You have recently been hired by Intersoll Motors Inc. (IMI) in its relatively new treasury management department. IMI was founded eight years ago by Geoff Boycott. Geoff found a method to manufacture a cheaper battery that will hold a larger charge, giving a car powered by the battery a range of 700 km before requiring a charge. The cars manufactured by IMI are midsized and carry a price that allows the company to compete with other mainstream auto manufacturers. The company is privately owned by Geoff and his family and it had sales of $97 million last year. Cost of goods sold totalled $80M and depreciation was $2M.

IMI’s growth to date has come from its profit. When the company had sufficient capital, it would expand production. Relatively little formal analysis has been used in its capital budgeting process. Geoff has just read about capital budgeting technique and has come to you for help. For starters, the company has never attempted to determine its cost of capital, and Geoff would like you to perform the analysis. Because the company is privately owned and not yet publicly traded, base all weights on the book values instead of the market values.

IMI’s capital is made up of a bank loan and owner’s equity. It has a 15-year loan for 8,000,000 with an APR of 13.15% based on semi-annual compounding. IMI has been paying 100,200 monthly for 8 years. Geoff receives a salary in the form of an equity dividend of $1M per year. This amount is expected to grow at 3% per year indefinitely. His required return on equity is 20%. The firm’s marginal tax rate is 35% and this is expected to continue indefinitely.

1. What is IMI’s outstanding debt value? Calculate the book value of debt as the amount still owing on the bank loan.

2. What is the value of the unlevered firm? The levered firm?

3. Determine IMI’s yearly cost of capital based on book values. (Find the after-tax WACC using the

   yearly cost of debt)

