An athletic footwear company is attempting to estimate the sales that will result from a television advertisement campaign of its new athletic shoe. The contribution to earnings from each pair of shoes sold is $40. Suppose that the probability that a television viewer will watch the advertisement (as opposed to turn his/her attention elsewhere) is 0.40. Furthermore, suppose that 1% of viewers who watch the advertisement on a local television channel will buy a pair of shoes. The company can buy television advertising time in one of the time slots according to Table below:

(a) Suppose that the company decides to buy one minute of advertising time. Which time slot would yield the highest expected contribution to earnings net of costs? What is the total expected contribution to earnings resulting from the advertisement?

(b) Suppose the company decides to buy two one-minute advertisements in different time slots. Which two different time slots should the company purchase to maximize the expected contribution to earnings? What is the total expected contribution to earnings resulting from these two advertisements?

Paul is celebrating his 43rd birthday today and is planning for a retirement savings programe for
his family.

[Planned expenses]

- Paul’s daughter is now 6 years old and he plans to send her to a top local university in 12 years.
Currently, the cost of studying (tuition fees and living expenses) is $150,000 per year, but it is
expected to increase with the inflation rate of 3% per year. It takes his daughter 4 years to
complete her undergraduate study, and it is assumed that he will have to pay the tutition fees
and living expenses for his daughter on his 55th, 56th, 57th and 58th birthdays.

- Besides, he would need $2,000,000 to take his wife for a round-the-world trip at their 30th
anniversary when he reaches 62.

- Paul is planning to retire at the age of 65. He estimates that he will need $30,000 a month to
enjoy his retirement years with his wife, with the first withdrawal on his 65th birthday and the
last withdrawal on his 90th birthday.

- He would also like to donate $40,000 semiannually to his university, starting from his 70th
birthday through the 80th birthday.

- He plans to leave $10,000,000 to his family at his 90th birthday.

[Planned savings and cash inflows]
- Eight years ago, Paul joined his employer’s retirement plan that paid him 6% interest
(compounded monthly). At the end of each month, he deposited $5,000 into the retirement
account. He is planning to move all the funds from his retirement account to a high-yield
savings account after he made the last deposit today.

- In addition, he plans to make a quarterly deposit to the high-yield savings account, with the
first deposit to be made a quarter from today and the last deposit one year before his retirement
(i.e. on his 64th birthday). He expects to earn a quarterly return of 3.7971% from the high-yield
account. When he retires, he will have to move all his money to a low-risk account that enables
him to withdraw money whenever he needs. It is expected that the low-risk account will pay
him an interest of 2% (compounded semiannually).

- He expects to stay in his company until he retires and receive a loyalty bonus of $80,000 at his
60th birthday. The loyalty bonus will be deposited to the high-yield account as well.

(a) How much does Paul currently have in his employer’s retirement account (before he moves his
fund to the high-yield account)?

(b) What is the present value (at Paul’s 43rd birthday) of the total costs for sending her daughter to
the university for undergraduate study?

(c) How much must Paul deposit every quarter in order to meet all his withdrawal needs?

Greg and Cindy Hana, 35 and 27, are the parents of two small children with a third on the way. They are concerned about their financial future and are wondering if they're doing things right. Greg is the sole breadwinner and earns $66,000 annually. He works in a relatively dangerous occupation (city cop in Newark, NJ) and is eligible to receive a pension when he is only age 48, with 25 years of service.

The Hana's short-term financial goals are to replace their aging cars in a few years and begin an automatic mutual fund investment program. Longer term, they are concerned about college costs and retirement. They estimate (but are not sure) that their monthly expenses average $2,800, including a $1,300 mortgage payment on their $200,000 home.

Greg currently saves $350 per month in a deferred compensation plan offered by his employer. The couple also has $1,000 of stock and $2,000 in mutual funds. Other assets comprising their $74,500 net worth are a $3,000 CD, $2,000 in checking, $6,500 of life insurance cash value, their home, and two cars worth $2,000. The couple's two debts are a $141,000 mortgage balance and a $1,000 Visa card bill.

The Hanas own life insurance policies totaling $400,000 ($300,000 through work) on Greg and $77,500 on Cindy but lack disability coverage. Greg's employer provides health insurance for the entire family. The liability limits on their auto and homeowner's policies are $300,000.

Neither spouse has individual retirement accounts (IRAs). Greg will receive a traditional defined benefit pension based on his income and years of service. Since he will be relatively young when he is eligible to collect benefits, he plans to continue working in a related field through his 60s.

A glaring weakness in the Hana's financial planning is their lack of a will. "We do not know who to assign as guardians of our children," notes Greg. This is a common dilemma for parents of young children, who sometimes wait until their children are grown to draft a will so they don't have to deal with this issue.

Question

1. describe the strengths and weaknesses of the individual or family’s financial situation

2. Correction of any misinformation that the individual or family has about financial topics

The total population of the United States was 151, 325, 798 in 1950; it increased to 281,421,906 in 2000 and to 308,745,538 in 2010.

Find the percent change in population of the US from 1950 to 2010.

If we moved from mexico to USA, Florida, and still have rental property in Mexico and we file taxes seperately, how do we file in US and Mexico?

What does it mean to say that the US workplace is based on a male prototype of the ideal worker? Describe ways that both men and women suffer from the expectation associated with this ideal.

