Questions
Most successful businesses today actively develop loyal customers who buy their brands again and again. After...

Most successful businesses today actively develop loyal customers who buy their brands again and again. After all, getting current customers to buy more is much easier than constantly seeking new customers. In business, it’s called the 80/20 rule—80% of your business revenues come from the most loyal 20% of your customers.

Think of three brands that you buy on a regular basis. Why do you stick to these products? How could another company dislodge you? Discuss. [approximately 200 words]

In: Accounting

It has been hypothesized that, on average, employees spend one hour a day playing video games...

It has been hypothesized that, on average, employees spend one hour a day playing video games at work. To test this at her company, a manager takes a random sample of 35 employees, who showed a mean time of 55 minutes per day, with an assumed population standard deviation of 5 minutes. Calculate the test statistic What is the critical value for testing these hypotheses at α = .01? Calculate a confidence interval to test the hypotheses that the employees spend a different amount of time from one hour (60 minutes) at α = .01 and interpret.

In: Statistics and Probability

You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury management...

You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury management department. SMI was founded 8 years ago by Joe Swan. Joe found a method to manufacture a cheaper battery with much greater energy density than was previously possible, giving a car powered by the battery a range of 700 miles before requiring a charge. The cars manufactured by SMI are midsized and carry a price that allows the company to compete with other mainstream auto manufacturers. The company is privately owned by Joe and his family, and it had sales of $97 million last year.

SMI primarily sells to customers who buy the cars online, although it does have a limited number of company-owned dealerships. Most sales are online. The customer selects any customization and makes a deposit of 20 percent of the purchase price. After the order is taken, the car is made to order, typically within 45 days. SMI’s growth to date has come from its profits. When the company had sufficient capital, it would expand production. Relatively little formal analysis has been used in its capital budgeting process. Joe has just read about capital budgeting techniques and has come to you for help. For starters, the company has never attempted to determine its cost of capital, and Joe would like you to perform the analysis. Because the company is privately owned, it is difficult to determine the cost of equity for the company. Joe wants you to use the pure play approach to estimate the cost of capital for SMI, and he has chosen Tesla Motors as a representative company. The following questions will lead you through the steps to calculate this estimate.

1. Most publicly traded corporations are required to submit 10Q (quarterly) and 10K (annual) reports to the SEC detailing their financial operations over the previous quarter or year, respectively. These corporate filings are available on the SEC website at www.sec.gov. Go to the SEC website, follow the “Search for Company Filings” link and the “Companies & Other Filers” link, enter “Tesla,” and search for SEC filings made by Tesla. Find the most recent 10Q and 10K and download the forms. Look on the balance sheet to find the book value of debt and the book value of equity. If you look further down the report, you should find a section titled either “Long-Term Debt” or “Long-Term Debt and Interest Rate Risk Management” that will list a breakdown of Tesla’s long-term debt.

2. To estimate the cost of equity for Tesla, go to finance.yahoo.com and enter the ticker symbol “TSLA.” Follow the various links to find answers to the following questions: What is the most recent stock price listed for Tesla? What is the market value of equity, or market capitalization? How many shares of stock does Tesla have outstanding? What is the beta for Tesla? Now go back to finance.yahoo.com and follow the “Bonds” link. What is the yield on 3-month Treasury bills? Using a 7 percent market risk premium, what is the cost of equity for Tesla using the CAPM?

3. Go to www.reuters.com and find the list of competitors in the industry. Find the beta for each of these competitors, and then calculate the industry average beta. Using the industry average beta, what is the cost of equity? Does it matter if you use the beta for Tesla or the beta for the industry in this case?

4. You now need to calculate the cost of debt for Tesla. Go to finra-markets.morningstar.com/BondCenter/Results.jsp, enter Tesla as the company, and find the yield to maturity for each of Tesla’s bonds. What is the weighted average cost of debt for Tesla using the book value weights and the market value weights? Does it make a difference in this case if you use book value weights or market value weights?

5. You now have all the necessary information to calculate the weighted average cost of capital for Tesla. Calculate the weighted average cost of capital for SMI using book value weights and market value weights assuming SMI has a 35 percent marginal tax rate. Which cost of capital number is more relevant? 6. You used Tesla as a representative company to estimate the cost of capital for SMI. What are some of the potential problems with this approach in this situation? What improvements might you suggest?

In: Accounting

You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury management...

