Lisa bodell;

What holds us back from better embracing change might not be what you think.and I think its two things: the first thing is mindset. And what we always find with leaders is we can’ tell them that they’re the ones that are holding us back from change, we have to show them. And the reason why I think mindset is what holds us back is we don’t realize how much we resist change on a regular basis.in fact one of things I talk about a lot with people is that I don’t think we’re grooming leaders right now; I think that we are grooming professional skeptics. A lot of people are becoming risk averse because so much is on the line. They are skeptical because the unknown is obviously more frightening than the known. And you can ask people, wen you give them new ideas, what they think about that idea. And most times, nine times out of ten, people’s reaction will be able to tell you what they don’t like about the idea first before they can tell you what they like. So shifting the mindset to seeing possibilities, what could happen versus whats wrong with something, keeps an idea alive. And thats very important in terms of getting people in the mindset for change. Don’t shut something down before you give it a fair chance. The second thing that I think holds us back is our assumptions. And I talk a lot about this in my book kill the company is that we have a lot of assumptions. Around how things should work, have always worked, need to work, we’ve already tried things that way and I think one of the problem is our assumptions hold us back from actually attacking problems. And what I mean by this is often we look at problem as very big, very large, and thats because we have a lot of assumptions about the problem. And we teach people how to break down a problem into truths or many assumptions and attacks those individual assumption and turn them on their head.if you can actually take our assumptions and change then you can start to see again more possibilities for change. We Did a case study with several companies but one primarily down in Wall Street. And what was interesting about it is we worked together to come up with a new ways to instill change in an organization. Most companies when they her about a change program now they just want to hear to turn off. Everyone has change fatigue. And the reason for that is most change initiatives simply don’t work. And we wanted to go about in a new way.so we tested all kinds of things from tools that were amazing to techniques that were horrible and failed, but what came out of the research that we did with several companies over any years, but one intently over eight weeks was this: change cannot be put on people. The best way to instill change is to do it with them.create it with them. The second thing is that change of course has to be supported from the top down. It must be supported from the top down. But where change happens is from the middle out.so the people that are sitting in what you do every day, which is meetings and emails, the people that are doing those things every day, more than they’d like, those are the ones that are going to be creating the change; they’re the ones that have to be in power to do it. The third thing is that I don’t think it should be a 12-step program. People are beyond tired of 12-step programs. They need a toolkit; an on-demand toolkit of tools that they can use when they’re stressed out, when something happens suddenly, when they just don’t know what else to do.the final thing is change can’t be complex. We have to work on simplifying, so from my perspective

And at my company if theres a tool that we have that take us more than an hour to teach you, we should be fired. We should only give you simple tools that every layer of the organization can use and get on the same page with change.

Question: In the article above, Lisa Bodell addresses resisting change. What insights have you gained from her presentation?

You have been hired as consultants to design and implement a widespread security initiative for a rapidly expanding global eCommerce corporation with two websites and locations in New York, Chicago, San Francisco, London, Paris and Johannesburg. Business is good! In the next three months, the corporation will be acquiring another company in a different line of business with plans to offer products for sale online.

Part of your role is to recommend the best way for integrating both environments. However, not much information is available about the IT setup for the company being acquired. The other company might even have a mix of different operating environment – it is unclear since the IT staff in that company is not very communicative.

Some critical staff members in the other company are not happy with the upcoming merger and have sworn to be as uncooperative as possible. In particular, the Network Manager for the other company is a difficult personality – plans have been afoot to fire him but unfortunately he is the only one who knows the network architecture completely and he is not willing to share. You must find out everything about the new environment and propose specifics on how to seamlessly integrate both environments

In the initial conversation with executives of the global company, you realize that the company does not have a security policy. After much discussion, they have agreed that you should come up with a detailed security policy customized for the company.

In a follow-up meeting with the executives and IT staff of the global corporation, you are also assigned the task of identifying two (2) security audit tools (vulnerability/web scanners), two (2) intrusion detection systems and two (2) network firewall products that would be suitable for the global company. You are to test and describe the features of selected security solutions, indicating (a) which you prefer and (b) providing convincing rationale for why you prefer a specific solution in each category. In other words, you are to evaluate two products for each category and recommend one, giving the reasons for your choice.

