Identify the UCS, UCR, CS, and CR in the following examples:

For this assignment, you play the role of an marketing analyst for an online travel site called GlobalTrekTravel (GTT, a fictitious online business used for this course). GTT is focused on international travelers and provides online booking tools for airfare, ground transportation, hotel and sight-seeing tours, travel insurance, language support with translation services, passport and visa document preparation, and medical immunization recommendations. In sum, GTT addresses all needs of an international business or holiday travelers to have successful journeys. GTT’s marketing focuses on this value proposition: “We give you integrated travel services for all your International business and personal travel needs, saving time and frustration. We stay current to the world’s everchanging travel conditions, reducing your travel stressors.”

Your objective is to help them better understand their customers and find ways to use digital channels and data to serve their needs. They are seeking a customer journey analysis, that will allow them to take appropriate action.

The Marriott company (Marriott: Reducing Our Footprint) makes the following claim about its "sustainability strategy":

Our sustainability strategy supports business growth and reaches beyond the doors of our hotels to preserve and protect our planet’s natural resources. Marriott’s environmental goals are to:

• Further reduce energy and water consumption 20% by 2020 (Energy 20 percent per kWh/conditioned m2; Water 20 percent per occupied room (POR). Baseline: 2007);
• Empower our hotel development partners to build green hotels;
• Green our multi-billion dollar supply chain;
• Educate and inspire associates and guests to conserve and preserve;

Address environmental challenges through innovative conservation initiatives including rainforest protection and water conservation.

Find statements from two other companies that detail their environmental; policy/sustainability strategy. Summarize those statements. Critically evaluate the policies/strategies - Are they good policies/strategies? Will they truly help the environment?

As the financial manager of Wilmore Company Limited, with a passion to boost employment creation through intraregional tourism in Ghana, you have acquired a land at Ho to put up an exquisite amusement park that features a number of attractions including games, pools, gardens, rides etc. The project will cost a total of GH₵100,000. The following cash flows are expected from the project. The beta of the project is 1.5 and the market return is 15%. The risk-free rate of return is 8%.
Year
₵

0
(100,000)

1
20,000

2
25,000

3
32,000

4
35,000

Using the CAPM approach, what is the cost of equity on this project?
[2 marks]
Wilmore Company Limited is a levered entity with percentage of debt out of total capital being 40%. If the interest rate on a bank loan is 10%, the tax rate is 20%, and the cost of equity is as computed in (a), what will be the after tax cost of debt? [2 mark]
What will be the weighted average cost of capital (WACC)? [2 mark]
Using the WACC computed in (c), what will be the NPV of the investment? ` [3 marks]
Compute the IRR for the project? [3 marks]
What will be your overall advice concerning viability of the project?
[2 marks]

Mr. Norman and Mr. Foster are both investors looking to buy financial assets. Mr. Norman prefers assets with the lowest prices while Mr. Foster prefers assets on the financial market with higher prices. Each of them currently has GHC 1,000 to invest and needs your assistance to know which asset to buy to suit their preference. The following information provides details of investment options.
Asset A is a bond with a coupon rate of 10% and pays semi-annual coupons. The par value is GHC 1,000, and the bond has 5 years to maturity. The yield to maturity is 11%.
Asset B is a stock whose dividend is expected to increase by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. The last dividend was GHC 100 and the required return is 20%.
Which asset will Mr. Norman and Mr. Foster invest in? [8 marks]

In the 2020 accounting year, investors made a number observations in terms of certain decisions some corporations were taking:
(i) The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends;
(ii) On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends;
(iii) It was also observed that some the management of some companies had decided to repurchase shares while others were engaging in stock splits.

What could be the reason for these three decisions and choice of dividend payments by the boards of these companies and what will be the effect of such decisions on the outstanding number of shares and the share prices of these companies? [8 marks]

As the financial manager of Wilmore Company Limited, with a passion to boost employment creation through intraregional tourism in Ghana, you have acquired a land at Ho to put up an exquisite amusement park that features a number of attractions including games, pools, gardens, rides etc. The project will cost a total of GH₵100,000. The following cash flows are expected from the project. The beta of the project is 1.5 and the market return is 15%. The risk-free rate of return is 8%.

