Teardrop Inc. wishes to expand its facilities.
The company currently has 10 million shares outstanding and no debt.
The stock sells for $20 per share but the book value per share is $47.
Net income for Teardrop is currently $2.7 million.
The new facility will cost $28 million and it will increase net income by $340,000.
The par value of the stock is $1 per share.
Assume a constant price-earnings ratio.
Required:
1. a) Calculate the net book value per share.
Assume no change is applied to determine the number of new shares.
1. b) Calculate the new total earnings.
(Enter your final answer in dollars)
1. c) Calculate the new EPS.
Assume incremental net income to be considered.
1. d) Calculate the new stock price.
Assume incremental net income to be considered.
1. e) Calculate the new market-to-book ratio.
2. What would the new net income for the company have to be for the stock price to remain unchanged?
In: Accounting
A solid, homogeneous sphere with a mass of m0, a
radius of r0 and a density of ρ0 is placed in
a container of water. Initially the sphere floats and the water
level is marked on the side of the container. What happens to the
water level, when the original sphere is replaced with a new sphere
which has different physical parameters? Notation: r means the
water level rises in the container, f means falls, s means stays
the same. Combination answers like 'f or s' are possible answers in
some of the cases i.e r or s, f or s, and r or f or s.
The new sphere has a density of ρ > ρ0
and a radius of r = r0.
The new sphere has a mass of m = m0 and a density of ρ
> ρ0.
The new sphere has a radius of r = r0 and a mass of m
> m0.
The new sphere has a radius of r < r0 and a mass
of m > m0.
The new sphere has a radius of r < r0 and a density
of ρ > ρ0.
The new sphere has a mass of m < m0 and a density of ρ >
In: Physics
You work in a sales department and want to know if a new advertisement campaign is effective at increasing sales. You have three quarters (quarter of a year) of sales data after the new advertisement campaign: Q1= $100,000 , Q2 = $110,000, and Q3= $75,000. You know quarterly sales prior to the new ad campaign followed a normal distribution with a mean of $80,000 and a standard deviation of $10,000. \
-Write the distribution for sales prior to the new advertisement using the notation for a normal distribution: X~
Explain why the sales prior to the new advertisement campaign should be interpreted as the population for this study.
Our null hypothesis is H0: X ̅=80,000. Interpret this hypothesis in words and be sure to identify the population mean in this interpretation.
Calculate the 90% confidence interval for mean quarterly sales following the new advertisement. Conduct a hypothesis test for whether quarterly sales have changed since the new advertisement campaign has been running. Interpret the results of your hypothesis test from part e in words.
In: Statistics and Probability
Question 16
C.T. Balls Cargo incorporated is responsible for the majority of imports brought into New Jersey. In fact, C.T. Balls carries 82 percent of New Jersey's imports. Taking this into consideration, New Jersey lawmakers enacted a law that only allows C.T. Balls Cargo incorporated to bring imports to New Jersey. The New Jersey legislature is aware that the law conflicts with the U.S. Constitution, but believes the law to be valid because there is a rational reason for the law. The New Jersey legislature stated that they passed the law because it is more cost effective and less burdensome for the state to only have to regulate one cargo ship company.
Which of the following statements regarding the above hypothetical scenario is true?
The law is valid because their is a rational basis for the law.
The U.S. Constitution has no effect on any state laws, including New Jersery's import law.
The law would be valid if it involved exports, but is void because it pertains to imports.
