Q1

Frisco Hardware is trying to do some financial planning. The company knows it will need to have $423038 in 10 years to pay off a loan. The company will be receiving $75020 at the end of year 8 from a licensing deal with another manufacturer, but the company will have to make a large payment of $51455 at the end of year 5 to fund a retirement account for the CEO. How much should the company deposit today to meet all future obligations? Assume an interest rate of 7% compounded annually.

Enter your answer as: 1234

Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point (".").

Q2

You deposit $387 at the end of each month into an account that pays a nominal annual rate of 8% compounded monthly. How much will you have in the account at the end of 18 years?

Enter your answer as follows: 12345

Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point (".").

Choose a large company and learn about its culture, structure, leadership, product or service, and market potential. Imagine it is three years from now. The company has failed completely. The CEO has been fired, and the company has collapsed. Based on what you knew three years ago, what sequence of events led to this complete implosion?

Provide a summary of why the company has failed – with some key junctures in the story.

Premortem steps:

1- Imagine the worst: Start the meeting by exposing that the project at hand has been a complete disaster.

2- Generate Reasons for Failure: Ask each person to write down all the reasons they can think of to explain the failure that occurred.

3- Share Reasons for Failure: Ask each person to share one item on their list and continue to go around the room until everyone has exhausted their lists. Record all reasons on a white board.

4- Brainstorm with solutions: Discuss solutions to prevent this from happening.

5- Review.

Historically which has been true?

Multiple Choice

• The returns on small-company stocks were less volatile than the returns on large-company stocks.

• The risk-free rate of return remained constant over the time period.

• U.S. Treasury bills had a positive average real rate of return.

• Bonds had an average rate of return that exceeded the average return on stocks.

• The inflation rate was just as volatile as the return on long-term bonds.

Amy Dyken, controller at Sheridan Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Sheridan’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Sheridan Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 Long-term debt Notes payable, 10% $1,010,000 9% convertible bonds payable 5,090,000 10% bonds payable 6,060,000 Total long-term debt $12,160,000 Shareholders’ equity Preferred stock, 6% cumulative, $50 par value, 93,000 shares authorized, 23,250 shares issued and outstanding $1,162,500 Common stock, $1 par, 9,900,000 shares authorized, 990,000 shares issued and outstanding 990,000 Additional paid-in capital 3,930,000 Retained earnings 6,020,000 Total shareholders’ equity $12,102,500 The following transactions have also occurred at Sheridan. 1. Options were granted on July 1, 2019, to purchase 190,000 shares at $16 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share. 2. Each bond was issued at face value. The 9% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. 3. The preferred stock was issued in 2019. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. 5. The 990,000 shares of common stock were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1,520,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2020, calculate the following for Sheridan Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.) (a) Basic earnings per share. Basic earnings per share $ 1.46 (b) Diluted earnings per share. Diluted earnings per share $ Amy Dyken, controller at Sheridan Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Sheridan’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Sheridan Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 Long-term debt Notes payable, 10% $1,010,000 9% convertible bonds payable 5,090,000 10% bonds payable 6,060,000 Total long-term debt $12,160,000 Shareholders’ equity Preferred stock, 6% cumulative, $50 par value, 93,000 shares authorized, 23,250 shares issued and outstanding $1,162,500 Common stock, $1 par, 9,900,000 shares authorized, 990,000 shares issued and outstanding 990,000 Additional paid-in capital 3,930,000 Retained earnings 6,020,000 Total shareholders’ equity $12,102,500 The following transactions have also occurred at Sheridan. 1. Options were granted on July 1, 2019, to purchase 190,000 shares at $16 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share. 2. Each bond was issued at face value. The 9% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. 3. The preferred stock was issued in 2019. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. 5. The 990,000 shares of common stock were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1,520,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2020, calculate the following for Sheridan Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.) (a) Basic earnings per share. Basic earnings per share $ 1.46 (b) Diluted earnings per share. Diluted earnings per share $

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 38,000 Rets per year. Costs associated with this level of production and sales are given below:

The Rets normally sell for $53 each. Fixed manufacturing overhead is $266,000 per year within the range of 29,000 through 38,000 Rets per year.

Required:

1. Assume that due to a recession, Polaski Company expects to sell only 29,000 Rets through regular channels next year. A large retail chain has offered to purchase 9,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain’s name on the 9,000 units. This machine would cost $18,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.)

2. Refer to the original data. Assume again that Polaski Company expects to sell only 29,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 9,000 Rets. The Army would pay a fixed fee of $1.40 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order?

3. Assume the same situation as described in (2) above, except that the company expects to sell 38,000 Rets through regular channels next year. Thus, accepting the U.S. Army’s order would require giving up regular sales of 9,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order?

Answer is complete but not entirely correct.

A 40-year-old man in the U.S. has a 0.245% risk of dying during the next year . An insurance company charges $260 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest dollar.

Expected Value:

Bill Gates and Monopoly(Microeconomics)

Please find out what you can on Bill Gates and Microsoft's monopoly. How did it happen, how was it maintained? What was Gate's attitude about it? What was the U.S. government's response? What is your opinion on the matter? Can you think of a similar company right now?

the farm security administration of u.s. department of agriculture

a. encourages future farmers of America to photograph activities relate to Everyday farming and rituals of life

b. owned controlling shares of Eastman kodak company

c. paid photographers to document the Great Depression

d. sponsored photography classes in high school cross country

2. Consider the United States Treasury bonds, what are the ratings? Historically, has there ever been a change in quality ratings for the U.S. government? (Hint: You can review the past 15-20 years). Why or why not?

3. Consider a company that has an investment grade rating, are they guaranteed to be protected from Bankruptcy?

Use this information to answer the following questions

An outstanding 30 year corporate bond for a U.S. company has 14 years left to maturity and has a coupon rate of 4.0%. The bond is currently selling for $980.

1) What is the yield to maturity?

2) What is the current yield?

3) What is the capital gains yield?