American Products is concerned about managing cash efficiently. On the​ average, inventories have an age of

8484

​days, and accounts receivable are collected in

3939

days. Accounts payable are paid approximately

3333

days after they arise. The firm has annual sales of about

​$3737

million. Cost of goods sold are

​$2020

​million, and purchases are

​$1616

million.

a.  Calculate the​ firm's operating

cycle.

b.  Calculate the​ firm's cash conversion

cycle.

c.  Calculate the amount of resources needed to support the​ firm's cash conversion cycle.

d.  Discuss how management might be able to reduce the cash conversion cycle.

a. American​ Products' operating​ cycle, OC, is

nothing

days.  ​(Round to the nearest whole​ number.)

 Over the past 6​ years, Elk County Telephone has paid the dividends shown in the following​ table. he​ firm's dividend per share in

2020 is expected to be $1.27

2019 $1.22

2018 $1.17

2017 $1.12

2016 $1.08

2015 $1.04

2014 $1.00

a.  If you can earn 11​% on​ similar-risk investments, what is the most you would be willing to pay per share in 2019​, just after the $1.22 dividend?

b.  If you can earn only 8% on​ similar-risk investments, what is the most you would be willing to pay per​ share?

c.  Compare your findings in parts a and ​b, what is the impact of changing risk on share​ value?

Question 15 (1 point)

It is believed that students who begin studying for final exams a week before the test score differently than students who wait until the night before. Suppose you want to test the hypothesis that students who study one week before score greater than students who study the night before. A hypothesis test for two independent samples is run based on your data and a p-value is calculated to be 0.0428. What is the appropriate conclusion?

Question 15 options:

Question 16 (1 point)

You are looking for a way to incentivize the sales reps that you are in charge of. You design an incentive plan as a way to help increase in their sales. To evaluate this innovative plan, you take a random sample of your reps, and their weekly incomes before and after the plan were recorded. You calculate the difference in income as (after incentive plan - before incentive plan). You perform a paired samples t-test with the following hypotheses: Null Hypothesis: μ_D ≥ 0, Alternative Hypothesis: μ_D < 0. You calculate a p-value of 0.0542. What is the appropriate conclusion of your test?

Question 16 options:

Question 17 (1 point)

It is reported in USA Today that the average flight cost nationwide is $325.69. You have never paid close to that amount and you want to perform a hypothesis test that the true average is actually less than $325.69. The hypotheses for this situation are as follows: Null Hypothesis: μ ≥ 325.69, Alternative Hypothesis: μ < 325.69. If the true average flight cost nationwide is $300.92 and the null hypothesis is not rejected, did a type I, type II, or no error occur?

Question 17 options:

A newly issued bond pays its coupons once a year. Its coupon rate is 4.6%, its maturity is 10 years, and its yield to maturity is 7.6%.

a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.6% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Holding-period return 14.9 %

b. If you sell the bond after one year when its yield is 6.6%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

After-tax holding-period return 9.67 %

d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 6.6% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 2.6% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Realized compound yield before taxes 10.57 %

e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

A newly issued bond pays its coupons once a year. Its coupon rate is 5.1%, its maturity is 15 years, and its yield to maturity is 8.1%.

a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7.1% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Holding-period return %

b. If you sell the bond after one year when its yield is 7.1%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Tax on interest income $

Tax on capital gain $

Total taxes $

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

After-tax holding-period return %

d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 7.1% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 3.1% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Realized compound yield before taxes %

e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 Zetatron is an all-equity firm with 100 million shares outstanding, which are currently trading for $7.50 per share. A month ago, Zetatron announced it will change its capital structure by borrowing $100 million in short-term debt, borrowing $100 million in long-term debt, and issuing $100 million of preferred stock. The $300 million raised by these issues, plus another $50 million in cash that Zetatron already has, will be used to repurchase existing shares of stock. The transaction is scheduled to occur today. Assume perfect capital markets.