Assume you are P&G( PROACTER AND GAMBLE) company’s ethics committee and has been tasked to put together a training manual for both new and current employees.

Commitment to Ethical Behaviour Globally; What we do and What We expect in company.IN BRIEF 500 WORDS

for example : (The answer should be like this lenght and format wise.).

When working globally, it’s

important to have a deep understanding of the respect we need to have for our fellow co-workers and

the ability to empathize with somebody else who may be different. Trust and communication are an

essential part of maintaining positive, healthy, relationships within the workplace as well as your

stakeholders globally. In order to ensure employees behave appropriately and ethically its important to

have some sort of rules or policies in place that outline how the company expects their partners to

behave.

1. Having a clearly articulated set of core values is ultimately the backbone of global

policies. This also helps when making decisions in the work place or having to describe

the purpose of a specific situation. Here at Rexall we practice our icare values; Integrity,

customer first, accountability, respect, and excellence. We believe that in order to put

your best foot forward on a daily basis it’s important to be open with your co-workers

and have a line for open or anonymous communication. At the same time, it’s important

to understand and recognize the difference in other cultures including differing values.

2. We never would want to impose our will or core values on another who may be foreign

or international so it’s important to help your international employees understand what

questions they may need to ask in order to help further their business knowledge while

maintaining sensitivity to their culture and core values. It’s very important that there is

some sort of formal discussion scheduled where companies have a chance to train their

employees of the ethics and policies they require them to follow.

3. While keeping your policies consistent it’s also important to allow room for flexibility

and imagination. You don’t want to hold back your company or your employees back

from reaching their full potential. It’s critical to have a managed balance between what

is acceptable and what is not. Establishing an approach that is open to flexibility but also

healthy is important to exercise in ensuring your employees take responsibility and

adhere to good professional judgement.

It is okay to work with somebody who shares a different set of core values or views a specific situation

differently. Sometimes the behaviour of another individual may not be fully understood initially but

keeping an open mind and helping your employees understand and value how clients and peers in other

countries approach work can help address these cultural differences. This exercise is essential for

helping your company succeed in the very competitive global market. In an environment that is

constantly changing and progressing, assuming that whatever we deem as ‘right’ or ‘wrong’ as the

ultimate approach doesn’t leave room for exploration and can lead to conflict in the workplace. Instead

helping to teach your employees to not only accept these differences but appreciate them, can be

beneficial in the long run when trying to expand your company or business globally.

A poll surveyed 341 video gamers, and 99 of them said that they prefer playing games on a console, rather than a computer or hand-held device. An executive at a game console manufacturing company claims that the proportion of gamers who prefer consoles differs from 28%. Does the poll provide convincing evidence that the claim is true? Use the =α0.01 level of significance and the P-value method.

Depreciation and advance prepayments

Pan Asia Airlines was founded in 1980. Headquartered in Hong Kong, the publicly traded company has routes throughout Asia and to major airports throughout Europe and North America. While Pan Asia charges a premium of 10 to 20% over its competitors, customers have not been deterred from using the airline because of the high quality of service.

A key reason for this reputation for high quality is the company's relatively young fleet of aircraft, with an average age of five years and no plane older than eight years. To maintain a young fleet, Pan Asia replaces its planes regularly to ensure that the planes are equipped with the latest technology and operate efficiently. Other airlines typically have fleets with an average age of 10 years, while discount airlines have even older fleets, with an average age of 15 years. A well-maintained aircraft can last for 20 to 25 years, or even more in some cases.

Each of five regional managers has responsibility for all investment and operating decisions for his/her region. The company evaluates each region as a profit centre. The decentralized structure allows each region to respond quickly to changes in its market.

Financially, the company has been consistently profitable in recent years. Stock analysts have projected a target price that is 20% higher than the current price of $32.50 per share, based on their projections of earnings before interest, taxes, depreciation, amortization (EBITDA). Because of its solid financial performance, Pan Asia has earned a high credit rating, allowing it to borrow at a rate of 6%. Debt currently comprises about 40% of assets, while liquid assets amount to about 10% of assets, which total approximately $2 billion.

It is now February 2012. A new chief executive officer (CEO), William Chan, has been appointed following the retirement of the founding CEO. Chan has a background in mechanical engineering and previously served as Pan Asia's chief operating officer for the past 15 years. While Chan has a thorough understanding of the company's central operations, he is less familiar with other aspects of the company. Consequently, he has spent the last three months reviewing the company's marketing program, human resources, information systems, treasury, as well as accounting.

During this review, Chan has identified a few issues that he would like you, the chief financial officer, to explain to him.

1. The CEO noted that Pan Asia uses the declining-balance method of depreciation. He also noted that many (though not all) competitors use the straight-line method. He wonders whether Pan Asia should consider conforming to the majority in the industry.

2. One of Pan Asia’s manufacturers has recently started a promotion that offers a significant discount to airlines that make advance payments on their aircraft orders. The discount amounts to 15% of the regular price. To obtain the discount, Pan Asia would need to pay in full when it orders a plane, rather than when the manufacturer delivers it. Typically, the amount of time between order and delivery is two years. Chan is unsure whether he should encourage the regional managers to take up this offer. He is also wondering what the effects might be for the financial statements.

Required: Draft a memo to the CEO that addresses the issues raised.