6. Make revenue forecast for Pacific Shoes for 2020 based on historical data if the company generated the following revenues for the last five years. Calculate the forecast error, draw a graph with the actual and forecasted revenue by year, and show the forecast error on the graph.

Year.                      2015 2016 2017 2018 2019
Revenue (Million $) 23 27    27        32.     30

Case 05-9 (Spend More) Renamed to Zillionaire On January 1, 2006, Zillionaire (the Company) issued to certain employees 1,000,000 equity-settled stock option awards. The employees will vest in differing numbers of options depending on the cumulative amount of net income the Company earns over the four fiscal years1 following the date of grant, and their continued employment with the Company. The exercise price of the awards is $31.50, which was the Company’s closing share price on the NASDAQ National Market on the date of grant. The Company accounts for the stock compensation awards based on the provisions of ASC 178. The fair value of each award, which was determined based on the Black-Scholes option pricing model was $8 at the date of grant.

In order to align the employees’ performance with the performance of the Company, the Board of Directors of the Company included the following provision in each of the awards:

Subject to Section 5.2(a) of the Zillionaire 2006 Stock Option Plan, the employee will vest in the awards in various percentages (refer to vesting schedule below) based on the amount of cumulative net income earned by the Company in the succeeding four-year period:

Performance Condition .........................................Percent Vested

Greater than $15 million, up to $20 million .................25%

Greater than $20 million, up to $23 million .................50%

Greater than $23 million, up to $27 million ...................75%

Greater than $27 million............................................... 100%

Based on its most current financial forecasts, the Company believes it will earn cumulative net income greater than $20 million, but not more than $23 million in the succeeding four-year period. As a result, the Company will base its estimate of compensation cost on 50 percent of the awards vesting (assuming no forfeitures).

Required:

• Issue 1: How much compensation cost would the Company have to record for the year ended December 31, 2006, in accordance with the principles of ASC 718-compensation-stock compensation? (Citation from ASC is required.)

The first fiscal year is the year in which the stock options have been granted.

Additional Facts:

Assume the same facts in Issue 1 except that the Zilliionaire Stock Option Plan allowed employees to pay for the exercise of the stock options using the stock they will receive upon exercise of their awards, or by tendering options with an intrinsic value equal to the exercise price (net-share settlement).

• Issue 2: How much compensation cost would the Company have to record for the year ended December 31, 2006, in accordance with the principles of ASC 718-compensation-stock compensation?

Additional Facts:

Assume the same facts in Issue 1 except that the Zillionaire 2006 Stock Option Plan permits settlement of the awards in cash instead of the Company’s own shares. The Company has concluded, and its auditor has agreed, that the awards are liability awards since they will be settled in cash. The fair value of each liability award at December 31, 2006, is $12.

The awards essentially would meet the definition of a cash-settled stock appreciation right (SAR). SARs are awards enabling employees to receive cash, stock, or a combination of cash and stock, in an amount equivalent to any excess of the market value of a stated number of shares of the employer’s stock over a stated price (i.e., exercise price). If the SAR is payable only in cash, or payable in cash at the election of the employee, accrued compensation should be recorded as a liability. Since the value of the SAR is based on the market appreciation of the Company’s stock, total compensation cost is unknown for a SAR until it is exercised.

Issue 3: How much compensation cost would the Company have to record for the year ended December 31, 2006, in accordance with the principles of ASC 718-compensation-stock compensation?

Nicholas Grammas is an investment analyst examining the performance of two mutual funds with Janus Capital Group: The Janus Balanced Fund and the Janus Overseas Fund.The following table reports the annual returns (in percent) of these two funds over the past 10 years. We assume the sample returns are drwan independently from normally distributed populations.

In a report, use the above information to:

1. Describe the similarities and differences in these two funds’ returns that you can observe from their descriptive statistics.

2. What is the two-tailed p-value?

3. Determine whether the risk of one fund is different from the risk of the other fund at the 5% significance level. (Two Sentences: one stating your decision using the p-value approach, and another stating your conclusion.)

Show all working out and reasoning, be specific and detailed please. Please do all working out in Excel only. Thank you. This is about Chi Squared Distribution:Statistical Inference Concerning Variance and F Distribution:Inference Concerning Ratio of Two Population Variances to give you an idea about what formulas I'm looking for. Thank you.

The following six (4) questions are based on the following data:

When performing calculations in the following problems, use the numbers in the table as-is. I.e., do NOT convert 8.5985 to 8.5985% (or 0.085985). Just use plain 8.5985.

1. Using the basic market model regression, R p = α + β R m + ϵ, what is the beta of this portfolio? Yes, this is an opportunity to practice regression analysis. You can use Excel or other tool of choice.

2. For precision, find the portfolio beta using the excess return market model:

R p − R f = α + β ∗ ( R m − R f ) + ϵ

[Hint: compute annual excess returns first, then run regression.]

3. Using the excess return beta β ∗ from the previous problem, what is Jensen's alpha for the portfolio?

[Hint: use Equation (17.6) from Moore (2015)]

4. What is the portfolio's M2 measure?

Bonds issued by United Aerospace Corp. are publicly-traded. The bonds will mature in 15 years and have a coupon rate of 8 percent. If the market rate of interest increases, then the:

Multiple Choice

• current yield will decrease.

• coupon rate will also increase.

• yield to maturity will be less than the coupon rate.

• coupon payment will increase.

• market price of the bond will decrease.

, please write regarding whether you believe earnings management is or is not ethical. Please write from the perspective of a CEO of a publicly-traded corporation who has a fiduciary duty to his or her shareholders. A top-scoring answer will address balancing the duty of earning profits for shareholders against the responsibility to behave ethically. plesse answer as loong as you can

1. support or critique the idea that the Committee of Sponsoring Organization of the Treadway Commission (COSO) transition would strengthen internal controls over financial reporting in publicly traded companies.

2. determine the fundamental control deficiencies associated with the credit function. Next, propose at least one (1) control improvement that the credit department management could make in the process.

1. Consider the left (equity or ownership) side of the “Real Estate Example of the Investment System”. Explain what investors are gaining and what they are losing in terms of investment attributes as they move from owning the underlying asset, to owning limited partnership units, to owning shares in a publicly traded REIT that owns the underlying asset. What are the trade offs? Cite cross references.

How do accounting policies and practices affect financial accounting information used for "external" decision making purposes?

What governing and oversight bodies exist to help ensure timely and accurate reporting of financial information by publicly traded companies?

How to internal controls help ensure that financial results are accurately and fairly presented for use by external users?