Q4. What is the role of marketing in an organization?

(Please the Expert needs to submit a detailed answer which must be a standout in a very competitive MBA Marketing Class).

There are two types of genetic drift. Describe and give an example of both the bottle neck effect and the founder effect.

Your assignment should be 250-500 words in length.

this issue is valuation for a startup company. What do you find to be the most challenging when working with valuation? Why do you think that is? Also, consider what you think to be the most appropriate valuation method. Explain.   

David Jetter graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Prentice University or Mount Alliance College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program.

David currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $50,000 per year, and his salary expected to increase at 3 % per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 %. David has savings account with enough money to cover the entire cost of his MBA program.

The Ritt College of Business at Prentice University is one of the top MBA programs in the country. The MBA degree requires two years of full time enrollment at the university. The annual tuition is $65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $3000 per year. David expects that after graduation from Prentice, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4 % per year. Because of the higher salary, his average income tax rate will increase to 31 %.

The Bradel School of Business at Mount Alliance College began its MBA program 16 years ago. The Bradel School is smaller and less well known than the Ritt College. Bradel offers an accelerated, one – year program, with a tuition cost of $80,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $4,500. David thinks that he will receive an offer of $92,000 per year upon the graduation, with an $18,000 signing bonus. The salary at this job will increase at 3.5 % per year. His average tax rate at this level of income will be 29 %.

Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. David also estimates that room and board expenses will cost $2,000 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.5 percent.

1. How does David’s age affect his decision to get an MBA? Explain why?

2. What other, perhaps non- quantifiable factors affect David’s decision to get an MBA? Explain in detail

3. Assuming all salaries are paid at the end of each year, what is the best option for David – from a strictly financial standpoint? Explain why in detail with calculations.

4. David believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? So what is the future value of each option?

5. What initial salary would David need to receive to make him indifferent between attending Prentice University and staying in his current position?
Explain in detail with calculations.

Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools, to get class credit for internship, no salary can be paid. Other than internships, neither school will allow his students to work while enrolled in its MBA program. Ben currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $50,000 per year, and his salary is expected to increase 3 percent per year until retirement. He is currently 28 years old and expected to work for 35 more years. His current job includes a fully paid health insurance plan, and his currently average tax rate is 26 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the University. The annual tuition is $60,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2,500 per year. Ben expects that after graduation from Wilton, he will receive a job offer for about $95,000 per year, with a $15,000 signing bonus. The salary at this job will increase 4 percent per year. Because of the higher salary, his average tax rate will increase to 31 percent. The Bradley School of Business at Mount Perry College began its MBA 16 years ago. The Bradley School is smaller and less well known than Ritter College. Bradley offer an accelerated , one-year program, with a tuition cost of $75,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $3,500. Ben thinks that he will receive an offer of $78,000 per year upon graduation, with a $10,000 signing bonus. The salary at this job will increase at 3.5 percent per year. His average tax rate at this level of income will be 29 percent. Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $20,000 per year at either school. The appropriate discount rate is 6.5 percent.

Given the case above, use Excel spreadsheet to analyze problems 3 and 4. Inside the Excel file, also answer questions 1 and 2 in brief discussion.

1. How does Ben's age affect his decision to get an MBA?

2. What other, perhaps nonquantifiable factors affect Ben's decision to get an MBA?

3. Assuming all salaries are paid at the end of each year, what is the best option for Ben-from a strictly financial point?

4. What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current position?

Trina’s Trinkets Inc. (Trina’s) is a corporation incorporated and headquartered in Orem, Utah. Trina’s sells more than 3,600 different types of small trinkets and gifts, primarily to the end consumer, but also to wholesalers.  

Trina’s has operated in Utah for the past 15 years. The company made a strategic decision to target expansion of its sales into specific geographic regions outside of Utah as well. This helps encourage word-of-mouth advertising, which reduces the costs of general advertising expenses. To that end, Trina’s is now selling in several nearby states, including Arizona, Idaho, Montana, Washington and Wyoming. Trina’s plans to expand further throughout the western United States in the coming years.

The founder, Trina, comes from rural Utah and has worked to increase opportunities in rural areas by building her manufacturing and warehousing facilities in the city of Ephraim in Sanpete County, Utah. Since Trina’s established its operations in Ephraim, both the city and county have grown significantly and the area is now considered urban.  

Trina’s uses catalogs, phone calls and sales calls to make sales, but does not yet sell online. Trina’s ships all goods from Ephraim, Utah, using a third-party carrier (e.g., UPS, FedEx).^[1]Trina’s only sells non-food items and does not offer services.

To handle customer inquiries, Trina’s opened a small call center in rural Riverton, Wyoming, three years ago. The call center employs eight people who help take orders, solve customer issues and take care of phone solicitations from small businesses. Trina chose Wyoming for the call center because she has extended family in the area and wanted to provide work opportunities for them.

In 2017, Trina’s began a pilot program in which salespeople are sent to several states to try and increase sales at larger businesses that buy Trina’s products and then resell them. To date, Trina’s has sent salespeople to Utah, Montana and Washington. This pilot program appears to be successful. In the coming years, Trina’s hopes to expand the program to all of the states in which she currently sells products and then she plans to reach several new markets.

