Sakura PLC is a leading investment company in Australia and you the below details relating to the capital structure of the company.
Information concerning raising new capital
Bonds
$1,000
Face value
13%
Coupon Rate (Annual Payments)
20
Term (Years)
$25
Discount offered (required) to sell new bonds
$10
Flotation Cost per bond
Preference Shares
11%
Required rate to sell new preference shares
$100
Face Value
$3
Flotation cost per share
Ordinary Shares
$83.33
Current Market Price
$4.00
Discount on share price to sell new shares
$5.40
Flotation Cost per bond
$5.00
2019 - Proposed Dividend
Dividend History
$4.63
2019
$4.29
2018
$3.97
2017
$3.68
2016
$3.40
2015
Current Capital Structure
Extract from Balance Sheet
$1,000,000
Long-Term Debt
$800,000
Preference Shares
$2,000,000
Ordinary Shares
Current Market Values
$2,000,000
Long-Term Debt
$750,000
Preference Shares
$4,000,000
Ordinary Shares
Tax Rate
33%
Risk Free Rate
5%
3
a) Calculate the cost associated with each new source of finance. The firm has no retained earnings available.
b) Calculate the WACC given the existing weights
The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm’s cost of capital in the medium term and believes they should be as follows
Long-term debt 40%
Preference Shares 15%
Ordinary Shares 45%
c) What impact do these new weights have on the WACC?
The firm is considering the following investment opportunity. (2020-2027)
Data is as follows
Initial Outlay
$1,600,000
Upgrade
$700,000
End of Year 4
Upgrade -
350,000
Increased sales units per annum - (Year 5-8)
Working Capital
$45,000
Increase required
Estimated Life
8
Years
Salvage Value
$60,000
Depreciation Rate
0.125
For tax purposes
The machine is fully depreciated by the end of its useful life
Other Cash Expenses
$60,000.00
Per annum (Years 1-4)
Other Cash Expenses
$76,000.00
Per annum (Years 5-8)
Production Costs
$0.15
Per Unit
Sales price
$0.75
Per Unit (Years 1-4)
Sales price
$1.02
Per Unit (Years 5-8)
Prior sales estimates
Year
Sales
2010
520000
2011
530000
2012
540000
2013
560000
2014
565000
2015
590000
2016
600000
2017
610000
2018
615559
2019
659000
2020
680000
4
d) Calculate the Net Present Value, Internal Rate of Return and Payback Period
The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent.
Year
Stock Market
Share
Index
Price
2010
2000
$15.00
2011
2400
$25.00
2012
2900
$33.00
2013
3500
$40.00
2014
4200
$45.00
2015
5000
$55.00
2016
5900
$62.00
2017
6000
$68.00
2018
6100
$74.00
2019
6200
$80.00
2020
6300
$83.33
e) Calculate the CAPM
f) Explain why this figure may differ from that calculated above (i.e. Cost of equity – Ordinary Shares)
5
Question 3
Previous Years
Sales
1400
Retained Earnings
170
Costs
900
Dividends
180
Tax rate
0.3
Assets
Liabilities/Equity
Current Assets
Current Liabilities
Cash
460
Creditors
600
Debtors
540
Short Term Notes
100
Inventory
600
Non-Current Assets
Non-Current Liabilities
PP&E
2000
Debentures
900
Total Assets
3600
Owner’s Equity
Retained Profits
1000
Ordinary Shares
1000
3600
Percentage of Sales Approach – Assume all spontaneous variables move as a percentage of sales.
a) Given an expected increase in sales of 12%, what is the amount of external funding required?
b) To maintain the current debt/equity ratio how much debt and how much equity is required?
c) Assuming the company is only operating at 95% capacity, how much new funding (if any) is required?

