Vogl Company is a U.S. firm conducting a financial plan for the next year. It has no foreign subsidiaries, but more than half of its sales are from exports. Its foreign cash inflows to be received from exporting and cash outflows to be paid for imported supplies over the next year are shown in the following table:

The spot rates and one-year forward rates for these currencies as of today are as follows:

Based on the information provided, determine the net exposure of each foreign currency in US dollars. 8 Marks

Given the forecast of the Canadian dollar along with the forward rate of the Canadian dollar, what is the expected increase or decrease in US dollar cash flows that would result from hedging the net cash flows in Canadian dollars one year forward? Would you hedge the Canadian dollar position? Why?

      5 Marks

Given the forecast of the Singapore dollar along with the forward rate of the Singapore dollar, what is the expected increase or decrease in US dollar cash flows that would result from hedging the net cash flows in Singapore dollars one year forward? Would you hedge the Singapore dollar position? Why?

9-1. Nealon Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil in the continental United States. The company has grown rapidly over the last 5 years as it has expanded into horizontal drilling techniques for the development of the massive deposits of both gas and oil in shale formations. The company’s operations in the Haynesville shale (located in northwest Louisiana) have been so significant that it needs to construct a natural gas gathering and processing center near Bossier City, Louisiana, at an estimated cost of $70 million.

To finance the new facility, Nealon has $20 million in profits that it will use to finance a portion of the expansion and plans to sell a bond issue to raise the remaining $50 million. The decision to use so much debt financing for the project was largely due to the argument by company CEO Douglas Nealon Sr. that debt financing is relatively cheap relative to common stock (which the firm has used in the past). Company CFO Doug Nealon Jr. (son of the company founder) did not object to the decision to use all debt but pondered the issue of what cost of capital to use for the expansion project. There was no doubt that the out-of-pocket cost of financing was equal to the new interest that must be paid on the debt. However, the CFO also knew that by using debt for this project the firm would eventually have to use equity in the future if it wanted to maintain the balance of debt and equity it had in its capital structure and not become overly dependent on borrowed funds.

The following balance sheet reflects the mix of capital sources that Nealon has used in the past. Although the percentages would vary over time, the firm tended to manage its capital structure back toward these proportions:

The firm currently has one issue of bonds outstanding. The bonds have a par value of $1,000 per bond, carry an 8 percent coupon rate of interest, have 16 years to maturity, and are selling for $1,035. Nealon’s common stock has a current market price of $35, and the firm paid a $2.50 dividend last year that is expected to increase at an annual rate of 6 percent for the foreseeable future.

1. What is the yield to maturity for Nealon’s bonds under current market conditions?

2. What is the cost of new debt financing to Nealon based on current market prices after both taxes (you may use a 21 percent marginal tax rate for your estimate) and flotation costs of $30 per bond have been considered?

3. What is the investor’s required rate of return for Nealon’s common stock? If Nealon were to sell new shares of common stock, it would incur a cost of $2.00 per share. What is your estimate of the cost of new equity financing raised from the sale of common stock?

4. Compute the weighted average cost of capital for Nealon’s investment using the weights reflected in the actual financing mix (that is, $20 million in retained earnings and $50 million in bonds).

5. Compute the weighted average cost of capital for Nealon where the firm maintains its target capital structure by reducing its debt offering to 40 percent of the $70 million in new capital, or $28 million, using $20 million in retained earnings and raising $22 million through a new equity offering.

6. If you were the CFO for the company, would you prefer to use the calculation of the cost of capital in part (d) or (e) to evaluate the new project? Why?

Nealon Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil in the continental United States. The company has grown rapidly over the last 5 years as it has expanded into horizontal drilling techniques for the development of the massive deposits of both gas and oil in shale formations. The company's operations in the Haynesville shale (located in northwest Louisiana) have been so significant that it needs to construct a natural gas gathering and processing center near Bossier City, Louisiana, at an estimated cost of $90 million.

To finance the new facility, Nealon has $30 million in profits that it will use to finance a portion of the expansion and plans to sell a bond issue to raise the remaining $60million. The decision to use so much debt financing for the project was largely due to the argument by company CEO Douglas Nealon Sr. that debt financing is relatively cheap relative to common stock (which the firm has used in the past). Company CFO Doug Nealon Jr. (son of the company founder) did not object to the decision to use all debt but pondered the issue of what cost of capital to use for the expansion project. There was no doubt that the out-of-pocket cost of financing was equal to the new interest that must be paid on the debt. However, the CFO also knew that by using debt for this project the firm would eventually have to use the equity in the future if it wanted to maintain the balance of debt and equity it had in its capital structure and not become overly dependent on borrowed funds.

The following balance sheet,

​

reflects the mix of capital sources that Nealon has used in the past. Although the percentages would vary over time, the firm tended to manage its capital structure back toward these proportions.

