1. You are the CFO of Ford Motors Inc. The firm has decided to purchase new fixed assets that will allow them to more efficiently produce electric cars. To raise the funds needed to purchase these assets, you decide to issue bonds. You expect the new fixed assets to last about 11 years so you’d like to issue bonds with a maturity of 11 years and a face value of $1,000. To set the coupon payment, you ask Moody’s what the credit rating is for bonds of this maturity and risk. They tell you they will rate your bonds Baa which have a 4% return per year, so you set the coupon at $40 per year.

a. What is the present value of the bond Ford is offering? Hint: Finding the price of a bond at the time when it is first issued shouldn’t take you long.

One year later, market interest rates on bonds of similar risk and maturity and increased to 5%. Pretend an investor is looking for a Baa rated bond with a maturity of ten years. They have two choices. They can buy a newly issued bond with a face value of $1,000, say from Toyota. The coupon rate on this newly issued bond would be equal to the current market rate of interest, 5%. This means they would get a coupon of $50 each year. The price of the Toyota bond would be $1,000. The investor’s other option is to buy the Ford bond since it also has a maturity of ten years since one year has past. The coupon for the Ford bond is still $40 and the coupon rate for the Ford bond is still 4%.

b. In order to attract investors, would the price of the Ford bond have to be more or less than the price of the Toyota bond? In other words, does the Ford bond have to be sold at a premium (for more than $1,000) or at a discount (for less than $1,000)? Why?

c. Find the price of the Ford bond.

Chabwino limited is a company that operates in the carpentry and joinery industry in Lusaka.

A new Finance director has just been appointed and is currently reviewing the performance of the company. One of the board members hinted to him that the company might be operating below the expectations of the company strategy and short term objectives.

The Finance director has thus decided to conduct a variance analysis for the last period in order to respond to the concern of the board member.

He has collected the following information to help with the task at hand:

Standard cost card per unit of product:

                                                                                                K

Materials                     5kg at K20 per kg                               100

Labour                         4hours at K10 per hour                       40

Variable overheads     4hours at K5 per hour                         20

Fixed overheads          4hours at K12.50 per hour                  50       

Total cost per unit                                                                   210

Profit per unit                                                                          40

Selling price per unit                                                              250

Budgeted data:

1,400 units were to be produced and sold.

Actual data:

Production and sales                                                               1,600 units

Selling price per unit                                                              K240

Direct materials           7,300kg costing                                   K153, 000

Direct Labour              5,080hours costing                              K45, 720

Variable overheads                                                                 K25, 400

Fixed overheads                                                                      K74, 000

Required:

1. As Cost accountant of the company, you have been asked to calculate all relevant variances, in as much detail as possible, and prepare a statement that reconciles budgeted profit to actual profit for the period under review.

2. From your answers in (a), advice the Finance Director whether the concerns of the board member are justified. Give reasons for your answer.

3. Identify three areas of concern which you feel Management should look at. For each area of concern, suggest two ways in which the issue can be resolved to facilitate improvement going into the next period.

4. Describe four types of standards that can be used in formulating the standard cost card of the company. Recommend one of these standards which you think would be suitable for the management role of budgetary control.

A company is considering replacing an existing machine (defender) with newer machine (challenger). If repaired, the defender can be used for another 5 years. The current market value of the defender is $8,200 (i.e., it can be sold now for $8,200). The operating cost of the defender is $2,200 during the first year which will increase 40% per year every year after the overhaul. Future market values are expected to decline by 35% per year. The new machine (challenger) has a service life of 7 years. It will cost $9,900 to purchase now. Its annual operation and maintenance cost is $1,850 per year in the first year. This annual operation and maintenance cost will increase by 35% per year for subsequent years. The market value of the challenger will decline by 31% every year over its service life. Use MARR equals 8%.

a] Create table showing the market value and annual operation and maintenance costs for the defender and the challenger for the next seven years.

[b] Find the economic lives of: [i] the defender and [ii] the challenger.

[c] Determine when the defender should be replaced (if any).

Write out the related equation

1. When engaging with and motivating Nick, problems might arise that require assistance. Provide an example of the type of problem that might occur that could be attributed to the impact of social devaluation and the social model of disability.

2. If a critical incident relating to adverse behaviour was to occur with Nick, how would you respond in accordance with his behavioural support plan and organisational policies and procedures?

3. In consultation with the supervisor, it has been agreed a referral is needed. Describe the referral procedures you will need to follow in regards to Nick’s ongoing support with specialist services. (maximum 40 words)

(Below is Nick's Information)

Nick is a 28yr old man who lives at home with his parents. Nick enjoys physical activity and is an avid supporter of many professional sporting teams including NRL, AFL and Basketball. Seven years ago Nick sustained a spinal cord injury seven years ago which resulted in his decision to return to his parents’ home. Prior to the accident, Nick was a promising footballer with an offer to play in the NRL, was enrolled at university studying physiotherapy and shared a house with two friends. Nick’s parents have extensively renovated their home and Nick has undergone rehabilitation since the accident.

