The personnel office at a large electronics firm regularly schedules job interviews and maintains records of the interviews. From the past records, they have found that the length of a first interview is normally distributed, with mean μ = 37 minutes and standard deviation σ = 7 minutes. (Round your answers to four decimal places.)

Seventeen first interviews are usually scheduled per day. What is the probability that the average length of time for the seventeen interviews will be 40 minutes or longer?

The ED (ER) physicians in your hospital have recently suffered an increase of injuries from assaultive patients and family members. One doctor had to be hospitalized with head injuries after the most recent assault. Upon interview, co-workers inform you the security guard in the ED has been less visible of late. They have complained to the ED managers, to no avail. Create a brief plan for a root cause analysis of this latest incident and an injury prevention plan.

Company ehf. which produces high quality headphones has been in the marketing campaign for the past six years. To meet ever-increasing competition in this market, the CEO of Company ehf. that an ad campaign is needed next year to maintain the company's market share. At his request, the operating accountant has compiled the accompanying figures from the cost accounting for 2012 in order to prepare the marketing plan for next year, ie. 2013.

It is requested:

a) What will be the estimated operating income this year, ie.

B) What is the contribution margin per unit of contribution this year?

C) What is the break-even point in units this year?

D) The CEO believes that in order to achieve sales targets next year, ISK 1 million needs to be set. more advertising than this year, but other costs will remain unchanged. What then does the sales revenue need to be in 2013 in order for the business to be in balance (to break-even)?

E) What does the sales revenue need to be in 2013, e.g. this ISK 1 million advertising campaign, to have the same operating profits as expected this year?

You are the Chief Financial Officer of Hilton Ltd, a large manufacturing company operating within the Asian-pacific region. The CEO, Mr Ray Ellis, has just returned from a shareholders engagement event to promote the company’s upcoming right issue of shares. He was confronted with some questions relating to issue of shares and whether there were any pros and cons to issuing shares via rights, bonus or by private placement. Issues related to the company’s earnings per share (EPS) also came up during the event. Mr Ellis was unimpressed with both the questions and his inability to respond in a comprehensive manner. He promised the shareholders that he would email them with clear responses to the issues raised, after he consulted with his Chief Financial Officer.
In consulting you, Mr Ellis would like to know your thoughts on the following:
 What is the difference between rights issue and bonus issue of shares?
 What are the advantages and disadvantages of both methods of issuing shares?
 Should Hilton Ltd consider a private placement and is there any benefit to having a private placement instead of a rights issue?
 What effects does a bonus issue of shares made in the middle of a financial year have on the EPS calculations of a company?

Required
Write a short memorandum format report to the CEO of Hilton Ltd to answer his questions. Your report should cover all four questions raised by Mr Ellis. Each question should be answered under a sub-heading within the report with appropriately cited references.

A power player is any U.S. retailer with sales equal to or greater than 10 percent of those of the category leader.

Department Stores: Department stores have survived the rise of sectors specializing in narrower product ranges, as well as the challenges of discount stores and other off-price retailers, and finally E-commerce. Gerald Storch, CEO of Hudson’s Bay, parent of Saks Fifth Avenue and Lord & Taylor, says, “Increasingly, consumers don’t think of stores as physical locations, they think of stores as brands. The opportunity is to customize on a mass scale so you simulate the selling experience on a mobile device.”

Drugstores: National healthcare questions have been driving a lot of what has been going on in the drugstore industry. CVS is moving on several fronts: It broadened its pharmacy reach by acquiring Omnicare, which distributes prescription drugs to nursing homes, assisted living facilities, and so on. CVS has unveiled the makeover of the Navarro Discount Pharmacy sites it acquired. Carrying the banner “CVS pharmacy y mas,” the South Florida stores feature bilingual associates and 1,500+ “trusted Hispanic products.” It also acquired Target’s pharmacy businesses for about $1.9 billion.

General Apparel: Fast fashion has been rising among the ranks of apparel retailers. “There is an underlying sense of rebellion that comes through in today’s fashion,” notes Marshal Cohen, a chief industry analyst with NPD Group. “The fashion industry has undergone one of the most dramatic makeovers in recent history, no doubt influenced by the Millennial consumer.”

Home Improvement and Hardware: These have had to deal with some flooring issues. First, it was hardwood laminate flooring that was said to emit formaldehyde in excess of California state standards. Soon after, came a study of vinyl floor tiles, which found that 58 percent of samples bought from large home improvement dealers contained phthalates, several forms of which have been banned from children’s products since 2009. The Home Depot clicked on several fronts, including online.