Westinghouse Electric Takes On The Risks Of A “Big Bang” Project Case study adapted from: [David Hannon, “Westinghouse Electric Company Sees Global Standard Processes as the Foundation for Future Business Success,” SAP Insider PROFILES, January– March 2020 and www. westinghousenuclear.com, accessed August 14, 2020. A Westinghouse Electric Company provides fuel, services, technology, plant design, and equipment to utility and industrial customers in the worldwide commercial nuclear electric power industry. A private company created in 1999 after its predecessor was sold and spun off, Westinghouse has 14,500 employees in 17 countries and is headquartered in Cranberry Township, Pennsylvania. Shortly after Westinghouse’s creation, the company implemented a full suite of SAP software across the enterprise. For the past 15 years, the nuclear energy industry was in a holding pattern, with steady business throughout but minimal growth. Westinghouse supplied nuclear equipment and services to plants all around the world, and the business was successful. The initial SAP installation served Westinghouse just fine for nearly an entire decade. From 2010 onward, the nuclear energy industry started to expand. Westinghouse began to experience growth in sales, and its legacy SAP installation was not equipped to handle the increased volume of business. Westinghouse needed to update its older system to support new processes, configurations, and functionalities that related to the larger amount of business it was conducting. The company estimated that it would increase in size fourfold over the next few years. Westinghouse opted to launch a sweeping new program to update its IT. The program, called Synergy internally, consisted of 40 different projects, and updating the SAP system was one of the largest. Rather than simply upgrade its existing systems, Westinghouse opted to “re-implement” those systems with much more current SAP technology. Westinghouse did this because its 10-year-old SAP ERP implementation was too outdated. It was easier for the company to simply replace the old SAP ERP systems with a completely new configuration. The division of the Synergy project dedicated to the SAP re-implementation was known as Cornerstone, aptly named because the new system would be the foundation for the company’s future growth. Westinghouse wanted to start with a clean core SAP environment with a completely new reconfiguration. The company’s goals were to convert all existing data that the company wanted to save, as well as add new functionalities that MANAGEMENT WESTINGHOUSE ELECTRIC TAKES ON THE RISKS OF A “BIG BANG” PROJECT would help the company manage its imminent growth. Westinghouse hoped to add a new general ledger, a new enterprise reporting environment based on SAP NetWeaver Business Warehouse (BW) and SAP Business Objects solutions, and new implementations of SAP Customer Relationship Management (CRM). In order to ensure that the re-implementation went smoothly, Westinghouse took many precautions to manage the risks involved in such a significant change. First, the company ensured that every element of the Cornerstone project was motivated by a particular business driver or goal. By associating goals with each element of the project, Westinghouse was able to more precisely control the implementation of the new system. Once the elements of the new SAP system came into place, Westinghouse had to decide how to actually roll out the new system. It could have used a gradual, phased approach, adding BN206 - System Administration and Management - Final Assessment Trimester 2, 2020 Page 6 of 10 new systems over a three-year period, but the company instead decided on what it called a “big-bang approach.” Management decided that the company was growing too fast for a slow approach— it needed the new systems as soon as possible, and hoped to recoup the return on investment sooner rather than later. However, while the phased approach was more expensive, it was also much less risky. To manage the increased risk of the big-bang approach, the company brought in a change management consultant. The consultant, John Flynn, helped Westinghouse with both the Synergy and Cornerstone projects, but focused on Cornerstone. Flynn performed a risk assessment study to identify business areas that were most likely to undergo significant change. He identified the Westinghouse supply chain as one of these, since the company’s growth would add many new elements to the chain. Therefore, the change management team spent extra time with Westinghouse’s supply chain staff members to help them understand the new project and its impact on their day-to-day routines. Next, after mapping the risk associated with each element of the SAP reimplementation, Westinghouse had to finally switch, or cut over, to the new system. To handle that event, Flynn worked with business leaders to recruit coordinators for every site in the organization. Each site coordinator had a list of responsibilities and a checklist to complete prior to the system going live to ensure each site was ready when the switch was flipped. Westinghouse dedicated extra staff to answer employee questions in the problem areas designated by Flynn. The company created an automatic call distribution system and email system that routed users across all time zones to the employees most able to answer their questions. For example, Westinghouse expected that there would be many questions about passwords, access issues, time entry, and purchase requisition management after the new system went live, so the company provided extra staff to answer those and other frequently asked questions. This “temporary help desk” handled over 2,000 inquiries during the first three weeks of the implementation. The project team also set up a blog where users could share tips and solutions. The cutover to the new SAP system went smoothly, and the company plans to use many of the techniques that it learned from the implementation in the future. It plans to use the blog as its primary communication method for support solutions and other Synergy projects, and future additions to the SAP suite will be much easier than the sweeping big-bang change. Answer the following questions: 1) Consider the above scenario and identify and discuss the risks in Westinghouse Electric’s Cornerstone project. [6 marks] 2) In your opinion, why was change management so important for this project and this company? [6 marks] 3) Discuss what management, organization, and technology issues had to be addressed by the Westinghouse project team? [7 marks] 4) Should other companies use a “big-bang” implementation strategy? Why or why not? Justify your answer