Lately, Nick has become angry and aggressive when people come near him. Nick is witnessing his mates get married, complete their university degrees and a couple have become parents. Nick has lost his motivation; he states all the activities he participates in like bowling and gaming are meaningless. Nick says he has no value in society and often appears stressed. Nick’s mother is concerned about him as when he is not angry he is withdrawn and non-communicative. Nick is resisting assistance with his personal hygiene, is barely eating, has stopped taking his anti-depressants and is isolating himself from his friends by refusing to see them or to go out.

A support worker comes in each morning to assist Nick with showering, dressing, some exercises and to lift him into his chair. At night the same worker helps him prepare for bed and Nick is lifted into bed. During the day his mother is his principal carer and takes him on outings in a modified vehicle.

The worker is concerned for Nick and has suggested to him that he asks his supervisor to meet with him and review his individual behaviour support plan.

Problem 11-21 (Algorithmic)

Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.7 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. Agan's management would like to evaluate two alternatives:

• Use one consultant with an average service time of 8 minutes per customer.
• Expand to two consultants, each of whom has an average service time of 10 minutes per customer.

If the consultants are paid $13 per hour and the customer waiting time is valued at $21 per hour for waiting time prior to service, should Agan expand to the two-consultant system?

What is the total cost for each scenario? Round your answers to the nearest cent.

The total cost for the first scenario where there is one consultant with an average service time of 8 minutes per customer is $  . The total cost for the second scenario where there are two consultants with an average service time of 10 minutes per customer is $  .

Note: Use P₀ values from Table 11.4 to answer the questions below.

1. Binge drinking on college campuses has been a hot topic in the popular media and in scholarly research. Flett, Goldstein, Wall, Hewitt, Wekerle, and Azzi (2008) report the results of a study relating perfectionism to binge drinking. In the study, students were classified inot three groups based on the number of binge drinking episondes they experienced during the past month (0, 1, 2+). The students then completed a perfectionism questionnaire including one scale measuring parental criticism. One sample item is “I never felt that I could meet my parents’ standards.” Students rated their level of agreement with each item, and the total score was calculated for each student, where higher scores represented greater perfectionism. The following results are similar to those obtained by the researchers.

1. Conduct a one-way ANOVA to determine if there are differences in perfectionism if a person has experienced 0, 1, or 2+ binge drinking episodes within the last month. Set α = .01.
   1. Step 1 (û or ü)
   2. Step 2 (û or ü)
   3. Step 3
      1. MS of numerator (û, ü, or üü)
      2. MS of denominator (û, ü, or üü)
      3. F
   4. Step 4
   5. Step 5
   6. Step 6: Is this step needed (Yes or No). If Yes, complete step 6.
2. Interpretation

When a firm is deciding how much cash to distribute to stockholders, it should consider two things: (1) The overriding objective is to maximize shareholder value and (2) the firm's cash flows belong to shareholders, so income shouldn't be retained unless management can reinvest those earnings at higher rates of return than shareholders can earn themselves. The

model sets the distribution paid equal to net income minus the amount of retained earnings necessary to finance the firm's optimal capital budget. It can be expressed in equation format as:

Because investment opportunities and earnings will vary from year to year, strict adherence to this model would result in fluctuating, unstable distributions. However, investors prefer stable, dependable distributions. Consequently, firms should use this model to help set their long-run target payout ratios, but not as a guide to the payout in any one year.

Quantitative Problem: Lane Industries is considering three independent projects, each of which requires a $1.5 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here:

Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 40% debt and 60% common equity, and it expects to have net income of $4,500,000. If Lane establishes its distributions from the residual distribution model, what will be its payout ratio? Round your answer to two decimal places.
%

Consider the following incomplete declaration of a Name class for 2a-2c.

public class Name something missing

{

   private String first;

   private String last;

   public Name(String firstName, String lastName)

   {

      first = firstName;

     last = lastName;

   }

   //additional methods

}

2a) In the first two parts, you will modify the Name class so that it implements the Comparable interface. Show here what should go in place of something missing in the first line of the class declaration.

2b) In this part, implement the compareTo method. The standard ordering of names is to be used: alphabetical order by last name, and if the two last names are the same, alphabetical order by first name. Two names are considered the same if and only if both the first and last names are the same.

2c) Implement a toString method in the Name class, which takes no parameters and returns a String containing the full name: first name then last name. For example, if the first name is “John” and the last name is “Doe”, then toString should return “John Doe”.

Please design the two research questions according to the attached data, and use the analysis methods introduced so far to test them (T-test and ANOVA)

1. List THREE communication techniques with children.

2. Name FOUR habits to explore during health interview.

3. List FOUR clinical manifestations of failure to thrive.

4. List FOUR guidelines for assessing toilet training readiness.

5. What are the warning signs of Abuse. Name FOUR warning signs.

6. Name THREE characteristics of attention deficit hyperactivity disorder.

7. List FOUR recommended behaviors for preventing obesity.

8. Name TWO guidelines for assessing coping behaviors and give TWO examples of each coping behavior.

9. List TWO clinical manifestations of hearing impairment in Infants and TWO in Children.

10. Name FOUR bill of rights for children and teens in the hospital.