The law is void and has no legal effect
In: Operations Management
List 3 goals in SMART Format for the new campus building project at HMC Sheridan College
List 3 assumptions for the new campus building project at HMC Sheridan
List 3 constraints for the new campus building project at HMC Sheridan
In: Operations Management
Answer the following question after reading over the case study below. Case 10 Two-Tier Wages—Same Job, Different Pay When domestic auto manufacturers were hit hard by recession and foreign competition, they struggled to control costs and maintain profitability. One response was a two-tier wage system paying new workers significantly less than existing ones doing the same job. What is the future for two-tier wage systems? A New Labor Contract At Ford, General Motors, and Chrysler manufacturing plants across the United States, newly hired workers are earning an hourly wage that may be half that of their more experienced coworkers who perform identical tasks, averaging roughly $19 versus $28 per hour. Their benefits—health insurance, paid time off, and retirement funding—are also less than those of experienced workers. These differences are the result of two-tier contracts where labor unions permit corporations to hire new workers with wage and benefit packages below those earned by veteran employees in the same jobs. Here to Stay? “This is not going away,” said Kristin Dziczek, a labor analyst at Ann Arbor’s Center for Automotive Research. “It has allowed the Big Three to reduce labor costs without cutting the pay of workers. Is it good for the health and competitiveness of the companies? Yes. And is that good for job security? Yes.” “If you know you’re going to get to the top wage eventually, the [two-tier] system can work,” says Peter Cappelli, a professor at the University of Pennsylvania’s Wharton School. “The big problem is when you think you’ll never get there.” Although lower-tier workers can move up, there’s a lot of uncertainty about how long it takes. The United Auto Workers (UAW) union wants to shorten and clarify the time to jump tiers and close the pay gap between them. Mixed Reactions Labor’s reaction to the two-tier wages has been mixed. Although no one is happy about earning 50% less than the worker across the aisle, “Everybody is appreciative of a job and glad to be working,” said Derrick Chatman, a new hire at Chrysler’s Jefferson North plant. Before joining Chrysler for $14.65 per hour, he was laid off from Home Depot, worked the odd construction job, and collected unemployment. Gary Wurtz, a line worker at GM’s Orion Township, MI, plant, where 40% of his fellow workers receive lower-tier wages, said: “In order to get those guys up, we’ll take a signing bonus or profit-sharing instead.” That said, two-tier plans still have the potential to divide workers across salary lines. Gary Chaison, a professor of industrial relations at Clark University, points out, “[Lower-tier workers] might even feel sufficiently aggrieved to someday negotiate away the benefits of retired higher-tier workers.” A higher-tier autoworker observed, “After we retire, the next generation may ask, ‘Why should we defend your pensions? You didn’t defend our pay when we were young.’” Bridging the Gap For many union members, the rallying cry is “No more tiers!” They want to eliminate the two tiers and move to a higher uniform wage rate for all. The new UAW president Dennis Williams says, “It’s time to bridge the gap.” But Chrysler CEO Sergio Marchione takes a very different position. He would prefer to eliminate the higher wage tier altogether as senior workers retire. A Changing Tide Although at first the two-tier contracts looked to be here to stay, it appears that among the Big Three automakers—Ford, General Motors, and Chrysler—there may be a changing tide. Ford was loudest in support of the two-tier system. And while recognizing that dropping the system will increase labor costs, Ford acknowledges that there have been benefits to eliminating the system. Said Joe Hinrichs, Ford’s president of the Americas, “One of the great things coming out of the new contract has been that we no longer talk about the differences between an ‘entry-level worker’ and a ‘legacy worker.’ All the workers are the same.” So, although Ford is paying more in wages, it also expects to generate performance benefits by eliminating the system. As Hinrichs said, “That’s really good, because one of the things you really need in a manufacturing plant is there to be focus and discipline. Anxiety or distraction is the enemy of process discipline.” Both Chrysler and General Motors have also made tentative agreements with the UAW to narrow pay gaps across the two tiers.
1) Case Analysis Question FURTHER RESEARCH: (You need to lookup data on reports to support your answer to the question below. Please cite where you get your sources from whether online or books.)
Create a report that summarizes the following:
a) the current status of two-tier plans
b) what we know about how they work
c) what direction we can expect from them in the future.
In: Operations Management
please no handwriting
Learning Outcome:
Understand the issues involved with transfer pricing in multidivisional companies (question 1)
Provide an appreciation of logistics activities and their relationship to supply chain management, other business functions and enterprises. (Question 2)
ECR in the UK
Dutchman Paul Polman, now CEO of Unilever, did a stint as General Manager of Procter & Gamble UK and Eire from 1995 to 1999. While admiring the UK’s advanced retailing systems, he saw opportunities for all four of the ‘pillars of ECR’ – range, new items, promotions and replenishment. The following is extracted from the text of a speech he made to the Institute of Grocery Distribution.
Range
The average store now holds 35 per cent more than five years ago, yet a typical consumer buys just 18 items on a trip. A quarter of these skus[1] sell less than six units a week!
The number of skus offered by manufacturers and stores has become too large and complex. My company is equally guilty in this area. No question, we make too many skus. I can assure you we are working on it. Actually, our overall sku count in laundry is already down 20 per cent compared to this time last year. What’s more, business is up.
Clearly, we have an opportunity to rationalise our ranges. As long as we do this in an ECR way – focusing on what consumers want – we will all win. The consumer will see a clearer range. Retailers and manufacturers will carry less inventory and less complexity.
