Kaelea, Inc., has no debt outstanding and a total market value of $63,000. Earnings before interest and taxes, EBIT, are projected to be $8,600 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 21 percent higher. If there is a recession, then EBIT will be 34 percent lower. The company is considering a $21,300 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 4,200 shares outstanding. Assume the company has a market-to-book ratio of 1.0.

a. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued, assuming no taxes. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Calculate the percentage changes in ROE when the economy expands or enters a recession, assuming no taxes. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

  
Assume the firm goes through with the proposed recapitalization and no taxes.

c. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

d. Calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Assume the firm has a tax rate of 35 percent.

e. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

f. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming the firm goes through with the proposed recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Kaelea, Inc., has no debt outstanding and a total market value of $100,000. Earnings before interest and taxes, EBIT, are projected to be $8,400 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 24 percent higher. If there is a recession, then EBIT will be 31 percent lower. The company is considering a $35,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 4,000 shares outstanding. Assume the company has a market-to-book ratio of 1.0.

a. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued, assuming no taxes. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Calculate the percentage changes in ROE when the economy expands or enters a recession, assuming no taxes. (A negative answer should be indicated by a minussign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

  
Assume the firm goes through with the proposed recapitalization and no taxes.

c. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

d. Calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Assume the firm has a tax rate of 35 percent.

e. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

f. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming the firm goes through with the proposed recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

CHAPTER 9 CASE Jackson Erectors    Making Capital Investment Decisions

Jackson Erectors is a midsized electronics manufacturer located in Austin, Texas. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now an established manufacturer of various specialty electronic items. The company’s finance department has hired YOU, a recent MBA graduate to do an analysis of a proposed new product.

One of the major revenue-producing items manufactured by Jackson is a “controller” which are used in various types of automated equipment. Jackson currently has one model on the market and sales have been good. The technology in electronic devices is constantly changing. However, as with any electronic item, technology changes rapidly, and the current model has limited features in comparison with newer models. Jackson spent $400,000 to develop a prototype for a new controller that will be “state of the art”. The company has spent a further $100,000 for a marketing study to determine the expected sales figures for the new model.

Jackson can manufacture the new controller for $300 each in variable costs. Fixed costs for the operation are estimated to run $4.0 million per year. The estimated sales volume is 70,000, 90,000, 95,000, 85,000, and 75,000 per year for the next five years, respectively. The unit price of the new controller will be $550. The necessary equipment can be purchased for $40.0 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $2.5 million.

Net working capital for the controller will be 15 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. Jackson has a 30 percent corporate tax rate and a required return of 12 percent. Shelly has asked you to prepare a report that answers the following questions:

QUESTIONS

Prepare a detailed pro forma income statement including calculation of Operating Cash Flows

1. What is the payback period of the project?
2. What is the profitability index of the project?
3. What is the IRR of the project?
4. What is the NPV of the project?
5. How sensitive is the NPV to changes in the price of the new Controller? Assume a 5% price reduction
6. How sensitive is the NPV to changes in the quantity sold? Assume a 700 per year unit reduction in quantity sold
7. Should Jackson produce the new Controller?
8. Suppose Jackson looses sales on other models because of the introduction of the new model. How would this affect your analysis?

onch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its finance department.

One of the major revenue-producing items manufactured by Conch Republic is a smartphone. Conch Republic currently has one smartphone model on the market and sales have been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as wifi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smartphone.

Conch Republic can manufacture the new smartphone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively. The unit price of the new smartphone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.5 million.

Net working capital for the smartphones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. Conch Republic has a 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked Jay to prepare a report that answers the following questions:

1. What is the payback period of the project?

2. What is the profitability index of the project?

3. What is the IRR of the project?

4. What is the NPV of the project?

5. How sensitive is the NPV to changes in the price of the new smartphone?

6. How sensitive is the NPV to changes in the quantity sold?

7. Should Conch Republic produce the new smartphone?

8. Suppose Conch Republic loses sales on other models because of the introduction of the new model. How would this affect your analysis?

PLEASE ANSWER ALL QUESTIONS USING EXCEL. THANK YOU!

Kaelea, Inc., has no debt outstanding and a total market value of $69,000. Earnings before interest and taxes, EBIT, are projected to be $9,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower. The company is considering a $21,900 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 4,600 shares outstanding. Assume the company has a market-to-book ratio of 1.0.

a. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued, assuming no taxes. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Calculate the percentage changes in ROE when the economy expands or enters a recession, assuming no taxes. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

  
Assume the firm goes through with the proposed recapitalization and no taxes.

c. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

d. Calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Assume the firm has a tax rate of 35 percent.

e. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

f. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming the firm goes through with the proposed recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Bob has completed another year here at XYZ as a plant distribution employee. Bob's primary responsibilities include, ensuring that each outgoing shipment is complete, all items are free of defects, and there are no discrepancies in inventory. Within the past few months, there have been multiple customer complains about their shipments. In two cases, nearly every item in a shipment contained a defect. Upon further investigation, we discovered that all of the orders in question fall under Bob's responsibility.

