The report "Progress for Children" (UNICEF, April 2005) included the accompanying data on the percentage of primary-school-age children who were enrolled in school for 19 countries in Northern Africa and for 23 countries in Central Africa.
| 54.6 | 34.3 | 48.9 | 77.8 | 59.6 | 88.5 | 97.4 | 92.5 | 83.9 | 96.9 | 88.9 |
| 98.8 | 91.6 | 97.8 | 96.1 | 92.2 | 94.9 | 98.6 | 86.6 |
| 58.3 | 34.6 | 35.5 | 45.4 | 38.6 | 63.8 | 53.9 | 61.9 | 69.9 | 43.0 | 85.0 |
| 63.4 | 58.4 | 61.9 | 40.9 | 73.9 | 34.8 | 74.4 | 97.4 | 61.0 | 66.7 | 79.6 |
| 98.9 |
We will construct a comparative stem-and-leaf display using the first digit of each observation as the stem and the remaining two digits as the leaf. To keep the display simple the leaves will be truncated to one digit. For example, the observation 54.6 would be processed as
54.6 → stem = 5, leaf = 4 (truncated from 4.6),
the observation 96.1 would be processed as
96.1 → stem = ? , leaf = ? (truncated from 6.1)
and the observation 35.5 would be processed as
35.5 → stem = ? , leaf = ?(truncated from 5.5).
The resulting comparative stem-and-leaf display is shown in the figure below.
Comparative stem-and-leaf display for percentage of children enrolled in primary school.
| Central Africa | Northern Africa | |
|---|---|---|
| 4854 | 3 | 4 |
| 035 | 4 | 8 |
| 838 | 5 | 49 |
| 6113913 | 6 | |
| 943 | 7 | 76 |
| 5 | 8 | 8386 |
| 87 | 9 | 7268176248 |
From the comparative stem-and-leaf display we can see that there is
quite a bit of variability in the percentage enrolled in school for
both Northern and Central African countries and that the shapes of
the two data distributions are quite different. The percentage
enrolled in school tends to be higher in Northern African countries
than in Central African countries, although the smallest value in
each of the two data sets is about the same. For Northern African
countries the distribution of values has a single peak in the 90s
with the number of observations declining as we move toward the
stems corresponding to lower percentages enrolled in school. For
Central African countries the distribution is more symmetric, with
a typical value in the mid 60s.
How many individual stem-and-leaf displays are represented by the
comparative stem-and-leaf display?
-one
-two
-three
-It can't be represented as simple stem-and-leaf display.
In: Math
Robertson Real Estate Recapitalization
Founded 25 years ago by CEO Steve Robertson, Robertson Real Estate (RRE) purchases commercial real estate (land and buildings), rents both to tenants. The company has shown consistent annual profits over the past 18 years, and shareholders have been pleased with the company's management. Before he started RRE, Steve was also the founder and CEO of a now bankrupt Ostrich farm. This previous bankruptcy has made him extremely reluctant to undertake any type of debt financing, and he has financed the real estate company 100% with equity. Robertson Real Estate stock currently trades at $37.80 per share and has 8 million shares of common stock outstanding.
The company has been reviewing an opportunity to purchase a large segment of land in the southeastern United States for $85 million and plans to lease this property to one or more farming operations. The land purchase is expected to increase RRE's annual pretax earnings by $14.125 million in perpetuity. Raylynne Givins, the company's new CFO, determined the company's current cost of capital is 10.2%. She feels the company would be more valuable if it added some debt to its capital structure, so she is evaluating whether the company should issue debt to fully finance the project.
Based on conversations with several investment banks, Raylynne believes RRE can issue bonds at par value with a 6% coupon rate. Her analysis suggests a capital structure using 70% equity / 30% debt would be optimal. If the company's debt structure exceeds 30%, RRE's bond rating would be lower and require a significantly higher coupon due to the increased exposure to financial distress and the associated higher financing costs. RRE has a combined state and federal corporate tax rate of 23%.