You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury management department. SMI was founded 8 years ago by Joe Swan. Joe found a method to manufacture a cheaper battery with much greater energy density than was previously possible, giving a car powered by the battery a range of 700 miles before requiring a charge. The cars manufactured by SMI are midsized and carry a price that allows the company to compete with other mainstream auto manufacturers. The company is privately owned by Joe and his family, and it had sales of $97 million last year. SMI primarily sells to customers who buy the cars online, although it does have a limited number of company-owned dealerships. Most sales are online. The customer selects any customization and makes a deposit of 20 percent of the purchase price. After the order is taken, the car is made to order, typically within 45 days. SMI’s growth to date has come from its profits. When the company had sufficient capital, it would expand production. Relatively little formal analysis has been used in its capital budgeting process. Joe has just read about capital budgeting techniques and has come to you for help. For starters, the company has never attempted to determine its cost of capital, and Joe would like you to perform the analysis. Because the company is privately owned, it is difficult to determine the cost of equity for the company. Joe wants you to use the pure play approach to estimate the cost of capital for SMI, and he has chosen Tesla Motors as a representative company. The following questions will lead you through the steps to calculate this estimate.

1.Most publicly traded corporations are required to submit 10Q (quarterly) and 10K (annual) reports to the SEC detailing their financial operations over the previous quarter or year, respectively. These corporate filings are available on the SEC website at www.sec.gov. Go to the SEC website, follow the “Search for Company Filings” link and the “Companies & Other Filers” link, enter “Tesla,” and search for SEC filings made by Tesla. Find the most recent 10Q and 10K and download the forms. Look on the balance sheet to find the book value of debt and the book value of equity. If you look further down the report, you should find a section titled either “Long-Term Debt” or “Long-Term Debt and Interest Rate Risk Management” that will list a breakdown of Tesla’s long-term debt.

2. To estimate the cost of equity for Tesla, go to finance.yahoo.com and enter the ticker symbol “TSLA.” Follow the various links to find answers to the following questions: What is the most recent stock price listed for Tesla? What is the market value of equity, or market capitalization? How many shares of stock does Tesla have outstanding? What is the beta for Tesla? Now go back to finance.yahoo.com and follow the “Bonds” link. What is the yield on three-month Treasury bills? Using a 7 percent market risk premium, what is the cost of equity for Tesla using the CAPM?

3. Go to www.reuters.com and find the list of competitors in the industry. Find the beta for each of these competitors, and then calculate the industry average beta. Using the industry average beta, what is the cost of equity? Does it matter if you use the beta for Tesla or the beta for the industry in this case?

4-You now need to calculate the cost of debt for Tesla. Go to finra-markets.morningstar .com/BondCenter/Results.jsp, enter Tesla as the company, and find the yield to maturity for each of Tesla’s bonds. What is the weighted average cost of debt for Tesla using the book value weights and the market value weights? Does it make a difference in this case if you use book value weights or market value weights?

5. You now have all the necessary information to calculate the weighted average cost of capital for Tesla. Calculate the weighted average cost of capital for SMI using book value weights and market value weights assuming SMI has a 35 percent marginal tax rate. Which cost of capital number is more relevant?

6. You used Tesla as a representative company to estimate the cost of capital for SMI. What are some of the potential problems with this approach in this situation? What improvements might you suggest?

In: Finance

The following questions use the table below about a farmer looking to sell soybeans later this...

The following questions use the table below about a farmer looking to sell soybeans later this year.

Now Later
Cash Soybeans Market

$7.83/bu

$8.58/bu

Futures Soybeans Market

$7.58/bu

$8.33/bu

1) Is the individual concerned about price increasing or decreasing?

2) What is the initial action in the futures market: buy or sell?

3) What is the cash price paid/received by the individual later?

4) Did the individual earn a profit or loss in this hedging situation? Enter profit or loss in the following blank.

5) What is the value (i.e. amount) of the profit/loss on the hedge for one contract (signs matter)?

6) The farmer expects to hedge 3 contracts with each contract representing 5,000 bushels. What is the total (dollar) value of the profit/loss on this hedge?  

7) What is the hedged price per bushel on this transaction?

8) If the individual didn't hedge, what would have been the price paid/received for cash soybeans?

9) The individual made the right decision to hedge: Yes or No.

In: Finance

The following questions use the table below on soybean oil. Answer the following questions about an...

The following questions use the table below on soybean oil. Answer the following questions about an end user needing to purchase soybean oil. One soybean oil contract is 60,000 pounds (lbs).

Now Later
Cash Soybean Meal Market $0.335/lb $0.346/lb
Futures Soybean Meal Market $0.3000/lb $0.311/lb

1) Is the individual concerned about price increasing or decreasing?

2) What is the initial action in the futures market: buy or sell?

