What are some of the learning's and/or takeaways from studying "Networking Essentials and Security"? Why do you think this subject is important from an Executive MBA perspective? Give examples if any as necessary.
In: Computer Science
THIS LAB CORRESPONDS TO LAB TOPIC 11: POPULATION GENETICS: THE HARDY-WEINBERG EQUILIBRIUM.
THE FOLLOWING NEEDS TO BE COMPLETED AND TURNED IN FOR LAB
THIS LAB CORRESPONDS TO LAB TOPIC 11: POPULATION GENETICS: THE HARDY-WEINBERG EQUILIBRIUM.
THE FOLLOWING NEEDS TO BE COMPLETED AND TURNED IN FOR LAB
In: Biology
Match the description with the correct term. Answers can be used more than once!
Group of answer choices
Crayfish fight each other to determine which male will mate with females. They fight by charging each other and clashing their claws together. The male with bigger claws usually wins. What is this describing?
[ Choose ] Evolutionary trade-off Intersexual selection Stabilizing selection Intrasexual selection Founder effect
In a small group of people living in a remote area, there is a high incidence of “blue skin”, a condition that results from a variation in the structure of hemoglobin. All of the “blue-skinned” residents can trace their ancestry to one couple, who were among the original settlers of this region. The unusually high frequency of “blue skin” in the area is an example of
[ Choose ] Evolutionary trade-off Intersexual selection Stabilizing selection Intrasexual selection Founder effect
Robins typically lay four eggs during each reproductive event. If more than four chicks are hatched, each may be malnourished, and if fewer than four chicks are hatched, it may result in too few viable offspring to pass on the parent’s genes. This is an example of [ Choose ] Evolutionary trade-off Intersexual selection Stabilizing selection Intrasexual selection Founder effect
In: Biology
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the following trial balance:
Debit CreditAccounts payable $55,100Accounts receivable$44,700 Additional paid-in capital 50,000Buildings (net) (4-year remaining life) 163,000 Cash and short-term investments 83,750 Common stock 250,000Equipment (net) (5-year remaining life) 207,500 Inventory 122,000 Land 85,500 Long-term liabilities (mature 12/31/23) 162,500Retained earnings, 1/1/20 202,150Supplies 13,300 Totals$719,750 $719,750
During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $136,750 while declaring and paying dividends of $36,000.
Assume that Chapman Company acquired Abernethy’s common stock for $605,600 in cash. As of January 1, 2020, Abernethy’s land had a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164,500. Chapman uses the equity method for this investment.
Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In: Accounting
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Case Study |
CEMEX: A Model Multinational from an Unusual Place |
|
Our discussion in the text stresses that multinationals succeed by using their firm-specific advantages throughout their global operations. We have also noted that most foreign direct investments are made by firms based in the industrialized countries. This is the story of CEMEX, a firm that rapidly has become multinational since 1990. The reasons for its multinational success fit very well with the advantages stressed in the eclectic approach. What makes the firm unusual is that it is based in Mexico. CEMEX is an example of a growing group of multinationals based in developing countries.
CEMEX began business in 1906. For most of its life this cement company focused on selling in the Mexican market. Cement is a product that is expensive to ship, especially overland, so cement plants ship mostly to customers within 300 miles of a plant. Shipment by water is moderately (but not prohibitively) expensive. Most cement producers in the 1980s were local producers with traditional business practices. New managers at CEMEX broke with tradition by introducing extensive use of automation, information technology, and a satellite-based communication network into CEMEX operations. They used the technology to improve quality control and to provide detailed information on production, sales, and distribution to top managers in real time. Delivery of ready-mix concrete is particularly challenging in cities. Traditionally, cement firms could ensure delivery only within a time period of about three hours. CEMEX pioneered the use of computers and a global positioning system to guarantee delivery to construction sites within a 20-minute window. These innovations became the company's firm-specific advantages.
Also in the 1980s CEMEX began to export more aggressively to the United States using sea transport, and it was increasingly successful. However, competing U.S. cement producers complained to the U.S. government, and in 1990 CEMEX exports to the United States were hit by a 58 percent antidumping duty. With exporting to the United States limited by the antidumping order, CEMEX looked for other foreign opportunities.
In 1991, it began exporting to Spain, and in 1992 it made its first foreign direct investment by acquiring two Spanish cement producers. CEMEX minimized its inherent disadvantages by investing first in a foreign country with the same language as the firm's home country and a similar culture. In addition, CEMEX used its expansion into Europe as a competitive response to the previous move by the Swiss-based firm Holcim into the Mexican cement industry.
