Ex. 840. A proportional controller, Kp, is desired for the plant
1/( (s) (s+ 8) (s+11) ).  Design the unity feedback system so that the
dominant poles indicate a closed loop step response with a 36% overshoot.
What is Kp, zeta, wn, wd, Ts, Tp, the velocity constant (Kv) and the resulting
SS error for a ramp input, and the gain, Kp, for marginal stability. ans:9

Evaluate the surface integral

F · dS

for the given vector field F and the oriented surface S. In other words, find the flux of F across S. For closed surfaces, use the positive (outward) orientation.

F(x, y, z) = x i + y j + z⁴ k

S is the part of the cone z =

beneath the plane

z = 1

with downward orientation

At the balance sheet date, Clarkson Company held title to goods in transit amounting to $214,000. This amount was omitted from the purchases figure for the year and also from the ending inventory. What is the effect of this omission on the net income for the year as calculated when the books are closed? What is the effect on the company’s financial position as shown in its balance sheet? Is materiality a factor in determining whether an adjustment for this item should be made?

part1. A double-blind design is important in an experiment because there is a natural tendency for subjects in an experiment to want to please the researcher.

a. True

b. False

part 2.

Sampling error concerns natural variation between samples, and is always present.

a. True

b. False

part 3. Sampling error can only be eliminated when conducting a questionnaire of students and every question is a closed question.

a. True

b. False

Company's management are currently reviewing the performance of its range of ‘super-premium’ wines. The management team have asked you to perform an analysis on one of the wine products and to address some questions. You have gathered the following budgeted information for the 2020/21 year:

• The wine sells for $40 per bottle
• Direct materials are $9 per bottle
• Direct labour is $10 per bottle
• Variable overhead is $3 per bottle
• Budgeted sales volume is 50,000 bottles
• Fixed overheads are $765,000

1. Calculate the following:
   1. the contribution margin per bottle and the number of bottles that must be sold to break-even;
   2. the margin of safety in the number of bottles, revenue and as a percentage;
   3. the contribution margin ratio and the break-even point in revenues
2. Suppose the margin of safety was 5,000 bottles in 2019/20. Are operations more or less risky in 2020 as compared to 2019? Explain.
3. Suppose next year’s revenue estimate is $200,000 higher than originally predicted. What would be the estimated pre-tax profit?
4. Assume a tax rate of 30 per cent. How many bottles must be sold to earn an after-tax profit of $180,000?
5. One of the members of the management team has recently joined the company. His previous experience has been with small, owner-run businesses. he made a comment to one of his new colleagues that in his previous roles he had never heard of, or used, CVP analysis. Briefly explain why CVP analysis might be even more useful to small business owners than to managers of large entities.

Part A Supply Ltd entered into a non-cancellable five-year lease arrangement with Customer Ltd on 1 July 2019. The lease is for an item of machinery. There are to be five annual payments of $315 000, the first being made on 30 June 2020. The implicit interest rate is 12%. The Machinery is expected to have an economic life of six years, after which time it will have an expected residual value of $210 000. There is a bargain purchase option that Customer Ltd will be able to exercise at the end of the fifth year for $280 000. Customer Ltd determined that this contract contains a lease.

REQUIRED: Prepare the journal entries in the books of the lessee (Customer Ltd) from 1 July 2019 to 30 June 2020 (the end of the reporting period). Show all working.

Part B Customer Ltd enters into a 10-year contract with Supplier Ltd for the right to use two specified physically distinct dark fibres within a larger cable connecting Hong Kong to Tokyo. Customer Ltd makes the decisions about the use of the fibres by connecting each end of the fibres to its electronic equipment (i.e., Customer ‘light’ the fibres and decides what data and how much data to transfer). If the fibres are damaged, Supplier Ltd is responsible for the repairs and maintenance. Supplier Ltd owns extra fibres but can substitute those for Customer Ltd’s fibres only for reasons of repairs, maintenance or malfunction.

REQUIRED: Determine whether the contract contains a lease. Please explain and justify your conclusion according to AASB 16.

