Subject ; innovation and technology maangement
Many firm choose to enter the market early to get a number of advantages including the opportunity to do monopoly of the business. What are some benefits of entering market early? There are opportunities to enter the market late. Why a firm may choose to enter into a market late?
In: Computer Science
Many times, innovative idea comes from other industries or other fields of work, please provide one example of such innovation.
Read more about this from HBR's Sometimes the Best Ideas Come from Outside Your Industry (M. Poetz, N. Franke, and M. Schreier).
In: Operations Management
CE102-Total Leadership in Innovation
1. What are your greatest leadership strengths?
2.What are your opportunities for growth as a leader?
3.How can you capitalize on your strengths?
4.What can you do to improve in areas where you have opportunities for growth?
In: Civil Engineering
Suppose a company invests in technological innovation
and, therefore, has lower capital
stocks in the current period. What are the effects on current
aggregate output, consumption, investment, employment, real wage,
real interest rate, nominal interest rate, and price level? Explain
your results and show the graph.
In: Economics
Hi Tutor, nice to meet you. This is the task C of my (Entreprenuership and small business )assignment which is divided into several parts as well.
1 Definitions of creativity and innovation.
2 The main sources of generating business and entrepreneurial ideas.
3 How businesses protect intellectual property rights.
In: Operations Management
Hello This is my question tonight.
Sandhill Corporation had net income of $51,200 for the year
ended December 31, 2020, and a weighted average number of common
shares outstanding of 14,700. The following information is provided
regarding the capital structure:
| 1. | 7% convertible debt, 240 bonds each convertible into 41 common shares. The bonds were outstanding for the entire year. The income tax rate is 35%. The bonds were issued at par ($1,000 per bond). No bonds were converted during the year. | ||
| 2. |
4% convertible, cumulative $110 preferred shares, 1,100 shares issued and outstanding. Each preferred share is convertible into 3 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares $ Calculate the basic earnings per share for 2020 Basic earnings per share $ Calculate the after-tax interest paid on the 7% bonds.
|
In: Accounting
3. CDE Ltd has provided the following budgeted Income Statement extract for the July-September quarter in 2020.
July
August September
$,000
$’000
$’000
Sales (all on credit)
85
88
91
Purchases
(43)
(45)
(47)
Depreciation expense
(5)
(5)
(5)
Electricity expense
(6)
(6)
(6)
Other expenses
(25)
(25)
(25)
You are also given the following additional information:
In: Accounting
on september 30,2017, Gargiola inc. Issued 4millions of 10 year, 8% convertible bonds for 4.6millions. The bonds pay interest on march 31 and September 30 and mature on September 30, 2027. Each 1000$ bond can be converted into 80 no par value common shares. In addition, each bond include 20 detachable warrants. Each warrant can be used to purchase one common share at an exercise price of 15$. Immediately after the bond issuance, the warrants traded at 3$ each. Without the warrants and the conversion rights, the bonds would have been expected to sell for 4.2 million. On march 23, 2020, half of the warrants were exercised. The common shares of Gargiola inc. were trading at 20$ each on this day. Immediately after the payment of interest on the bonds, on september 30, 2022, all bonds outstanding were converted into common shares.
Required:
E) prepare the journal entry to account for the exercise of the warrants pro march 23, 2020. How many common shares were issued in this transaction?
In: Accounting
Question 5.
The Rubio’s Fantastic Cs is a medium-size, Los Angeles based company that has been in business for the last ten years. It specializes in manufacturing the air conditioners. Over the last two years, the Rubio’s has spent $20,000 developing a new energy efficient and eco-friendly air conditioner called EcoStar.
Suppose you are a financial consultant advising the Rubio’s on whether to build a new plant in San Diego that will manufacture the EcoStar. The current date is December 31, 2017. The plant will be built over the two years and will be ready to start production on January 1, 2020. The plant is expected to operate only for the two years and so it will cease production on December 31, 2021. The investment for the plant requires an outlay of $10 million to be paid at the end of 2017 year. The IRS rules prescribe that this expenditure is depreciated using the straight-line depreciation schedule (to 0$) over five years as soon as the plant starts producing. The plant is expected to be reselled for $5 million on December 31, 2021. The plant will be built on the land that could be rented out for $375,000 a year.
To launch the manufacture of the EcoStar, the firm would also need to acquire new equipment. The equipment will cost $1 million to be paid at the end of 2019 year and will be depreciated using the straight line depreciation over the two years the plant is manufacturing the EcoStar. After two-years of the manufacture the equipment has no salvage value.
The Fabio’s new plant will produce 100,000 air conditioners a year. The EcoStar air conditioner can be sold at $500 per unit. Raw materials costs are $220 per unit and total labor costs are $500,000 a year. These revenues and costs are expected to be the same for the two year the plant is producing.
The working capital required on December 31, 2019 to allow inventories to be financed during the first year of productions is $100,000. Working capital needs for the second year will be $200,000. When the plant ceases manufacture all the working capital will be recovered (i.e. working capital equals $0 on December 31, 2021).
The Rubio’s Fantastic Cs has a corporate tax rate of 20% and other profitable ongoing operations. The opportunity cost of capital for this kind of project is 10%.
For all questions state your solution in millions of dollars (i.e. instead of writing $1,000,000 write $1m).
Part (a) What are the depreciation tax shields associated with the purchase of new equipment?
Year Depreciation Schedule Depreciation Amount Depreciation Tax Shields
|
2017 |
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2018 |
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2019 |
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2020 |
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2021 |
|||
Part (b)
What are the depreciation tax shields associated with the new plant?
Year Depreciation Proportion Depreciation Amount Depreciation Tax Shields
|
2017 |
|||
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2018 |
|||
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2019 |
|||
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2020 |
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2021 |
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Part(c)
What is the book value of the equipment and plant in every year?
|
Year |
Book Value of Equipment |
Book Value of Plant |
|
2017 |
||
|
2018 |
||
|
2019 |
||
|
2020 |
||
|
2021 |
Part (d)
What is the capital gain tax (capital loss tax credit) that the firm incurs on December 31, 2021 when selling the plant?
Part (e)
What is the plant’s salvage value (net of taxes)?
Part (f)
What are the firm’s NOPAT in every year if the firm builds the plant and starts manufacturing the EcoStar? First, give the answers to the following questions and then fill in the table.
|
2017 |
2018 |
2019 |
2020 |
2021 |
||
|
+ - - - |
Revenues Raw Materials Costs Labor Costs Depreciation |
|||||
|
= - |
EBIT Tax |
|||||
|
= |
NOPAT |
|||||
Part (g)
What is the level of NWC (net working capital) required for the EcoStar manufacture in every year?
|
2017 2018 2019 2020 2021 |
|
Net Working Capital |
Part (h)
What are the free cash flows of the firm in every year that the firm manufactures the EcoStar?
|
In: Accounting
Supply Ltd entered into a non-cancellable five-year lease arrangement with Customer Ltd on 1 July 2019. The lease is for an item of machinery. There are to be five annual payments of $315 000, the first being made on 30 June 2020. The implicit interest rate is 12%. The Machinery is expected to have an economic life of six years, after which time it will have an expected residual value of $210 000. There is a bargain purchase option that Customer Ltd will be able to exercise at the end of the fifth year for $280 000. Customer Ltd determined that this contract contains a lease. REQUIRED: Prepare the journal entries in the books of the lessee (Customer Ltd) from 1 July 2019 to 30 June 2020 (the end of the reporting period). Show all working.
In: Accounting