Jewelry and Accessories: Signet, which bills itself as the world’s largest retailer of diamond jewelry, acquired Zale Corp. The company now operates stores and kiosks under a variety of banners, including Kay, Jared, and a number of regional brands in its Sterling division, along with Zale, Peoples, and Piercing Pagoda in its Zale division. Zale operations have been growing same-store sales faster than the company as a whole, and Signet expects that to continue.

Mass Merchants: Amazon has joined the ranks of mass merchant power players, selling everything from digital downloads to consumer electronics, toilet paper, books, and groceries. Its limited face-to-face interaction with consumers belies Amazon’s vast physical presence around the country, where a network of fulfillment centers puts it near to customers. Amazon’s mass-market tactics include spreading same-day delivery to more segments of the population.

Supermarkets: Although mergers and acquisitions have been a way of life, grocery remains the most fragmented segment of retailing. Albertsons took over the remnants of Safeway’s network, covering much of North America, and Kroger completed its first full year with Harris Teeter stores under its wing. Then, after A&P and its affiliate brands were forced into bankruptcy in 2015, it was ultimately decided to sell off all the store locations to several major chains.

Women’s Apparel: The biggest news was a deal that closed in August 2015—Ascena Retail Group’s acquisition of Ann Taylor and Loft parent company Ann Inc. Ascena paid $2 billion to bring Ann Inc. into a diverse stable of brands that included Lane Bryant, Dress Barn, Maurices, and Justice.

Questions:
How can an independent retailer compete with power retailers?

What is the greatest opportunity for each of the retail categories described in this case?

5.When discussing the empirical tests of the EMH, there are three topical areas that suggest that the debate probably will never be settled: the magnitude issue, the selection bias issue, and the lucky event issue. Specifically with the lucky event issue, the laws of probability are oftentimes ignored or forgotten.

True

False

6.Bonds rate BBB or Baa or above are considered investment grade bonds whereas those lower rated bonds are classified as speculative grade, high yield, or junk bonds. Defaults on high-grade bonds - the reason for the rating - are not common as evidenced by our in-class discussion.

True

False

7.While oftentimes referred to as risk-free, default-free bonds such as US Treasury issues are nonetheless subject to interest rate and inflation rate risk.

True

False

8.Owing to the recent actions by the Federal Reserve in 2020, the current US government yield curve is inverted. Yield curves can be used to extract market expectations

True

False

For any Hypothesis Test make sure to state Ho, Ha, Test statistic, p-value, whether you reject Ho, and your conclusion in the words of the claim.

For any confidence interval make sure that you interpret the interval in context, in addition to using it for inference.

Round to the thousandths place

The USDA is concerned that most farmers are older Americans. In 2000, it was reported that 25% of all US farmers were over the age of 65. In 2020, a random sample of 350 US farmers was taken and it was found that 98 were over the age of 65. The USDA claims that the proportion of all farmers who are over the age of 65 is now greater than 25%. Does this provide evidence to support the USDA’s claim at the 5% significance level? Run a hypothesis test. Be sure state Ho and Ha, the test statistic and p-value, whether you reject Ho or not and your conclusion in terms of the claim.

Beniluz Company was formed on July 1, 2016. It was authorized to issue 1,000,000 shares of $5 par value common stock and 200,000 shares of 4% $100 par value, cumulative and nonparticipating preferred stock. Beniluz Company has a July 1-June 30 fiscal year. The following information relates to the stockholders’ equity accounts of Penn Company: Common Stock Prior to the 2020-21 fiscal year, Beniluz Company had 304,000 shares of outstanding common stock issued as follows: 1. 220,000 shares were issued for cash on July 1, 2016, at $24 per share. 2. On August 4, 2018, 24,000 shares were exchanged for an office building and warehouse which had a book value in the seller’s book of $431,000 and had an estimated fair value of $627,000 on August 4, 2018. 3. 60,000 shares were issued on November 1, 2019, for $29 per share. During the 2020-21 fiscal year, the following transactions regarding common stock took place: 1. August 31, 2020 - Beniluz purchased 5,000 shares of its own stock on the open market at $30 per share. Beniluz uses the cost method for treasury stock. 2. December 1, 2020 - Beniluz declared a 6% stock dividend for stockholders of record on December 20, 2020, to be issued on January 15, 2021. Beniluz was having a liquidity problem and could not afford a cash dividend at the time. Beniluz ‘s common stock was selling at $28 per share on December 1, 2020. 3. June 20, 2021 - Beniluz sold 1,500 shares of its own common stock that it had purchased on August 31, 2020 for $36,000. Preferred Stock Beniluz issued 20,000 shares of preferred stock at $105 per share on October 1, 2019. 2 Cash Dividends Beniluz has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2021, are shown below. Date Common Preferred 6/1/2018 $ 0.50 $ 2.00 12/1/2019 $ 0.50 $ 2.00 6/1/2020 $ 0.40 $ 2.00 12/1/2020 - $ 2.00 Dividend per Share No cash dividends were declared during June 2021 due to the company’s liquidity problems. Retained Earnings As of June 30, 2020, Beniluz Retained Earnings account had a balance of $824,000 and the Accumulated Other Comprehensive Income account had a credit balance of $136,000. For the fiscal year ending June 30, 2021, Beniluz reported net income of $32,000 and an unrealized loss correctly recorded as Other Comprehensive Income for the amount of $12,000. Instructions Prepare, in good form, the Stockholders’ Equity section of the Balance Sheet, including appropriate notes, for Beniluz Company as of June 30, 2021, as it should appear in its annual report to the shareholders.

