The merger of steel makers Arcelor and Mittal in 2006 produced the world's largest steel company, with 330,000 employees and forecast earnings of $15.6 billion. Arcelor had fought a long defensive battle against the hostile takeover, valued at around $35 billion. Arcelor was incorporated in Luxembourg and had adopted European governance architecture, with a supervisory board, including employee representatives, and a management board.   
Mittal was a family company with a tradition of growth through acquisition, in which the founding family still played the dominant role. Arcelor had criticised Mittal for its inadequate controls, because it had many Mittal family members and few independent directors on its board.
In the merged Arcelor Mittal company, the Mittal family retained 43.5% of the voting equity. The new board was 18 strong, with chairman Joseph Kinsch, who was previously chairman of Arcelor, president Lakshmi Mittal, nine independent directors, plus employee representative directors and nominee directors to reflect the interests of significant shareholders.
The General Management Board was chaired by the CEO Roland Junck, with the son of Lakshmi Mittal, Aditya Mittal as CFO.

Questions
1. Assess the post-merger board structure and discuss the pros and cons before reading the Financial Times article. 2

Roger Harkel, CEO of Bestafer, Inc. seeks to raise $2 million in a private placement of equity in his early stage venture. Harkel conservatively projects net income of $5 million in year 5 and knows that comparable companies trade at a price earnings ratio of 20X.

What share of the company would a venture capitalist require today if her required rate of return was 50%?

What if her required rate of return was only 30%?

If the company had 1M shares outstanding before the private placement, how many shares should the venture capitalist purchase?

What price per share should she agree to pay if her required rate of return was 50%? 30%?

(Note: Assume investment is in standard prefferred stock with no dividends and a conversion rate to common of 1:1)

Roger feels that he may need as much as $12M in total outside financing to launch his new product. If he sought to raise the full amount in this round, how much of his company would he have to give up?

What price per share would the venture capitalist be willing to pay if her required rate of return was 50%? 30%?

FRX set clear conditions to which a steering committee used methods to ensure an answer to the very important question “why this project important?”, and, furthermore, it ensured that we are able to quantify and follow up on the results of their operations in a meaningful way. The model to answer the question itself was not the goal– it is the completion of project that set the standard but also using a simple method to give the project manager and the project organization space to “deliver the goods” in the project and at the same time focus on the realization of process improvement effects which gave credibility to the work, as the conditions and clarifications as for the calculations are qualified to meet the designated budget of $550,000. At the project implementation, the key task for the analysts was to reduce complexity and define roles in the project. With the strong involvement of stakeholders, experts, and the CEO all involved themselves as parts of an organization need to see the value of the planned change.

1. Give three examples of your preferred method implementation tools.

2. Give three examples of how you would quantify the project schedule and plan.

3. Provide an example In your opinion on how would you manage the debt of the company versus the tools to your disposal in the company value of the stock price that is the overhaul capital of the company.

On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale securities. The bonds have a par value of $14,000, carry a 10% annual interest rate, mature in 2025, and had originally been purchased at par. The market value of the bonds at December 31, 2018 was $12,000. The December 31, 2018, balance sheet showed the following:

On January 1, 2019, Marsh acquired bonds of Yellow Company with a par value of $16,000 for $16,200. The Yellow Company bonds carry an annual interest rate of 12% and mature on December 31, 2023. Additionally, Marsh acquired Zebra Company bonds with a face value of 19,000 for $18,600. The Zebra Company bonds carry an 8% annual interest rate and mature on December 31, 2028. At the end of 2019, the respective market values of the bonds were: Xenon, $13,000; Yellow, $17,000; and Zebra, $20,000. Marsh classifies all of the debt securities as available-for-sale as it does not intend to hold them to maturity nor does it intend to actively buy and sell them. Assume that Marsh uses the straight-line method to amortize any discounts or premiums.

