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)

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.)

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.

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.

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.

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 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)

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:

1. Sketch the situation and label the index of refraction on each side of each interface (you will be graded on this)
2. Given the phase of the incoming wave and knowing that the transmitted wave does not experience a phase change, what is the phase change of the reflected wave at each interface of the thin film?
   • First interface: (identify) change, same
   • Second interface: (identify) change, same
   • How many phase changes total: (identify) 0 or 2, 1

1. Greater intensity of the reflected beam corresponds to which type of interference?
2. Choose the thin film equation for the type of interference and number of phase changes of this situation and solve for the wavelength (s) in the visible range. (may need to evaluate multiple m’s)

Read the case study, then answer the questions that follow.

Adele has enjoyed an active life, playing golf and basketball through most of her adult years. She is now 68 years old and has received a diagnosis and sudden onset of osteoarthritis, resulting in her becoming unable to move about without support.

Question

1. How can you help Adele recognize changes regarding her ability to participate in activities because of arthritis, versus changes associated with the usual aging process? (Approx. 80 words).

2. Given Adele has had an active sporting life, what types of activities could you support Adele to participate in? (Approx. 80 words).

3. What aids and appliances could Adele use to support her to remain in independent living for as long as possible? (Approx. 40 words).

4. Adele’s sister arrives with an electrical foot massager, saying she believes it will help Adele’s circulation and ease her arthritic pain. What suggestion/s will you give Adele around the use of the foot massager? (Approx. 40 words).

Kaler Company has sales of $1,410,000, cost of goods sold of $785,000, other operating expenses of $198,000, average invested assets of $4,400,000, and a hurdle rate of 11 percent. Required:

1. Determine Kaler’s return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin answer to the nearest whole percentage, (i.e., 0.1234 should be entered as 12%). Round your Investment Turnover answers to 4 decimal places.)

Please calculate step-by-step

2. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario’s impact on Kaler’s ROI and residual income. (Note: Treat each scenario independently.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.))

a. Company sales and cost of goods sold increase by 5 percent.

b. Operating expenses increase by $83,000.

c. Operating expenses decrease by 10 percent.

d. Average invested assets decrease by $385,000.

e. Kaler changes its hurdle rate to 8 percent.

Create a grand strategy matrix for an organization of your choice. Ideally, the company you choose will be a familiar one and one to which you have easy access, such as your place of employment or a company close to where you live. You may use the same organization for other assessments in this course. You may wish to review the suggested readings listed in the Resources as well as do your own research into completing a grand strategy matrix to prepare for this assessment. Complete the following: •Answer the following questions: ◦Is your chosen organization in a weak or strong competitive position? ◦Is the market growth rapid or slow? •Complete a grand strategy matrix for your chosen organization using the Grand Strategy Matrix Template linked in the Resources under the Required Resources headings. •Compare whether the organization's strategies are aligned with the relevant quadrant strategies, and write a half-page summary on the differences and changes you identify. Make recommendations for changes to the organization's strategy based on your observations. Grand Strategy Matrix Rapid Market Growth Quadrant 2 Weak competitive position Quadrant 1 Strong competitive position Quadrant 3 Quadrant 4 Slow Market Growth