Fucciani Fashions, Inc., is in the formal wear clothing industry. The corporate tax rate is 21 percent. The CEO has proposed a new venture. The project requires an initial outlay of $785,000 and is expected to result in a $93,000 cash inflow at the end of the first year. The project will be financed at the company’s target debt-equity ratio. Annual cash flows from the project will grow at a constant rate of 5 percent until the end of the fifth year and remain constant forever thereafter. The company currently has a target debt-equity ratio of 0.40, but the industry target debt-equity ratio is 0.35. The industry average beta is 1.2. The market risk premium is 7 percent and the risk-free rate is 5 percent. Fucciani, like all other firms is this industry, can borrow at the riskless interest rate. All companies in this industry can issue debt at the risk-free rate.

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Should Fucciani invest in the project?

Below are five statements. Indicate which type of cognitive bias is present in each situation.

(a)   Mark, a financial advisor, suggested many clients purchase stock in a new technology company. When the stock price fell dramatically, Mark proclaimed he saw the fall coming.

(b) Kelly begins buying lottery tickets at a local convenience store that recently sold a million-dollar ticket.

(c)   Suzie failed her mathematics exam. Despite the fact that she was unprepared for the exam, she blamed the instructor.

(d) Jim, the new CEO of Business X, has made a string of bad decisions over the past several quarters. He continues to ignore the advice of others on the board and bases his decisions on his judgments.

(e)   Nancy tells her boss that she will be finished with a work project by the end of the day. She works until midnight to finish the project on time.

Which of the following scenarios is inconsistent with a semistrong-efficient market?

Multiple Choice

• A. Veeva's CEO sold 100,000 shares of the company on Apr 1, 2017 for $56 per share. On Apr 6, Veeva reported disappointing operating results which caused the stock price to plummet to $40.

• B. Lyft's stock price jumped 15% from the IPO price when it started trading on Mar 28, 2019, its IPO day. The closing price was almost the same as the opening price.

• C. Netflix's stock price jumped 12 percent on the day it announced higher-than-expected growth rates in revenue. The price kept rising in the subsequent 5 trading days with a total return of 8 percent.

• D. When rumor came out on Sept 8, 2010 that Steve Jobs was hospitalized due to a heart attack, Apple's stock price plummeted by 10 percent within seconds.

You are the international manager for an American MNC that specializes in high-end winter sports gear. You have been asked to profile a country in the European Union and make a recommendation for entry. Using the readings, Lecture, and your own research, complete a report, as an international manager, to submit to your CEO. This writing assignment should be completed in the standard APA format. Upload the assignment to the proper assignment folder. You need to include the following elements for your chosen EU country:

• The economic, political, legal, and technological environment (as it relates to your company and industry)
• A plan for social responsibility and sustainability
• A country profile (using either Hofstede of Trompenaars) and its similarities and differences to the United States
• Recommendations for cross-cultural communication and negotiations
• An entry strategy
• Political risk and government relations
• A plan for motivating and leading workers in the EU country (incorporate motivational theory)
• A plan for selecting an expatriate in the position of VP, Operations.

1.)Who is responsible for the fair presentation of the financial statements and the integrity of the system of internal controls?

                  A. The independent registered accounting firm

                  B. The CEO and CFO

                  C. Management of the company

                  D. The Board of Directors

2.)Which of the following is NOT included in the cash flow profile?

                  A. Cash received from customers

                  B. Cash paid for inventory purchases

                  C. Free cash flows

                  D. cash used to pay dividends

3.) Which of the following is a “squeeze” in the cash flow profile

                  A. other cash flows

                  B. cash margin

                  C. other operating cash flows

                  D. other investing cash flows

4.) Which of the following is generally prepared using the indirect method:

                  A. financing activities section of the statement of cash flows

                  B. the investing section of the statement of cash flows

                  C. the operating section of the statement of cash flows

                  D. the non-operating section of the statement of comprehensive income

Adventures in Wild Life conducts tours of wildlife reserves around the world. They have recently purchased a new lodge in Adak, Alaska, utilizing a 4% mortgage from Bank of Alaska. As part of the agreement they must provide an annual report showing they are achieving a current ratio of 1.2 or better. In order to ensure they achieve this ratio, the CEO requested the CFO to reclassify the long-term debt investments into brokerage accounts to allow them to sell them soon. The adjustments were done knowing the company was not planning on selling these long-term investments. The economy took a downturn and the business saw revenues drop more than 60%.

1. Explain how the move of long-term investments to brokerage investments would change the financial statements and how this movement would affect the current ratio.
2. What information on the financial statements should have shown the bank of this movement?
3. Determine if there was fraud in this movement and the type of fraud.

i am not sure how to answer this question regarding blackberry company and technology if any one can answer it it would be a great help

C/ Some questions to consider (please do not include these actual questions in your work)...

• What proprietary innovations have they implemented or designed?

• Are these changing the market or industry as a whole?

• Who is the leader in progressive technology in their sector?

• Does their technology provide a competitive advantage over closest rivals? If so, how?

• Do suppliers and customers need to comply or bring new tech online in order to do business with the organization?

D/ Analysis –

Has the technology made a difference to their business? Anything missing from the picture? Do you think their technology was a wise investment? Why? How has the technology created a need for another piece of tech / any shortcomings? If you were suddenly CEO, what do you see as the next steps for this organization?

12.1 (Business and Financial risk) Which of the following sources of new earnings volatility represents the effect of business versus financial risk (discuss the rationale for your decisions):
a. Pajala AB in Sweden is considering implementation of an ambitious lifelong education program that would be offered to all employees, and is willing to borrow 50 percent of the money needed to fund the project.

b. Schenker Trans has historically acquired its own trucks, and has recently signed an agreement with a local transportation company to outsource part of its short distance deliveries,

c. Lidl has been a low-cost grocery shop that sells basic products. The firm recently decided to purchase a local bakery nearby, in order to sell freshly made bread.

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

1. Compute cost of goods available for sale and the number of units available for sale.

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.]
  
Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow.

QS 15-4 Fair value adjustment to a portfolio of trading securities LO P1

Prepare journal entry to record the December 31 year-end fair value adjustment for the debt securities