Why would you, as a good investor want to trade with Pro Medicus Ltd in 2020. Reflect on the Efficient Market Hypothesis in managing Pro Medicus Ltd?
Note that Pro Medicus Ltd is a profitable company whose share prices are constantly rising.
In: Finance
Basic NPV methods tell us that the value of a project today is NPV0. Time value of money issues also lead us to believe that if we choose not to do the project that it will be worth NPV1 one period from now, such that NPV0 > NPV1. Why then do we see some firms choosing to defer taking on a project. Be complete and thorough in your answer.
In: Finance
Comment on shelter-in-place and stay home and restriction of travel, (e.g. as is the case in some states in USA) to help reduce the chance of spreading diseases like Covid-19. Should the government and/or the medical profession protect us from emerging diseases or should each of us have to take responsibility for modifying our own behavior to help prevent their spread?
In: Biology
In: Economics
In: Economics
What is it that draws us as humans to music? How can listening to music impact our emotions, thoughts, or behaviors? What examples do you have from your own life of music impacting you in some way? What explanation can there be for how different music, which has different sounds, has different effects on us?
In: Psychology
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NEED NEW ANSWER ASAP / ANSWER NEVER USED BEFORE
Research the Ahlstrom corporation. What is Ahlstrom’s strategy in the transmission of culture? Do you think Ahlstrom would have as clear a strategy and follow it so closely if the firm were in a commodity area? Do you think that Ahlstrom is encouraged to pursue its strategy so closely because it is in a small country like Finland? Go beyond Ahlstrom: Why would a firm that has a well-defined strategy perform better than a firm without one?
ANSWER THROUGHLY 1 page *** IN PARAGRAPGH FORM PLEASE NOT BULLET POINTS
COPY AND PASTE Answer in paragraphs, and no picture attachment please.
NEEDS TO BE AN ORIGINAL SOURCE ANSWER NEVER USED BEFORE
PLEASE ANSWER THROUGHLY ALL ANSWERS
ANSWER THROUGHLY 1 page *** IN PARAGRAPGH FORM PLEASE NOT BULLET POINTS
COPY AND PASTE Answer in paragraphs, and no picture attachment please.
NEEDS TO BE AN ORIGINAL SOURCE ANSWER NEVER USED BEFORE
PLEASE ANSWER THROUGHLY ALL ANSWERS
In: Operations Management
Use this facts to make balance sheet for money maker company
Money Maker Company (MMC) has a registered capital of
50,000,000 Baht. The company maintains a savings account at Siam
Commercial Bank in the amount of 10,000,000 Baht earning interest
at 2.5% per year. This account was active for 12 months in 2017. As
a benefit for its maintaining good account, MMC was given 5,000,000
Baht over draft protection for its check writing privilege. MMC
pays its short-term debts 50,000 Baht per month throughout 2017.
There are 5 directors in the company; each director can borrow
5,000,000 Baht from the company. Three directors took advantage of
this privilege in 2017. Three directors borrow the money on 6
months due in June 2017, but by December 2017, these directors
still did not pay the loans. The loans to these 3 directors came
from the company’s reserves account. The total reserved was
10,000,000 baht. Thus, no collection attempt was made on the three
directors who were in arrear on the loan repayment.
MMC derives its main income from selling manufactured goods. It
produces flat screen TV for export. Its main office is in Bangkok
and pays its income tax on its revenue as regular income without
any special treatment. In 2017, it took advantage of the
government's tax incentive policy to create jobs in industry parks
by establishing one production plant in Chonburi Province. As the
result MMC receives a certain percentage tax exemption. The
following are list of expenses related to its Chonburi production
plant. The company’s consolidated income statement shows that MMC
earned 350,000,000 Baht from sales. The Chonburi branch accounts
for 80% of the company’s total sales revenue. In 2017, the company
adopted unique business model by dividing its operations into
sales/administration and manufacturing. All manufacturing
activities are done in Chonburi plant. All sales and administration
are done by the head office in Bangkok office.
The company has US dollar account where it has $1,000,000 in
January 2017 when the exchange rate was 30.50 Baht per dollar. By
December 2017, the exchange rate was 33.50 Baht per dollar. The
privilege of maintaining this US dollar account costs 1,000 Baht
per month.
In addition to deriving income from sales, the company also has
other sources of income. It earns 2% on its reserved that had not
been lent to its directors. In 2017, the company speculated on
bitcoin by making 1,000,000 Baht worth of purchase and sold it for
2,000,000 Baht. In the middle of 2017, the company sold one of its
parking lot and made 3,000,000 Baht in profit. This profit from
Bitcoin investment was re-invested in stock where the company
received 5 Baht per share for 10,000 Shares.
The company pays 10,000,000 Baht per year for the right to use the
copyright design of the product that its produces to sell. The
production processes uses diesel fuel as the source of energy; the
company spent 50,000,000 Baht for diesel fuel. The company
subcontracted part of its production to subcontractor in order to
save coast; the subcontracting bill for 2017 was 12,000,000 Baht.
The company follows lean production method, and maintains zero
inventory at the end of each accounting period. In 2017, the
company spent 80,000, 000 Baht on raw materials and had 5,000,000
of work in process at the end of 2017 accounting period.
In: Accounting
John invents The Night Truck, a mobile night-shop with home delivery service between 8
pm and 6 am.
We are end December 2019 and John needs your help to evaluate this project. The project could generate annual sales of 150.000 € in 2020. The sales could then increase by 10% a year. John anticipates that a new regulation as from 2024 would prevent the sales of
alcohol during the night, meaning that sales would stop on the 31st of December 2023. Cost of sales amounts to 60% of sales.
The project requires a new warehouse as well as two trucks. The initial total investment (in 2019) is estimated at 200.000 € (which can be depreciated linearly over 10 years from 2020 onwards). At the end of 2023, the initial investment could be sold for 92,300 €.
John recently travelled to New York, where the concept already exists, to study the feasibility of the project. This trip cost 5.000 € and will be paid in 2020. In 2020, accounts receivable would increase by 75,000 €, inventories by 25.000 € and accounts payable by 50.000 €. Those accounts will stay stable until 2022, with the exception of inventories which John expects to further increase by 10.000 € in 2022 to meet the increasing demand. At the end of the project, all these amounts would be recovered.
The company is subject to a tax rate of 25%. Assume that all cash flows occur at the end of the year, that the inflation rate is 0% and that the annual risk-free rate is 2% (annually compounded). The risk premium for similar projects is 6% (annually compounded).
Questions:
1) What is a sunk cost? Do you identify such cost for the project?
2) Calculate the incremental net incomes and free cash flows of the project.
3) Which discount rate should you choose to evaluate the project? How do you interpret your answer? What is the main information included in this number?
4) Calculate the NPV of this project? What would you advise to John? Why?
5) What would be the impact of this project on the company’s value (if the project is undertaken...)?
In: Finance
Electronics Inc. buys and sells photocopy equipment that are
used in businesses across Ontario. The company follow IFRS. Unit
selling prices range from $10,000 to $100,000.
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On November 15th Centennial College informs Electronic Inc. that they will be not be able to pay their account that is due. The two parties enter into an agreement that the account will be converted into a non-interest bearing promissory note to be repaid in one year from now. The maturity value of the note is $67,098. Centennial College borrows fund at a rate of 6%. Electronic Inc. has various loans at 5% interest. The company’s yearend is December 31st.
In: Accounting