3. Review Federal policies regarding the role of public lands in US development. Why did these policies evolve from lands as a revenue source to lands as a free good?

What is the main method of biodiesel production, from what biomass material, and what is its current contribution to US fuel supplies? Please cite your sources.

Sophocles once said that Euripides depicts people as they are rather than as they ought to be. Do you agree? Can this play still speak to us from across the centuries?

What trends can explain the differences in poverty rates from the 2000s to recent years in light of changes in economic conditions in the overall US economy during this period?

Following the outbreak of the Novel Coronavirus (COVID 19), CPC a pharmaceutical company is considering introducing a new vaccine unto the market to help fight the virus. This will require the injection of huge capital to the tune of GH¢40,000,000 for the purchase of the equipment for production. It will cost CPC an additional GH¢ 5,500,000 to set up the production facility and install that equipment for production. Mr. Smart, the CEO of CPC believes that the vaccine could be manufactured in a building owned by the firm and located in East Legon. This vacant building and the land can be sold for GH¢ 1,500,000 after taxes. CPC will finance the production of the vaccine (including initial working capital investment) by issuing 2000,000 new common stocks at GH¢ 20 per share from its existing shareholders. A total of GH¢ 40,000,000 is expected to be raised from the rights issue. It expects to finance the remaining investment including initial working capital investment from the issue of a 5-year bond with a before-tax yield to maturity (YTM) of 12%. Mr. Qwesi, the Finance Director has estimated the beta of the project to be 2.5 and the average return for stocks traded on the Ghana Stock Exchange to be 10% while the rate on Government of Ghana traded Treasury bills is 5%. The successful production of the vaccine will generate additional cash flows for CPC. The Production and Marketing department has presented the information in the table below:
2020
Variable cost per unit of the product GH¢150
Selling price per unit GH¢350
Quantity 400,000units per annum

Again the following information should be taken note of:
• Feasibility studies cost the company GH¢2,000,000
• Test marketing expenses amounts to GH¢1,000,000
• The research into the discovery of the vaccine costs GH¢5,000,000
• Variable cost will increase by 5% per annum
• Selling price will increase by 10% per annum
• Marketing expense will be 5% of sales revenue per year
• Overhead cost will be fixed at GH¢6000,000 per year
• The project will last for five (5) years (2021-2025)
• Charge depreciation using the straight-line method
• Salvage value for equipment is GH¢2,000,000
• CPC falls within the 25% tax bracket
• An initial working capital investment of GH¢10,000,000 will be made. Subsequently, net working capital at the end of each year will be equal to 10 percent of sales for that year. In the final year of the project, net working capital will decline to zero as the project is wound down. In other words, the investment in working capital is to be completely recovered by the end of the project’s life
• The introduction of this new vaccine is expected to lead to 10,000 units per annum drop in sales of vaccines for other types of corona virus by. The selling price per unit of existing products is GH¢100 while the variable cost is GH¢70. This has no tax implications for the new vaccine.  
• The project will be financed with debt and equity

Required:
a. Evaluate the project using the NPV and Profitability index and recommend whether CPC should go ahead with the production of the vaccine.                                             

On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60.  [We are assuming that the 2020 coupon has just been redeemed.]

• Initially, the bond was sold for the premium price of $1,025.
• On October 15, 2020, this bond was selling for only $975.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

1.  What was the nominal yield on this bond on October 15, 2016?  [To 1 decimal place.]

2.  What was the current yield on this bond on October 15, 2016?  [To 2 decimal places.]

3.  What was the yield to maturity for this bond on October 15, 2016?  [To 3 decimal places.]

4.  What was the risk premium for this bond on October 15, 2016?  [To 3 decimal places.]

5.  What was the nominal yield on this bond on October 15, 2020?  [To 1 decimal place.]

6.  What was the current yield on this bond on October 15, 2020?  [To 2 decimal place.]

7.  What was the yield to maturity for this bond on October 15, 2020?  [To 3 decimal places.]

8.  What was the risk premium for this bond on October 15, 2020?  [To 3 decimal places.]

9.  It is now October 15, 2020 and suddenly the Federal Reserve announces a massive program to reduce inflation.  Instantly, the market rate of interest for a riskless corporate bond that would apply to this bond, falls from 4.0% to 2.5%.  If there is no change in the risk premium expected for this Koala, Inc. bond, what will be this bond’s yield to maturity?  [To 3 decimal places.]

V. Rahr and Sons is a Fort Worth brewery founded by Fritz Rahr, a Neeley undergraduate and MBA. Currently the company makes Rahr Blonde Lager, Rahr’s Red, and Ugly Pug brews. They are considering a new beer, Frog Princess, with which to celebrate their ties to TCU. The project includes an initial outlay of $750,000 for the purchase of capital equipment that will be depreciated straight line to zero over six years.

Sales are expected to be $400,000 in years 1-3 and $600,000 in years 4-6. Production costs during years 1-6 are as follows: fixed costs (not including depreciation) are expected to be $150,000 per year; variable costs per year will be 40% of sales. The project will require an initial investment in NWC of 200,000 in year 0.

Beyond year six, the company expects that sales and unlevered net income in year seven will be 4% higher than that in year 6, and will continue growing at 4% per year infinitely. Additionally, in year 7 and beyond, new capital expenditures net of depreciation, and increases in NWC, combined, will be 6% of sales. Assume the marginal tax rate is 21%. The appropriate discount rate is 8%.

What is the NPV of the project? What is the IRR? Should the project be undertaken?