Hot Pockets Corporation is considering going public. Managers want to estimate common stock value. The standard deviation of returns for this firm is 20%. The firm’s beta is 0.8. 3-month T-Bills currently trade at a discount to par of 1% on an annualized basis. The expected return on the stock market is 10%. There are 10,000 shares of common stock outstanding. Assume the firm’s capital structure is 50% debt, 50% common equity, the cost of debt is 6%, and the marginal tax rate for the firm is 21%.

a) What is the total risk of this firm, and what is its systematic risk?

b) What is the expected return of this stock? What is the name of the model you use to estimate it?

c) What is the Weighted Average Cost of Capital for the firm?

d) If the firm’s estimated free cash flows over the next 3 years are:

Year Estimated Free Cash Flow

2018 $100,000

2019 $200,000

2020 $300,000

and after 2020 to infinity, expected free cash flows will grow at a rate of 4% per year: (i) what is the value of its equity outstanding; and (ii) what would be the price per share?

e) (i) If an investor in Hot Pockets owns equal amounts of Hot Pockets, Nextera Energy, Southwest Airlines, and Caterpillar common stock, what will the market risk of his/her portfolio be? (Assume standard deviation of 10%, 30%, and 25%, and beta of .5, 1.5, and 1 for each of Nextera Energy, Southwest Airlines, and Caterpillar common stock.) (ii) Given the above information, what will be the percentage return on this investor’s portfolio if the market goes up 10%?

Hot Pockets Corporation is considering going public. Managers want to estimate common stock value. The standard deviation of returns for this firm is 20%. The firm’s beta is 0.8. 3-month T-Bills currently trade at a discount to par of 1% on an annualized basis. The expected return on the stock market is 10%. There are 10,000 shares of common stock outstanding. Assume the firm’s capital structure is 50% debt, 50% common equity, the cost of debt is 6%, and the marginal tax rate for the firm is 21%.

a) What is the total risk of this firm, and what is its systematic risk?

b) What is the expected return of this stock? What is the name of the model you use to estimate it?

c) What is the Weighted Average Cost of Capital for the firm?

d) If the firm’s estimated free cash flows over the next 3 years are:

Year                       Estimated Free Cash Flow

2018                      $100,000

2019                      $200,000

2020                      $300,000

and after 2020 to infinity, expected free cash flows will grow at a rate of 4% per year: (i) what is the value of its equity outstanding; and (ii) what would be the price per share?

e) (i) If an investor in Hot Pockets owns equal amounts of Hot Pockets, Nextera Energy, Southwest Airlines, and Caterpillar common stock, what will the market risk of his/her portfolio be? (Assume standard deviation of 10%, 30%, and 25%, and beta of .5, 1.5, and 1 for each of Nextera Energy, Southwest Airlines, and Caterpillar common stock.) (ii) Given the above information, what will be the percentage return on this investor’s portfolio if the market goes up 10%?

Question 1 Classify the following statements as goals, objectives, or strategies/tactics. If the statement is part goal or objective and part strategy/tactic, separate the statement into its relevant parts. For statements classified as either a goal or an objective, further classify them as either short-term or long-term (assume it is January 1, 2018) and financial or nonfinancial. In addition, if you feel that a statement is an outcome (i.e., either a goal or an objective), further assume that it is appropriate and realistic as these terms are defined in Chapter 2. After you have classified the statement, explain your reasoning in no more than two sentences. (Instructor’s Note: The fact that a case may refer to a statement as a goal or strategy, for example, is not controlling. Business terminology is often used incorrectly even in business reports.)

A. Maximize stockholder wealth over the long term.

B. Increase the percentage of business-to-consumer package deliveries from 46% of domestic deliveries in 2017 to 51% of domestic deliveries in 2019.

C. Increase revenues from higher-margin aero/defense and transportation aluminum products from 31% to 41% of revenues.

D. Expand into 10 emerging global markets by the end of 2020. E. Increase revenues 20% in market share of all products sold by 20% by the end of 2020.

F. Lower the average price of all products sold by 10% over the next year.

G. Increase market share by 10% over the next five years by adding five new products to the company’s present product line.

During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $900,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $1,440,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $6,000,000.

Required

a. Prepare the journal entry to account for the development of this product in 2020.

b. Prepare the journal entry to record the amortization of capitalized computer software development costs in 2021.

c. What disclosures are required in the December 31, 2021, financial statements regarding computer software costs? Enter the missing items from the following note disclosure.

At December 31, 2021, the unamortized software intangible asset totals $Answer
This is equal to $Answer originally capitalized less amortization in 2021 of $Answer
The amount charged to expense as amortization of software intangible asset in 2021 was $Answer

The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.

d. Suppose this product were developed for internal use. How would your answers to (a), (b), and (c) change?