The technology available allows to produce a good according to the production function F(L,K)=[(L-3)K]^1/3 if L≥3 and K≥0, and F(L,K)=0 if L<3. The market demand for this good is D(p)=90/p. The prices of labor and capital are w=1 and r=9, respectively.

A. (12 points) Describe the cost minimization problem of a firm with this technology, and calculate its conditional factor demands. Also, calculate the firm's total, average and marginal cost functions.

B. (10 points) Calculate la supply of a competitive firm. Calculate also the market supply and the short run competitive equilibrium assuming that there are 6 firms in the market with this technology.

C. (6 points) Calculate price, total output and number of firms in the long run competitive equilibrium.

For the data set shown​ below

x   y
20   98
30   95
40   91
50   83
60   70

​(a) Use technology to find the estimates of β0 and β1.

β0 ≈b0=114.60

​(Round to two decimal places as​ needed.)

β1≈b1=−0.68

​(Round to two decimal places as​ needed.)

​(b) Use technology to compute the standard​ error, the point estimate for σ.

se=3.7771

​(Round to four decimal places as​ needed.)

​(c) Assuming the residuals are normally​ distributed, use technology to determine sb1.

sb1equals=0.1194​

(Round to four decimal places as​ needed.)

​(d) Assuming the residuals are normally​ distributed, test H0: β1=0 versus H1: β1≠0 at the α=0.05 level of significance. Use the​ P-value approach.

Determine the​ P-value for this hypothesis test.

​P-value=__?__

​(Round to three decimal places as​ needed.)

BORNEO TEC. is a smart card technology company. Currently it has three project leaders that are very experienced in developing micropayment cards using the technology of MiFARE 3.0. There are 4 micropayment companies in Malaysia wanted to adopt the technology, these clients namely Client 1, Client 2, Client 3 and Client 4.

All projects are very critical to be completed in timely basis, therefore, the Program leader would assign the Project Leader strategically using the assignment method. The estimated project completion time’s requirement, in days, is as follows.

Find the assignment of each project leaders to clients that will minimize the total days to complete all the projects.

Your firm is considering investing $7,500,000 in a factory to build home ethanol systems that will allow individuals to create ethanol from grass clippings. There is an 80% chance that the technology will work as planned and expected net cash flows will be $1,240,000 per year and a 20% chance of technical problems that will reduce expected net cash flows to $40,000 per year. Either way, net cash flows would begin a year from today and continue for 20 years (when your patents will expire and new technology will allow personal solar power systems to become viable). Alternatively, in two years, your firm will know whether the technology will work and thus whether net cash flows will be $1,240,000 or $40,000 per year. Should your firm build now or wait two years if the required return on the project is 10% per year?

PURPOSE

This purpose of this assignment is to enable learners to have a deeper understanding of the concepts, applications and importance of multimedia in society (CLO1) as well as the knowledge of multimedia related hardware and devices. (CLO2)

REQUIREMENT

The era of globalization has indirectly placed a pressure on educational institution to produce highly specialized and technical individual. Given the emergence of knowledge-based society, education system in Malaysia has to realign to meet the growing demand and competitive market.