Year

₵

0

(100,000)

1

20,000

2

25,000

3

32,000

4

35,000

Using the CAPM approach, what is the cost of equity on this project?

[2 marks]

Wilmore Company Limited is a levered entity with percentage of debt out of total capital being 40%. If the interest rate on a bank loan is 10%, the tax rate is 20%, and the cost of equity is as computed in (a), what will be the after tax cost of debt?                        [2 mark]

What will be the weighted average cost of capital (WACC)?    [2 mark]

Using the WACC computed in (c), what will be the NPV of the investment?     `                            [3 marks]

Compute the IRR for the project?                     [3 marks]

What will be your overall advice concerning viability of the project?   

[2 marks]

Mr. Norman and Mr. Foster are both investors looking to buy financial assets. Mr. Norman prefers assets with the lowest prices while Mr. Foster prefers assets on the financial market with higher prices. Each of them currently has GHC 1,000 to invest and needs your assistance to know which asset to buy to suit their preference. The following information provides details of investment options.            

Asset A is a bond with a coupon rate of 10% and pays semi-annual coupons. The par value is GHC 1,000, and the bond has 5 years to maturity. The yield to maturity is 11%.

Asset B is a stock whose dividend is expected to increase by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. The last dividend was GHC 100 and the required return is 20%.   

Which asset will Mr. Norman and Mr. Foster invest in?        [8 marks]

In the 2020 accounting year, investors made a number observations in terms of certain decisions some corporations were taking:

(i) The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends;

(ii) On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends;

(iii) It was also observed that some the management of some companies had decided to repurchase shares while others were engaging in stock splits.

What could be the reason for these three decisions and choice of dividend payments by the boards of these companies and what will be the effect of such decisions on the outstanding number of shares and the share prices of these companies?       

1. President Roosevelt believed that the loss of the NRA would be temporary as pressure would be exerted by ____ for a newer version.

a. businessmen

b. bureaucrats

c. politicians

d. voters

e. foreign tourists

2. The tax bill of 1935 is generally referred to as the:

a. “soak the rich” tax increase.

b. “soak the monopolies” tax increase.

c. “soak the speculator” tax increase.

d. “lesser burden on the middle class” tax decrease.

e. “lesser burden on the poor” tax decrease.

3. What changes did the Fed make in 1936 and 1937 that caused/contributed

to the depression of 1937?

a. They engaged in the open market sale of bonds.

b. They engaged in the open market purchase of bonds.

c. They raised the required reserve ratio on banks.

d. Both A and C of the above.

e. Both B and C of the above.

4. FDR’s acceptance speech for his party’s nomination to run for a second terms has been characterized as:

a. an attack on socialism.

b. an endorsement of socialism.

c. an endorsement of communism.

d. an endorsement of free enterprise.

e. an attack on free enterprise.

5. According to Smiley, which of the following is true about U.S. economic performance during World War II?

a. Unemployment fell and leveled off at about 5%.

b. Measured inflation was low, in part because of price controls and rationing.

c. The money supply grew by about 1% per year, keeping inflation low.

d. While the official data shows that consumption fell, Smiley calls that “suspect” and argues that in fact it rose significantly.

e. All of the above.

6. What does Smiley argue about World War II that helped the U.S. become prosperous in the 1940s?

a. More women entered, and stayed, in the labor force.

b. Military spending helped spur technological change.

c. Americans shifted from being pessimistic about the future to being optimistic.

d. The war helped promote increased world trade.

e. All of the above.

7. Which of the following does Smiley argue was not an outgrowth of the Great Depression?

a. The rise in the welfare state.

b. The growth in the regulatory state.

c. Increased federalism.

d. An end to the gold standard.

e. Increased power to individual states rather than the federal government.

Break Even Corp has the following info:

In 2015, budgeted manufacturing costs were $50 per unit ($18 variable and $32 fixed costs).