The management team sent by CEMEX to reorganize the acquired companies was amazed to find companies that kept handwritten records and used almost no personal computers. They upgraded the Spanish affiliates to CEMEX technology and management practices. The improvement in affiliate operations from this internal transfer of CEMEX's intangible assets was remarkable—profit margins improved from 7 percent to 24 percent in two years.
Since then, CEMEX has made a series of foreign direct investments by acquiring cement producers in Latin America (including Venezuela, Panama, the Dominican Republic, Colombia, and Costa Rica), the United States, Britain, the Philippines, Indonesia, and Egypt. CEMEX used the same type of process that it used in Spain to bring its technology and management practices into its new foreign affiliates, and generally achieved similarly impressive improvements in performance.
By 2000, CEMEX was the third largest cement producer in the world, behind Lafarge of France and Holcim. More than 60 percent of its physical assets were in its foreign affiliates. It was also the largest exporter of cement in the world (a fact consistent with the proposition discussed in the text that FDI and trade are often complementary). CEMEX is considered one of the best networked companies globally by computer industry experts, well ahead of its rivals. Its investments in developing and enhancing its firm-specific advantages have been paying off globally.
CEMEX is a great example of a domestic firm becoming a multi-national giant by a clever interplay of technology, foreign direct investment and innovation. Please spell out the experience of another company in a different industry that had similar success. For all of his success, what can Cemex learn from your company?
In: Economics
Lancaster is evaluating a plan to purchase a huge tract of land in the southeastern United States for $85 million. The land will subsequently be leased to tenant farmers. This purchase is expected to increase Lancaster’s annual pretax earnings by $14.125 million in perpetuity. Jennifer Weyand, the company’s new CFO, has been put in charge of the project. Jennifer has determined that the company’s current cost of capital is 10.2 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 6 percent coupon rate. From 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. Lancaster has a 23 percent corporate tax rate (state and federal).
If Lancaster wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain.
In: Finance
Johnson Real Estate Company was founded 25 years ago by the current CEO, David Johnson. 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 Johnson Real Estate, David was the founder and CEO of a failed camel farming operation. The resulting bankruptcy made him extremely averse to debt financing. As a result, the company is entirely equity financed, with 8 million shares of common stock outstanding. The stock currently trades at $37.80 per share. Johnson is evaluating a plan to purchase a huge tract of land in the southeastern United States for $85 million. The land will subsequently be leased to tenant farmers. This purchase is expected to increase Johnson's annual pretax earnings by $14.125 million in perpetuity. Abigail Burton, the company’s new CFO, has been put in charge of the project. Abigail has determined that the company’s current cost of capital is 10.2 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 6 percent coupon rate. From 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. Johnson has a 23 percent corporate tax rate (state and federal). If Johnson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain.
In: Finance
Problem 23-01
The following are Marigold Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.
|
COMPARATIVE BALANCE SHEETS |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
|
2020 |
2019 |
Increase |
|||||||
|
Cash |
$810,600 |
$701,400 |
$109,200 |
||||||
|
Accounts receivable |
1,135,300 |
1,156,300 |
(21,000 |
) |
|||||
|
Inventory |
1,850,800 |
1,708,800 |
142,000 |
||||||
|
Property, plant, and equipment |
3,318,800 |
2,955,300 |
363,500 |
||||||
|
Accumulated depreciation |
(1,164,400 |
) |
(1,035,600 |
) |
(128,800 |
) |
|||
|
Investment in Myers Co. |
307,400 |
277,400 |
30,000 |
||||||
|
Loan receivable |
248,800 |
— |
248,800 |
||||||
|
Total assets |
$6,507,300 |
$5,763,600 |
$743,700 |
||||||
|
Accounts payable |
$1,015,700 |
$949,200 |
$66,500 |
||||||
|
Income taxes payable |
30,200 |
50,000 |
(19,800 |
) |
|||||
|
Dividends payable |
79,500 |
100,400 |
(20,900 |
) |
|||||
|
Lease liabililty |
423,200 |
— |
423,200 |
||||||
|
Common stock, $1 par |
500,000 |
500,000 |
— |
||||||
|
Paid-in capital in excess of par—common stock |
1,499,000 |
1,499,000 |
— |
||||||
|
Retained earnings |
2,959,700 |
2,665,000 |
294,700 |
||||||
|
Total liabilities and stockholders’ equity |
$6,507,300 |
$5,763,600 |
$743,700 |
||||||
Additional information:
| 1. | On December 31, 2019, Marigold acquired 25% of Myers Co.’s common stock for $277,400. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,109,600. Myers reported income of $120,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. | |
| 2. | During 2020, Marigold loaned $323,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $74,800, plus interest at 10%, on December 31, 2020. | |
| 3. | On January 2, 2020, Marigold sold equipment costing $59,700, with a carrying amount of $37,700, for $39,900 cash. | |
| 4. | On December 31, 2020, Marigold entered into a capital lease for an office building. The present value of the annual rental payments is $423,200, which equals the fair value of the building. Marigold made the first rental payment of $60,000 when due on January 2, 2021. | |
| 5. | Net income for 2020 was $374,200. | |
| 6. | Marigold declared and paid the following cash dividends for 2020 and 2019. |
|
2020 |
2019 |
|||
|---|---|---|---|---|
|
Declared |
December 15, 2020 | December 15, 2019 | ||
|
Paid |
February 28, 2021 | February 28, 2020 | ||
|
Amount |
$79,500 | $100,400 |
Prepare a statement of cash flows for Marigold Corp. for the year
ended December 31, 2020, using the indirect method.
