4.You have on your schedule to receive street light products from your regular vendor in July 2020.On the 10^th June 2020, you learnt from the news that the Vendor’s warehouse has been destroyed by fire and that they may not be able to recover in the next 12 months.

What type of Risk is this? Mention 4 possible things you will do?

Writing Wellman Company acquired 30% of the outstanding common stock of Grinwold Inc. on January 1, 2022, by paying $1,800,000 for 60,000 shares. Grinwold declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2022. Grinwold reported a net income of $800,000 for the year. a. Total dividend revenue for 2022 $60,000 b. Revenue from stock investments $240,000 Instructions a. Prepare the journal entries for Wellman Company for 2022, assuming Wellman cannot exercise significant influence over Grinwold. (Use the cost method.) b. Prepare the journal entries for Wellman Company for 2022, assuming Wellman can exercise significant influence over Grinwold. (Use the equity method.) c. The board of directors of Wellman Company is confused about the differences between the cost and equity methods. Prepare a memorandum for the board that explains each method and shows in tabular form the account balances under each method at December 31, 2022.

Bank X’s bid rate on euros is US$1.10 and its ask rate is US$1.128.

1. (a) Calculate the bid/ask spread of euros (in %).

2. (b) Calculate the amount of euros that you can get from selling US$200,000.

3. (c) Explain how the following factors affects sizes of bid-ask spreads:

   1. (i) Inventory costs

   2. (ii) Competition with other banks

One of the worst of Bond’s acquisitions was the ailing American brewer G Heileman, for which he paid $1.26 billion in 1987, around three times what it was worth. Heileman, Bond figured, would be the perfect vehicle to launch his local brewing assets – Swan, Castlemaine and Tooheys – in the US market. It turned out to be merely another symptom of an incurable condition which caused Bond to do deals and then juggle his increasingly massive debt to pay for them.

In the same year he bought Heileman, Bond also made the most expensive art purchase the world had ever known. But the $US54 million he paid for Vincent van Gogh’s Irises was typical of his unusual deals, its purchase having been financed to the tune of around $US27 million by the auctioneer Sotheby’s. Bond never paid them back, and the painting never graced any of his homes. Bond meanwhile struck another deal during the same period that typified his doubtful business acumen and became part of Australian business folklore.

The purchase from Kerry Packer of the Nine Network for $1.05 billion, and its later sale back to Packer for $300 million was a dream transaction – but not for Bond. By 1989, the man who had marched boldly into boardrooms around the world found himself firmly on the back foot with Bond Corporation’s debt at astonishing levels and his once compliant bankers clamouring for repayment. More persistent than the bankers, however, was the English businessman Roland “Tiny” Rowland, in whose company Lonrho, Bond, using yet more borrowed money, had acquired a substantial holding. Rowland pulled Bond’s business empire apart in a 93-page document he published showing it to be insolvent and trading illegally. Rowland’s revelations made an already slippery slope ever more perilous. The first part of his father’s forecast came to pass in 1991 when Bond faced trial for theft over a deal to rescue the failed Rothwells merchant bank. It was a case that revealed much about how business was done Bond-style.

Bond allegedly talked a business colleague Brian Coppin into tipping a few million into a rescue of Rothwells while concealing that Bond Corp would receive a $16 million fee for organising the rescue. Bond served six months, only to be acquitted at a re-trial. That success proved fleeting as the world continued to crash down around the man who little more than a decade earlier had been named Australian of the Year. In 1996 Bond was committed to stand trial for defrauding the shareholders of Bell Resources, a company he had acquired from the late Robert Holmes a’Court, of more than $1 billion. He also stood trial and was jailed over a fraudulent art deal involving the Edouard Manet painting La Promenade which Bond’s public company, Bond Corp, sold to his private company Dallhold for $2.46 million. He got four years for stealing the money from Bell resources and three for the art deal. Together the guilty verdicts made him the biggest fraudster in Australian history.

Research the case of early corporate collapses in Australia mentioned in the textbook on page 11: Alan Bond. Prepare a brief report outlining the case. What was the underlying reason for the failure? Would today's corporate governance codes, rules and regulations have prevented these outcomes? (200 words)

a) Saha have two investment alternatives from which he need to choose one. If the current market interest rate is 8%, which alternative would saha choose and why?