Salient points: The new corporate acquisition will increase the total number of computers under you IT department’s care to about 60,000 computers and network devices. The exact number is not clear: even the management at the other company is not sure of the number of systems in that network because of the difficulty in finding out the specifics about the company being acquired.

From the little information that has been gleaned from the other company, it appears to run a mixture of a peer-to-peer network and the domain model. Part of the decision you would have to make would be how the integrated environments would be networked: you have been given the discretion to come up with the design and budget (subject to approval, of course) for the overall security initiative, covering (1) the security policy, (2) network audit to determine what devices and data are being protected, (3) seamless integration between the merging companies, (4) recommendation for IDS system(s), (5) recommendations for security audit tools (web/vulnerability scanners) and (6) recommendation for network firewall device(s).   

Deliverables:

The Security Policy Document (You can adapt an Acceptable Use Policy document from www.sans.org)

An eight-page paper in Microsoft Word double-spaced describing how you would go about implementing the overall security initiative for the company, including a budget. Breakdown:

1 page summary of your overall strategy

1 pages of information security-related recommendations for integrating both corporate environments

1 page for the IDS

1 page for the web/vulnerability scanners

1 page for the network firewall device(s)

1 page of your overall conclusions showing demonstrating you grasp of information security best practices and current trends

1 page for budget  

1 page of references

On October 1, 2020, Mr. Elon Musky starts a business. Mr. Musky chooses December 31 as the fiscal year end for his business. With the cash given to him by his rich uncle, he purchases the following assets:

Class 1 (10%):

                        A $980,000 brick building that will accommodate his manufacturing operations.

Class 8 (20%):

Three billboards costing $1,300 each

                        A cash register worth $2,800

                        A barcode scanner $1,900

                        Furniture and fixtures for a total of $16,000

Class 10.1 (30%):

A BMW sedan that he purchased new for $85,000. The vehicle is used exclusively for business purposes.

Class 12 (100%):

                          Mr. Musky purchased a variety of tools, dies, jigs, patterns and moulds. Although the total spent on these items was $18,000, no individual item costed more than $500.

Class 13 (SL):

                          Elon will need space to store his raw materials and finish goods. On October 1, he signs a 10-year lease with 3 renewal options. Each renewal option allows him to rent the warehouse for an additional 2 years. To meet his storage needs, Mr. Musky immediately spends $45,000 making improvements to the warehouse.

Class 14 (SL):

                          On November 1, Elon purchases a copyright from one of his competitors for $85,000. At the time of the purchase, the copyright had a remaining life of 25 years.

Class 14.1 (5%):

                          Elon spent a total of $5,000 on incorporation fees for his business. He plans to expense as much of these fees as he possibly can. He also acquires two smaller business that he thought would have been his major competitors. With the acquisition of the first business, a payment of $258,000 was made for goodwill. For the acquisition of the second business, a payment of $228,000 was reported for goodwill. Both business are fully absorbed into Elon’s operations.

Class 50 (55%):

                          Mr. Musky acquired four computers, each costing $3,000, and 2 cell phones costing $1,200 each.

Class 53 (50%):

                          Manufacturing equipment of all sorts was acquired at a total cost of $850,000.

During the year 2021, the following transactions took place:

Purchases made during the year.

Class 10.1 (30%):

Feeling that one car was not enough to meet his needs, Elon purchases a high-end Tesla for $130,000. This vehicle is also used exclusively for business purposes.

Class 12 (100%):

More small jigs and dies are purchased for a total of $5,500.

Class 50 (55%):

                        Two iPad tablets at a price of $1,300 each.

Class 53 (50%):

                        A casting machine was purchased for $10,000.

Dispositions of assets that occurred during the year.

Class 14 (SL):

            The copyright is no longer needed and was sold for $65,000.