Thus, you are required to discuss the use of multimedia technology and its application in providing quality and innovative education in Malaysia. Your discussions also need to include the hardware requirements, challenges and the future of this technology.

Lastly, from your experience as 21^st-century learners, suggest any two multimedia technology that you would like OUM to adopt that will enhance your learning experience in OUM especially during the current Covid-19 pandemic.

M11 Discussion - Data Security

Data security is a concern every day for information technology professionals. Users, even information technology professionals move data from point to point on a regular basis and often this requires some form of mobility. For this discussion, please address the points listed below. If you use web sources, include the complete URL to the article.

• Think about your normal day. Describe how you use your smartphone, table, or laptop away from your home or office.
• Now, refect on the possible areas in which your data could be breached, reviewed, copied, or stolen.
• If you were an information technology professional, what are some of the things you would do to help prevent such data breaches?

Each student will be responsible for responding to the discussion question by Wednesday with a word count of at least 250 words.

On January 1, 2019, Parkway Company adopted a defined benefit pension plan. At that time, Parkway awarded retroactive benefits to its employees, resulting in a prior service cost of $2,180,000 on that date (which it did not fund). Parkway decided to amortize this cost by the straight-line method over the 16-year average remaining service life of its active participating employees. Parkway’s actuary and funding agency have also provided the following additional information for 2019 and 2020:

*Due to the prior service cost

Parkway contributed $670,000 and $700,000 to the pension fund at the end of 2019 and 2020, respectively. There are no other components of Parkway’s pension expense. At the end of 2020, the projected benefit obligation was $3,359,800 and the fair value of the pension plan assets was $1,430,300.

Required:

CHART OF ACCOUNTSParkway CompanyGeneral Ledger

Compute the amount of Parkway’s pension expense for 2019 and 2020.

2. Prepare the entries to record prior service cost on January 1, 2019, and the pension expense and amortization of prior service costs on December 31, 2019 and 2020.

General Journal Instructions

PAGE 2019

GENERAL JOURNAL

2. Prepare the entries to record prior service cost on January 1, 2019, and the pension expense and amortization of prior service costs on December 31, 2019 and 2020.

General Journal Instructions

PAGE 2020

GENERAL JOURNAL

3. What is the total accrued/prepaid pension cost at the end of 2020?

Is it an asset or liability?

This paper aims to test the module ILOs using a practical real-life case-study. In this case study, you are going to play the role of an analyst for one of the corporates, let us call it Company-Z. Therefore, let us first introduce the case-study random variables:  is the Company-Z monthly revenue along the period Pre-COVID-19(January 2018 to December 2019);  is the same Company-Z monthly revenue but during the period Post-COVID-19(March 2020 to September 2020);  is the monthly operations cost during the period Pre-COVID-19(January 2018 to December 2019); while  is the same monthly operations cost but during the period Post-COVID-19(March 2020 to September 2020). Accordingly, in your analysis, you will depend on two main random variables over two time series. The first random variable is the Company-Z monthly revenue , and the second random variable is the Company-Z monthly operations cost . The two random variables were chosen over two periods of time: the first is (Pre-COVID-19: January 2018 to December 2019), and the second is (Post-COVID-19: March 2020 to September 2020).  Your task is to prepare a comprehensive report to the company, fulfilling specific requirements outlined below in point (3). using this data

What is the appropriate technique to test the following two hypotheses arguing: that the population mean of the monthly operations cost is 0.9 times the value of the average monthly operations cost during the period Pre-COVID-19 , and the population mean of the monthly operations cost is 1.3 times the value of the average monthly operations cost during the period Post-COVID-19 . Write thefull analytical stepsto find the appropriate decision for both hypotheses, as well as comment on the results?     use the confidence level 99 percent