What is the market value balance sheet for Zetatron

i. Before this transaction?

ii. After the new securities are issued but before the share repurchase?

iii. After the share repurchase?

At the conclusion of this transaction, how many shares outstanding will Zetatron have, and what will the value of those shares be?

Market Value Balance Sheet After Each Stage of Zetatron's Leveraged Recapitalization ($ millions)

40.00 mL of a 0.1000 M carbonic acid (H₂CO₃) was titrated with 0.2000 M sodium hydroxide.

carbonic acid pka1:6.35 pka2:10.33

1.Calculate the volume of sodium hydroxide required to reach the first equivalence point.

2.Calculate the volume of sodium hydroxide required to reach the second equivalence point.

3.Write the balanced acid-base reaction and calculate the pH before the addition of sodium hydroxide.

4.Write the balanced acid-base reaction and calculate the pH after the addition of 12.00 mL of sodium hydroxide

5.Write the balanced acid-base reaction and calculate the pH after the addition of 20.00 mL of sodium hydroxide

6. Write the balanced acid-base reaction and calculate the pH after the addition of 30.00 mL of sodium hydroxide

7.Write the balanced acid-base reaction and calculate the pH after the addition of 40.00 mL of sodium hydroxide

8.Write the balanced acid-base reaction (paper only) and calculate the pH after the addition of 44.00 mL of sodium hydroxide

HR Policies that must be included in every organization’s Human Resources policy handbook:

1- EEO Policies/ Sexual Harassment and ADA: This policy is absolutely crucial and must be included in every handbook.

2- Employee Conduct Policies: Some topics that are must haves, include: A. Rules of Conduct B. Drug/Alcohol C. Confidentiality D. Disciplinary Policy E. Dress Codes F. Workplace Violence.

3- Payroll Oriented Policies: A. Timekeeping /Reporting B. Overtime C. Pay Periods D. Bonuses/Commissions E. Deductions – mandatory and voluntary F. Attendance and Punctuality G. Vacation H. Personal Days I. Sick Days J. Accommodations (Disability/Religious).

4-Payroll Oriented Policy: Hours of Work: A. Business Hours; • Regular hours • Special days/late nights • Inclement weather. B. Making Schedules/Changing Schedules; • How are schedules established? • Can they be altered by employee agreement (switching) or is manager approval needed? • Posted, circulated electronically.

5-Employee Benefits: A. Another disclaimer! B. Eligibility C. Right to make modifications D. General overview – STD & LTD E. Life Insurance F. 401k / Pension.

Termination of Employee-Employer Relationship: A. Final paychecks B. Exit interviews C. COBRA D. Employee references.

6-Protecting Trade Secrets: With employees having access to computers and company information, it is crucial that your business has a policy that all employees sign off on acknowledging that they must maintain the confidentiality of trade secrets. Preferably, you will also have a separate piece of paper that all employees sign annually or at time of hire acknowledging these obligations.

7-Workplace Technology Policies: A. No expectation of privacy B. E-mail C. Internet D. Social Media E. Blogging F. Mobile devices (cell phone, laptop, VPN).

Sugar Rush Company Human Resources policy:

Employment and Working Conditions; We are committed to providing our employees with good working conditions, a safe and healthy work environment, and flexible employment possibilities that support a better balance of private and professional life consistent with our ambition as a leading Company. As such, we provide flexible working conditions whenever possible and encourage our employees to have outside interests especially community involvement. Those with line management responsibilities are required to take personal ownership of safety and health within their area of responsibility and are encouraged to develop their capability in this area. Our commitment however goes beyond its own employees. We believe that it is essential to build a relationship based on trust and respect of employees at all levels. We do not tolerate any form of harassment or discrimination. Therefore, managers are committed to build and sustain, with their teams, an environment of mutual trust. HR ensures that a respectful dialogue is present and the voice of the employees is heard.

