression

In: Biology

Benjamin Disraeli once said ‘there three sorts of lies: lies, big lies and statistics.’ If one...

  • Benjamin Disraeli once said ‘there three sorts of lies: lies, big lies and statistics.’ If one of the co-founders (Jevons) claim that for economics to be an exact science, a perfect system of statistics is necessary, while the other co-founder (Walras) rejects the use of statistics, even though both praise mathematics and quantative analysis, how to resolve this contradiction?

In: Economics

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of...

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer. Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data:

B: Percent increase for company 6 12 12 18 6 4 21 37

A: Percent increase for CEO 15 28 21 14 -4 19 15 30

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d = BA.)

(a) What is the level of significance?

State the null and alternate hypotheses.

H0: μd = 0; H1: μd > 0

H0: μd = 0; H1: μd < 0

H0: μd ≠ 0; H1: μd = 0

H0: μd = 0; H1: μd ≠ 0

H0: μd > 0; H1: μd = 0

(b) What sampling distribution will you use? What assumptions are you making?

The standard normal. We assume that d has an approximately uniform distribution.

The Student's t. We assume that d has an approximately normal distribution.

The Student's t. We assume that d has an approximately uniform distribution.

The standard normal. We assume that d has an approximately normal distribution.

What is the value of the sample test statistic? (Round your answer to three decimal places.)

(c) Find the P-value. (Round your answer to four decimal places.)

Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

Since the P-value ≤ α, we fail to reject H0. The data are statistically significant.

Since the P-value > α, we reject H0. The data are not statistically significant.

Since the P-value > α, we fail to reject H0. The data are not statistically significant.

Since the P-value ≤ α, we reject H0. The data are statistically significant.

(e) Interpret your conclusion in the context of the application.

Fail to reject H0. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.

Reject H0. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.

Reject H0. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.

Fail to reject H0. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.

In: Statistics and Probability

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of...

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data:

B: Percent increase
for company
22 6 12 18 6 4 21 37
A: Percent increase
for CEO
25 27 26 14 -4 19 15 30

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d = B ? A.)

(a) What is the level of significance?


State the null and alternate hypotheses.

H0: ?d = 0; H1: ?d < 0H0: ?d > 0; H1: ?d = 0     H0: ?d ? 0; H1: ?d = 0H0: ?d = 0; H1: ?d > 0H0: ?d = 0; H1: ?d ? 0


(b) What sampling distribution will you use? What assumptions are you making?

The Student's t. We assume that d has an approximately normal distribution.The Student's t. We assume that d has an approximately uniform distribution.     The standard normal. We assume that d has an approximately uniform distribution.The standard normal. We assume that d has an approximately normal distribution.


What is the value of the sample test statistic? (Round your answer to three decimal places.)


(c) Find the P-value. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ??

Since the P-value ? ?, we reject H0. The data are statistically significant.Since the P-value > ?, we fail to reject H0. The data are not statistically significant.     Since the P-value > ?, we reject H0. The data are not statistically significant.Since the P-value ? ?, we fail to reject H0. The data are statistically significant.


(e) Interpret your conclusion in the context of the application.

Reject H0. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.Fail to reject H0. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.     Fail to reject H0. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.Reject H0. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.

In: Statistics and Probability

How did you feel about your new position as programmer Analyst? Do you feel your academic...

How did you feel about your new position as programmer Analyst? Do you feel your academic preparation which is MBA has been sufficient for you to be able to fulfil your current job expectations? Explain why or why not.

PLEASE ANSWER IN 350 WORDS AND IN WORD FORMAT ONLY.

THANKS

In: Operations Management

7. (a) Among the four types of unemployment, identify the economically best type and explain why...

7. (a) Among the four types of unemployment, identify the economically best type and explain why it’s the best. (b) Identify the economically most costly type of unemployment and explain why it’s the most costly. (c) What type of unemployment are workers most likely to experience after they have earned an MBA degree? Explain.

In: Economics