Alternative 1: Receive $ 280 semi-annually for the next 12 years

Alternative 2: Receive $ 12000 lumpsum at the end of 12 years

b) During the four years of saha's University life, saha have received the following amounts of money at the end of each year for outstanding performance from the university fund. He deposited his money in a savings account paying 10 percent rate of interest per annum. How much money will he have on the graduation day at the end of four years?

Author’s Biography:
Claire Cain Miller is a correspondent for The Times, where she writes about
gender, families and the future of work for The Upshot, a Times site for analysis
of policy and economics. She was part of a team that won a Pulitzer Prize in 2018
for public service for reporting on workplace sexual harassment issues. Ms.
Miller, who joined The Times in 2008, previously covered the tech industry for
Business Day. She received a Bachelor of Arts degree from Yale University and
a Master’s degree in journalism from the University of California, Berkeley.
Sanam Yar is one of the contributors for The New York Times, and she writes
about youth culture and social media. She is based in New York.

k. Based on the author’s biography, evaluate and justify on the author’s credibility.

The following is a cross-tabulation of the variables gender and units (the number of units in which a student has enrolled) from a recent class survey. Number of Units Gender 1 2 3 4 5 female 4 11 60 191 3 male 2 10 28 86 1 Note that χ 2 tests require all expected frequencies to be at least 5. To ensure this you may need to combine columns in a way that makes sense in the context of a test for association. That is, you could combine columns 1 and 2, but not columns 1 and 4. Assuming the data come from randomly-selected Murdoch University students, test for an association between gender and unit load in the Murdoch University student population. If you find an association, describe it.

. The University of Iowa is experimenting with a blend of soil amendments to be used in an analysis of variance study of the response of tomatoes to various amounts of sunlight. To perform this study, all other elements must be controlled so that the only variable is the sunlight. The minimum requirements for calcium, phosphorous, and potassium are 125 pounds, 150 pounds, and 120 pounds respectively. The soil amendment mixture from Prairie Gold consist of 25% calcium, 25% phosphorous, 12½% potassium, and 37½% other ingredients. It costs $0.40 per ounce. The mixture from Grinell Grow is 20% calcium, 25% phosphorous, 25% potassium, and 30% other ingredients. It sells for $0.50 per ounce.

Formulate a linear programming model that will allow the University of Iowa to conduct this experiment using a minimum cost blend of the two soil amendment mixtures.

Some goods are normal goods at lower income levels and inferior goods at higher income levels. One example is the fast food category in the US restaurant industry (e.g., McDonalds). In this case, lower income consumers will purchase more fast food if they earn small increases in income. However, the consumers will substitute other types of food and purchase less fast food as their income rises to much higher levels. Can you think of a second example from some other industry in the US or another country?

Suppose you are the marketing manager for a company that faces this sort of demand response from the customers of its major products. How would you develop an advertising program that adapts to this behavior over the growth (increasing income) and recession (declining income) stages of the macro economy? For example, would you change your pricing policy as the economy grows or declines, or would you change the target audience for your ads? Are there other things your could do in this situation?

Appropriate Transfer Prices: Opportunity Costs
Plains Peanut Butter Company recently acquired a peanut-processing company that has a normal annual capacity of 4,000,000 pounds and that sold 2,800,000 pounds last year at a price of $2.00 per pound. The purpose of the acquisition is to furnish peanuts for the peanut butter plant, which needs 1,600,000 pounds of peanuts per year. It has been purchasing peanuts from suppliers at the market price. Production costs per pound of the peanut-processing company are as follows:

Management is trying to decide what transfer price to use for sales from the newly acquired Peanut Division to the Peanut Butter Division. The manager of the Peanut Division argues that $2.00, the market price, is appropriate. The manager of the Peanut Butter Division argues that the cost price of $1.08 (or perhaps even less) should be used since fixed overhead costs should be recomputed. Any output of the Peanut Division up to 2,800,000 pounds that is not sold to the Peanut Butter Division could be sold to regular customers at $2.00 per pound.

(a) Compute the annual gross profit for the Peanut Division using a transfer price of $2.00.
$Answer

(b) Compute the annual gross profit for the Peanut Division using a transfer price of $1.08.
$Answer

(c) Which of the following is least likely to motivate the manager to take actions that will maximize corporate profits?

a.Set the transfer price at 2.00 for all transfers.

b.Set the transfer price at .86 for all transfers.

c.Set the transfer price at .86 for the first 1,200,000 lbs. transferred.

d.Set the transfer price at .86 for the first 1,200,000 lbs. transferred, and at 2.00 for the next 400,000 lbs. transferred.

e.None of the above.