The result will be cost savings across the whole supply chain and stronger margins.
New items
There were 16,000 new skus last year. Yet 80 per cent lasted less than a year. You don’t need to be an accountant to imagine the costs associated with this kind of activity. And look how this has changed. Since 1975, the number of new sku introductions has increased eightfold. Yet their life expectancy has shrunk from around five years in 1975 to about nine months now. We can hardly call this progress.
Promotions
In promotions it’s the same story. Take laundry detergents. This is a fairly stable market. Yet we’re spending 50 per cent more on promotions than two years ago, with Consumers buying nearly 30 per cent more of their volume on promotions. This not only creates an inefficient supply chain, or in some cases poor in-store availability, but, more importantly, has reduced the value of the category and likely the retailers’ profit. We are all aware of the inefficiencies promotions cause in the system, such as problems in production, inventory and in-store availability. They all create extra costs, which ultimately have to be recouped in price. But there’s a higher cost. As promotions are increasing, they are decreasing customer loyalty to both stores and brands by 16 per cent during the period of the promotion. We commissioned a report by Professor Barwise of the London Business School. He called it ‘Taming the Multi-buy
Dragon’. The report shows us that over 70 per cent of laundry promotional investment goes on multi-buys. The level of investment on multi-buys has increased by 60 per cent over the last three years. There’s been a 50 per cent increase behind brands and a doubling of investment behind own labels. Contrary to what we thought, most of this volume is not going to a broad base of households. It is going to a small minority.
Seventy-one per cent of all multi-buy volume is bought by just 14 per cent of households. Just 2 per cent of multi-buy volume goes to 55 per cent of households.
We really are focusing our spending on influencing and rewarding a very small minority of people indeed.
Replenishment
Based on the escalating activity I’ve just [referred to], costs are unnecessarily high. There are huge cost savings also here, up to 6 per cent, by removing the non-value-added skus and inefficient new brand and promotional activity.
Questions
1 - Cutting down on range, new items and promotions is presumably going to lead to ‘everyday low prices’. Discuss the implications to the trade-off between choice and price. (2 points)
2- Procter & Gamble’s major laundry brand in the US is Tide. This is marketed in some 60 pack presentations, some of which have less than 0.1 per cent share. The proliferation of these pack presentations is considered to have been instrumental in increasing Tide’s market share from 20 to 40 per cent of the US market in recent years. Clearly, this is a major issue within P&G.
What are the logistics pros and cons of sku proliferation? (2points)
In: Operations Management
please no handwriting
Learning Outcome:
Understand the issues involved with transfer pricing in multidivisional companies (question 1)
Provide an appreciation of logistics activities and their relationship to supply chain management, other business functions and enterprises. (Question 2)
CASE STUDY
ECR in the UK
Dutchman Paul Polman, now CEO of Unilever, did a stint as General Manager of Procter & Gamble UK and Eire from 1995 to 1999. While admiring the UK’s advanced retailing systems, he saw opportunities for all four of the ‘pillars of ECR’ – range, new items, promotions and replenishment. The following is extracted from the text of a speech he made to the Institute of Grocery Distribution.
Range
The average store now holds 35 per cent more than five years ago, yet a typical consumer buys just 18 items on a trip. A quarter of these skus[1] sell less than six units a week!
The number of skus offered by manufacturers and stores has become too large and complex. My company is equally guilty in this area. No question, we make too many skus. I can assure you we are working on it. Actually, our overall sku count in laundry is already down 20 per cent compared to this time last year. What’s more, business is up.
Clearly, we have an opportunity to rationalise our ranges. As long as we do this in an ECR way – focusing on what consumers want – we will all win. The consumer will see a clearer range. Retailers and manufacturers will carry less inventory and less complexity.
The result will be cost savings across the whole supply chain and stronger margins.
New items
There were 16,000 new skus last year. Yet 80 per cent lasted less than a year. You don’t need to be an accountant to imagine the costs associated with this kind of activity. And look how this has changed. Since 1975, the number of new sku introductions has increased eightfold. Yet their life expectancy has shrunk from around five years in 1975 to about nine months now. We can hardly call this progress.