Questions:
In: Finance
Case Study 6.3
Sniffing glue Could snuff profits
harvey benjaMin fuller founded The h. b. Fuller Company in 1887. Originally a one-man wallpaper-paste shop, H. B. Fuller is now a leading manufacturer of indus- trial glues, coatings, and paints, with operations worldwide. The company’s 10,000 varieties of glue hold together everything from cars to cigarettes to disposable diapers. However, some of its customers don’t use Fuller’s glues in the way they are intended to be used. That’s particularly the case in Central America, where Fuller derives 27 percent of its profits and where tens of thousands of homeless children sniff some sort of glue. Addicted to glue’s intoxicating but dangerous fumes, these unfortunate children are called resistoleros after Fuller’s Resistol brand. Child-welfare advocates have urged the company to add a noxious oil to its glue to discourage abusers, but the company has resisted, either because it might reduce the glue’s effectiveness or because it will irritate legitimate users.111 Either way, the issue is irritating H. B. Fuller, which has been recognized by various awards, honors, and socially conscious mutual funds as a company with a conscience. Fuller’s mission statement says that it “will conduct business legally and ethically, support the activities of its employees in their communities and be a responsible corporate citizen.” The St. Paul-based com- pany gives 5 percent of its profits to charity; it has committed itself to safe environmental practices worldwide (practices that are “often more stringent than local government standards,” the company says); and it has even endowed a chair in business ethics at the University of Minnesota. Now Fuller must contend with dissident stockholders inside, and demonstrators outside, its annual meetings. The glue-sniffing issue is not a new one. In 1969, the Testor Corporation added a noxious ingredient to its hobby glue to dis- courage abuse, and in 1994 Henkel, a German chemical com- pany that competes with Fuller, stopped making certain toxic glues in Central America. However, Fuller seems to have been singled out for criticism not only because its brand dominates Central America but also because—in the eyes of its critics, anyway—the company has not lived up to its own good-citizen image. Timothy Smith, executive director of the Interfaith Center for Corporate Responsibility, believes that companies with a reputation as good corporate citizens are more vulnerable to attack. “But as I see it,” he says, “the hazard is not in acting in a socially responsible way. The hazard is in over-marketing yourself as a saint.” Saintly or not, the company has made matters worse for itself by its handling of the issue. H. B. Fuller’s board of directors acknowledged that “illegal distribution was continuing” and that “a suitable replacement product would not be available in the near future.” Accordingly, it voted to stop selling Resistol adhe- sives in Central America. “We simply don’t believe it is the right decision to keep our solvent product on the market,” a company spokesman said. The Coalition on Resistoleros and other corporate gadflies were ecstatic, but their jubilation turned to anger when they learned a few months later that Fuller had not in fact stopped selling Resistol in Central America and did not intend to. True, Fuller no longer sold glue to retailers and small-scale users in Honduras and Guatemala, but it continued to sell large tubs and barrels of it to industrial customers in those countries and to a broader list of commercial and industrial users in neighboring countries. The company says that it has not only restricted distribution but also taken other steps to stop the abuse of its product. It has altered Resistol’s formula, replacing the sweet-smelling but highly toxic solvent toluene with the slightly less toxic chemi- cal cyclohexane. In addition, the company has tried—without success, it says—to develop a nonintoxicating water-based glue, and it contributes to community programs for homeless children in Central America. But the company’s critics disparage these actions as mere image polishing. Bruce Harris, director of Latin American programs for Covenant House, a nonprofit child- welfare advocate, asserts that Resistol is still readily available to children in Nicaragua and El Salvador and, to a lesser extent, in Costa Rica. “If they are genuinely concerned about the children,” he asks, “why haven’t they pulled out of all the countries—as their board mandated?”
After reading Case 6.3 on page 300 in the text, answer the following question: What are H. B. Fuller’s moral obligations in this case? What ideals, effects, and consequences are at stake? Have any moral rights been violated? What would a utilitarian recommend? A Kantian?
