If the following quotes are from March 15, 2013, what was the yield to maturity for the PO.BN bonds with $1,000 face values and semiannual payments? Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Paul Orts (PO.BN) 10.20 Mar 15, 2020 92.368 ?? 2,860 (Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Vaughn Company. The following information relates to this agreement.

Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Ayayai Corp., a public company incorporated on June 28, 2019, set up a single account for all of its intangible assets. The following summary discloses the debit entries that were recorded during 2019 and 2020 in that account:

INTANGIBLE ASSETS-AYAYAI
July
1,   2019       8-year franchise; expiration date of June 30, 2027       $42,000
Oct.
1           Advance payment on office lease (2-year lease)
28,000
Dec.   31
Net loss for 2019 including incorporation fee, $1,000; related legal fees of organizing, $5,100;
expenses of recruiting and training staff for start-up of new business, $3,700       17,000
Feb.
15,   2020       Patent purchased (10-year life)
74,400
Mar.   1           Direct costs of acquiring a 5-year licensing agreement
75,000
Apr.   1           Goodwill purchased (indefinite life)
278,400
June   1           Legal fee for successful defence of patent (see above)
12,815
Dec.   31           Costs of research department for year
75,000
31           Royalties paid under licensing agreement (see above)
2,775

The new business started up on July 2, 2019. No amortization was recorded for 2019 or 2020. The goodwill purchased on April 1, 2020, includes in-process development costs that meet the six development stage criteria, valued at $173,000. The company estimates that this amount will help it generate revenues over a 10-year period.

(a)

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as at December 31, 2020, and record any necessary amortization so that all balances are appropriate as at that date. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020

(To clear Intangible Assets account)
Dec. 31, 2020

(To correct for amortization on franchises)
Dec. 31, 2020

(To correct for rent payments)
Dec. 31, 2020

(To record amortization
expense on patents)
Dec. 31, 2020

(To record amortization
expense on licences)
Dec. 31, 2020

(To record amortization expense
on development cost)

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Sell product for $40,000 with historical cost of $32,000

What is the final amount in Retained Earnings?

Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.

Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).

Suppose the company E-bikes R US has an isocost line that crosses the isoquant twice. To cost minimize, E-bikes R US will

A) use a different isocost line to select the bundle of inputs.

B) use the input bundle associated with the intersection on the higher point of the isoquant.

C) use the input bundle associated with the intersection on the lower point of the isoquant.

D) Both B and C.

Company A has a market value of equity of $2,000 million and 80 million shares outstanding. Company B has a market value of equity of $400 million and 25 million shares outstanding. Company A announces at the beginning of 2019 that is going to acquire Company B.

The projected pre-tax gains in operating income (in millions of $) from the merger are:

The projected pre-tax gains in operating income are expected to grow at 4% after year 2023. The company is using a discount rate of 8% to value the synergies. The marginal corporate tax rate is 35%.

Company A has decided to pay a $300 million premium for Company B. Assume that capital markets are efficient and that there is a 100% probability the deal will be closed.

If Company A were to offer 0.80 share of Company A for each share of company B, by how much the price per share of Company A would change at the time of the announcement of the acquisition?

1. We have used quantitative techniques to explore questions about whether groups differ and whether variables are related. Please provide a business example for each (differences and relationships) that you might explore in your own profession. Are there business questions that do not fall into one of those groupings that you would like to test?

2. True or false? Regression helps us determine cause and effect. Explain your answer.

3. Imagine you conduct an experiment to test whether a sample of MBA students performs better in BUS 601 after having taken a course in Excel. Of these students, you are also able to group them according to who uses Excel in their jobs and who does not. Using best practices in experimentation described in class (also explained in the various Harvard Business readings), how would you conduct the experiment and draw your conclusions?

4. Please evaluate the correlation matrix below (see Canvas for matrix), assuming stock price is the response variable in a series of multiple regression equations you plan to run. If you are using this as a diagnostic tool, what are you looking for? If this was your data, how would you proceed?

5. Please describe three things you learned in this class that you believe will make you a more informed consumer of business data and statistical reporting.

The Protek Company is a large manufacturer and distributor of electronic components. Because of some successful new products marketed to manufacturers of personal computers, the firm has recently undergone a period of explosive growth, more than doubling its revenues during the last two years. However, the growth has been accompanied by a marked decline in profitability and a precipitous drop in the company’s stock price.

You are a financial consultant who has been retained to analyze the company’s performance and find out what’s going wrong. Your investigative plan involves a series of in-depth interviews with management and doing some independent research on the industry. However, before starting, you want to focus your thinking to be sure you can ask the right questions. You’ll begin by analyzing the firm’s financials over the last three years, which are presented in the supplemental datasheet. Assume the company sold no property, plant, or equipment during the time periods presented. Also assume the company did not repay any long-term debt. The company’s normal credit terms extended to its customers is net 30.

Complete the following using Microsoft Excel and Word. All quantitative analysis should be done in Excel, while all qualitative analysis should be completed in Word. Construct horizontal analysis (year-over-year growth) on the financial statements for 2019 and 2020. Analyze the trend in each line; what does the trend analysis reveal? What are strengths, and areas for concern? Construct common size balance sheets for 2018 - 2020, respectively, and common size income statements for 2018 - 2020, respectively. Analyze the trend in each line. What appears to be happening? What are your significant findings? Construct Statements of Cash Flows for 2019 and 2020 using the indirect method. Also compute Free Cash Flow for each year. Where is the company’s cash going to and coming from? What are strengths, and areas for concern? Calculate all the financial ratios discussed in chapter 15 (use exhibit 15-6 as a guide) for 2019 and 2020. Analyze trends in each ratio. What can you infer from this information? Make specific statements about liquidity, asset management, debt management, profitability, and market performance. Do not simply say that ratios are higher or lower (or that they are going up or down); instead, think about what might be going on in the company and propose reasons why the ratios are acting as they are. Finally, based on all of your analysis, what two (or more) specific actionable items should the company do to improve its situation? Be specific in your response and discuss the implication of your recommendation.

Answer the following essay questions:

1.Facing with the changes of economic environment due to the outbreak of coronavirus, the CEO of Samson Corporation, a famous machinery manufacturer, is thinking about costs cutting. You are the CFO of the corporation and are required to give suggestions. Please list five ways from different dimensions in cost cutting and explain in detail.

2.You are the CEO of a car manufacturer which is facing a declining demand of its products. A consultant suggests that the implementation of quality concepts will increase product demand. What do you think? If your answer is yes, discuss the relationship between quality and product demand; if your answer is no, give reasons to support your answer. What do you think the relationship between quality and production cost? Explain.