Required:

On December 31, 2018, M Company held X Company bonds in its portfolio of available-for-sale securities. The bonds have a par value of $15,000, carry a 10% annual interest rate, mature in 2025, and had originally been purchased at par. The market value of the bonds at December 31, 2018 was $13,000. The December 31, 2018, balance sheet showed the following:

On January 1, 2019, M acquired bonds of Y Company with a par value of $16,000 for $16,200. The Y Company bonds carry an annual interest rate of 12% and mature on December 31, 2023. Additionally, M acquired Z Company bonds with a face value of 18,000 for $17,600. The Z Company bonds carry an 8% annual interest rate and mature on December 31, 2028. At the end of 2019, the respective market values of the bonds were: X, $14,000; Y, $17,000; and Z, $20,000. M classifies all of the debt securities as available-for-sale as it does not intend to hold them to maturity nor does it intend to actively buy and sell them. Assume that M uses the straight-line method to amortize any discounts or premiums.

Required:

Pet Boutique Corp. reported $2,952,010 of profit for 2020. On November 2, 2020, it declared and paid the annual preferred dividends of $203,000. On January 1, 2020, Pet Boutique had 104,000 and 520,000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 1 Declared and issued a 20% common share dividend. Apr.30 Sold 159,000 common shares for cash. May 1 Sold 50,000 preferred shares for cash. Oct. 31 Sold 42,000 common shares for cash. a. What is the amount of profit available for distribution to the common shareholders? b. What is the weighted-average number of common shares for the year? c. What is the earnings per share for the year?

Analysis Component: Did the sale of preferred shares on May 1, 2020, affect the basic earnings per common share?

It is January 1, 2020. Free cash flow for 2020, 2021, 2022, and 2023 are expected to be -$5,000; -$1,000; $5,000; and $15,000. Cash flow growth beyond 2023 is expected to stabilize at 10% for 2 years, beyond which point free cash flows are expected to grow at 4% in perpetuity. If the discount rate is 20%, what should be the value of the firm today if there is $1,000 excess cash? What should the enterprise value be (assuming the firm has no majority interest in a subsidiary)? Assume cash flows occur continuously throughout the year.

2020 Election ~ Bernie Sanders is a popular presidential candidate among university students for the 2020 presidential election. Leading into Michigan’s presidential primary election in 2020, a journalist, Lauren took a random sample of 11,663 university students and found that 8,891 of them support Bernie Sanders.

Using this data, Lauren wants to estimate the actual proportion of university students who support Bernie Sanders.

What is the required sample size to calculate a 95% confidence interval within 3.05 percentage points? Use z*=1.96.z*=1.96.

n=p*(1−p*)(z*ME)2

Comparative balance sheets: 2019 and 2020, an income statement for 2020 are provided below for Dandelion’s shop.

Balance Sheet

As of December 31^st

Income Statement

During the Year Ended December 31^st

Additional Information from the 2020 accounting records:

1. Dandelion owns a 10% of Acorn Inc. which is labeled as a Trading Security that increased in market value during 2020. Acorn gave out $1,100 worth of dividends to all of its owners during 2020.

2. Machinery (part of the Plant Property and Equipment value) with an original cost of $1,000 was sold. Depreciation was calculated using the straight-line method and exactly 90% of its useful life was used up.

3. $1,600 worth of equipment was purchased by issuing a bond. All other Property, Plant, and Equipment purchases were made in cash.

4. Depreciation is included as part of Operating Expense.

5. 100% of Convertible bonds were exchanged for 100 shares of $1 par common stock.

Instructions:   Prepare the statement of cash flow under the indirect method. Your finished product should have all the information disclosed on a formal statement, including a list of noncash transactions.

***Please explain/show work how you got each amounts***

2020 Election ~ Bernie Sanders is a popular presidential candidate among university students for the 2020 presidential election. Leading into Michigan’s presidential primary election in 2020, a journalist, Lauren took a random sample of 11,834 university students and found that 8,211 of them support Bernie Sanders.

Using this data, Lauren wants to estimate the actual proportion of university students who support Bernie Sanders.

To calculate the required sample size, what value of Z* should we use in the formula below to calculate a 90% confidence interval within 4.62 percentage points? Give your answer to 4 decimal places.

n= p* (1-p*) (z*/ME)^2