The majority of company valuations today are based on multiples of revenues or EBITDA.Using the following data please state the company valuation for each of the scenarios below.[SaaS Revenue 4x multiple: Tech Enabled Service Revenue 1.5x multiple: Maintenance Revenue 2x multiple: Traditional Service Revenue 1x multiple: Positive EBITDA 15x multiple.]
In: Accounting
Julian, age 27 has 2 children, ages 4 and 3, from his first marriage. He is now married to Margaret. The children live with their mother, Alice. Julian and Margaret each make $26,000 per year and have recently bought a house for $100,000, with a $95,000 mortgage. They have the following life, health, and disability insurance coverage:
Policy A | Policy B | Policy C | |
Insured | Julian | Julian | Margaret |
Face Amount | 250,000 | 78,000 | 20,000 |
Type | 20 year level term | Group term | Group term |
Annual Premium | $250 | $156 | $50 |
Who pays premium | Trustee | Employer | Employer |
Beneficiary | Trustee | Alice | Julian |
Policy owner | Trust | Julian | Margaret |
Health Insurance: Julian and Margaret are covered under Julian’s employer plan, which is a Preferred Physicians Plan (PPO) with a $500 in network deductible per person per year co-insurance clause with a family annual out of pocket maximum of $2,500 and an out of network 60/40 coinsurance clause with a family out of pocket maximum of $4,500.
Long Term Disability Insurance: Julian is covered by an own occupation policy, with premiums paid by the employer. The benefit equals 60% of his gross pay after a 180 day elimination period. The policy covers both sickness and accidents. The benefit period is 5 years (60 months). Margaret is not covered by disability income insurance.
• Assume Julian dies. Who would receive the proceeds of the life insurance policies?
• Does Julian have adequate life insurance?
• Is Julian’s health and disability coverage adequate? If not, why not?
• Should Margaret have disability income insurance? Why or why not?
• Are any of the premiums or benefits received from the life, health, or disability income insurance taxable to Julian and Margaret?
In: Accounting
QUESTION 3 (15 Marks: 27 minutes)
Handyman Limited is a hardware wholesaler supplying goods to ‘do-it
yourself’ retailers around the country. The company commenced
operations at the beginning of the 20x3 year. The company has been
operating successfully for a number of years. Although turnover
increased consistently, the Company has recently been experiencing
cash flow problems. The managing director has approached you for
advice on how to improve this situation. The following amounts were
extracted from the records of the company:
20x3 20x4 20x5 C000s C000s C000s Turnover 100 000 120 000 135 000
Cost of sales 75 000 90 000 101 250 Profit before interest and tax
6 000 5 500 5 600 Accounts receivable 16 500 25 000 29 600 Account
payable 13 000 14 700 17 000 Inventory 18 750 26 000 30 400 Bank/
(overdraft) 5 000 (500) (2 000)
Required:
1. Identify and calculate the ratios that are needed to analyse the
company’s working capital for the periods 20x4 and 20x5.
2. Comment on the company’s working capital management in the light
of these ratios.
In: Accounting
Suppose you have just received a shipment of 27 modems. Although you don't know this, 3 of the modems are defective. To determine whether you will accept the shipment, you randomly select 8 modems and test them. If all 8 modems work, you accept the shipment. Otherwise, the shipment is rejected. What is the probability of accepting the shipment?
In: Math
Three genes in fruit flies affect a particular trait, and one dominant allele of each gene is necessary to get a wild-type phenotype. What phenotypic ratios would you predict among the progeny if you crossed triply heterozygous flies?
Multiple Choice
27:64
9:23
37:64
1:3
27:37
3:5
1:7
Would the answer be 27:37 wild to mutant?
In: Biology
1. The affordable method in establishing a total promotional budget for a company is based on:
A. How much the company can afford to spend on the promotional mix.
B. How much customers can afford to spend on the company’s product.
C. How much money it takes to reach all of the customers in the target market.
D. How much money is spent in average per each customer who makes a purchase.
2. Which of the following is not a method of determining a promotional budget?
A. The affordable methods
B. The percentage of sales methods
C. The competitive parity method
D. The competitive advantage method
3. The mix of promotional tools changes as the product goes through different stages in its lifecycle. This is because:
A. customers should rely on more than one method of promotion at each stage to make promotion effective.
B. customers view of the product differently and different communication strategies are necessary to emphasize the various elements of a product in each stage of the life cycle.
