A bond that pays coupons annually is issued with a coupon rate of 4 percent, maturity of 30 years, and a yield to maturity of 7 percent. What annual rate of return will be earned in the following situations by an investor who purchases the bond and holds it for 4 year if the bond’s yield to maturity when the investor sells is 8 percent? a) All coupons were immediately consumed when received. b) All coupons were reinvested in your bank account, which pays 2 percent interest until the bond is sold. c) All coupons were reinvested at 10.88 percent until the bond is sold.

John is an accountant and just earned your CPA. John has decided to open up John’s Tax Service on Main Street. He leases a storefront:   his office in the storefront has glass all around it. John has hired an administrative assistant who sits outside his office. His administrative assistant answers phones, receives and sends emails, sets appointments and other administrative type work. Assuming that John spends most of his time inside the office, should John pay his administrative assistant an hourly wage, piece rates or a % or profits? Explain why.

John is an accountant and just earned your CPA. John has decided to open up John’s Tax Service on Main Street. He leases a storefront:   his office in the storefront has glass all around it. John has hired an administrative assistant who sits outside his office. His administrative assistant answers phones, receives and sends emails, sets appointments and other administrative type work. Assuming that John spends most of his time inside the office, should John pay his administrative assistant an hourly wage, piece rates or a % or profits? Explain why.

In 2017, Carson is claimed as a dependent on his parent's tax return. His parents' ordinary income marginal tax rate is 28 percent. Carson's parents provided most of his support.

What is Carson's tax liability for the year in each of the following alternative circumstances?  Use Tax Rate Schedule for reference.

a. Carson is 17 years old at year-end and earned $12,000 from his summer job and part-time job after school. This was his only source of income.

b. Carson is 23 years old at year-end. He is a full-time student and earned $12,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.

In 2018, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances? Use 2018 Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. for reference.

a. Carson is 17 years old at year-end and earned $14,000 from his summer job and part-time job after school. This was his only source of income.

b. Carson is 23 years old at year-end. He is a full-time student and earned $14,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.

So far, things have gone well with Dr. Bueller. Before you wrap up your meetings and he begins investing, you decide to spend a little time sharing information with him about using derivatives to manage risk and enhance returns in his stock portfolio. You decide the best way to illustrate this is via a call option that he can use on a stock that might have some upside potential. If the stock does not reach the potential, the option minimizes the risk. The stock is AXQ Enterprises—a high-tech firm that did well during the Internet boom but declined when the boom turned into a bust. If the company’s new portal software is adopted by a large number of consumers over the next few months, you believe the stock can go much higher. The 6-month options are priced at US$1, the strike price is US$22, and the current price for AXQ stock is US$20. Put together a report of 4–6 pages (body of report) with a table or graph included that illustrates what advice you would give Dr. Bueller on the options if the price of the stock was US$18, US$21, US$24, or US$28 at the end of 6 months. Assignment Guidelines Create a report of 4–6 pages (body of report) for Dr. Bueller that includes the following: Your table or graph that contains the stock option data and the profit/loss depending on the hypothetical stock prices of US$18, US$21, US$24, or US$28 at the end of the 6-month period. Your recommendations on whether or not to exercise the option based on the 4 hypothetical stock prices. Explain the reasoning behind your recommendations. Answer the following questions: What happens if the stock price hits US$23? What happens if the stock price hits US$23.01? What purpose could adding a technology company into a stock portfolio serve? Please be sure that your report adheres to the general format above. Your submitted assignment must include the following: A report of 4–6 pages (body of report) that includes a title page, your stock option information table or graph, your stock option recommendations, and your answers to the questions listed in the Assignment Guidelines. Be sure to include a complete explanation of the rationale supporting your recommendations.

QUESTION 1 (Part 2) E,F&G

Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valencia is under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costs were as follows:

(e) The management of Valencia Manufacturing Company is desirous of increasing operating income by 20% in 2019. They expect per unit data and total fixed costs to remain the same in 2018. Determine the number of units that must be sold to earn this target operating profit. Is this a realistic goal?                                                                                                               

(f) Assume that as a result of reorganizing the production process, Valencia Manufacturing Company was able to reduce direct material cost per unit by $5 due to a change in the quality of raw material used in the production process but the expected sales of 6,000 units would decrease by 5% and total fixed costs are expected to increase by $94,000. What must the new selling price per unit be if the company wishes to meet the target operating profit for 2019?  

(g)You have just begun your summer internship at Valencia Manufacturing. To expand sales, the business is considering paying a commission to its sales team. You have been asked to compute 1) the new break-even sales figure, and 2) the operating profit if sales increase by 10% under the new sales commission plan. She is confident that you can handle the task, because you learned CVP analysis in your accounting class.

You collected your data, performed your analysis and submitted a memo to your manager, who was very pleased with the work done. Your report indicated that the new sales commission plan would result in a significant increase in operating income but only a small increase in break-even sales.

A few days after, you realized that you made an error in the CVP analysis, as the sales personnel’s $88,000 monthly salaries were inadvertently left out and you therefore did not include this fixed marketing cost in your computations. You are not sure what to do, as you are afraid that Valencia might not offer you permanent employment after the internship.

How would your error affect breakeven sales and operating income under the proposed sales commission plan? After considering all factors, should you inform your manager or simply keep quiet?                                                                                                                        

1. Listed below you will see the concept of a “business situation”. You may define/discuss “business situation” as you wish. The possibilities are endless – just be clear in your discussion. For example, it can be in your everyday management of a business or specifically related to a strategic action like an acquisition. This question has three major parts. Please answer ALL parts of the question. If you wish to tailor any or all of your response to a specific company or industry, please feel free to do so. You may certainly incorporate material from all your MBA classes to answer this question.

1. In your opinion, (1) what are the most important accounting and finance concepts/issues/measures (you can be both specific and/or broad) relevant for addressing and understanding a business situation – offer 3, and (2) how are these concepts/issues/measures used to address and understand a business situation?

2. In your opinion, (1) what are the most important management concepts/issues/measures (you can be both specific and/or broad) relevant for addressing and understanding a business situation – offer 3, and (2) how are these concepts/issues/measures used to address and understand a business situation?

3. In your opinion, (1) what are the most important marketing concepts/issues/measures (you can be both specific and/or broad) relevant for addressing and understanding a business situation – offer 3, and (2) how are these concepts/issues/measures used to address and understand a business situation?