You graduated college six years ago with an undergraduate degree in Finance. Although satisfied with your current job, your goal is to become an investment banker, and you wonder if an MBA degree would allow you to achieve that goal. After examining schools, you have narrowed your choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools, to get credit for the internship, no salary can be paid. Other than internships, neither school will allow students to work while enrolled on the MBA program. However, thanks to a bequest from your grandmother, your savings account has enough money to cover the entire cost of the MBA program
You currently work a money management firm, earning $53, 000 annually. Your salary is expected to increase 3% per year until retirement. You expect to work for 38 more years. Your current job includes a fully paid health insurance plan. Your current average tax rate is 26%.
The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires 2 years of full-time enrollment at the university. Annual tuition is $58,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2,000 per year. Upon graduation from Wilton you expect to receive a job offer for about $87,000 per year, with a $10,000 signing bonus. Because of the higher salary, your tax rate will increase to 31%. Annual salary increases are expected to be at 4% per year.
The Bradley School of Business at Mount Perry College began its MBA program 16 years ago. The Bradley School is smaller and less well known than Ritter College. Bradley offers an accelerated one-year program; cost of tuition for the program is $75,000, to be paid upon matriculation. Books and other supplies are expected to cost $4,200. You think that you will receive an offer of $78,000 per year upon graduation, with an $8,000 signing bonus, resulting in an average tax rate of 29%. The salary at this job would increase 3.5% per year.
Both schools offer comparable health insurance that will cost $3,000 per year, payable at the beginning of the year. Both schools also offer graduate housing, that will result in a decrease to your current room and board expenses of $4,000 per year, whichever school you attend.
Assume the appropriate discount rate is 5.5%.
REQUIRED:
Respond to the following questions. Each response must comprise at least three complete sentences, with proper grammar and punctuation. All calculations that support your answers must be shown in their entirety. Cite any referenced materials using APA format.
1. Does your age affect your decision to get an MBA? If so, how?
2. What other, perhaps nonquantifiable, factors affect your decision to get an MBA?
3. Assuming all salaries are paid at the end of each year, what is your best option from a strictly financial standpoint?
4. A friend suggests that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement?
5. What initial salary would you need to receive to make you indifferent between attending Wilton University and staying in your current position?
6. Suppose that instead of being able to cover the cost of the MBA from your savings, you must borrow money. (The current borrowing rate is 5.4%) How does this affect your decision?
In: Finance
wo equal partners pitch Kevin O'Leary a $100,000 investment for 10%. Kevin counters with an offer of $250,000 for 30%. Jim Treliving jumps in and offers $200,000 for 15% Which deal is likely to happen? Why? How much will each co-founder own if a deal gets done. (Show all calculations and pizza pie diagrams you use) A year after that deal, they accept an additional offer of $2,000,000 for 50%. What % does each founder own after this deal. How much is that equity now worth? (Show all calculations and pizza pie diagrams you use)
In: Finance
Two equal partners pitch Kevin O'Leary a $100,000 investment for 10%. Kevin counters with an offer of $250,000 for 30%. Jim Treliving jumps in and offers $200,000 for 15% Which deal is likely to happen? Why? How much will each co founder own if a deal gets done. (Show all calculations and pizza pie diagrams you use)
A year after that deal, they accept an additional offer of $2,000,000 for 50%. What % does each founder own after this deal. How much is that equity now worth? (Show all calculations and pizza pie diagrams you use)
In: Accounting
Annie lists Mike, her former supervisor at Startup Inc. as a reference in her application for an open position at Tech Corp. When the Tech Corp. hiring manager calls Mike to ask about Annie, Mike falsely states that Annie was fired for leaking trade secrets. Mike actually knew that Annie quit because she was unhappy with how the business was being run, but was concerned her comments would get back to investors. Tech Corp. decides not to hire Annie based on Mike’s statement. Does Annie have a defamation claim?
Group of answer choices
A. Yes, because Mike knowingly provided a false statement that hurt Annie’s reputation by preventing her from being hired by Tech Corp.
B. Yes, but only if Mike made this false statement to everyone who called to ask about Annie’s work history.
C. No, because Mike has a qualified privilege.
D. No, since Annie could have chosen not to list Mike as a reference.
In: Finance
How is a venture’s WACC likely to change as it moves through a successful life cycle? What discount rates are typically used for development- stage, startup-stage, survival-stage, and early-growth-stage ventures?
In: Accounting
Explain why a startup might choose to issue equity instead of debt. Describe the nature of the equity. [Hint: When you supply financing (debt or equity) to a firm, what make it pay you back?]
In: Finance
Prepare a business model canvas for a startup which sells furniture using an AR based application (it projects the furniture)
You can assume anything if you feel the info is not sufficient.
please explain it clearly
In: Economics
Explain how the value of a social media network increases with the number of connections. Apply concept to explain why Facebook or Google often purchase new, unprofitable startup social media companies for billions of dollars.
In: Economics
| SHOW ALL WORK ON HOW ANSWER WAS ACQUIRED | |
On July 1, 2020, Crane Inc. made two sales.
| 1. | It sold land having a fair value of $915,830 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,441,072. The land is carried on Crane's books at a cost of $597,600. | |
| 2. | It rendered services in exchange for a 3%, 8-year promissory note having a face value of $402,550 (interest payable annually). |
Crane Inc. recently had to pay 8% interest for money that it
borrowed from British National Bank. The customers in these two
transactions have credit ratings that require them to borrow money
at 12% interest.
Record the two journal entries that should be recorded by Crane
Inc. for the sales transactions above that took place on July 1,
2020. (Round present value factor calculations to 5
decimal places, e.g. 1.25124 and final answers to 0 decimal places,
e.g. 5,275. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. Credit account titles
are automatically indented when the amount is entered. Do not
indent manually.)
|
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|---|
|
1. |
July 1, 2020 |
enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount | ||
| enter an account title | enter a debit amount | enter a credit amount | ||
| enter an account title | enter a debit amount | enter a credit amount | ||
|
2. |
July 1, 2020 |
enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount | ||
| enter an account title | enter a debit amount |
enter a credit amount |
In: Accounting
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In: Accounting