Class 50 (55%):

            One of the computers was sold for $1,000

Class 53 (50%):

            Manufacturing equipment that had originally been purchased for $3,950 was sold for $4,500.

During the year 2022, the following transactions took place:

Purchases made during the year.

Class 13 (SL):

On November 1, 2022, more improvements were made to the leased warehouse costing a total of $66,000.

Class 53 (50%):

A new manufacturing machine was purchase for $105,000.

Dispositions of assets that occurred during the year.

Class 10.1 (30%):

While speeding on the highway, Mr. Musky lost control of his Tesla and totally destroyed his car. Elon received $85,000 from his insurance company as compensation for his destroyed Tesla.

Class 12 (100%):

Ten dies were sold for total proceeds of $3,300. These dies had been purchased for $450 each.

Class 14.1 (5%):

During the year, Elon sells a portion of his business and as a consequence, receives a payment for goodwill of $272,000.

Required:

Calculate the maximum CCA that can be claimed during the year as well as the closing UCC balances for the years ending December 31, 2020, 2021, and 2022.

Calculate any taxable capital gains, allowable capital losses, recapture or terminal losses resulting from the above transactions.

On October 1, 2020, Mr. Elon Musky starts a business. Mr. Musky chooses December 31 as the fiscal year end for his business. With the cash given to him by his rich uncle, he purchases the following assets:

Class 1 (10%):

                        A $980,000 brick building that will accommodate his manufacturing operations.

Class 8 (20%):

Three billboards costing $1,300 each

                        A cash register worth $2,800

                        A barcode scanner $1,900

                        Furniture and fixtures for a total of $16,000

Class 10.1 (30%):

A BMW sedan that he purchased new for $85,000. The vehicle is used exclusively for business purposes.

Class 12 (100%):

                          Mr. Musky purchased a variety of tools, dies, jigs, patterns and moulds. Although the total spent on these items was $18,000, no individual item costed more than $500.

Class 13 (SL):

                          Elon will need space to store his raw materials and finish goods. On October 1, he signs a 10-year lease with 3 renewal options. Each renewal option allows him to rent the warehouse for an additional 2 years. To meet his storage needs, Mr. Musky immediately spends $45,000 making improvements to the warehouse.

Class 14 (SL):

                          On November 1, Elon purchases a copyright from one of his competitors for $85,000. At the time of the purchase, the copyright had a remaining life of 25 years.

Class 14.1 (5%):

                          Elon spent a total of $5,000 on incorporation fees for his business. He plans to expense as much of these fees as he possibly can. He also acquires two smaller business that he thought would have been his major competitors. With the acquisition of the first business, a payment of $258,000 was made for goodwill. For the acquisition of the second business, a payment of $228,000 was reported for goodwill. Both business are fully absorbed into Elon’s operations.

Class 50 (55%):

                          Mr. Musky acquired four computers, each costing $3,000, and 2 cell phones costing $1,200 each.

Class 53 (50%):

                          Manufacturing equipment of all sorts was acquired at a total cost of $850,000.

During the year 2021, the following transactions took place:

Purchases made during the year.

Class 10.1 (30%):

Feeling that one car was not enough to meet his needs, Elon purchases a high-end Tesla for $130,000. This vehicle is also used exclusively for business purposes.

Class 12 (100%):

More small jigs and dies are purchased for a total of $5,500.

Class 50 (55%):

                        Two iPad tablets at a price of $1,300 each.

Class 53 (50%):

                        A casting machine was purchased for $10,000.

Dispositions of assets that occurred during the year.

Class 14 (SL):

            The copyright is no longer needed and was sold for $65,000.

Class 50 (55%):

            One of the computers was sold for $1,000

Class 53 (50%):

            Manufacturing equipment that had originally been purchased for $3,950 was sold for $4,500.

During the year 2022, the following transactions took place:

Purchases made during the year.

Class 13 (SL):

On November 1, 2022, more improvements were made to the leased warehouse costing a total of $66,000.

Class 53 (50%):

A new manufacturing machine was purchase for $105,000.