4. Would the firm benefit from increasing its debt? Why? (No calculation necessary)

5. In a real-world situation, why might firms choose to avoid debt? (No calculation necessary)

summerize this in less than 500 words

Negligence is a legitimate hypothesis that must be demonstrated before you can consider an individual or organization lawfully liable for the damage you endured. Demonstrating negligence is needed in many cases from mishaps or wounds, for example, fender benders or "slip and fall" cases. Negligence claims must demonstrate four things in court: duty, breach, causation, and damages/hurt. The steps: 1: Duty While surveying a negligence guarantee, the initial step is to hope to see whether the respondent owed the offended party a lawful duty of care. In certain conditions, the connection between the offended party and litigant may make a lawful duty - for example, a specialist owes a patient a legitimate duty to provide that person with able clinical consideration. Or then again, the respondent may owe the offended party a legitimate duty to act with sensible consideration in a specific circumstance - similar to the situation when one is relied upon to work an engine vehicle securely and with a specific degree of due consideration. In the lawful setting, duty is a legitimate commitment, and there are two sorts of duty to consider: - Duty of Care intends to go about as any sensible individual would under specific conditions. - Special Duty of Care is forced by rule, and may exist either notwithstanding, or instead of the standard duty of care. As such, it's the point at which somebody is committed to act in a manner a normal individual isn't really expected or committed to do. Duty" is straightforwardly associated with "negligence" because when somebody is playing out her or his duty appropriately, that individual isn't being careless. 2: Breach of Duty Next, the court will hope to see whether the litigant breached this duty by doing (or not accomplishing something) that a "sensibly judicious individual" would do under comparative conditions. The expression "sensibly judicious individual" alludes to a lawful standard that speaks to how the normal individual would capably act in a specific circumstance. Expressed just, the respondent probably will be discovered careless if the normal individual, recognizing what the litigant knew at that point, would have realized that somebody may have been harmed because of their activities - and would have acted uniquely in contrast to the litigant did in that circumstance. plainly when there is a breach of duty, there is a level of negligence included. Breach of duty is key in how to demonstrate negligence. While deciding the level of the breach, things start to get muddled. The offended party must show that the respondent missed the mark concerning the desires for duty under the pertinent conditions. All in all, the litigant neglected to act with sensible consideration. 3: Causation The third component necessitates that the offended party show that the litigant's negligence really caused their physical issue. Certainly, somebody may be acting carelessly, however the offended party can possibly recuperate if this negligence by one way or another causes the injury. For instance, it wouldn't be reasonable for sue somebody who was carelessly messaging and driving for an absolutely disconnected minor collision that happened right over the road - because the driver was careless. Another part of this component takes a gander at whether the litigant could sensibly have predicted that their activities may cause a physical issue. On the off chance that the litigant's activities by one way or another caused the offended party injury through a random, unforeseen demonstration of nature, the injury would in all probability be considered unforeseeable - and the respondent won't almost certainly be discovered at risk. Otherwise called "cause indeed," genuine cause is a clear cause of something, For instance, somebody stumbles on an electrical string and falls while visiting a neighbor. So the neighbor, as the property holder, may be answerable for the fall. May not be the primary function that set moving a grouping of functions that prompted a physical issue, and it may not be the absolute last function before the injury happens. Rather, it is an activity that created predictable consequences without intercession from any other individual. Was the genuine cause negligence with respect to the respondent, straightforward as can be, or were there relieving factors? In the event that there is equivocalness, this probably goes to proximate cause. 4. Proximate Cause In law, a proximate cause is a function with enough significance to a physical issue for the courts to regard that function the cause of that injury. This idea is trickier to clarify and decide than real cause, so states by and large use either the "however for" or the "considerable factor" test. - Would the injury have happened however for the litigant's careless activity or absence of activity? When there is a finding that a physical issue would not have occurred yet for a litigant's activities, this is because of proximate cause. - Similarly, with considerable factor, the choice depends on whether the respondent's activities (or scarcity in that department) were a significant factor in causing the injury. On account of the electrical rope above, clearly somebody was careless for having left the rope such that made stumbling likely. In any case, was it the flaw of the property holder, who probably positioned the gadget associated with the line? Assuming this is the case, was that mortgage holder completely answerable for extending the rope in a risky manner, or would someone say someone was else included too? It may have been a reckless relative, however maybe it was cover cleaners who had come as of late and were careless in their duty of care. 5: Damages The last component of a negligence case is "damages." This component necessitates that the court have the option to repay the offended party for their physical issue - as a rule through money related pay for costs, for example, clinical consideration or property fix. Damages are the result of a litigant's direct as dictated by a court. The Legal Information Institute characterizes damages as, "the entirety of cash the law forces for a breach of some duty or infringement of some right." Suing for damages is tied in with attempting to recoup pay for hurt done–for the most part close to home injury or harm to property. The offended party is suing for a cure as a money related honor to be paid as remuneration for loss or injury. Negligence guarantees frequently include working with an offended party, a respondent, and their individual protection providers. This is a perplexing arrangement of cycles that probably will require the administrations of a lawyer. Examples: - Slip and fall mishaps (somebody falls on your property and cases the fall was caused by a security risk, for example, a frigid walkway) - Medical negligence, (for example, blunders in regulating sedation, botches during labor, misdiagnosis of ailments, and so on) - Motor vehicle mishaps (absence of care in driving cars, cruisers, trucks, and so on) Negligence misdeeds vary from purposeful misdeeds, for example, bogus detainment, intruding, and misrepresentation. As per USLegal.com, a purposeful misdeed is "a common wrong that happens when the miscreant takes part in deliberate lead that outcomes in damages to another. There are likewise total (or severe) risk misdeeds, where causation is sure. These incorporate inadequate items, assaults by perilous creatures, and comparable circumstances. Law Shelf characterizes severe risk as, "obligation that doesn't rely upon genuine negligence however that depends on the breach of a flat out duty to make something safe.

Perspectives such as behaviorism and social cognitive theory show us how the consequence (reinforcement or punishment) of a particular behavior affects the extent to which the behavior is likely to appear again. Attribution theory has cast a new light on this notion, maintaining that the consequences of behavior will affect each person’s learning and future behavior differently depending on how the individual interprets those consequences. Within the context of attribution theory:

a. Explain what motivation theorists mean when they talk about attributions.

b. Explain how learners’ responses to failure are likely to be different when they attribute that failure to a controllable cause or to an uncontrollable one. Give a concrete example to illustrate your explanation.

c. Describe three specific strategies you might use to foster more productive attributions in others. In each case, use attribution theory to explain why you think the strategy should be effective.