Promotions
In promotions it’s the same story. Take laundry detergents. This is a fairly stable market. Yet we’re spending 50 per cent more on promotions than two years ago, with Consumers buying nearly 30 per cent more of their volume on promotions. This not only creates an inefficient supply chain, or in some cases poor in-store availability, but, more importantly, has reduced the value of the category and likely the retailers’ profit. We are all aware of the inefficiencies promotions cause in the system, such as problems in production, inventory and in-store availability. They all create extra costs, which ultimately have to be recouped in price. But there’s a higher cost. As promotions are increasing, they are decreasing customer loyalty to both stores and brands by 16 per cent during the period of the promotion. We commissioned a report by Professor Barwise of the London Business School. He called it ‘Taming the Multi-buy
Dragon’. The report shows us that over 70 per cent of laundry promotional investment goes on multi-buys. The level of investment on multi-buys has increased by 60 per cent over the last three years. There’s been a 50 per cent increase behind brands and a doubling of investment behind own labels. Contrary to what we thought, most of this volume is not going to a broad base of households. It is going to a small minority.
Seventy-one per cent of all multi-buy volume is bought by just 14 per cent of households. Just 2 per cent of multi-buy volume goes to 55 per cent of households.
We really are focusing our spending on influencing and rewarding a very small minority of people indeed.
Replenishment
Based on the escalating activity I’ve just [referred to], costs are unnecessarily high. There are huge cost savings also here, up to 6 per cent, by removing the non-value-added skus and inefficient new brand and promotional activity.
Questions
1 - Cutting down on range, new items and promotions is presumably going to lead to ‘everyday low prices’. Discuss the implications to the trade-off between choice and price. (2 points)
2- Procter & Gamble’s major laundry brand in the US is Tide. This is marketed in some 60 pack presentations, some of which have less than 0.1 per cent share. The proliferation of these pack presentations is considered to have been instrumental in increasing Tide’s market share from 20 to 40 per cent of the US market in recent years. Clearly, this is a major issue within P&G.
What are the logistics pros and cons of sku proliferation? (2points)
please long answer
In: Operations Management
please no handwriting
Learning Outcome:
Understand the issues involved with transfer pricing in multidivisional companies (question 1)
Provide an appreciation of logistics activities and their relationship to supply chain management, other business functions and enterprises. (Question 2)
CASE STUDY
ECR in the UK
Dutchman Paul Polman, now CEO of Unilever, did a stint as General Manager of Procter & Gamble UK and Eire from 1995 to 1999. While admiring the UK’s advanced retailing systems, he saw opportunities for all four of the ‘pillars of ECR’ – range, new items, promotions and replenishment. The following is extracted from the text of a speech he made to the Institute of Grocery Distribution.
Range
The average store now holds 35 per cent more than five years ago, yet a typical consumer buys just 18 items on a trip. A quarter of these skus[1] sell less than six units a week!
The number of skus offered by manufacturers and stores has become too large and complex. My company is equally guilty in this area. No question, we make too many skus. I can assure you we are working on it. Actually, our overall sku count in laundry is already down 20 per cent compared to this time last year. What’s more, business is up.
Clearly, we have an opportunity to rationalise our ranges. As long as we do this in an ECR way – focusing on what consumers want – we will all win. The consumer will see a clearer range. Retailers and manufacturers will carry less inventory and less complexity.
The result will be cost savings across the whole supply chain and stronger margins.
New items
There were 16,000 new skus last year. Yet 80 per cent lasted less than a year. You don’t need to be an accountant to imagine the costs associated with this kind of activity. And look how this has changed. Since 1975, the number of new sku introductions has increased eightfold. Yet their life expectancy has shrunk from around five years in 1975 to about nine months now. We can hardly call this progress.
Promotions
In promotions it’s the same story. Take laundry detergents. This is a fairly stable market. Yet we’re spending 50 per cent more on promotions than two years ago, with Consumers buying nearly 30 per cent more of their volume on promotions. This not only creates an inefficient supply chain, or in some cases poor in-store availability, but, more importantly, has reduced the value of the category and likely the retailers’ profit. We are all aware of the inefficiencies promotions cause in the system, such as problems in production, inventory and in-store availability. They all create extra costs, which ultimately have to be recouped in price. But there’s a higher cost. As promotions are increasing, they are decreasing customer loyalty to both stores and brands by 16 per cent during the period of the promotion. We commissioned a report by Professor Barwise of the London Business School. He called it ‘Taming the Multi-buy
Dragon’. The report shows us that over 70 per cent of laundry promotional investment goes on multi-buys. The level of investment on multi-buys has increased by 60 per cent over the last three years. There’s been a 50 per cent increase behind brands and a doubling of investment behind own labels. Contrary to what we thought, most of this volume is not going to a broad base of households. It is going to a small minority.