3) What is the cash price paid/received by the individual later?

4) Did the individual earn a profit or loss in this hedging situation? Enter profit or loss in the following blank.

5) What is the value (i.e. amount) of the profit/loss on the hedge for one contract (signs matter)?

6) What is the hedged price per bushel on this transaction?

7) If the individual didn't hedge, what would have been the price paid/received for the cash commodity?

8) The individual made the right decision to hedge: Yes or No.

9) What is the net selling (or purchase) price?

In: Finance

Calculate openness as a percentage for Paraguay and Poland. Explain how you calculated openness, i.e., write...

Calculate openness as a percentage for Paraguay and Poland. Explain how you calculated openness, i.e., write down the formula. Using a graph of Openness (as a percentage) versus time, explain in up to 200 words how openness has changed for these countries from 2001 to 2014. Put Paraguay and Poland in the same graph and make sure your graph is properly labelled.

Country Name Country Code Series Name Series Code 2001 [YR2001] 2002 [YR2002] 2003 [YR2003] 2004 [YR2004] 2005 [YR2005] 2006 [YR2006] 2007 [YR2007] 2008 [YR2008] 2009 [YR2009] 2010 [YR2010] 2011 [YR2011] 2012 [YR2012] 2013 [YR2013] 2014 [YR2014]
Paraguay PRY Exports of goods and services (current US$) NE.EXP.GNFS.CD 3459319570 3402825624 3625989129 4371893087 5083809323 6252319090 7818347667 9993980610 8210295841 11036468064 13186264509 12278348692 14356651476 13954911448
Paraguay PRY GDP (current US$) NY.GDP.MKTP.CD 7662595076 6325151760 6588103836 8033877360 8734653809 10646157920 13794910634 18504130753 15929902138 20030528043 25099681461 24595319574 28965906502 30881166852
Paraguay PRY GDP per capita (current US$) NY.GDP.PCAP.CD 1417 1148 1175 1409 1507 1810 2312 3060 2600 3226 3988 3856 4480 4713
Paraguay PRY GINI index (World Bank estimate) SI.POV.GINI 55 57 56 53 51 54 52 51 50 52 53 48 48 52
Paraguay PRY Imports of goods and services (current US$) NE.IMP.GNFS.CD 2727373823 2298406126 2623501714 3307792347 4018039423 5221045741 6461917817 9166237324 7130137358 10313046052 12621883682 11979621541 12983600420 13242370791
Poland POL Exports of goods and services (current US$) NE.EXP.GNFS.CD 51878648721 57137009804 72632296220 87410323710 105952277925 130565028203 165538367008 202086584758 163740453116 191967370760 225042181278 222344181762 242809098962 259386390289
Poland POL GDP (current US$) NY.GDP.MKTP.CD 190521263343 198680637255 217518642325 255102252843 306134635594 344826430298 429249647595 533815789474 440346575958 479257883742 528725113046 500284003684 524201151607 545075908846
Poland POL GDP per capita (current US$) NY.GDP.PCAP.CD 4981 5197 5694 6681 8021 9041 11260 14001 11542 12598 13891 13144 13780 14340
Poland POL GINI index (World Bank estimate) SI.POV.GINI 33 34 35 35 35 34 34 34 34 33 33 32 33 32
Poland POL Imports of goods and services (current US$) NE.IMP.GNFS.CD 58766945944 63908088235 78406788377 94256069554 109183717624 137680257857 180703003578 228993441806 167514280213 201543256955 235386043059 224546822229 232598709188 251529270071

In: Economics

Edom Company, the lessor, enters into a lease with Davis Company to lease equipment to Davis...

Edom Company, the lessor, enters into a lease with Davis Company to lease equipment to Davis beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

1. The lease term is 5 years. The lease is noncancelable and requires annual rental receipts of $100,000 to be made in advance at the beginning of each year.

2. The equipment costs $313,000. The equipment has an estimated life of 6 years and, at the end of the lease term, has an unguaranteed residual value of $20,000 accruing to the benefit of Edom.

3. Davis agrees to pay all executory costs.

4. The interest rate implicit in the lease is 14%.

5. The initial direct costs are insignificant and assumed to be zero.

6. The collectibility of the rentals is reasonably assured, and there are no important uncertainties surrounding the amount of unreimbursable costs yet to be incurred by the lessor.

Solve: 1. Determine if the lease is a sales-type or direct financing lease from Edom’s point of view (calculate the selling price and assume that this is also the fair value).