The firm currently has one issue of bonds outstanding. The bonds have a par value of

$1,000per bond, carry a coupon rate of 99percent, have 16 years to maturity, and are selling for $1,050.

Nealon's common stock has a current market price of $ 34, and the firm paid a $2.20dividend last year that is expected to increase at an annual rate of 88percent for the foreseeable future.

a. What is the yield to maturity for Nealon's bonds under current market conditions?

b.What is the cost of new debt financing to Nealon based on current market prices after both taxes (you may use a marginal tax rate of 35 percent for your estimate) and flotation costs of $40per bond have been considered?

Note : Use N=16 for the number of years until the new bond matures.

c.What is the investor's required rate of return for Nealon's common stock? If Nealon were to sell new shares of common stock, it would incur a cost of $2.00 per share. What is your estimate of the cost of new equity financing raised from the sale of common stock?

d.Compute the weighted average cost of capital for Nealon's investment using the weights reflected in the actual financing mix (that is, $30 million in retained earnings and $60million in bonds).

e.Compute the weighted average cost of capital for Nealon where the firm maintains its target capital structure by reducing its debt offering to 40percent of the $90 million in new capital, or $36 million, using $30 million in retained earnings and raising $24 million through a new equity offering.

f.If you were the CFO for the company, would you prefer to use the calculation of the cost of capital in part (d ) or (e ) to evaluate the new project? Why?

Nealon Energy Corporation engages in the​ acquisition, exploration,​ development, and production of natural gas and oil in the continental United States. The company has grown rapidly over the last 5 years as it has expanded into horizontal drilling techniques for the development of the massive deposits of both gas and oil in shale formations. The​ company's operations in the Haynesville shale​ (located in northwest​ Louisiana) have been so significant that it needs to construct a natural gas gathering and processing center near Bossier​ City, Louisiana, at an estimated cost of $50 Million.

To finance the new​ facility, Nealon has $10 Million in profits that it will use to finance a portion of the expansion and plans to sell a bond issue to raise the remaining $40 million. The decision to use so much debt financing for the project was largely due to the argument by company CEO Douglas Nealon Sr. that debt financing is relatively cheap relative to common stock​ (which the firm has used in the​ past). Company CFO Doug Nealon Jr.​ (son of the company​ founder) did not object to the decision to use all debt but pondered the issue of what cost of capital to use for the expansion project. There was no doubt that the​ out-of-pocket cost of financing was equal to the new interest that must be paid on the debt.​ However, the CFO also knew that by using debt for this project the firm would eventually have to use equity in the future if it wanted to maintain the balance of debt and equity it had in its capital structure and not become overly dependent on borrowed funds. The following balance sheet, reflects the mix of capital sources that Nealon has used in the past. Although the percentages would vary over​ time, the firm tended to manage its capital structure back toward these proportions.

The firm currently has one issue of bonds outstanding. The bonds have a par value of $1000 per bond, carry a coupon rate of 6%, have 16 years to maturity, and are selling for $1055. Nealon's common stock has a current market price of $42, and the firm paid a $2.20 dividend last year that is expected to increase at an annual rate of 6% for the foreseeable future.

BONDS 40%

COMMON STOCK 60%

a. What is the yield to maturity for​ Nealon's bonds under current market​ conditions?

b. What is the cost of new debt financing to Nealon based on current market prices after both taxes​ (you may use a marginal tax rate of 36% for your​ estimate) and flotation costs of $30 per bond have been considered?

Note​: Use N=16 for the number of years until the new bond matures.

c. What is the​ investor's required rate of return for​ Nealon's common​ stock? If Nealon were to sell new shares of common​ stock, it would incur a cost of

$3.00 per share. What is your estimate of the cost of new equity financing raised from the sale of common​stock?

d. Compute the weighted average cost of capital for​ Nealon's investment using the weights reflected in the actual financing mix​(that is,

$10 million in retained earnings and $40 million in​ bonds).

e. Compute the weighted average cost of capital for Nealon where the firm maintains its target capital structure by reducing its debt offering to 40 percent of the

$50 million in new​ capital, or $20

​million, using $20 million in retained earnings and raising $10 million through a new equity offering.

f. If you were the CFO for the​ company, would you prefer to use the calculation of the cost of capital in part (d​) or (e​) to evaluate the new​ project? Why?

​

Read:

One industry with an impact on both undergraduate and MBA students is textbook publishing. Traditional printed textbooks are being challenged on one hand by self-publishing firms offering very low prices for specific instructor materials, and on the other hand by a need to offer digital resources that substitute for printed materials. Large textbook publishers are increasingly investing in adaptive learning systems such as Wiley-PLUS, Cengage MindTap, and McGraw-Hill Connect. Complicating factors for the publishers is the changing business model of renting textbooks (printed and electronic). U.S. university book rental was about 25 percent of student purchasing volume in 2015.
Use the five forces model (with complements) to think through the various impacts such technology shifts may have on the textbook industry. Include in your response answers to the following questions.