In: Finance
Week 6 Assignment: Case Study: Stephenson Real Estate Recapitalization
Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past 18 years, and the shareholders are satisfied with the company’s management. Prior to founding Stephenson Real Estate, Robert was the founder and CEO of a failed alpaca farming operation. The resulting bankruptcy made him extremely averse to debt financing. As a result, the company is entirely equity financed, with 11 million shares of common stock outstanding. The stock currently trades at $48.50 per share. Stephenson is evaluating a plan to purchase a huge tract of land in the southeastern United States for $45 million. The land will subsequently be leased to tenant farmers. This purchase is expected to increase Stephenson’s annual pretax earnings by $10 million in perpetuity. Kim Weyand, the company’s new CFO, has been put in charge of the project. Kim has determined that the company’s current cost of capital is 10.5 percent. She feels that the company would be more valuable if it included debt in its capital structure, so she is evaluating whether the company should issue debt to entirely finance the project. Based on some conversations with investment banks, she thinks that the company can issue bonds at par value with a coupon rate of 7 percent. Based on her analysis, she also believes that a capital structure in the range of 70 percent equity⁄30 percent debt would be optimal. If the company goes beyond 30 percent debt, its bonds would carry a lower rating and a much higher coupon because the possibility of financial distress and the associated costs would rise sharply. Stephenson has a 40 percent corporate tax rate (state and federal). If Stephenson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain. Review Stephenson's market value balance sheet before it announces the purchase. Suppose Stephenson decides to issue equity to finance the purchase. What is the net present value of the project? Review Stephenson's market value balance sheet after it announces that the firm will finance the purchase using equity. What would be the new price per share of the firm's stock? How many shares will Stephenson need to issue to finance the purchase? Review Stephenson's market value balance sheet after the equity issue but before the purchase has been made. How many shares of common stock does Stephenson have outstanding? What is the price per share of the firm's stock? Review Stephenson's market value balance sheet after the purchase has been made. Suppose Stephenson decides to issue debt to finance the purchase. What will the market value of the Stephenson company be if the purchase is financed with debt? Review Stephenson's market value balance sheet after both the debt issue and the land purchase. What is the price per share of the firm's stock? Which method of financing maximizes the per-share stock price of Stephenson's equity? In a 2-3 page analysis, answer the questions provided at the end of the case study. Be sure to support your analysis with appropriate calculations and critical thought.
Market balance sheet info: Before the land purchase: Assets=$533,500,000 Total Assets: $533,500,000 Equity=$533,500,000 Debt & Equity=$533,500,000
Market balance sheet after purchase of land: Old Assets=$533,500,000
Will need calculations for new balance sheet including NPV and Equity. Will also need calculations for the change in stock value and how much stock would need to be issued to purchase land. The remaining questions will follow a similar format in which you create Market Value Balance Sheets and calculations.
In: Finance
Robertson Real Estate Recapitalization
Founded 25 years ago by CEO Steve Robertson, Robertson Real Estate (RRE) purchases commercial real estate (land and buildings), rents both to tenants. The company has shown consistent annual profits over the past 18 years, and shareholders have been pleased with the company's management. Before he started RRE, Steve was also the founder and CEO of a now bankrupt Ostrich farm. This previous bankruptcy has made him extremely reluctant to undertake any type of debt financing, and he has financed the real estate company 100% with equity. Robertson Real Estate stock currently trades at $37.80 per share and has 8 million shares of common stock outstanding.
The company has been reviewing an opportunity to purchase a large segment of land in the southeastern United States for $85 million and plans to lease this property to one or more farming operations. The land purchase is expected to increase RRE's annual pretax earnings by $14.125 million in perpetuity. Raylynne Givins, the company's new CFO, determined the company's current cost of capital is 10.2%. She feels the company would be more valuable if it added some debt to its capital structure, so she is evaluating whether the company should issue debt to fully finance the project.
Based on conversations with several investment banks, Raylynne believes RRE can issue bonds at par value with a 6% coupon rate. Her analysis suggests a capital structure using 70% equity / 30% debt would be optimal. If the company's debt structure exceeds 30%, RRE's bond rating would be lower and require a significantly higher coupon due to the increased exposure to financial distress and the associated higher financing costs. RRE has a combined state and federal corporate tax rate of 23%.