I've asked this question three times now and gotten three different answers so I want to see if this will confirm the right one. Thanks

Kempton owns a plumbing repair service company that has been in business for thirty years in Shreveport Louisiana (population 198,675). The company employs 50 repairmen and repairwomen that work in two person teams doing plumbing repair jobs. Kempton’s son Myron is going to be taking over the business and has lots of ideas about improving incentives. Equipped with what he has learned in the MBA program at LSU, he has established that (1) customer satisfaction, (2) capacity utilization (the plumbing repair service people need to be working when they are on the clock) and (3) the profit margin of the service (some repairs involve more parts than others and the mark up the customers on the parts is high) are the company’s profit drivers.

Myron has decided to implement a program where the plumber’s bonuses are based on a formula that has 40% weight on customer satisfaction (measured by post-service customer satisfaction surveys), 30% weight on capacity utilization (measured by number of jobs completed) and 30% weight on profit margin (measured by number of high mark-up jobs completed).

Explain to Myron why, while he would like to see improvements in the plumbers’ performance on all three dimensions, he is more likely to see significant improvement on one dimension and little or no improvement on the other two dimensions.

Q5- Week 10
You are the audit partner at Parkville & Associates, a mid-tier audit firm. You are responsible for the
audits of the following four independent entities for the year ended 30 June 2018:
(a) Human Help Ltd is a non-profit entity. You have discovered that it has not kept substantiating
vouchers or receipts for more than 55 per cent of its expenses, excluding salaries and allowances
(2.5 marks)
(b) JJ King Ltd is a building contractor with a varying workload. In order to compensate for the
irregularity of its contracted building projects, JJ King also purchases large vacant blocks of land
that it later subdivides for the construction of houses and units. JJ King then sells these on its own
account. Your analysis strongly suggests that the apportionment of costs to houses and units sold
has been kept low to boost profits. In your opinion, this has resulted in the overvaluation of the
unsold properties. The directors of the company do not agree and hold to their view that the stock
of properties is correctly valued (2.5 marks)
(c) You have completed the audit of Grand Resort Ltd (Grand Resort) for the year ended 30 June 2015.
The audit partner suggested that the value of properties on the Gold Coast were overstated by
$16 million, a figure which was twice the level of materiality set for the audit. As a result of
discussions with the audit committee, the CEO of Grand Resort agreed to revise the valuations
downward by $10 million. All other issues were resolved to the satisfaction of the audit partner,
resulting in an overall misstatement of the financial report of $6 million. The audit partner is now
considering the effect of the misstatement on the auditor’s report. (2.5 marks)
(d) Grand Event Ltd arranges for popular overseas entertainment artists to perform in Australia. The
band Eclipse was booked by Grand Event to play in major cities across the country. Grand Event’s
written contract required the company to pay the band in US dollars but, in order to reduce costs,
it did not hedge the amounts. Subsequent to year end, the Australian dollar fell against the US
dollar and a substantial loss relating to the band’s tour was predicted. The management of Grand
Event tried unsuccessfully to renegotiate the band’s contract and has been unable to obtain
finance to cover the expected shortfall. Grand Event has now cancelled the tour and expects a
substantial claim from Eclipse. It is clear to you, as the auditor, that Grand Event does not have
the income, cash or other assets to sustain such a loss. (2.5 marks)
Required:
Assuming no amendments have been made, identify and explain the type of auditor’s opinion required
for each issue outlined above. (10 marks, maximum 300 words)

Q5- Week 10 You are the audit partner at Parkville & Associates, a mid-tier audit firm. You are responsible for the audits of the following four independent entities for the year ended 30 June 2018: (a) Human Help Ltd is a non-profit entity. You have discovered that it has not kept substantiating vouchers or receipts for more than 55 per cent of its expenses, excluding salaries and allowances (2.5 marks) (b) JJ King Ltd is a building contractor with a varying workload. In order to compensate for the irregularity of its contracted building projects, JJ King also purchases large vacant blocks of land that it later subdivides for the construction of houses and units. JJ King then sells these on its own account. Your analysis strongly suggests that the apportionment of costs to houses and units sold has been kept low to boost profits. In your opinion, this has resulted in the overvaluation of the unsold properties. The directors of the company do not agree and hold to their view that the stock of properties is correctly valued (2.5 marks) (c) You have completed the audit of Grand Resort Ltd (Grand Resort) for the year ended 30 June 2015. The audit partner suggested that the value of properties on the Gold Coast were overstated by $16 million, a figure which was twice the level of materiality set for the audit. As a result of discussions with the audit committee, the CEO of Grand Resort agreed to revise the valuations downward by $10 million. All other issues were resolved to the satisfaction of the audit partner, resulting in an overall misstatement of the financial report of $6 million. The audit partner is now considering the effect of the misstatement on the auditor’s report. (2.5 marks) (d) Grand Event Ltd arranges for popular overseas entertainment artists to perform in Australia. The band Eclipse was booked by Grand Event to play in major cities across the country. Grand Event’s written contract required the company to pay the band in US dollars but, in order to reduce costs, it did not hedge the amounts. Subsequent to year end, the Australian dollar fell against the US dollar and a substantial loss relating to the band’s tour was predicted. The management of Grand Event tried unsuccessfully to renegotiate the band’s contract and has been unable to obtain finance to cover the expected shortfall. Grand Event has now cancelled the tour and expects a substantial claim from Eclipse. It is clear to you, as the auditor, that Grand Event does not have the income, cash or other assets to sustain such a loss. (2.5 marks) Required: Assuming no amendments have been made, identify and explain the type of auditor’s opinion required for each issue outlined above. (10 marks, maximum 300 words) Issues Audit Opinion (1 mark) Explanation (1.5 marks) (a)(/(b)/ Write 1 line about issue Unqualified or Qualified or Adverse or Disclaimer Audit Opinion or Unqualified Audit opinion with emphasis of matter or Unqualified Audit Opinion with other matter paragraph Here you will mention about why you have chosen this audit opinion and reason details