2. Prepare a table summarizing the lease receipts and interest revenue earned by the lessor.

3. Prepare journal entries for Edom, the lessor, for the years 2016 and 2017.

I have part 1, the Selling price at fair value is 520,000 and is a sales type contract, its the rest I am having trouble with

In: Accounting

How do I do a nursing care plan with this case scenario? Mrs. Rose is a...

How do I do a nursing care plan with this case scenario?

Mrs. Rose is a 51- year- old female who is admitted to the medical surgical unit following a resection of the sigmoid colon and rectum due to a cancerous growth. She has a colostomy.

Mrs. Rose is married, has three children - two daughters, age 29 and 26, who are living on their own approx. 2 hours away and a son, age 20, who is in university and living at home.

Mrs. Rose had been in good health until January of this year when she noticed a decrease in appetite, abnormal bowel movements, varying from small hard stools to loose watery stools, and a sudden drop in weight of 9 lbs over 4 weeks. Mrs. Rose stated she had not been on a diet, had always struggled with her weight and was secretly elated when she began to lose weight with no effort.

Mrs. Rose is on a blood pressure medication and takes vitamin D and Calcium po daily. She has no known allergies.

Doctor’s Orders post operatively include:

Vital signs q4h

AAT – ambulate daily

Diet – clear fluids for 12 hours then soft foods with low sodium

IV Normal Saline at 100 cc/hr

Medications:

Norvasc 5mg po OD

Calcium / Vitamin D supplements as per routine

Clean area around stoma 2x daily

Consult to Enterostomal therapy

Morphine 2.5 mg IV every 2 hours prn

Gravol 50 mg po q 4 hr prn

You are assigned total patient care for Mrs. Rose. She is now 19 hours post- operative. When you approach Mrs. Rose and introduce yourself, she nods but does not respond.

The patient has an IV #20 intercath infusing in the left forearm of Normal Saline at100 cc/hr.

She has a stoma protruding from the left side of the abdomen.

A stoma bag is covering the stoma and attached to the skin surrounding it.

During your initial assessment, Mrs. Rose begins to cry and says: “I can’t believe this is happening to me.” While you are providing personal care Mrs. Rose covers her head with the sheet.   

You examine the stoma, note that it is pink and oozing liquid stool into the stoma bag. You inform Mrs. Rose that the incision site is very clean and looks healthy. Mrs. Rose refuses to look at the stoma and tells you “I do not want to hear anything about this.”

A liquid diet was initially ordered but now soft foods have been ordered for Mrs. Rose. Mrs. Rose refuses the tray stating, “I’m not hungry.”

Mrs. Rose’s husband and son arrive after breakfast and are very concerned and attentive over her. She smiles and asks them several questions about their work and university. Her daughters will be arriving later in the day.

You explain to Mr. Rose that it is important to ambulate daily (as per Dr Orders) and that he and their son can certainly be there and assist. Mrs. Rose tells you she is in too much pain to get out of bed and perhaps it is better that her husband and son go home and come back later. You ask Mrs. Rose about the intensity of the pain. She says it is 7/10.

Later that day, Mrs. Rose appears flushed and you note the following assessment findings:

Temp 37.9,

HR 87,

BP 153/87,

R 20,

O2 saturation per pulse oximetry-100% on room air.

The skin around the stoma is red and appears irritated, the stoma is still pink, and draining a very soft slightly formed stool.

In: Nursing

the chart of accounts of pete's delivery services includes the following: cash 111 accounts receivable 112...

the chart of accounts of pete's delivery services includes the following: cash 111 accounts receivable 112 office equipment 121 delivery trucks 122 accounts payable 211 pete jean capital 311 pete jean withdrawals 312 delivery fees earned 411 advertising expense 511 gas expense 512 salaries expense 513 telephone expense 514 the following tranactions resulted for pete's delivery service during the month of march? a. pete invested $40,000 in the business for his personal savings account b. bought delivery trucks on account $25,000 c. advertising bill received but unpaid $800 d. bought office eqipment for cash $2,500 e. received cash for delivery services rendered $13,000 f. paid salaries expense $1,850 g. paid gas expense for company trucks $750 h. billed customers for delivery services rendered $5,500 i. paid telephone bill $400 j. received $1,600 as partial payment of transaction h k. pete paid home telephone bill from company checkbook $88 As pete's newly employed account your task is to 1. set up T accounts in a ledger 2. record transactions in the T accounts (place the letter of the transaction next tot the entry) 3. foot the T accounts where appropriate 4. Prepare a trial balance at the end of March 5. Prepare from the trial balance, in proper form (a) an income statement for the month of March (b) a statement of owner's equity and (c) a balance sheet as of March 31

In: Accounting