Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $515,300 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider’s book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider’s fair and book value differences as follows:

At December 31, 2018, the following financial information is available for consolidation:

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

At a recent graduate recruitment event, you talked with a number of different people on company stands. Each talked about the various modules that you took on your course, your ambitions and aims.

The next day, you received an e-mail from the Chief Executive Officer (CEO) at ABC Bank PLC. She explained that your ideas about the importance of cyber security were very interesting and thinks that someone of your skills and knowledge may be just what the bank is looking for, as a senior risk manager. In this capacity the senior executives of your organisation have come to you with concerns about reports concerning cyber-attacks and viruses affecting IT systems and the problem encountered by companies such as TSB Bank and VISA in Europe with their IT systems. They were alarmed by the continued growth of ransomware attacks in particular.

To reassure the senior management you are required to identify the cyber risk facing a financial institution and develop a risk management plan including ‘continuity planning’ (or “resilience”) for the organisation to enable the organisation to manage a cyber incident effectively and continue trading in the event of the risk occurring.

Shell Camping Gear is considering two projects. Each requires an initial investment of

R1 000 000. John Shell, CEO of the company, has set a maximum payback period of

four years. Information regarding the forecasted net cash flows from each product is

presented below:

Project X Project Y

R R

Year 1 100 000 400 000

Year 2 200 000 300 000

Year 3 300 000 200 000

Year 4 400 000 200 000

Year 5 500 000 200 000

Shell Camping Gear’s discount rate (WACC) is 14% and the corporate tax rate is 28%.

REQUIRED:

5.3 Evaluate the two (2) projects Shell Camping Gear is considering and

recommend, with justification, which project Shell Camping Gear should accept.

Your answer should include:

a) The payback period (2)

b) The NPV (6)

c) The IRR (2)

d) Recommendation (5)

(SHOW ALL WORKINGS)

You are the manager of a local factory that produces plastic bottles for soft drink manufacturers. Your colleague brings an assembly line project to a meeting with the following data:  

           Estimated life of assembly line:                      5 years

            Initial investment cost:                                   $740,000

            Estimated salvage value:                                 none

            Current interest rates:                                      15 percent

            Estimated Cash Flow Analysis

            Year                                        Expected Cash Flow

            1                                              $360,000

            2                                              240,000

            3                                              100,000

            4                                                  25,000

            5                                                  20,000

            a) As your colleague begins going through the analysis with the CEO, you wait until he pauses and state, “I can tell already this is not an investment we should pursue.”  Your colleague asks how you could possible know that from looking at the data for one minute. How DO you know?

            b) Suppose you are given the same assembly line data, but now interest rates have fallen to 0.05 percent. Do you think the company should purchase the new line? How can you know that for certain?

Please answer questions in the order listed. You do not need to be completely correct, but I do need to see an honest effort. For this post, YOU MUST SHOW YOUR WORK, on any question requiring math. This is to make it so that I can see where exactly where you mis-stepped in your calculation or logic, and/or so that your classmates can learn from you.

5.) MicroServe needs $100,000 to upgrade its warehouse. Dayna, the CEO of MicroServe, thinks they can put off the upgrade for 5 years. The company will make 5 annual deposits to fund this expansion. If the account earns 8% interest, how much does Dayna need to deposit every year? (Round your answers to the nearest dollar and show your work!!!)

6.) How is the carrying value of a bond computed?

7.) When the effective interest rate is higher than the stated interest rate on a bond issue, will the bond sell at a discount or premium? Why?

8.) Explain the difference between the straight-line and the effective interest method of amortization of bond premiums and discounts.

_{risk in school/university: business risk, operation risk and financial risk}

write a motivation letter for an undergraduate program into the university to study health science

Does Kohlberg's theory provide meaningful ethics information for a university student?

Using playfair cipher, decrypt the ciphertext “GKSKHALTYZ” using the keyword “UNIVERSITY”