To prepare:

• Consider the value of knowing a second or other language.
• Think about possible strategies to counteract those who may perceive second language learners (or non-English speakers in the United States) to be deficient.
• As you review the Learning Resources, think about how diversity of language is as asset.
• Think also about assumptions made about multilingual children/adolescents

Post by Day 3:

Describe at least one advantage and one challenge for child and adolescent development in a multilingual environment. Provide one recommendation to help ameliorate the challenge you identified.

1. Investigate contemporary institutional slavery or human trafficking around the globe, using a specific example. What societal dynamics do these situations have in common with slavery in the United States?

2. Do you believe that slavery is fundamentally wrong? Explain yes or no. Many commodities would be considerably more expensive without the people who work for near to nothing around the world. Would you be willing to pay higher prices if it meant an end to such poor wages and conditions for labor? What about how this affects prices around the world, such as in developing countries?

Answer the following questions in your own words. Explain your choices and your reasons. Provide examples where possible. Be sure to number your answers and present them in order:

Explain the rise of feminism and discuss the issue of gender inequality in health care and education as it relates to women in the United States.

Explain the conflict perspective on Social Security and discuss intergenerational competition and conflict.

Compare and contrast the functionalist (pluralist) and conflict (power elite) perspectives on U.S. power.

Discuss the globalization of capitalism, including its effects on workers, the division of wealth, and the global superclass.

Essay Topic: Impact of Coronavirus

Please discuss the recent pandemic COVID-19, aka the coronavirus. First give intel on the whole pandemic, explaining the root of the virus and how it got its way into the US, based on the updated news. Then talk about the various factors of the pandemic including the effects of it nationwide, especially the United States. Then organize the concerns into categories of food, economy, politics, race, and inequality. Explain each topic under the current pandemic.

• Please make sure to use citations and references for the essay

• Please use APA 6th format if possible

You are recruited by the founder of a start-up company to advise her on the optimal capital structure for her company. The sole project of the company will require an initial outlay (at date 0) of £150,000, and is expected to generate a single cash flow in one year (at date 1). The project cash flow at date 1 will take one of two equally likely values depending on the state of the economy: if the economy is strong, then the cash flow will be high at £300,000; in a weak economy the cash flow will be only £140,000. Based on evidence of companies with comparable projects, the project's cost of capital has been estimated as 10% per annum. The rate of return on effectively risk-free treasury securities is expected to remain constant over the project life at 5% per annum.

a) Suppose the entrepreneur finances the project using only equity (zero debt). Assuming that the company operates in perfect capital markets, calculate the market value of (unlevered) equity at date 0.

b) Now suppose that instead of using all-equity financing as in part a), the entrepreneur finances £50,000 of the initial project outlay using debt and the rest using equity. The company promises to repay the debt along with a single interest payment of £2,500 at date 1, and the company can borrow the £50,000 of debt at a cost of debt capital of 5% per annum. Assuming that the company operates in perfect capital markets, calculate the current market value at date 0 of the ‘levered equity’ of this company.

c) Compare and contrast the expected return to shareholders in the all-equity financed company in part a) and in the levered company of part b), and explain the difference (if any).

d) Suppose the company has to pay corporate tax at the statutory rate of 35% per annum. All other assumptions of perfect capital markets continue to hold. Compare and contrast the current market values (at date 0) of the all-equity financed firm of part a) and of the levered company of part b). Explain the difference (if any).

e) Now suppose corporate tax is abolished and the company again operates in perfect capital markets. The entrepreneur decides to issue zero-coupon debt with a face value of £150,000 that matures at date 1. The details of the project are as in part a), and the risk-free rate is 5% per annum.

i. Explain how and why the equity and debt of the levered company can be interpreted and valued as options, and how to determine the underlying asset(s), the maturities, the strike prices and the payoffs at maturity to the holders of these options.
ii. Using the option framework of the previous part e)i., briefly outline the main agency conflicts between shareholders and debtholders.
iii. Using the replicating-portfolio approach in the binomial model and put-call parity, calculate the values of the call and put options in part e)i. For the purpose of your calculation, assume the firm pays no dividends, and there is just a single share outstanding (so the share price equals the market value of the firm’s assets). Clearly show your workings and explain each step in your calculation.