Indicate whether the following statement is true/false/uncertain and explain why:

1. The Heckscher-Ohlin-Samuelson theory is likely to explain the rise of the skill premium in the US and other industrialized countries in recent decades, because in the data we have observed a rise in the price of skill-intensive goods relative to unskilled labor-intensive goods over the same period.

2. In the Melitz model if the transport cost t is zero then opening up to trade does not force the least productive firms to exit the market (compared to autarky)

3. An individual worker may be better off as a result of trade in the short run, but maybe worse off in the long run.

4. The HOS theory predicts that, if countries start trading goods, the factor prices(returns to factors, for example wages) will become more similar across countries.

Assignment Steps Resources: Microsoft Excel®, Signature Assignment Databases, Signature Assignment Options, Part 3: Inferential Statistics Scenario: Upon successful completion of the MBA program, say you work in the analytics department for a consulting company. Your assignment is to analyze one of the following databases: Manufacturing Hospital Consumer Food Financial Select one of the databases based on the information in the Signature Assignment Options. Provide a 1,600-word detailed, statistical report including the following: Explain the context of the case Provide a research foundation for the topic Present graphs Explain outliers Prepare calculations Conduct hypotheses tests Discuss inferences you have made from the results This assignment is broken down into four parts: Part 1 - Preliminary Analysis Part 2 - Examination of Descriptive Statistics Part 3 - Examination of Inferential Statistics Part 4 - Conclusion/Recommendations Part 1 - Preliminary Analysis (3-4 paragraphs) Generally, as a statistics consultant, you will be given a problem and data. At times, you may have to gather additional data. For this assignment, assume all the data is already gathered for you. State the objective: What are the questions you are trying to address? Describe the population in the study clearly and in sufficient detail: What is the sample? Discuss the types of data and variables: Are the data quantitative or qualitative? What are levels of measurement for the data? Part 2 - Descriptive Statistics (3-4 paragraphs) Examine the given data. Present the descriptive statistics (mean, median, mode, range, standard deviation, variance, CV, and five-number summary). Identify any outliers in the data. Present any graphs or charts you think are appropriate for the data. Note: Ideally, we want to assess the conditions of normality too. However, for the purpose of this exercise, assume data is drawn from normal populations. Part 3 - Inferential Statistics (2-3 paragraphs) Use the Part 3: Inferential Statistics document. Create (formulate) hypotheses Run formal hypothesis tests Make decisions. Your decisions should be stated in non-technical terms. Hint: A final conclusion saying "reject the null hypothesis" by itself without explanation is basically worthless to those who hired you. Similarly, stating the conclusion is false or rejected is not sufficient. Part 4 - Conclusion and Recommendations (1-2 paragraphs) Include the following: What are your conclusions? What do you infer from the statistical analysis? State the interpretations in non-technical terms. What information might lead to a different conclusion? Are there any variables missing? What additional information would be valuable to help draw a more certain conclusion?

This week we learned about the Foreign Corrupt Practices Act (FCPA). In that learning we saw that a key to reducing the penalty is through keeping books and records that are clean and transparent. Consider this case:

A USA public company doing business in Freedonia (a made up name from another Marx Brothers movie!) is compelled to bribe local officials in order to be the first to receive a business license for a certain type of industry there. The competition is fierce, but local government officials have unabashedly spread the word that under the table bribery payments to them from the USA company can seal the deal and that's why the USA company is feeling the pressure to participate in the bribe. This would be a violation of the FCPA.

The USA company participates in the fraud, bribing the government officials sufficiently to get the license first, before their competition. The payments are on the books, but hidden, so to speak, in order to get the tax deduction. The payments are cleverly disguised in the expense accounts to appear as normal expenditures.