   Having defects in our shipments are not only going to hurt our sales, but also our reputation here at XYZ. It is of the utmost importance that Bob is able acknowledge these mistakes and implement a change to avoid defective shipments in the future. I believe that Bob should follow along with a shipment checklist that has detailed explanations, as well as visuals, of the proper methods we have established. I will use the verbal delivery method to get my points across to Bob effectively.

   Prior to my sit-down review with Bob, I am going to write up a step by step process, with visuals, to present to Bob and request that he start using this method. I will discuss with Bob the issues that have been arising and make sure he is aware of the changes that need to be made. Within each shipment, the items need to be checked and the exact status of each item will need to be written down prior to leaving the warehouse. This is going to be a first step, and Bob and I will have a follow up, non-professional, review in a month to check up on the status of his shipments and make sure that changes are actually being made.

   It is important to address Bob verbally and not with a written delivery for multiple reasons. First, Bob can observe nonverbal cues that I am giving him with my presentation of the checklist. I can also easily demonstrate my intentions right away. Clarification and explanation can help Bob to remit his old habits. Lastly, Bob can have a chance to respond to the concerns immediately and have an open discussion about his job. Although people do not like to get bad news, they expect the truth" (Cardon 2016) I backup this statement because if we are not honest with Bob he will never truly learn and therefore he won't be able to change his actions.

Required

Describe how the changes proposed in the above post could be implemented on a larger, department-wide scale to ensure all employees are informed and the issues can be avoided. Would the same change management principles work when applied to the organization, or would changes have to be made?

Kaelea, Inc., has no debt outstanding and a total market value of $75,000. Earnings before interest and taxes, EBIT, are projected to be $9,400 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 24 percent higher. If there is a recession, then EBIT will be 31 percent lower. The company is considering a $22,500 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 5,000 shares outstanding. Assume the company has a market-to-book ratio of 1.0. a. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued, assuming no taxes. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) ROE Recession % Normal % Expansion % b. Calculate the percentage changes in ROE when the economy expands or enters a recession, assuming no taxes. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.) %ΔROE Recession % Expansion % Assume the firm goes through with the proposed recapitalization and no taxes. c. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) ROE Recession % Normal % Expansion % d. Calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) %ΔROE Recession % Expansion % Assume the firm has a tax rate of 35 percent. e. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) ROE Recession % Normal % Expansion % %ΔROE Recession % Expansion % f. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming the firm goes through with the proposed recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) ROE Recession % Normal % Expansion % %ΔROE Recession % Expansion %

Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, EBIT, are projected to be $14,300 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 35 percent lower. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Assume the company has a market-to-book ratio of 1.0 and the stock price remains constant

. a-1. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued, assuming no taxes. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

a-2. Calculate the percentage changes in ROE for economic expansion or recession, assuming no taxes. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

b-1. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b-2. Calculate the percentage changes in ROE for economic expansion and recession after the recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Assume the firm has a tax rate of 21 percent.

c-1. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

c-2. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming the firm goes through with the proposed recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Program: Java

Write a Java program using good programming principles that will aggregate the values from several input files to calculate relevant percentages and write the values to an output file.

You have been tasked with reading in values from multiple files that contains different pieces of information by semester.    The Department of Education (DOE) would like the aggregate values of performance and demographic information by academic year. A school year begins at the fall semester and concludes at the end of the summer semester the following year. Fall 2019 - Summer 2020 is considered one academic year.

Input Files

• Input files named Fall2019Analytics.txt, Spring2020Analytics.txt, and Summer2020Analytics.txt have been placed in Canvas.   Each have the same layout but differ by semesters.
• Each file contains several pieces of data by program - total enrollment, enrollment by gender, completion by gender, enrollment by ethnicity, completion by ethnicity, among other pieces of data.  
• The program should read in the values from these input files, aggregate the data, and write the information to an output file that will be sent to Tallahassee.
• From there, the DOE will use this output file as input to aggregate the data from other schools within the state of Florida.
• It is important that this file is formatted in the proper sequence that the DOE needs - otherwise the college will be heavily fined and may lose accreditation.

These input files contain the data for three programs on campus:

Program code 3624
Program code 5651
Program code 6635

Input file layout (all integer values) by semester:

• program number
• total number of students enrolled in the program
• total number of student completers in the program
• total number of female students enrolled in the program
• total number of male students enrolled in the program
• total number of unknown/not reported gender students enrolled in the program
• total number of female student completers in the program
• total number of male student completers in the program
• total number of unknown/not reported student completers in the program
• total number of Asian students enrolled in the program
• total number of Black students enrolled in the program
• total number of Hispanic students enrolled in the program
• total number of Multiracial students enrolled in the program
• total number of Native American students enrolled in the program
• total number of Native Hawaiian students enrolled in the program
• total number of Unknown/not reported ethnicity students enrolled in the program
• total number of White students enrolled in the program
• total number of Asian student completers in the program
• total number of Black student completers in the program
• total number of Hispanic student completers in the program
• total number of Multiracial student completers in the program
• total number of Native American student completers in the program
• total number of Native Hawaiian student completers in the program
• total number of Unknown ethnicity student completers in the program
• total number of White students completer in the program

Notes

• Each value within the file for a program is separated by one space.
• Each program code is on its own line in each file. There are three lines per file.
• Use an array or arrayList to hold the values within each file.
• Each semester should be coded within their own class.

