10:2 DB Food
Topic 2: Quality and Performance
You are the new assistant to the Food and Beverage Director for a major hotel with 250 guest rooms. The Food and Beverage Director has asked for your assistance to develop a plan for continuous improvement of the quality of food, and the performance of the kitchen staff. Discuss the key factors in productivity improvement and how you will implement the changes you are proposing in your new plan.
In: Operations Management
In 1995, Mexico maintained a fixed exchange rate regime relative to the US dollar. In the six months prior to the Mexican national elections in October 1995, the public debt increased by 30%.
a) Use the TB/Y diagram to explain the effects of the increase in public debt. Be specific; highlight the effect of changes in the trade balance and output.
b) Why do you think the Mexican debt increased? Use a graph.
In: Economics
The economy is estimated to be growing at .02% annually, what policy will keep the economy out of a recession? Use the three economic variables: Government spending, Taxes, and Money supply in your reasoning. Your goal variables are: Real Gross Domestic Product, Prices, Interest rates, wages, and employment. Describe your proposed policy changes, how they might be implemented, and what effect they are expected to have on various sectors of the economy.
In: Economics
For Week 6 you will find two topics. Select one topic, then post and concisely defend your view. You may post to both topics, but are required to only select one for your initial post. Be careful to identify the positive reasons for your normative position. Read and respond to your fellow student's postings at will. The topics to choose from are:
Examples of Outsourcing. Identify one example of outsourcing that you have observed or desire to research. Be certain to apply the economic analysis of Chapter 28 in your post and tell us what you believe was the most significant economic factor in the outsourcing you described. Examine the labor and product markets involved. Lastly, should there be any changes you would favor to any laws or regulations that accommodated the outsourcing?
Determinants of Income Differences. Identify one of the determinants of income differences as enumerated in Chapter 30 which you have personally observed or desire to research. Be certain to tell us what you believe was the most significant economic factor in determining the wages for the labor market you selected. Lastly, should there be any changes you would favor to income policies and why?
In: Economics
Describe how the following transactions affect the balance sheet, income statement, and statement of cash flows of Askins, Inc.
You should specify the name of the account / accounts in the balance sheet that is / are affected by the transaction as well as the magnitude of change / changes in the account / accounts. Also, specify the magnitude of changes in both total assets,total liabilities and total equity.
For the income statement effect, provide the dollar amount and
the category (i.e. revenue of expense). For the cash flow statement
effects, you need to provide the dollar amount as well as the
category of cash flow (i.e. operating/investing/financing
activity)
a) On 2/1/XXX1, Askins purchased for cash, in the open market,
1,000 shares of its own common stock at $40 per share.
b) On 7/1/XXX1, 200 of the shares purchased on 2/1/XXX1 were sold
at $43 per share.
c) On 8/1/XXX1, $0.25 per share cash dividend was declared by the board of directors and the dividends are payable on 8/31/XXX1. There are 10,000 shares outstanding for Askins, Inc. on this date (You need to provide the answer only for the transaction on 8/1/XXX1)
In: Accounting
Kaelea, Inc., has no debt outstanding and a total market value of $165,000. Earnings before interest and taxes, EBIT, are projected to be $9,900 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 $46,500 debt issue with an interest rate of 5 percent. The proceeds will be used to repurchase shares of stock. There are currently 5,500 shares outstanding. Ignore taxes for this problem.
a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
| ESP | |
| Recession | $ |
| Normal | $ |
| Expansion | $ |
b. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign.
| % ΔEPS | |
| Recession | % |
| Expansion | % |
Assume the company goes through with recapitalization.
c. Calculate earnings per share, EPS, under each
of the three economic scenarios after the recapitalization.
d. Calculate the percentage changes in EPS when the economy expands or enters a recession.
In: Finance
We are evaluating a project that costs $936,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 100,000 units per year. Price per unit is $41, variable cost per unit is $26, and fixed costs are $850,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project.
a) Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point?
b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.
c. What is the sensitivity of OCF to changes in the variable cost fi gure? Explain what your answer tells you about a $1 decrease in estimated variable costs.
d. In the above problem, suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figures.
In: Finance
When the source of internally generated funds is not enough to finance other potential value creating opportunities, the organization will raise funds through external sources.
True
False
Investors cannot own shares of a company before it issues an IPO
True
False
When newly issued securities are sold to investors for the first time, it is known as a secondary market offering
True
False
Terms and conditions that are put in place for a company doing a bond offering are covenants.
True
False
A pro-forma statement is an estimate of future financial results
True
False
Changes in the stock price and the number of shares available will evoke changes in the “market cap.”
True
False
After an IPO, the value of a company’s securities is set by the market through the laws of supply and demand
True
False
An example of direct financing is when a company raises funds from commercial banks, insurance companies, pension funds, and venture capital firms.
True
False
The concept of “currency for acquisition” refers the shares of a company being used to acquire other companies.
True
False
Remaining private can reduce the legal and regulatory requirements for a company.
True
False
In: Finance
in order to decide whether you should buy sell or hold stocks with Fortescue Metals Group Limited (FMG.AX) an investment recommendation report is needed. The report provides an assessment of the company's current position and future prospects, incorporating the use of various valuation techniques to arrive at estimates of the intrinsic value of the company's shares. Your report should make a case for the company's shares to be rated in one of the following ways:
Evaluate the relative historical financial performance of the company among its peers
1.identify the firm's competitors and discuss why they have been selected
2.identify, and explain the relevance of, five financial ratios of your choice (not to include ROE, Net Profit Margin, Total Asset Turnover or Financial Leverage) for the company and its peers (potential ratios to include Return on Assets, NPAT, Debt to Equity, Gross Margin, Operating Leverage, EPS Growth, Interest Cover Ratio)
3. explain the performance of the company compared to its peers using this analysis
(analyse and explain the reasons for changes in these ratios over the past five years and compared to the average of the past five years do not simply describe the changes in the ratios)
In: Finance
5. Wave Optics – Thin Films
A thin film 4.0X10-5cm thick interfaces with air (n=1) on each its front and back surfaces and is illuminated by white light normal to its front surface. Its index of refraction is 1.5. What wavelengths within the visible spectrum will be intensified in the reflected beam? (visible light is taken to be wavelengths between 390 to 700 nm) Follow the solution outline below:
In: Physics