In: Accounting
Problem 23-01
The following are Shamrock Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.
|
COMPARATIVE BALANCE SHEETS |
|||||||||
|
2020 |
2019 |
Increase |
|||||||
|
Cash |
$811,100 |
$702,700 |
$108,400 |
||||||
|
Accounts receivable |
1,139,100 |
1,176,000 |
(36,900 |
) |
|||||
|
Inventory |
1,847,000 |
1,704,500 |
142,500 |
||||||
|
Property, plant, and equipment |
3,317,700 |
2,945,400 |
372,300 |
||||||
|
Accumulated depreciation |
(1,158,000 |
) |
(1,048,400 |
) |
(109,600 |
) |
|||
|
Investment in Myers Co. |
312,200 |
274,000 |
38,200 |
||||||
|
Loan receivable |
250,000 |
— |
250,000 |
||||||
|
Total assets |
$6,519,100 |
$5,754,200 |
$764,900 |
||||||
|
Accounts payable |
$1,010,900 |
$960,700 |
$50,200 |
||||||
|
Income taxes payable |
29,900 |
50,500 |
(20,600 |
) |
|||||
|
Dividends payable |
80,600 |
100,700 |
(20,100 |
) |
|||||
|
Lease liabililty |
432,100 |
— |
432,100 |
||||||
|
Common stock, $1 par |
500,000 |
500,000 |
— |
||||||
|
Paid-in capital in excess of par—common stock |
1,499,300 |
1,499,300 |
— |
||||||
|
Retained earnings |
2,966,300 |
2,643,000 |
323,300 |
||||||
|
Total liabilities and stockholders’ equity |
$6,519,100 |
$5,754,200 |
$764,900 |
||||||
Additional information:
|
1. |
On December 31, 2019, Shamrock acquired 25% of Myers Co.’s common stock for $274,000. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $152,800 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. |
|
|
2. |
During 2020, Shamrock loaned $332,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $82,200, plus interest at 10%, on December 31, 2020. |
|
|
3. |
On January 2, 2020, Shamrock sold equipment costing $59,800, with a carrying amount of $38,000, for $40,100 cash. |
|
|
4. |
On December 31, 2020, Shamrock entered into a capital lease for an office building. The present value of the annual rental payments is $432,100, which equals the fair value of the building. Shamrock made the first rental payment of $60,300 when due on January 2, 2021. |
|
|
5. |
Net income for 2020 was $403,900. |
|
|
6. |
Shamrock declared and paid the following cash dividends for 2020 and 2019. |
|
2020 |
2019 |
|||
|
Declared |
December 15, 2020 |
December 15, 2019 |
||
|
Paid |
February 28, 2021 |
February 28, 2020 |
||
|
Amount |
$80,600 |
$100,700 |
Prepare a statement of cash flows for Shamrock Corp. for the year
ended December 31, 2020, using the indirect method
In: Accounting
Question: Company X uses fermentation to produce a valuable industrial chemical. A startup company approaches X with a novel microbe that will increase the yield of the chemical, so that profits will increase by an estimated $14.0k/mo. The startup company wishes to sell the rights to use the microbe for a seven-year period, at a price of $480k.
Engineers at company X estimate the increased production will entail additional maintenance, costing $12.0k in year 2, $14.0k in year 4, and $17.0k in year 6 of the project.
1. What would a cash flow diagram of the project, from the standpoint of Company X?
2. How can I calculate the present value of the project, assuming a 13.0% annual interest rate?
3. Using Excel, make a well-formatted graph of the project present value vs. interest rate, for interest rates ranging from 0 to 30% APR.
In: Finance