Calculations

The following values must be calculated:

For each semester:
   - the percentage of students completers (total number of student completers / total number of students enrolled)

For each individual program code:
   - grand totals for each category (enrolled, completers, gender, and ethnicity)

Aggregate for all semesters:

   - the total number of students enrolled
   - the total number of student completers
   - the total number by gender
   - the total number by each ethnicity
   - the percentage of student completers (total completers / total enrolled)
   - the percentage of female completers (total number of female completers / total number of female enrolled)
   - the percentage of male completers
   - the percentage of each ethnicity

Output

The output for this project will be two-fold.   The output will be displayed in a Message dialog box and an output file.

The Message Dialog boxes:

Each percentage calculated should be displayed in percentage format with one decimal place.

A sample format (the values are not accurate, this is only for formatting purposes):

On the next dialog screen, display the following:

Output File

The output file should be named Analytics2019.txt and should be written to:   C\SFC\COP2552\Project4

The layout of the output file is:

academic year (2019)
aggregate total of students enrolled
aggregate total of student completers
aggregate total number of female students enrolled
aggregate total number of female student completers
aggregate total number of male students enrolled
aggregate total number of male student completers
aggregate total number of unreported/unknown students enrolled
aggregate total number of unreported/unknown student completers
aggregate total number of Asian students enrolled
aggregate total number of Black students enrolled
aggregate total number of Hispanic students enrolled
aggregate total number of Multiracial students enrolled
aggregate total number of Native American students enrolled
aggregate total number of Native Hawaiian students enrolled
aggregate total number of Unknown/Not Reported students enrolled
aggregate total number of White students enrolled
aggregate total number of Asian student completers
aggregate total number of Black students completers
aggregate total number of Hispanic students completers
aggregate total number of Multiracial students completers
aggregate total number of Native American students completers
aggregate total number of Native Hawaiian students completers
aggregate total number of Unknown/Not Reported students completers
aggregate total number of White students completers
program number (3624)
total number of students enrolled in the program
total number of student completers in the program
total number of female students enrolled in the program
total number of male students enrolled in the program
total number of unknown/not reported gender students enrolled in the program
total number of female student completers in the program
total number of male student completers in the program
total number of unknown/not reported student completers in the program
total number of Asian students enrolled in the program
total number of Black students enrolled in the program
total number of Hispanic students enrolled in the program
total number of Multiracial students enrolled in the program
total number of Native American students enrolled in the program
total number of Native Hawaiian students enrolled in the program
total number of Unknown/not reported ethnicity students enrolled in the program
total number of White students enrolled in the program
total number of Asian student completers in the program
total number of Black student completers in the program
total number of Hispanic student completers in the program
total number of Multiracial student completers in the program
total number of Native American student completers in the program
total number of Native Hawaiian student completers in the program
total number of Unknown ethnicity student completers in the program
total number of White student completers in the program
program number (5651)
total number of students enrolled in the program
total number of student completers in the program
total number of female students enrolled in the program
total number of male students enrolled in the program
total number of unknown/not reported gender students enrolled in the program
total number of female student completers in the program
total number of male student completers in the program
total number of unknown/not reported student completers in the program
total number of Asian students enrolled in the program
total number of Black students enrolled in the program
total number of Hispanic students enrolled in the program
total number of Multiracial students enrolled in the program
total number of Native American students enrolled in the program
total number of Native Hawaiian students enrolled in the program
total number of Unknown/not reported ethnicity students enrolled in the program
total number of White students enrolled in the program
total number of Asian student completers in the program
total number of Black student completers in the program
total number of Hispanic student completers in the program
total number of Multiracial student completers in the program
total number of Native American student completers in the program
total number of Native Hawaiian student completers in the program
total number of Unknown ethnicity student completers in the program
total number of White student completers in the program
program number (6635)
total number of students enrolled in the program
total number of student completers in the program
total number of female students enrolled in the program
total number of male students enrolled in the program
total number of unknown/not reported gender students enrolled in the program
total number of female student completers in the program
total number of male student completers in the program
total number of unknown/not reported student completers in the program
total number of Asian students enrolled in the program
total number of Black students enrolled in the program
total number of Hispanic students enrolled in the program
total number of Multiracial students enrolled in the program
total number of Native American students enrolled in the program
total number of Native Hawaiian students enrolled in the program
total number of Unknown/not reported ethnicity students enrolled in the program
total number of White students enrolled in the program
total number of Asian student completers in the program
total number of Black student completers in the program
total number of Hispanic student completers in the program
total number of Multiracial student completers in the program
total number of Native American student completers in the program
total number of Native Hawaiian student completers in the program
total number of Unknown ethnicity student completers in the program
total number of White students completers in the program

(Use any numbers for .TXT)