Tailor​ Johnson, a U.S. maker of fine​ menswear, has a subsidiary in Ethiopia. This​ year, the subsidiary reported and repatriated earnings before interest and taxes​ (EBIT) of 195 million Ethiopian birrs. The current exchange rate is 9.8039 ​birrs/dollar or Upper S equals $ 0.1020 divided by birrS=$0.1020/birr. The Ethiopian tax rate on this activity is 27%. U.S. tax law requires Tailor Johnson to pay taxes on the Ethiopian earnings at the same rate as on profits earned in the United​ States, which is currently 43%. ​However, the United States gives a full tax credit for foreign taxes paid up to the amount of the U.S. tax liability. What is Tailor​ Johnson's U.S. tax liability on its Ethiopian​ subsidiary?

Tailor​ Johnson's U.S. tax liability on its Ethiopian subsidiary is $_______million. ​ (Round to two decimal​ places.)

Quantitative Models for Decision-Makers

Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio consists of U shares of U.S. Oil and H shares of Huber Steel. The annual return for U.S. Oil is $90 per share and the annual return for Huber Steel is $100 per share. U.S. Oil sells for $31 per share and Huber Steel sells for $42 per share. The portfolio has $60,000 to be invested. The portfolio risk index (0.50 per share of U.S. Oil and 0.50 per share for Huber Steel) has a maximum of 1,300. In addition, the portfolio is limited to a maximum of 20,000 shares of U.S. Oil.

Q: What is the optimal solution, and what is the value of the total annual return (rounded)?

• A. $150,200
• B. $174,200
• C. $8,700
• D. $5,600

Corporate restructure has a major impact on human resource activities. HR professionals collaborate and advise their corporate partners on these major decisions, and their implementation impacts and rallies the services provided from every specialty within HR. In Chapter 9, we learned some new analytical measures that help us evaluate these major investments and changes. Please use what you learned to discuss the following:

1. Why do we calculate terminal value when valuing a business if we did not use it for the team projects?

a. What would influence a Technology industry corporation's make or buy decision if it wanted to add a new IT consulting services division specialized in social media data mining?

b. When two corporations merge, how are the newly-formed business entity's HR activities impacted? What activities would HR undertake to integrate the two former companies into this new entity?

c. Instead of valuing a company based on its debt and equity, what would be the difficulty of valuing all the assets of a business?

This is from a case Called

Waste Management, Inc

Manipulating Accounting Estimates

and here is the required questions

REQUIRED

1. [1] Review Waste Management’s Consolidated Balance Sheet as of December 31, 1996. Identify accounts whose balances were likely based on significant management estimation techniques. Describe the reasons why estimates were required for each of the accounts identified.

1. [4] The Waste Management fraud primarily centered on inappropriate estimates of salvage values and useful lives for property and equipment. Describe techniques Andersen auditors could have used to assess the reasonableness of those estimates used to create Waste Management’s financial statements.

1. [6] Several of the Waste Management accounting personnel were formerly employed by the company’s auditor, Arthur Andersen. What are the risks associated with allowing former auditors to work for a client in key accounting positions? Research Section 206 of the Sarbanes−Oxley Act of 2002 and provide a brief summary of the restrictions related to the ability of a public company to hire accounting personnel who were formerly employed by the company’s audit firm.

1. (a) Kyan Barron has been made jobless from a managerial position in a financial institution in
Jamaica where he had worked for the past fifteen years. The benefits which formed
part of his compensation package were a mortgage at 5% and a company vehicle
which had cost $3,000,000 when it was new. His plan is to go into business as a
computer consultant working in Jamaica and the Eastern Caribbean countries. He
has to decide whether

- to operate as a sole proprietor or
- to incorporate and be a director or shareholder or
- to operate in partnership with a former school friend or
- set up in business in one of the Eastern Caribbean islands

Question:

Advise Kyan on his options of

a. sole proprietor

b. corporation

c. partnership

d. the most ideal caribbean country between Barbados and St. Lucia to set up business

Kyan wishes for you to take into consideration: the tax (corporate and individual) structure, available allowances, National Insurance/Social Security costs, Value Added Tax/GST arrangements and the economic development in Barbados and St. Lucia.

15. Refer to the attached excerpts from the Wall Street Journal, to answer the following questions: (the excerpts show the closing prices as of Thursday January 23, 2020 and Wednesday April 1, 2020).

A. You purchased a T-bill on Thursday January 23, 2020 which matures on July 30, 2020. Determine the purchase price of the T-bill (how much you paid for it). Use the excerpt of January 23 to get the price

B. On Wednesday April 1, 2020, you sold the same T-bill (which has the same maturity on July 30). Use the excerpt of April 1, 2020 to get the price

a. Determine the selling price of the T-bill (how much you received for it).

b. Determine the holding period rate of return (HPR) on this investment.

c. Determine the Annual Percentage rate of Return (APR) on this investment.

d. Determine the Effective Annual Rate of Return (EAR) on this investment.

Thursday, January 23, 2020

Treasury Notes & Bonds

Treasury note and bond data are representative over-the-counter quotations as of 3pm Eastern time. For notes and bonds callable prior to maturity, yields are computed to the earliest call date for issues quoted above par and to the maturity date for issues below par.

U.S. Treasury Quotes

Wednesday, April 01, 2020

Treasury Notes & Bonds

Treasury note and bond data are representative over-the-counter quotations as of 3pm Eastern time. For notes and bonds callable prior to maturity, yields are computed to the earliest call date for issues quoted above par and to the maturity date for issues below par.

On September 1, 2020, Kingbird Company sold at 104 (plus accrued interest) 5,400 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Kingbird Company bonds. Interest is payable on December 1 and June 1.

Prepare in general journal format the entry to record the issuance of the bonds. (Credit account titles are automatically indented when 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.)