In all years, budgeted fixed manufacturing costs = actual fixed manufacturing costs

1. What is net income (loss) using absorption costing for 2016?

1. $(133.33)
2. ($200)
3. Zero
4. $120
5. $(160)

2. What is net income (loss) using absorption costing for 2017?

1. $(280)
2. ($200)
3. zero
4. $200
5. $220

3. What would be in change in net income between variance costing and absorption costing if one less unit was produced in 2019

1. Absorption costing net income would be $19.32 greater than variable costing net income
2. Absorption costing net income would be $19.25 less than variable costing net income
3. Absorption costing net income would be $17.75 greater than variable costing net income
4. Absorption costing net income would be $17.50 less than variable costing net income
5. Absorption costing net income would be $16.00 greater than variable costing net income

4. Sheldon just built a motel at a cost of $1,000,000. He would like to earn a return on investment of 25% per year. The variable operating cost is $8 per room night and fixed costs will total $368,000 per year. He expects 16,000 room nights per year. What price should Sheldon charge for a room-night if he uses full cost plus target return on investment pricing ?

1. $250,000
2. $      8.00
3. $    46.63
4. $    23.00
5. $   38.63

Can Someone please answer with details, thanks!

Weller Industries is a decentralized organization with six divisions. The company’s Electrical Division produces a variety of electrical items, including an X52 electrical fitting. The Electrical Division (which is operating at capacity) sells this fitting to its regular customers for $14.90 each; the fitting has a variable manufacturing cost of $9.05.

The company’s Brake Division has asked the Electrical Division to supply it with a large quantity of X52 fittings for only $9.10 each. The Brake Division, which is operating at 60% of capacity, will put the fitting into a brake unit that it will produce and sell to a large commercial airline manufacturer. The cost of the brake unit being built by the Brake Division follows:

Although the $9.10 price for the X52 fitting represents a substantial discount from the regular $14.90 price, the manager of the Brake Division believes the price concession is necessary if his division is to get the contract for the airplane brake units. He has heard “through the grapevine” that the airplane manufacturer plans to reject his bid if it is more than $73.15 per brake unit. Thus, if the Brake Division is forced to pay the regular $14.90 price for the X52 fitting, it will either not get the contract or it will suffer a substantial loss at a time when it is already operating at only 60% of capacity. The manager of the Brake Division argues that the price concession is imperative to the well-being of both his division and the company as a whole.

Weller Industries uses return on investment (ROI) to measure divisional performance.

1. Assume that you are the manager of the Electrical Division.

a. What is the lowest acceptable transfer price for the Electrical Division?

b. Would you supply the X52 fitting to the Brake Division for $9.10 each as requested?

2. Calculate the net positive effect on the company's profit per brake unit the Electrical Division to supply the fittings to the Brake Division and if the airplane brakes can be sold for $73.15?

3. In principle, within what range would that transfer price lie?

Weller Industries is a decentralized organization with six divisions. The company’s Electrical Division produces a variety of electrical items, including an X52 electrical fitting. The Electrical Division (which is operating at capacity) sells this fitting to its regular customers for $8.70 each; the fitting has a variable manufacturing cost of $4.80.

The company’s Brake Division has asked the Electrical Division to supply it with a large quantity of X52 fittings for only $6.70 each. The Brake Division, which is operating at 50% of capacity, will put the fitting into a brake unit that it will produce and sell to a large commercial airline manufacturer. The cost of the brake unit being built by the Brake Division follows:

Although the $6.70 price for the X52 fitting represents a substantial discount from the regular $8.70 price, the manager of the Brake Division believes the price concession is necessary if his division is to get the contract for the airplane brake units. He has heard “through the grapevine” that the airplane manufacturer plans to reject his bid if it is more than $55 per brake unit. Thus, if the Brake Division is forced to pay the regular $8.70 price for the X52 fitting, it will either not get the contract or it will suffer a substantial loss at a time when it is already operating at only 50% of capacity. The manager of the Brake Division argues that the price concession is imperative to the well-being of both his division and the company as a whole.

Weller Industries uses return on investment (ROI) to measure divisional performance.

Required:

1. Assume that you are the manager of the Electrical Division.

a. What is the lowest acceptable transfer price for the Electrical Division?

b. Would you supply the X52 fitting to the Brake Division for $6.70 each as requested?

2. Calculate the net positive effect on the company's profit per brake unit the Electrical Division to supply the fittings to the Brake Division and if the airplane brakes can be sold for $55?

3. In principle, within what range would that transfer price lie?