MCKENZIE CORPORATION’S CAPITAL BUDGETING

Sam McKenzie is the founder and CEO of McKenzie Restaurants, Inc., a regional company. Sam is considering opening several new restaurants. Sally Thornton, the company’s CFO, has been put in charge of the capital budgeting analysis. She has examined the potential for the company’s expansion and determined that the success of the new restaurants will depend critically on the state of the economy over the next few years.

McKenzie currently has a bond issue outstanding with a face value of $25 million that is due in one year. Covenants associated with this bond issue prohibit the issuance of any additional debt. This restriction means that the expansion will be entirely financed with equity at a cost of $5.7 million. Sally has summarized her analysis in the following table, which shows the value of the company in each state of the economy next year, both with and without expansion:

1. What is the expected value of the company in one year, with and without expansion? Would the company’s stockholders be better off with or without expansion? Why?

2. What is the expected value of the company’s debt in one year, with and without the expansion?

3. One year from now, how much value creation is expected from the expansion? How much value is expected for stockholders? Bondholders?

4. If the company announces that it is not expanding, what do you think will happen to the price of its bonds? What will happen to the price of the bonds if the company does expand?

5. If the company opts not to expand, what are the implications for the company’s future borrowing needs? What are the implications if the company does expand?

6. Because of the bond covenant, the expansion would have to be financed with equity. How would it affect your answer if the expansion were financed with cash on hand instead of new equity?

Max Flyer is the founder and sole owner of the Go for broke Company. The company develops oil wells in unproven territories. His company has purchased a tract of land that larger oil companies have spurned as unpromising even though it is near some large oil fields. Max has provided you the following information:

• Drilling for oil on the tract would cost $100,000 (his investment). If the drilling is successful, and the well produces oil, his revenue would be $800,000. If the well turns out to be a dry hole he loses the entire $100,000. The chance of hitting oil on the tract of land is 1 in 4, or 25%.

• Max does have the option of selling the tract of land. Another oil company, after hearing a geologist’s report, would like to purchase the land for an amount that would provide him a profit of $90,000.

• A friend of Max has told him about a company that does seismic studies. The cost of a study is $30,000. If the study is performed there is a 70% chance that the results will be unfavorable. If the study results are unfavorable, and Max decides to drill for oil anyway, there is an 85.7% chance that he will have a dry well. If the results are favorable, and Max decides to drill, there is a 50% chance that he will have a dry well.

• These are the only alternatives Mr. Flyer has. The alternatives are mutually exclusive.

You have been asked to help Mr. Flyer.  Since you are familiar with how to use decision trees to solve problems, prepare a report that will help Mr. Flyer make his decision in this situation.  Your report should be addressed to Mr. Flyer.

Question 3 – Statement of Cash Flows

Nick Ltd is the founder and owner of a health club. His club operates in Toronto, Ontario and has been in the same location since 2014. The health club offers a variety of services to its members (group classes, personal training etc.). The club also will put on special “fitness” events. The fitness facility has everything - free weights, squat racks, cardio machines (treadmills, bikes and ellipticals), yoga mats, stability balls, pull-up bars, etc. Since Nick charges a premium for the membership to the club, he is constantly looking at updating and expanding the fitness equipment. This past year he purchased a number of weighted battle ropes, new rowing machines a number of additional kettle bells. You have been presented with the following summarized information from his statement of cash flows for the year ended December 31, 2017:

What was the net change in cash for the period?

Explain each type of cash flow and provide an example of the types of transactions that make up the operating, investing and financing section of Nick’s cash flow statement.

Examine the cash flow pattern for Nick Ltd. What does this pattern say about the situation the company is in?

– Statement of Cash Flows

Nick Ltd is the founder and owner of a health club. His club operates in Toronto, Ontario and has been in the same location since 2014. The health club offers a variety of services to its members (group classes, personal training etc.). The club also will put on special “fitness” events. The fitness facility has everything - free weights, squat racks, cardio machines (treadmills, bikes and ellipticals), yoga mats, stability balls, pull-up bars, etc. Since Nick charges a premium for the membership to the club, he is constantly looking at updating and expanding the fitness equipment. This past year he purchased a number of weighted battle ropes, new rowing machines a number of additional kettle bells. You have been presented with the following summarized information from his statement of cash flows for the year ended December 31, 2017:

What was the net change in cash for the period?

Explain each type of cash flow and provide an example of the types of transactions that make up the operating, investing and financing section of Nick’s cash flow statement.

Examine the cash flow pattern for Nick Ltd. What does this pattern say about the situation the company is in?