Hot & Cold and Caldo Freddo are two European manufacturers of home appliances that have merged. Hot & Cold has plants in France, Germany, and Finland, where Caldo Freddo has plants in the United Kingdom and Italy. The European market is divided into four regions: North, East, West, and South. Plant capacities (millions of units per year), annual fixed costs (millions of euros per year), regional demand (millions of units), and variable production and shipping costs (euros per unit) are listed in the following table.

Each appliance sells for an average price of 300 euros. All plants are currently treated as profit centers, and the company pays taxes separately for each plant. Tax rates in the various countries are as follows: France, 0.25; Germany, 0.25; Finland, 0.3; UK 0.2; Italy, 0.35.

1. Before the merger, what is the optimal network for each of the two firms if their goal is to minimize costs? What is the optimal network if the goal is to maximize after-tax profits?

It is estimated that 30% of university students are taking five or more classes this semester (let us call them full-load students). Among the full-load students, 20% are working part-time. On the other hand, among the non-full-load students, 60% are working part-time.

a) When a university student is randomly selected, what is the probability that one is a full-load student and working part-time? [2]

Define event A as: university students taking five or more classes (or being full-load students).

Define event B as: university students working part-time.

b) When a university student is randomly selected, what is the probability that one is working part-time but not taking full-load? [2]

Question 1

(a) If Company A has a price per share of $40 and an earnings per share of $10, and Company B has a price per share of $30 and earnings per share of $3,what is the P/E  

multiple of each.Which Company has a higher expected future earnings growth rate and why?

(b) How do we calculate the Times Interest Earned Ratio ? What does it tell us ?

(c) Why might a lender be more focused on liabilities - to- Assets Ratio rather than Debt- to- Equity Ratio ?

Question 4: (Marks: 3)

The following table represents the percentage of teenagers in some selected countries who have used marijuana and the percentage who have used other drugs.

1. Determine the correlation coefficient, rounded to two decimal places, between the percentage of teenagers who have used marijuana and the percentage who have used other drugs. Show your work.

2. Does the following statement make sense? Explain your answer.

“I found a positive correlation for the data presented in the table relating the percentage of teenagers in various countries who have used marijuana and the percentage who have used other drugs. I concluded that using marijuana causes the use of other drugs.”

You were hired as the CFO of a new company that was founded by three professors at your university. The company plans to manufacture and sell a new product, a cell phone that can be worn like a wrist watch. The issue now is how to finance the company, with equity only or with a mix of debt and equity. The price per phone will be $250.00 regardless of how the firm is financed. The expected fixed and variable operating costs, along with other data, are shown below. How much higher or lower will the firm's expected ROE be if it uses 60% debt rather than only equity, i.e., what is ROEL - ROEU?

(1) Analyze the financial statements below as an individual who would invest in this company. Would you invest? Why or why not? Support your answer using what you have learned and type an essay supporting your answer.

(2) Sales increase by 10 percent. What are the Additional Funds Needed (AFN)?

The balance sheet and income statement shown below are for Flowers, Inc.

Analyze the financial statements below as an individual who would invest in this company. Would you invest? Why or why not? Support your answer using what you have learned and type an essay supporting your answer. (5 points)

(2) Sales increase by 10 percent. What are the Additional Funds Needed (AFN)? (2 points)

The balance sheet and income statement shown below are for Flowers, Inc.

Balance Sheet (Millions of $)

Assets 2012

Cash and securities $ 1,554.0

Accounts receivable 9,660.0

Inventories 13,440.0

Total current assets $24,654.0

Net plant and equipment 17,346.0

Total assets $42,000.0

Liabilities and Equity Accounts payable $ 7,980.0

Notes payable 5,880.0 Accruals 4,620.0

Total current liabilities $18,480.0

Long-term bonds 10,920.0

Total debt $29,400.0

Common stock 3,360.0

Retained earnings 9,240.0

Total common equity $12,600.0

Total liabilities and equity $42,000.0

Income Statement (Millions of $)

2012

Net sales $58,800.0

Operating costs except depr'n $54,978.0

Depreciation $ 1,029.0

Earnings bef int and taxes (EBIT) $ 2,793.0

Less interest 1,050.0

Earnings before taxes (EBT) $ 1,743.0

Taxes $ 610.1

Net income $ 1,133.0

Other data:

Shares outstanding (millions) 175.00

Common dividends $ 509.83

Int rate on notes payable & L-T bonds 6.25%

Federal plus state income tax rate 35%

Year-end stock price $77.69

Please provide why or why not invest on this company. and why or why not AFN?

An individual who wishes to participate in crowdfunding a company must

Multiple Choice

• have at least 10 years of investment experience and a net worth of $500,000 or more.

• have a net worth of at least $1 million and net income of $200,000 or more in 2 of the last 3 years.

• be an SEC registered investor and have annual income of $250,000 or more.

• have a net worth of at least $500,000, annual net income of $200,000 or more in 2 of the last 3 years, and a minimum of 10 years of investment experience.

• have net income of $250,000 or more in 2 of the last 3 years along with a minimum net worth of $2 million.

This assignment is an individual-specific assessment of the industry in which you currently work or of the industry in which you intend to work after completing your MBA. You should discussion the sources of the value created within your particular industry.  Your brief document should address the following issues:

1. Brief description of your current or intended industry
2. Evaluation of the unique value created by your firm (for its customers) relative to all of its competition.  In other words, what makes your firm special for its customers.  The value may be derived from the quality of the product (relative to others on the market), customer service, overall purchase experience, or a combination of these and other factors.
3. Concluding discussion that addresses how the factors that influence value created in this industry may change over the next five years.

Questions about individual freedoms have formed the foundation of controversies and long-running debates about public health in the USA; conflicts that have been animated by a deep-rooted mistrust of overreaching authorities, concerns about arbitrary exercises of power, and by the anti-authoritarian ethos that is a historically prominent feature of US politics and civic culture.

Is it appropriate for the federal or state government to impose restrictions on competent adults in order to protect them from harming themselves? People who do NOT think it is appropriate, claim that public health officials can educate and warn, but not compel. As these ideas have gained wide influence, advocates of public health often need to assert that they intervene because the social consequences or negative externalities of certain behaviors warrant intervention; thus, self-regarding harms are transformed into other-regarding harms. In any event, the government seeks to use its authority to change individual behavior.

Using an example from the semester (listed below), do you believe is it appropriate for the federal or state government to impose restrictions on competent adults in order to protect them from harming themselves and others?

Covid 19 virus

Tobacco

Alcohol

Motor vehicle laws

STD partner notification

Reproductive rights