Questions:
In: Finance
subject is covered under organisational behaviour
Case Study Bron founded Bronzz Enterprises about 10 years ago, and directed its operations for the first 5 years. At that stage, she became a bit bored and passed the daily running to a new management team. This team, consisting of three Executive Directors, has been in charge ever since. Under the control of the management team, the organisation has developed a people-oriented approach. Management has an open and honest approach and communicates well with staff members. The work environment is supportive and there are good opportunities for development and promotion. In fact, Bronzz Enterprises has become known as a good employer. Despite leaving the day-to-day management of Bronzz Enterprises, Bron has retained her interest in and ownership of the business, while immersed in growing a new business in a different area – Stodgy Stuff Ltd. However, in the last year, Bron has become bored with Stodgy Stuff – it is doing very well and doesn’t really need her entrepreneurial skills any more. About a month ago an interesting opportunity was presented to Bron. This involves Bronzz Enterprises being sold to a much bigger organisation. The payoff for Bron is likely to be considerable, but there would be redundancies among current staff members. Bronzz Enterprises has a staff of 50, but the new configuration would only need 30 of these. Also, there would no longer be any need for the management team. Bron wants to present this opportunity as positive, as the management team would also get a good payout, and perhaps some other opportunities within the new, larger organisation. Bron really needs the money from Bronzz so that she can start another business and is keen to proceed with the opportunity. More concerned with her own outcomes, she is only marginally aware of the possible effect of 20 redundancies and the loss of the whole management team. Her perception is that the sale will be good for her so it is likely to be good for everyone. Things have come to a head just after the staff members have been informed of the proposed sale. To begin with, only limited information is immediately available and consultation documents have not been provided. Rumours are spreading among staff members that these are not denied by management. Most of the staff members have questions, but there does not seem to be a forum where these can be answered. With her eyes fixed on the money she needs for her new business, Bron has lost track of where Bronzz is going and the proposed sale appears jeopardized by falling performance. Members of the management team are now fighting for their own survival and there is considerable uncertainty about the future. Most staff members feel that the management team is no longer on their side – one of them has made statements in support of the sale, and the others are now judged to be in favour of the whole process. There is a sense of anger and frustration in what used to be a productive and happy workplace. If people come to work at all, they are fearful of the next rumour or unsubstantiated piece of information, and their overall performance is suffering.
Discuss the motivational environment at Bronzz by: (a) Describing the overall environment before the proposed sale and introducing one motivation theory that you consider applicable to this.
In: Operations Management
P. 9-3
The differences in accounting for an activity in an internal service fund rather than in the general fund may be striking.
A school district establishes a vehicle repair shop that provides service to other departments, all of which are accounted for in its general fund. During its first year of operations the shop engages in the fol- lowing transactions:
• It purchases equipment at a cost of $24 million and issues long-term notes for the purchase price. The useful life of the equipment is eight years, with no residual value.
• It purchases supplies at a cost of $4 million. Of these, it uses $3 million. In its governmental funds, the district accounts for supplies on the basis of a purchase.
• It incurs $13 million in other operating costs.
• It bills other departments for $19 million.
For purposes of external reporting, school district officials are
considering two options: • Account for the vehicle repair shop in
an internal service fund.
• Account for the vehicle repair shop in the general fund.
For each of the following items indicate the amounts that would be reported in the year-end financial statements of: (1) the internal service fund, assuming that the school district selected the first option, and (2) the general fund, assuming that it selected the second option.
Billings to other departments (revenues)
Cost of supplies (expense or expenditure)
Expenses or expenditures relating to acquisition or use of equipment
Other operating costs
Equipment (asset)
Accumulated depreciation
Inventory (asset)
Notes payable
Nonspendable fund balance (for inventory)
What would be the total expenses reported in the internal service fund, assuming that the school district selected the first option?
What would be the total amount of expenditures reported in the general fund, assuming that the school district: (1) selected the first option; (2) selected the second option?
What would be the reported revenue and expenses relating to the vehicle-repair shop in the district’s government-wide statements? Would it matter whether the district accounted for the shop in an internal service fund or in the general fund?