Employee Relations; Since its founding, Sugar Rush Inc. has built a culture based on values of trust, mutual respect and dialogue. Sugar Rush Inc. management and employees work daily to create and maintain positive individual and collective relationships, and are expected to do so as a core part of their job. Sugar Rush Inc. not only upholdsthe freedom of association of its employees and the effective recognition of the right to collective bargaining, but also ensures that direct and frequent communication is established in the workplace. While dialogue with trade unions is essential, it does not replace the close relationship that our management maintains with all employees. In the spirit of continuous improvement, we encourage two‐way dialogue with our employees that go beyond the traditional aspects of collective bargaining in order to share knowledge and to jointly find opportunities.

Talent, Development and Performance Management; At Sugar Rush Inc., a high performance culture supported by differentiated rewards and development is key to the delivery of individual and business objectives. This is driven by the alignment of clear and challenging responsibilities and ensuring that employees are aware of how their work impacts Sugar Rush Inc. The line manager and employee work together to ensure that challenging objectives are set and effectively evaluated throughout the year. This further enables managers to acknowledge high performance and reward employees accordingly, while ensuring low performance is properly managed with integrity. Employees receive regular feedback on their performance and career aspirations through a variety of tools and processes such as the Performance Evaluation process (PE), the Progress and Development Guide (PDG) and 360° assessments. We aim to retain and motivate employees by offering attractive but realistic career moves allowing them to develop their skills in the long‐term. The Company undertakes an active and rigorous succession planning process at all levels of the organization to ensure that there is a strong pipeline of successors ready to meet future needs. We are committed to ensuring sustainable conditions for a gender balanced and diverse company. As such, Sugar Rush Inc. has focused on removing barriers to career progression for women and men by developing a more flexible work environment, initiating mentoring schemes, having flexible career paths and providing dual career support.  

A Flexible and Dynamic Organization; Sugar Rush Inc. is committed to continue the journey to establishing flat and flexible structures with minimal levels of management and broad spans of control, which enable people development, increase efficiency, and ease implementation of our “Sugar Rush Inc. Management and Leadership Principles”. Less hierarchical layers call for increased cooperation between colleagues. This is what will make the organization more flexible and more accountable. Indeed, it supports today’s and tomorrow’s business requirements for an agile and innovative company working with ever competitive intensity. These simple beliefs have inspired us to create an environment that puts the emphasis not just on individual responsibility and autonomy, but also on a strong willingness to support others, to work in multi‐skilled teams, and to cooperate rather than to compete internally. A dynamic organization creates a climate of innovation and allows people to think from different perspectives. We combine the scope and brand strength of a company with the creativity and knowledge of a local business.

Question; Review the Sugar Rush Policy and provide at least two (2) policies that are missing which would make a difference given the problems they are currently facing?

HR Policies that must be included in every organization’s Human Resources policy handbook:

1- EEO Policies/ Sexual Harassment and ADA: This policy is absolutely crucial and must be included in every handbook.

2- Employee Conduct Policies: Some topics that are must haves, include: A. Rules of Conduct B. Drug/Alcohol C. Confidentiality D. Disciplinary Policy E. Dress Codes F. Workplace Violence.

3- Payroll Oriented Policies: A. Timekeeping /Reporting B. Overtime C. Pay Periods D. Bonuses/Commissions E. Deductions – mandatory and voluntary F. Attendance and Punctuality G. Vacation H. Personal Days I. Sick Days J. Accommodations (Disability/Religious).

4-Payroll Oriented Policy: Hours of Work: A. Business Hours; • Regular hours • Special days/late nights • Inclement weather. B. Making Schedules/Changing Schedules; • How are schedules established? • Can they be altered by employee agreement (switching) or is manager approval needed? • Posted, circulated electronically.

5-Employee Benefits: A. Another disclaimer! B. Eligibility C. Right to make modifications D. General overview – STD & LTD E. Life Insurance F. 401k / Pension.

Termination of Employee-Employer Relationship: A. Final paychecks B. Exit interviews C. COBRA D. Employee references.

