Market Structure. Choose one publicly-traded company to address the following:
Hint: a useful source is the firm’s annual reports (10-K) found in the SEC – Edgar website.

1. Identify the resources, capabilities, and/or core competencies of this firm.
   1. Are these resources, capabilities, and/or core competencies VRIO? Why or why not?
2. Identify the type of competitive strategy the firm follows. Explain in detail.
   1. Why do you think the firm follows this strategy? Do you think there is an alternate strategy best suited?
3. Conduct a simple industry analysis using Porter’s framework (i.e., five forces of competition).

Research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Review its most recent statement of cash flows and income statement on the company's Website. Be prepared to discuss. Outline a strategy for companies to spend excess cash and maximize the value of that spend. Provide a rationale for your response. Compare and contrast the selected company's statement of cash flows to its income statement. Suggest at least two (2) items from each statement that investors should analyze when deciding whether or not to purchase the company's stock. Justify your response.

The general ledger of Marshall Corporation, a publicly traded company, contained the following shareholders’ equity accounts in 2018:

A review of the accounting records for the year ended December 31, 2018, reveals the following information:

Reproduce the Preferred Shares, Common Shares, Stock Dividends Distributable, and Retained Earnings general ledger accounts for the year.

Prepare the shareholders’ equity section of the statement of financial position at December 31.

You are the technology controller for a mid-sized publicly traded company. You have been assigned to evaluate an investment in a new process that would cost $2.5 million. You have determined that the internal rate of return of the positive operating cash flows associated with the investment is 13.0%.

On a market value basis, the firm's capital structure is as follows:

Debt: 40%; Preferred Stock: 5%; Common equity: 55%;

This capital structure is in line with the peer group industry average, and management has no appetite for altering the existing ratios, which they consider to be optimal.

Your firm’s current stock prices are $95 per share for common equity and $60 per share for 9% $100 par value cumulative preferred stock. The 2018 common dividend was $10 per share, and the company has increased this dividend by 5% per year for the past ten years. The company also has $1,000 par value 10% coupon bonds outstanding, with a remaining maturity of ten years. The bonds are currently trading at 87.5% of par value. The capital markets are very receptive to the company's bonds and preferred common equity, all of which are actively traded both regionally and nationally.

In addition to this, you determine that the 20-year average yield on 10-year US Treasury obligations is 5% and that the market risk premium is 7%. Your firm's common equity has been given a beta of 1.65. The firm's effective rate of income tax is 25%.

In organizing financing for the proposed project, you have approached your firm's bank. The bank has agreed to a limited amount of long-term secured financing to a maximum of $ 600,000, at 6%. The bank would be willing to supply an additional $ 400,000 of long-term funds on an unsecured basis, at a rate of 15%, as an alternative to a bond issue. Based upon the company's conservative retention policy and healthy cash reserves, you are confident that it could fund up to $1.5 million of the proposed investment with internally generated retained earnings.

Based upon the information provided above, come up with a funding plan for the proposed investment and make a recommendation as to its suitability from a financial standpoint.

Using an indirect method statement of cash flows from a publicly-traded company, discuss an item that was recorded when calculating net income, but is adjusted as an increase or decrease to determine cash provided by (used by) operating activities, specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why there is an adjustment necessary to determine cash from operations. Use an item not already used in a classmate's post, if possible. In your post, include a screenshot of the statement of cash flows you are analyzing.

Carter & Hill (C&H), a publicly traded company, is planning to raise new capital to fund an expansion into the Western part of the U.S. To maintain their current capital structure, they need to issue both debt and equity and have hired JP Capital, an investment banking firm, to handle the new issues. C&H figures that:

a. the cost of floating a new bond issue will cost about 2% of the proceeds and a new common stock will cost about 10% of the proceeds.

b. C&H expects to pay $3.00 next year in dividends and grow them at roughly 5% for the foreseeable future.

c. The firm’s tax rate is 40%.

d. C&H plans to issue 20 year bonds with a $1,000 par value and a 9% coupon rate.

e. JP Capital expects to offer C&H’s stock for $30 a share.

What will C&H’s cost of equity and cost of debt (after-tax) be as a result of these new issues? What is its cost of capital for the expansion if its target debt-equity ratio is 1.25?

For this week's Discussion, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company website and financial statements. Also locate information on the types of bonds the company issues. Review the Liabilities section of the company’s Balance Sheet. Be prepared to discuss.

1. Imagine that you just read about another company in the same industry facing criminal charges for misrepresenting their liabilities. Naturally, you’re worried that the company you’re researching might be doing something similar. Hypothesize a scenario in which someone at the company could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that these companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain. Justify your response.

2. Imagine that you are advising an investor who is considering purchasing bonds issued by the selected company. Analyze the types of bonds the chosen company issues. Make a recommendation to the investor as to which type of bond would provide the most value. Justify your response.

Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1.5

million shares issued at an average value of $30 per share. As well, there were 1 million preferred shares authorized, with 200,000 of them issued at $15 per share. On October 1, 2019, the balance in Retained Earnings was $20,375,000. During the fiscal year 2020, the following transactions affected shareholders' equity:

1. On November 1, 2019, 400,000 new common shares were issued at $32 per share.
2. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $45 per share.
3. On September 1, 2020, a dividend of $5.15 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020.
4. The preferred shares pay an annual dividend of $1.20. The preferred dividend for the year was declared and paid.
5. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $25 million. RequiredComplete the below statement of changes in shareholders' equity as at September 30, 2020

Steering Corporation, a publicly traded company, is authorized to issue 196,000 $4 cumulative preferred shares and an unlimited number of common shares. On January 1, 2018, the general ledger contained the following shareholders’ equity accounts:

The following equity transactions occurred in 2018:

Record the above transactions, including any entries required to close dividends and net income. (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 average cost per share to 2 decimal palces, e.g. 2.25 and final answers to 0 decimal places.)

Closing entries:

Open T accounts and post to the shareholders’ equity accounts. (Record entries in the order presented in the problem.)
- Preferred Shares

- Common Shares

- Retained Earnings

- Contributed Surplus

- Dividends Declared

- Accumulated other Comprehensive Income

Prepare the shareholders’ equity section of the statement of financial position at December 31. (Enter account name only and do not provide descriptive information.)

Pearl Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Pearl’ financial records indicated the following information related to the company’s defined benefit pension plan:

On July 1, 2020, Pearl acquired the operations of Trap Ltd. As one of the conditions of the purchase, Pearl agreed that Trap’s employees would be included in Pearl’s defined benefit pension plan, and would be granted credit for the past service of Trap’s employees. The actuary estimated the value of the prior service amount granted on July 1, 2020 to be $193,000.

Pearl’ actuary provided the following information on December 31, 2020:

Prepare a pension worksheet for Pearl Corporation for the year ending December 31, 2020.
Prepare the journal entry to record the pension expense for 2020.