Canberra acquired all of the equity shares in Yass on 1 October 2019, for consideration of $2,150 million. The carrying amount of identifiable net assets at acquisition was $2,130 million, which was the same as the fair value. Canberra is actively selling its entire shareholding in Yass as a single transaction and has classified the investment as a disposal group held for sale, in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, for the year ended 30 September 2020. The carrying amounts of the net assets of Yass in the individual financial statements of Canberra at 30 September 2020, before classification as held for sale, were ($ million):

Canberra measures properties at fair value, in accordance with IAS 16 Property, Plant and Equipment. No revaluations had been recognised on acquisition, when the estimated fair values were substantially the same as the carrying amounts. Properties with a carrying amount of $630 million were revalued to fair value of $680 million, at 30 September 2020. This fair value change has not been recognised in the financial statements. The total fair value less costs to sell of the disposal group was estimated as $2,140 million, at 30 September 2020. No impairments had been recognised previously, to the goodwill of Yass.

Yass owns and operates private hospitals and the medical sector is highly regulated. Canberra is confident that the sale of Yass will be agreed shortly after 30 September 2020. Any purchaser will require regulatory approval, which could delay completion of the sale until after 30 September 2021. Regulatory approval cannot be sought by a purchaser until a contract of sale had been agreed. Yass will continue to operate the hospitals until the sale is completed. Canberra will sell all of the shares in Yass to the purchaser, who would obtain all of Yass’s rights and obligations. Yass does not intend to sell or acquire any significant assets or liabilities prior to completion of the sale, as that would affect the value of the shares being sold.

Required:

Discuss the correct recognition and measurement of the investment in Yass in the consolidated financial statements, for the year ended 30 September 2020. Provide calculations.     

Canberra acquired all of the equity shares in Yass on 1 October 2019, for consideration of $2,150 million. The carrying amount of identifiable net assets at acquisition was $2,130 million, which was the same as the fair value. Canberra is actively selling its entire shareholding in Yass as a single transaction and has classified the investment as a disposal group held for sale, in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, for the year ended 30 September 2020. The carrying amounts of the net assets of Yass in the individual financial statements of Canberra at 30 September 2020, before classification as held for sale, were ($ million):

Canberra measures properties at fair value, in accordance with IAS 16 Property, Plant and Equipment. No revaluations had been recognised on acquisition, when the estimated fair values were substantially the same as the carrying amounts. Properties with a carrying amount of $630 million were revalued to fair value of $680 million, at 30 September 2020. This fair value change has not been recognised in the financial statements. The total fair value less costs to sell of the disposal group was estimated as $2,140 million, at 30 September 2020. No impairments had been recognised previously, to the goodwill of Yass.

Yass owns and operates private hospitals and the medical sector is highly regulated. Canberra is confident that the sale of Yass will be agreed shortly after 30 September 2020. Any purchaser will require regulatory approval, which could delay completion of the sale until after 30 September 2021. Regulatory approval cannot be sought by a purchaser until a contract of sale had been agreed. Yass will continue to operate the hospitals until the sale is completed. Canberra will sell all of the shares in Yass to the purchaser, who would obtain all of Yass’s rights and obligations. Yass does not intend to sell or acquire any significant assets or liabilities prior to completion of the sale, as that would affect the value of the shares being sold.

Required:

Discuss the correct recognition and measurement of the investment in Yass in the consolidated financial statements, for the year ended 30 September 2020. Provide calculations.