6-Protecting Trade Secrets: With employees having access to computers and company information, it is crucial that your business has a policy that all employees sign off on acknowledging that they must maintain the confidentiality of trade secrets. Preferably, you will also have a separate piece of paper that all employees sign annually or at time of hire acknowledging these obligations.

7-Workplace Technology Policies: A. No expectation of privacy B. E-mail C. Internet D. Social Media E. Blogging F. Mobile devices (cell phone, laptop, VPN).

Sugar Rush Company Human Resources policy:

Employment and Working Conditions; We are committed to providing our employees with good working conditions, a safe and healthy work environment, and flexible employment possibilities that support a better balance of private and professional life consistent with our ambition as a leading Company. As such, we provide flexible working conditions whenever possible and encourage our employees to have outside interests especially community involvement. Those with line management responsibilities are required to take personal ownership of safety and health within their area of responsibility and are encouraged to develop their capability in this area. Our commitment however goes beyond its own employees. We believe that it is essential to build a relationship based on trust and respect of employees at all levels. We do not tolerate any form of harassment or discrimination. Therefore, managers are committed to build and sustain, with their teams, an environment of mutual trust. HR ensures that a respectful dialogue is present and the voice of the employees is heard.

Employee Relations; Since its founding, Sugar Rush Inc. has built a culture based on values of trust, mutual respect and dialogue. Sugar Rush Inc. management and employees work daily to create and maintain positive individual and collective relationships, and are expected to do so as a core part of their job. Sugar Rush Inc. not only upholdsthe freedom of association of its employees and the effective recognition of the right to collective bargaining, but also ensures that direct and frequent communication is established in the workplace. While dialogue with trade unions is essential, it does not replace the close relationship that our management maintains with all employees. In the spirit of continuous improvement, we encourage two‐way dialogue with our employees that go beyond the traditional aspects of collective bargaining in order to share knowledge and to jointly find opportunities.

Talent, Development and Performance Management; At Sugar Rush Inc., a high performance culture supported by differentiated rewards and development is key to the delivery of individual and business objectives. This is driven by the alignment of clear and challenging responsibilities and ensuring that employees are aware of how their work impacts Sugar Rush Inc. The line manager and employee work together to ensure that challenging objectives are set and effectively evaluated throughout the year. This further enables managers to acknowledge high performance and reward employees accordingly, while ensuring low performance is properly managed with integrity. Employees receive regular feedback on their performance and career aspirations through a variety of tools and processes such as the Performance Evaluation process (PE), the Progress and Development Guide (PDG) and 360° assessments. We aim to retain and motivate employees by offering attractive but realistic career moves allowing them to develop their skills in the long‐term. The Company undertakes an active and rigorous succession planning process at all levels of the organization to ensure that there is a strong pipeline of successors ready to meet future needs. We are committed to ensuring sustainable conditions for a gender balanced and diverse company. As such, Sugar Rush Inc. has focused on removing barriers to career progression for women and men by developing a more flexible work environment, initiating mentoring schemes, having flexible career paths and providing dual career support.  

A Flexible and Dynamic Organization; Sugar Rush Inc. is committed to continue the journey to establishing flat and flexible structures with minimal levels of management and broad spans of control, which enable people development, increase efficiency, and ease implementation of our “Sugar Rush Inc. Management and Leadership Principles”. Less hierarchical layers call for increased cooperation between colleagues. This is what will make the organization more flexible and more accountable. Indeed, it supports today’s and tomorrow’s business requirements for an agile and innovative company working with ever competitive intensity. These simple beliefs have inspired us to create an environment that puts the emphasis not just on individual responsibility and autonomy, but also on a strong willingness to support others, to work in multi‐skilled teams, and to cooperate rather than to compete internally. A dynamic organization creates a climate of innovation and allows people to think from different perspectives. We combine the scope and brand strength of a company with the creativity and knowledge of a local business.

Question; Review the Sugar Rush Policy and provide at least two (2) policies that are missing which would make a difference given the problems they are currently facing?