C. customers need reinforcement by multiple methods.
D. customers are generally skeptical of advertising.
4. A major hotel chain has implemented a very easy to use kiosk for check in. A recent ad for the hotel shows a business customer arriving at the hotel and using one of the kiosks to check in and retrieve a room key in less than a minute. This advertising is most likely to be executed as:
A. Lifestyle
B. Personality
C. Slice of life
D. Fantasy
In: Economics
In: Operations Management
In: Statistics and Probability
|
|
|
A. 53,000 B. 20,000 C. 86,000 D. 23,000 |
A.
Accounts Receivable and Utilities Expense.
B.
Accounts Payable and Service Revenue.
C.
Salaries Expense and Common Stock.
D.
Cash and Accounts Payable.
A.
copying the information from the journal to the ledger.
B.
copying the information from the ledger to the financial statements.
C.
entering the data into the journal.
D.
copying the information from the journal to the trial balance
A.
debit Accounts Receivable for $3,000
and credit Revenue for $3,000.
B.
debit Accounts Payable for $3,000
and credit Cash for $3,000.
C.
debit Cash for $3,000 and credit Accounts Payable for $3,000.
D.
debit Cash for $3,000 and credit Retained Earnings for $3,000
In: Accounting
Read the Case Study below and answer the questions that follow
Microsoft Xbox 360
When Microsoft rushed its video game console, Xbox, to market in November 2005 it had a one-year advantage over Sony and Nintendo. By 2007 they had sold over 11.6 million units at prices between $279 and $479 … depending on the configuration.
Unresolved issues plagued the project from the beginning. When Journalists and reviewers were invited to try the game in 2005, before it became available on store shelves, they encountered problems when connecting it to the internet (N’Gai, 2007). Shortly after the game was introduced to the public, users complained that the console damaged game disks and that these disks could no longer be used (Cliff, 2007). In 2005 Microsoft recalled the power cords concerned that they posed a fire hazard (Wolverton and Takanashi, 2007). Then in December 2006, in an apparent response to these and other issues, Microsoft extended the warranty from 90 days to one year.
But problems persisted. Blogs and forums complained about the “Red Ring of Death” referring to a string of three lights that illuminate on the console when a serious problem is detected. One survey found that the return rate was 33 percent (Cliff, E, 2007)
Then in July 2007, Robbie Bach, president of Microsoft’s Entertainment and Device Division, said that “In the past few months, we have been having to make Xbox 360 console repairs at a rate too high for
our liking” (Associated Press, 2007) (Mintz, 2007). Shortly thereafter, Microsoft announced an extension of the warranty from one to three years at an expected cost of $1 billion. This represented about $100 for every Xbox sold since its introduction in 2005.
Later in the same month Microsoft announced that its top gaming executive, Peter Moore, was leaving the company, but they denied that his departure was related to the Xbox’s engineering problems (Wingfield, 2007)).
Lessons Learned
Perhaps the dominant lesson here is the trap called “conservatism” in which new data is largely ignored to protect the status quo. Here, in the face of a continuous stream of product returns and customer complaints, those who were responsible for the project were unwilling to acknowledge that the problem was serious; that customer satisfaction and loyalty was deteriorating rapidly; that the product needed to be redesigned; and that customer satisfaction needed to be addressed.
The sunk cost trap also played its part. In the sunk cost trap, a course of action is not abandoned because considerable time or money has already been spent on the project, and those in charge are reluctant to abandon the project or take steps to delay the project in any way. For the Xbox, considerable investment in the product had already been made, sales were strong, and since the division had yet to turn a profit, there was pressure to continue at any cost. Returning to earlier stages of design, issuing a recall for the defective units, and replacing them with new units was apparently not a realistic option.
Question 1
1.2. “For the Xbox, considerable investment in the product had already been made, sales were strong, and since the division had yet to turn a profit, there was pressure to continue at any cost. Returning to earlier stages of design, issuing a recall for the defective units, and replacing them with new units was apparently not a realistic option.”
It is clear that Microsoft had to deliver the project on schedule; hence they could not recall the defective units. Identify and briefly explain the theory that relates to extract above.
1.3. Successful completion of a project requires finishing the scope of work within budget and a certain time frame whilst managing resource utilization, meeting quality expectations and managing risks. All this must be done while assuring customer satisfaction. Discuss how Microsoft could have managed project constraints to successfully deliver the Xbox 360 project.
In: Operations Management