You were appointed the CFO of a firm with 2 divisions:
Div. 1 -- produces regular telephones
Div. 2 -- produces specialty micro-chips which are
used in cell phones
Given Information:
Market value of your firm’s debt = $100
million
Market value of your firm’s equity = $100
million
Overall/total value of firm = $200 million.
Beta of firms’ equity = 2
Firm’s debt = riskless.
Expected excess return on the
market over the riskless rate = 8% percent
Risk-free rate = 2%
Assume that the CAPM holds.
Engineers in Division 2 now discover an opportunity to invest in a new production technology which would enable it to produce better micro-chips. The required investment would be $15 million today (t=0), but the investment would increase expected Division 2 sales revenues by $4 million per year (each year, indefinitely, starting at t=1). You should assume that the systematic risk (the asset beta) of Division 2 will be unaffected by the switch to the new production technology.
Question 1: What is the asset beta for Division 2?
Question 2: Would you recommend that your firm invests in the new production technology?
Question 3: Suppose your firm announces at t=0
that it will invest in the new production technology and issues $15
million worth of debt to finance the upfront investment.
If there are 10 million shares outstanding, what will the price per
share be right after this has been done (i.e. right after t=0)?
In: Finance
personal sensing devices are becoming more commonplace in everyday life. Unfortunately, radio transmissions from these devices can create unexpected privacy concerns if not carefully designed. We demonstrate these issues with a widely-available commercial product, the Nike+iPod Sport Kit, which contains a sensor that users put in one of their shoes and a receiver that users attach to their iPod Nanos. Students and researchers from the University of Washington found out that the transmitter in a sneaker can be read up to 60 feet away. Through the use of a prototype surveillance system, the researchers could track someone wearing Nike+iPod sensors, plot their location on a GoogleMaps-based website and emai and text-messaging real-time surveillance data to anyone.
You are interested in deploying sensor technology in the cafe to help revamp operations. How would you address the following:
Many cafes are putting sensors on the bottom of cups to help alert the wait staff that a customer needs a refill. Would you introduce this technology to the cafe? If so, are there any concerns with using this type of technology?
What other types of sensors could you deploy throughout the cafe to help operations? What concerns would you have regarding these sensors?
Are there any current laws that you would need to be aware of when deploying wireless technology? If so, what types of liabilities for potential lawsuits should you be aware of to protect the cafe? If not, what types of laws should be created to help protect customers, employees, and the cafe?
In: Operations Management
Quisco Systems has
6.9 billion shares outstanding and a share price of
$ 18.84
Quisco is considering developing a new networking product in house at a cost of
$ 458 million. Alternatively, Quisco can acquire a firm that already has the technology for
$ 959
million worth (at the current price) of Quisco stock. Suppose that absent the expense of the new technology, Quisco will have EPS of
$ 0.96
a. Suppose Quisco develops the product in house. What impact would the development cost have on Quisco's EPS? Assume all costs are incurred this year and are treated as an R&D expense, Quisco's tax rate is
25 %
and the number of shares outstanding is unchanged.
b. Suppose Quisco does not develop the product in house but instead acquires the technology. What effect would the acquisition have on Quisco's EPS this year? (Note that acquisition expenses do not appear directly on the income statement.
Assume the firm was acquired at the start of the year and has no revenues or expenses of its own, so that the only effect on EPS is due to the change in the number of shares outstanding.)
c. Which method of acquiring the technology has a smaller impact on earnings? Is this method cheaper? Explain.
a. Suppose Quisco develops the product in house. What impact would the development cost have on Quisco's EPS? Assume all costs are incurred this year and are treated as an R&D expense, Quisco's tax rate is
25 %,
and the number of shares outstanding is unchanged.Quisco's new EPS would be.
(Round to the nearest cent.)
In: Finance
In: Economics
areaCircle() – should accept the radius of the circle from the main function, calculate the area, and then print the area of the circle.
In: Computer Science
Your task is to write a program in C or C++ that calculates the total amount of money a person has made over the last year. Your program will prompt the user for dollar amounts showing how much the user has made per job. Some users will have had more than one job, make sure your program allows for this. The program will print out the total made (all jobs) and will print out the federal and state taxes based on the total made. For this program, the federal tax will be 8.5% and the state tax will be 14.5%.
1)Use appropriate comments through out the program.
2)Create a header at the top showing the programmer, date of creation and class
3)Print out the source code, and 3 sample runs.
4)Make sure you insert appropriate instructions for the user.
Notes:
1)No negatives are allowed (negative income), check for this.
2)You may use any loop type you wish - be able to defend your choice.
Deliverables:
1)The source code of your completed, working program
2)3 sample runs of your program
In: Computer Science
Morgan Manufacturing operates in an industry in which frequent changes in market conditions results in a hectic and volatile IT environment within the company. To keep abreast, Morgan’s system development team are engaged in a considerable level of new program development and application change activities. To efficiently manage the workload, the director of IT has combined the functions of systems development and program change into a single department. This allows programmers of new applications to also maintain those applications. To achieve cross training, programmers also maintain applications originally programmed by other IT personnel. This has resulted in an “open” library policy that allows programmers to access all programs stored in the SPL and download them to personal computers for maintenance. The immediate effect of this policy has been an increase in the work flow by reducing the startup time needed by programmers to become familiar with the systems being modified. It also reduces the time spent on system documentation. Since the designer and the maintenance programmer is the same person, highly detailed and standardized documentation is not needed.
Required
In: Economics
Using C#:
Write a class named Employee that has the following properties:
The class should have the following overloaded constructors:
In an application, create three Employee objects to hold the following data:
Name IdNumber Department Position
Susan Myers 47899 Accounting Vice President
Mark Jones 39119 IT Programmer
Joy Rogers 81774 Manufacturing Engineer
The application should store this data in the three objects and display the data for each employee on the screen.
In: Computer Science
areaCircle() – should accept the radius of the circle from the
main function, calculate the area, and then print the area of the
circle.
In: Computer Science
Hey can you please answer this question in detail and explanation in your own word i need to post in discussion board
Be sure to give thought to each assigned question before posting.
In: Computer Science