Seventy-one per cent of all multi-buy volume is bought by just 14 per cent of households. Just 2 per cent of multi-buy volume goes to 55 per cent of households.
We really are focusing our spending on influencing and rewarding a very small minority of people indeed.
Replenishment
Based on the escalating activity I’ve just [referred to], costs are unnecessarily high. There are huge cost savings also here, up to 6 per cent, by removing the non-value-added skus and inefficient new brand and promotional activity.
Questions
1 - Cutting down on range, new items and promotions is presumably going to lead to ‘everyday low prices’. Discuss the implications to the trade-off between choice and price. (2 points)
2- Procter & Gamble’s major laundry brand in the US is Tide. This is marketed in some 60 pack presentations, some of which have less than 0.1 per cent share. The proliferation of these pack presentations is considered to have been instrumental in increasing Tide’s market share from 20 to 40 per cent of the US market in recent years. Clearly, this is a major issue within P&G.
What are the logistics pros and cons of sku proliferation? (2points)
please long answer
In: Operations Management
Hey, kindly proofread, make corrections and edit where necessary. Thanks
RESEARCH ANALYSIS FOR WAL-MART
GEOFFREY NGIGI
MG 302
April 16, 2018
Walmart was founded by the Walton’s. Co-founder Sam M. Walton opened a franchise Ben Franklin variety store in Newport, Arkansas in 1945. His brother, James L. Walton, opened another store in Versailles, Missouri the following year. Walmart was incorporated in 1969 in Delaware. In 1962, Walmart’s first discount store, Discount City, started operations in Rogers, Arkansas. The first Sam’s Clubs were established in 1984. Walmart’s first supercenter format started operations in 1988. Walmart is a mass merchandiser. It’s the world’s largest retailer. It has over 11,100 stores in 27 countries. With a market cap of over $275 billion, it ranks among the top ten companies in the world. This analysis is to look at Walmart business environment and recommendation on the company
Walmart is looking at different strategies to maintain its presences for a long term. It intends to develop the people in a way that they believe that Walmart is the only store that can satisfy their needs. They are driving productivity loop in a way that they are able to receive the latest information. With the increase in online sales, Walmart is planning to win in the global e-commerce technology area. It is also planning to revive the customer by focusing in different culture, lead in environment conservation and social issues. These particular strategies proved to make Walmart one of the top retailers. Walmart has many competitive advantage, to Walmart, nothing is more important that continuing to deliver a powerful message to their people, both the management and higher organizational levels.
Walmart's center of attention is on developing leadership skills and talent through training programs and business series such as the Walton Institute. Walmart plans to recruit exceptional new talent where it is needed. Walmart has huge diversity in product which allows customers to find variety of products. It has convenient prices in all there location which is affordable to low income earners. Its strong market presence makes it visible to many customers. There strong financial performance in the stock exchange makes it visible and trusted by customers. Due to its cost, pricing advantages over rival and good supply chain it has managed to increase its sales.
The major weakness that Walmart has is brand image which makes it to have a weak reputation. Walmart has also low global presences and is behind their rivals in e-commerce. The major opportunity that the company has is a great global expansion in new geographic areas, increasing online sales, and many business strategic alliances like acquiring rival firms. Major threats that affects Walmart is intense competition, laws and regulations like trade policy which are not good for business, cultural barriers, current economy, slow market growth, and transport of distinctive competency
This analysis shows that Walmart must prioritize using its strengths to exploit opportunities in the global retail market. The company’s weaknesses and threats should be secondary priorities. Walmart can improve its HR management standards and product quality standards to improve firm performance. Also, the company must continue expanding its business to exploit economic opportunities in developing markets. Walmart’s strengths based on its global organizational size, global supply chain, and high efficiency of the supply chain can support aggressive global expansion in foreign markets.
Reference
"Walmart 2012 Annual Report." Online posting. Walmart Corporate. Wal-Mart Stores, Inc., 2012. Web. 12 Feb. 2013. http://stock.walmart.com/annual-reports
Statista (2016) Available at: http://www.statista.com/statistics/240481/food-market-share-of-the-leading-food-retailers-of-north-america/
Lu, C. (2014) “Incredibly successful supply chain management: how does walmart do it?” Tradegecko, Available at: https://www.tradegecko.com/blog/incredibly-successful-supply-chain-management-walmar
The World’s Most Valuable Brands (2015) Forbes, Available at: http://www.forbes.com/companies/wal-mart-stores/
.
In: Operations Management