You are the USA government investigator searching for the fraud after the US government has been tipped off that the fraud happened in Freedonia.

1. What income statement expense accounts would you research for evidence of bribery payments being made even though not so indicated as bribery payments?
2. What type of evidence would you be looking to gather to prove the case?
3. Company officials of the USA company did not want to have all the bribery expenditures traceable directly to them. How else could they disguise the actual payments from the company?
4. Given from your answers above, that the financial statements are obviously misstated, why it is that we don't often see public companies reissue their financials when these FCPA frauds are caught or admitted to?   
5. The USA company hires you to institute policies and procedures to prevent the company and its employees from participating in bribery/corruption schemes in the future. Describe what you advise the company to do.

Assume that at maximum hourly productions levels, the United States can produce either 8 yards of fabric or 4 bushels of wheat, whereas Japan can produce either 5 yards of fabric or 6 bushels of wheat. Based on this information,

Motor Corp. manufactures machine parts for boat engines. The CEO, James Hamilton, is considering an offer from a subcontractor who would provide 3,000 units of product AB100 for Hamilton at a price of $230,000. If Motor Corp. does not purchase these parts from the subcontractor it must produce them in-house with the following per-unit costs: Direct materials $ 40 Direct labor 25 Variable overhead 15 Allocated fixed overhead 4 In addition to the above costs, if the company produces part AB100, it would incur incremental fixed overhead costs of approximately $10,000. Required: a) What would be the impact on short-term operating income if the company were to accept the offer from the subcontractor? Show calculations to support your answer. b) What strategic factors/considerations are generally relevant to the special-order decision problem (i.e., whether a company should accept a one-time order from a customer with whom the company does not generally do business)? b

Reading code that you haven't written is a skill you must develop. Many times you are correcting this code that you didn't write so you have to 1) read the code, 2) find the errors, and 3) correct them.

# Describe the error found in this function:

def get_grade():

grade = int(input("Enter your test score > ")

# Describe the error found in this function:

def all_As(test1, test2, test3):

if test1 > 89:

if test2 > 89:

if test3 > 89:

print("Wow! ", end="")

print("You scored 90 or above on all your exams!")

print("Keep up the As!")

print()

# Describe the error found in this function:

def calc_average(test1, test2, test3):

average = test1 + test2 + test3 / 3

return average

# Describe the error found in this function:

def letter_grade(grade):

if grade >= 90:

print("You earned an A")

if grade >= 80:

print("You earned an B")

if grade >= 70:

print("You earned an C")

if grade >= 60:

print("You earned an D")

if grade < 60:

print("You earned an F")

from grades import (

all_As,

calc_average,

get_grade,

letter_grade

)

# THERE ARE NO ERRORS IN THE MAIN

# YOU DO NOT NEED TO CHANGE THE MAIN

#-----main-----

print("Enter 3 test scores:")

first_test = get_grade()

second_test = get_grade()

third_test = get_grade()

print()

all_As(first_test, second_test, third_test)

average = calc_average(first_test, second_test, third_test)

print("Your test average is",average)

letter_grade(average)

When the program is correct, it should have output like this:

Enter 3 test scores:
Enter your test score >  100
Enter your test score >  90
Enter your test score >  91

Wow! You scored 90 or above on all your exams!
Keep up the As!

Your test average is 93.66666666666667
You earned an A

1. [Cournot Competition - I]

Consider a Cournot duopoly model. Suppose that market demand is P = a−q1−q2, a > 0. Also suppose that the cost functions of the two firms are TC1(q1) = q21 and TC2(q2) = q22

(a) Write the profit function, and the first order condition.

(b) Find out the profit maximizing output for each firm.

(c) Find the profit earned by each firm, total profit earned by the two firms together.

(d) Now assume that the two firms collude and act as a monopoly. Find quantity

sold by the new monopoly firm and the profit earned. Compare the profit earned

by the monopoly with the total profit earned by the two firms in (c).