Margins are slim for this business, ranging from 5% to 15% of sales before state sales taxes are determined. The industry is extremely competitive and Trina’s faces competition from many online companies that are not required to pay state sales tax. Because of the high competition (which is different than most companies), Trina’s does not feel that it can increase prices to collect sales tax, and instead sales taxes come out of the margins.

Given the tight margins and relatively high costs to manufacture in the United States, Trina is considering moving some of her manufacturing to Mexico and then purchasing warehouse space in Arizona. She has also considered trying to sell her products through Amazon.com. She continues to consider how her operations can positively impact rural areas.

Trina’s has struggled to compute sales taxes correctly for each jurisdiction. Trina’s hired you, a tax advisor, to answer a variety of sales-tax-related questions and create a system (or tool) to compute sales taxes for the business. Additionally, Trina is interested to know how the potential operational changes she is considering would affect her sales tax collection obligations.

For purposes of this case, you can ignore sales tax issues related to the shipping costs.

• Provide the most important operational and tax policy issues related to collecting state sales taxes.
  • This should not be specific to Trina’s specific circumstances or a particular state, rather it should discuss the important principles and considerations that should be considered when analyzing the state sales tax collection process for any business.
  • 1. US Constitution-Due Process Clause and the Commerce Clause
  • 2. Nexus
  • 3. Origin v. destination state classification

Below are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019,

Additional information:

• On December 31, 2019, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year.
• During 2020, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2020.
• On 1/2/2020, Sullivan sold equipment costing $60,000 (adj basis $38,000) for $40,000 cash.
• On December 31, 2020, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2021.
• Net income for 2020 was $370,000.
• Sullivan declared and paid the following cash dividends for 2020 and 2019.

2020                 2019

$80,000             $100,000

Declared           12/15/2020                  12/15/2019

Paid                     2/28/2021                     2/28/2020

Required: Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2020, using the indirect method.

ZigZag provided an extract of the asset register as at the end of the current and prior financial year:
ASSETS CARRYING AMOUNTS
31 December 2020
R
31 December 2019
R
Land (1) 3 800 000 3 000 000
Office buildings (2) 1 900 000 1 370 000
Industrial buildings (3) 3 333 333 3 666 667
Machinery (4) 1 800 000 2 700 000
Additional information:
1. Land is vacant land and it is classified as investment property. The land was acquired on
1 April 2019 at R2 800 000. The fair value adjustments have been accounted for at the end of
the respective financial years.
2. The office building was acquired on 1 July 2019 for R1 400 000 and was revalued for the first
time on 31 December 2020 to its fair value of R1 900 000. The office buildings are depreciated
on the straight line basis over 20 years to its residual value of R200 000. During 2019,
management expected to use the asset up to the end of its economic life.
On 1 January 2020, management estimated the remaining useful life of the building to have
changed to 10 years and the residual value to be R500 000.
In December 2020 the management changed the intention and decided they were going to sell
the office building.
Office buildings have no capital allowances available.
3. Industrial buildings are depreciated over 12 years on the straight line basis. In terms of the
Income tax act, a section 13 allowance of 5% applies to the industrial buildings. The buildings
were bought on 1 January 2019, with the intention to keep the building, for an amount of
R4 000 000 paid in cash immediately with its residual value regarded as being insignificant.
4. Machinery is depreciated on a straight line basis at 20% per year to Rnil residual value. The
SARS allows a section 12C allowance of 40%/20%/20%/20% on machinery. The machinery had
a tax base of R1 800 000 on 31 December 2019 and R900 000 on 31 December 2020. No
additional machinery was acquired during FY2020.
5. ZigZag always pays their insurance in advance. At the end of FY2020 the balance for insurance
paid in advance amounted to R35 000 (2019: R25 000).
6. On 1 December 2020, Zamdela, a loyal customer, ordered transportation equipment from
ZigZag which will be delivered to him during December 2021. ZigZag received R500 000 from
Zamdela in cash when the order was placed.
7. The accounting profit before tax, which included dividends received of R40 000, amounted to
R3 200 000 for the year ended 31 December 2020. All above mentioned movements were taken
into account in arriving at this accounting profit.
8. The deferred tax asset balance as at 31 December 2019 was R390 150 due to an assessed
loss of R2 200 000 that existed at that time. ZigZag expected to make sufficient taxable profits
during 2020 and onwards to fully utilize assessed losses and other deductible temporary
differences.
 Office buildings are carried on the revaluation model using the net replacement method in
terms of IAS 16.
 Machinery is measured on the cost model in terms of IAS 16.
 Industrial buildings are measured on the cost model in terms of IAS 16
 All other items of property, plant and equipment are accounted for on the cost model in terms
of IAS 16.

 Depreciation and amortisation are accounted for on the straight-line method.
 Assume a normal tax rate of 28% for FY2020 (2019: 27%) and that 80% of capital gains are
taxable.
 There are no temporary differences other than those that are apparent from the given
information.

Required:
Calculate deferred tax balances for the year ended 31 December 2020

You are planning to introduce the vaccine for HSRS (High Severity Respiratory Virus) into the Pyrexia community. This vaccine has been trialled in a communicable disease research facility in the United States and initial studies have shown that it has a high degree of vaccine efficacy (>90%).

Provide TWO possible reasons why this level of vaccine efficacy may not be achieved for the vaccination program that you are planning to implement in the Pyrexia community.