Dispositions of assets that occurred during the year.

Class 10.1 (30%):

While speeding on the highway, Mr. Musky lost control of his Tesla and totally destroyed his car. Elon received $85,000 from his insurance company as compensation for his destroyed Tesla.

Class 12 (100%):

Ten dies were sold for total proceeds of $3,300. These dies had been purchased for $450 each.

Class 14.1 (5%):

During the year, Elon sells a portion of his business and as a consequence, receives a payment for goodwill of $272,000.

Required:

Calculate the maximum CCA that can be claimed during the year as well as the closing UCC balances for the years ending December 31, 2020, 2021, and 2022.

Calculate any taxable capital gains, allowable capital losses, recapture or terminal losses resulting from the above transactions.

One year borrowing and deposit interest rates are 10% and 8% respectively in

the US and 8% and 6% respectively in Spain. The spot exchange rate for the

US dollar is $1.25 to the EURO. The 12-month forward rate is $1.30

i) Assuming you do not have any initial investment funds, suggest a way you

might profit from the pricing inconsistency presented above.

(ii) Explain why some of the figures in the question of borrowing and deposit rates are not used.

Assume that on January 1, a Mexican firm wants to finance their Mexican operation and borrows $10 million for 1 year with 8% annualized interest from a US bank. At inception, the spot rate was Peso 3.40/$. The inflation is 2.00% and 12.00% respectively for US and Mexico. According to our class material, PPP between Mexican Peso and USD hold well. Thus, what is the actual cost to the firm of the loan, since the firm has to pay back USD?

T or F

31. FULL EMPLOYMENT = ZERO UNEMPLOYMENT.

32. OPEN SYSTEM, GLOBALIZATION, AND INTERNATIONAL MARKETING ARE DIFFERENT FROM

GLOBAL MANAGEMENT.

33. GDP MEASURES ALL PRODUCTS AND SERVICES MADE IN THE US, PUERTO RICO, GUAM,

BAHAMAS, THE US VIRGIN ISLANDS, AND PARTS OF SOUTHERN CANADA.

34. GDP = C + G + I + NX; THIS IS THE INCOME APPROACH AND THE EXPENDITURE APPROACH.

35. AN EXPENSIVE 2014 MERCEDES BENZ BOUGHT LAST YEAR IS COUNTED IN THE GDP.

On January 2, 2020, Pharoah Corp. issues a $8–million, five–year note at LIBOR, with interest paid annually. To protect against the cash flow uncertainty related to interest payments that are based on LIBOR, Pharoah entered into an interest rate swap to pay 8% fixed and receive LIBOR based on $8 million for the term of the note. The LIBOR rate for the first year is 7.6%. The LIBOR rate is reset to 8.7% on January 2, 2021. Pharoah follows ASPE and uses hedge accounting. On December 31, 2020, the fair value of the swap decreased by $13,500: it increased by $4,000 on December 31, 2021. Assume that the criteria for hedge accounting under ASPE are met.

Prepare the journal entries to recognize the swap, assuming the company follows hedge accounting under IFRS

December 31, 2020( to decrease the value of the contract)

December 31,2020 (To record the fix under hedge accounting)

December 31,2022( To record the value of the contract)

December 31, 2022(k To record the fix under hedge accounting)

At the beginning of its fiscal year 2020, an analyst made the following forecast for ABC, Inc. (in millions of dollars):

Suppose these numbers were given to you at the end of 2019, as forecasts, when the book value was 890 million, as indicated and market price of the stock was $10.5 per share. Use a required return of 10 percent for calculations below. Show your working process.

1. Calculate residual earnings and return of common equity (ROCE) for each year, 2020–2024.                                                                                      

[5 marks]

2. Value the firm at the end of 2019 under the assumption that the RE in 2024 will continue at the same level subsequently.                                                            

[2 marks]

3. Based on you analysis, if the number of shares outstanding at the end of 2019 was 220 million, what should be the share price of ABC?                                      

[1 mark]

4. Based on your estimate, should investors buy the share of this company?          

[1 mark]