(a) Identify the threat of new entrants. Choose one of the concepts (Economies of scale, Network effects, Customer switching costs, Capital requirements, Advantages independent of size, Government policy, Credible threat of retaliation) to discuss the intensity of threat of new entrants. And discuss whether the intensity of threat of new entrants is high or low.

(b) Identify the power of supplies. Discuss whether the power of supplies is high or low (1-e) Identify the power of buyers. Discuss whether the power of buyer is high or low (1-g) Identify the threat of substitutes.

(c) Discuss whether the threat of substitutes is high or low

(d) Identify the rivalry among competitors. Choose one of the concepts (Competitive industry structure, Industry growth, Strategic commitments, Exit barriers) to discuss the intensity of rivalry among competitors. And discuss whether the intensity of rivalry among competitors is high or low.

Apple Computer CEO Steve Jobs announced he was taking a leave of absence for health reasons. Jobs has been fighting cancer and also recently underwent a liver transplant. Even though the computer giant is in good hands with Chief Operating Officer Tom Cook taking over the stock price fell by​ US$6.40, or nearly two​ percent, on the news.

Jobs is widely known as a visionary and a micromanager. Under his leadership Apple has transformed the computing industry. While​ Jobs' health outlook is unknown many investors are betting on his recovery and return. Those who bought Apple stock when Jobs stepped down in 2004 for health reasons made a nice profit when he returned to the helm.

   Question

“When a financial manager makes good or bad financial decisions the impact of these decisions will be reflected in the​ company's Stock price”. Do you agree with the decision taken in the above case?

What decisions you will take to improve the stock price of Apple Computers in this situation?

, please write regarding whether you believe earnings management is or is not ethical. Please write from the perspective of a CEO of a publicly-traded corporation who has a fiduciary duty to his or her shareholders. A top-scoring answer will address balancing the duty of earning profits for shareholders against the responsibility to behave ethically. plesse answer as loong as you can

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years.

1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $35,000. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $600,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
3. On December 31, 2020, merchandise inventory was overstated by $25,000 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $960,000 increase in the beginning inventory at January 1, 2022.
5. At the end of 2020, the company failed to accrue $16,400 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
6. At the beginning of 2019, the company purchased a machine at a cost of $720,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $460,800. On January 1, 2021, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $4,000,000; in 2020 they were $3,700,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax.

Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Many organizations perform surveysto determine the satisfaction of their customers. Attitudes toward various aspects of campus life were the subject of one such study conducted at University. Each item was rated on a 1 to 5 scale with 5 being high satisfaction and 0 being low. The average response of the 1568 first-year student respondantsto the "Feeling Welcomed at Purdue" item was 3.83 with a standard deviation of 1.10. The average response the 1023 sophomores to the "Feeling Welcomed" item was 3.72 with a standard deviation of 1.42. At significance level of 10% does this data provide evidence that first-year and sophomore students at Purdue feel differently about the welcomingness of the campus?

a.How many sample(s) is/are there?

b. You need to use______ procedures in this case.

c. The test statistic is (to four decimal places):

d. The p value is (to four decimal places):

We should conclude that:

We can also conclude that:

Decide whether a booking must be made for the following business transactions and enter the account name and amount. The sales tax (VAT) may have to be taken into account with 18%. If no booking record has to be formed, please make this clear with "No booking record".

Info:

Elektrovolt A.Ş., an industrial company, produces sockets and mainly supplies them to Cereyan A.Ş., a trading company. Unless otherwise stated, create the posting records for the following business transactions as of December 31, 2019.

1. The managing director of Cereyan A.Ş. buys from Elektrovolt A.Ş. 5000 pieces of sockets each at 5 € (net) per piece on target. From the perspective of Cereyan A.Ş. to book?

2. In order to increase the production capacity, the board of Elektrovolt A.Ş. determined to buy bigger machines. Based on this, Elektrovolt A.Ş. at Parasever Bank A.Ş. for a loan in the amount of Advertised € 30 million. How is Elektrovolt A.Ş. to book?

3. The accounting department of Cereyan A.Ş. got an electricity bill. The date of the invoice is December 31, 2019 and the due date is January 10, 2020. The amount payable is € 1,000.

4. On December 27, 2019, two new employees joined Cereyan A.Ş. set. At Cereyan A.Ş. Salaries are paid on the last day of each month (The December salary at the end of December). The salaries of the newly hired employees are € 5,000 and € 2,500.

5. Elektrovolt A.Ş. received a letter from the tax office stating that the filing of the tax return for November 2019 is late and therefore a fine in the amount of € 10,000 is payable by the end of January 2020.