In: Accounting
Create ER diagram for the following:
A database has been designed for a Human Resources for a school in the UK. The database includes records of the teachers and their holidays. The Dean of this school has the power to approve those holidays for all teachers in the school.
For each teacher, Human Resources keeps track of the Teacher's ID, name, Cell phone number(s), total number of holidays for each year, number of unemployed holiday days remaining in the present year, age, date of the employment, Department name.
Some teachers may work as supervisors. For those teachers, as well as the attributes mentioned above, we also keep track of the date when they are supervisors, in addition to the total time they spend to be supervisor and their categorical level (Category 1, Category 2, Category 3, Category 4 or Category 5).
The Human Resources Department in the school keeps track every holiday has been taken by each teacher. For each holiday, The Human Resources keep track, Unique holiday ID, the number of days taken (spent) in this holiday, the start day and end day of a holiday. Sometimes (in a few cases), an alternative phone number may be documented for a holiday.
The Human Resources Department in the school keeps track every reward has been taken by each teacher. For each reward, The Human Resources keep track, Unique Reward ID, the number of rewards, Date of a reward, teacher name and the amount of the reward.
Each holiday is documented for only one teacher. A teacher can take many holidays per year. Each holiday has been approved by many supervisors and each supervisor has the power to approve many holidays for many teachers. Each supervisor has the power to approve the holidays for many teachers and each teacher may have many supervisors and may not. Every supervisor has the power to give many rewards to each teacher, but does not have to reward any. Every teacher can get many rewards every year.
In: Computer Science
In Taiwan, no one goes to work, and everyone consumes a single good (food), which is imported from another place and can be purchased (one meal at a time) from the nearest vending machine. Alternatively, food can be delivered by a distant catapult, capable of flinging a meal through a customer's window. The price of a delivered catapult meal is $8 and the price of a vending-machine meal is $2. The travel cost for consumers is $1 per roundtrip mile ($0.5 per mile traveled).
a. How many miles would the market area (i.e. maximum miles to be traveled for vending) for the vending machine be?
b. Show your answer in a martini shaped glass, indicating the slope of the glass’ arms, price of food at vending machine, and the radius of the city. (Label your axes)
c. Now assume that everyone owns a bike, which reduces the travel cost to $0.2 per round-trip mile. What would the new market area be for the vending machine?
d. Continue from part c above (everyone owns a bike still). Assume that a new vending machine replaces the old one, now allowing customers to purchase 2 meals at a time (meals are storable at no cost). How would that affect (if any) the market area of the vending machine?
e. Continue from part d above, and assume that everyone eats 2 meals per day in this town, and a month is 30 days long. What would the monthly rent difference be for a residence located 5 miles v. 10 miles away from the vending machine? (Hint: a single daily trip to the vending machine is sufficient).
In: Electrical Engineering
Question 2 (15 Marks. Suggested word limit 1,000 words) Elvis had a birthday party at his home, in Katoomba, New South Wales. One of his guests, Jennifer, is a florist. Elvis has 3 large vases that he would like filled with a variety of Australian wildflowers. He asks Jennifer if she can help him by getting flowers for his large vases. Jennifer is new to town and trying to build business relationships so she is eager to help. Jennifer agrees to help Elvis the first thing the next day. They do not discuss fees. Jennifer arrived at 8am the next day and she filled up the first vase with flowers. Then Elvis arranged them. They looked great. Jennifer was impressed at his flair with colours and arranging flowers. Jennifer didn’t have enough flowers for 2 more vases. She left and promised to return the next day. Overnight, Jennifer emailed Elvis and said that the fee for filling the vases would be $150 per vase. Elvis emailed her back with "No worries - see you tomorrow." Jennifer returned with more flowers and completed filling the other two vases with flowers. The following day, Jennifer sent Elvis an invoice for $450: Made up of $150 for each bunch of flowers for each of the 3 vases. Elvis seeks your advice on the legal issues. a) Briefly explain what a contract is and how a contract is formed. b) When was the contract formed between Elvis and Jennifer? c) What are the basic terms of the contract between Elvis and Jennifer? d) How much is Elvis contractually obliged to pay Jennifer?
In: Accounting