Imagine that you are the CEO of Moet Hennessy Louis Vuitton SE (LVMH). You have just received share price valuation estimates for a potential buyout target, Rimowa, from two of your top financial analysts. You have confidence in their estimates because they have taken FIN 305 from the Shidler College of Business. Both analysts used the discounted cash flow (DCF) model to estimate the share price resulting in a valuation of $50, by the first analyst and $60, by the second analyst. Part I: Identify two possible causes for the significant difference in valuation and briefly explain how each possible cause affected the DCF model’s share price estimate. Part II: You made a buyout offer of $55 a share and Rimowa’s CEO rejected it. The German luxury luggage brand Rimowa is crucial to LVHM’s strategic expansion into brands that have heritage and a unique position. As the CEO of LVHM what would you do to meet LVHM’s strategic objective while minimizing the cost to acquire Rimowa? Briefly defend your recommendation.

1a. Staind, Inc., has 7 percent coupon bonds on the market that have 15 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 10 percent, what is the current bond price? (note: when the face value is not given for a bond, assume it is $1,000)

1b. Ackerman Co. has 7 percent coupon bonds on the market with ten years left to maturity. The bonds make annual payments. If the bond currently sells for $1,040.37, what is its yield to maturity (YTM)?

1c. Kiss the Sky Enterprises has bonds on the market making annual payments, with 6 years to maturity, and selling for $850. At this price, the bonds yield 10.0 percent. What must the coupon rate be on the bonds? (Note: first find the coupon payment, then the coupon rate. The face value of $1,000 x coupon rate = coupon payment).

1d. Grohl Co. issued 15-year bonds a year ago at a coupon rate of 9 percent (APR). The bonds make semiannual payments. If the YTM on these bonds is 10 percent (APR), what is the current bond price?

Materials Variances

Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice:

     Direct materials 128 oz. @ $0.04 = $5.12

During the first week of operation, the company experienced the following results:

1. Gallon units produced: 20,000.
2. Ounces of materials purchased and used: 2,790,000 ounces at $0.055.
3. No beginning or ending inventories of raw materials.

Required:

Note: Enter favorable values as negative numbers. Enter unfavorable values as positive numbers.

1. Compute the materials price variance.
$  

Is it Favorable or Unfavorable?

2. Compute the materials usage variance.
$  

Is it Favorable or Unfavorable?

3. During the second week, the materials usage variance was $4,000 unfavorable and the materials price variance was $20,000 unfavorable. The company purchased and used 2,300,000 ounces of material during this week. How many gallons of juice were produced? If required, round your answer to nearest whole value.
gallons

What was the actual price paid per ounce of materials? Round your answer to the nearest cent.
$ per ounce

Wonderful Snacks, Inc. is considering adding a new line of cookies and bars to its current product offer. The project’s life is 7 years. The firm estimates selling 500K packages at a price of $2 per unit the first year; but this volume is expected to grow at 10% per year over the life of the project. The price per unit is expected to grow at a rate of 3% per year. Variable costs are 20% of revenue and the fixed costs will be $850K per year. The equipment required to produce the cookies and bars has an upfront cost of$1.4M. It will be depreciated using straight-line depreciation over the life of the project. After seven years, the equipment will be worthless. No additional net working capital is required for this project. The project’s discount rate is 15% and the firm’s marginal tax rate is 35%.

1. using excel build a model to calculate the project’s free cash flows (FCF) and net present value. Create driver cells that allow the user to vary the following inputs: volume growth rate, price per unit growth rate, and discount rate.

I need write a small "c" program that has locations of items on a shelving unit. Im not familiar with this language. Can you guys give me some hint so I could start writing one or as example. This is my first time learning programming C.

Specifically, your program should:

• Contain a struct representing an item on the shelf. It needs only contain the item's name and price.
• Ask the user for the number of shelves in the unit, and the number of "slots" available on each shelf which can hold items.
• From the above, build a two dimensional array of item structs. The array represents locations on the shelving unit (rows = shelves, columns = slots on the shelves).
• Allow the user to add items to the shelves by giving the name, price, and location by reading input in the format: <name>, <price>, <shelf>, <slot>
• Allow the user to indicate they are done adding items. At this point the user should be able to enter the coordinate of an item in the shelving unit and the program should print out the information about the selected item (or some message if that slot is empty).

Today is 1 July 2020, William plans to purchase a corporate bond with a coupon rate of j2 = 2.18% p.a. and face value of 100. This corporate bond matures at par. The maturity date is 1 January 2025. The yield rate is assumed to be j2 = 3.99% p.a. Assume that this corporate bond has a 2.3% chance of default in any six-month period during the term of the bond. Assume also that, if default occurs, William will receive no further payments at all. Calculate the purchase price for 1 unit of this corporate bond. Round your answer to three decimal places.

Select one: a. 73.706

b. 75.856

c. 92.971

d. 92.407

Today is 1 July 2020, William plans to purchase a corporate bond with a coupon rate of j₂ = 2.19% p.a. and face value of 100. This corporate bond matures at par. The maturity date is 1 January 2025. The yield rate is assumed to be j₂ = 3.62% p.a. Assume that this corporate bond has a 7.1% chance of default in any six-month period during the term of the bond. Assume also that, if default occurs, William will receive no further payments at all. Calculate the purchase price for 1 unit of this corporate bond. Round your answer to three decimal places.

Select one:

a. 46.866

b. 50.266

c. 95.139

d. 93.470

You are currently employed by a firm that sells a differentiated product. While there are no perfect substitutes for your product, you note that there are a significant number of other firms that sell similar products as your own. While you enjoyed patent protection on your product in the past, the patent has expired, and firms can produce similar products without fear of legal action. An analyst has determined that the demand function for your firm is Q = 400 – 5P and you know that your cost function is C(Q) = 100 + 2Q + 2Q2. What is your firm’s profit-maximizing output, price, and profits? What long-run adjustments should you expect?

Wang Life Insurance Company issues a three year annuity that pays 40,000 at the end of each year. Wang uses the following three bonds to absolutely match the cash flow under this annuity:

1. A zero coupon bond which matures in one year for 1,000.
2. A two year bond which matures for 1,200 and pays an annual coupon of 100. This bond is priced using an annual yield of 7%.
3. A three year bond which matures for 2,000 and pays annual coupons of 75. This bond has a price of 1,750.

It costs Wang 104,000 to purchase all three bonds to absolutely match this annuity.

Calculate the one year spot interest rate.