Which of the following is an abstract statement?

Multiple Choice

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Most of our employees produce highly satisfactory work.

Of the 15 candidates who applied for the job, 12 had advanced business degrees.

The new international sales division will be launched in October 2018.

Income for the last quarter of 2015 was higher by 10 percent.

Karishma accepted the CEO position on December 20, 2015.

part a. Drawing from Dynamic Capability theory, what recommendations would you make to Under Armour’s CEO Kevin Plank to create a winning strategy in the rapidly changing environment? Provide three (3) recommendations to support your answer.

part b.Evaluate critically the three (3) key elements of Under Armour’s strategy, the management need to address as top priority to stay competitive.

Understanding Finance (30%):

The CEO needs you to explain the following concepts which deeply trouble him:

a. What is advantage and disadvantages between raising money from debt and equity?
b. What is purpose of Treasury shares?
c. Explain the benefits and downside of different depreciation policies such as straight line and declining method?
d. Explain what is financial leverage and its advantage and disadvantage.

11The Russian wireless market became saturated in 2005. A battle ensued between shareholders Telenor and Alfa Group over expansion into Ukraine. Telenor already had a JV with one of the major existing operators in Ukraine and opposed VimpelCom entering the Ukraine market to compete with it. Alfa insisted that VimpelCom should pursue the Ukraine market. What would be the best way for the CEO to handle this conflict?

1. You have an email program to 1000000 customers where the cost is $.10 per email and a direct mail program to 500000 customers at a cost of $1.00 per piece. Which program would you focus on why?
2. What process must occur concurrently with understanding the data?
3. A CEO wants to maximize revenue. Why would you advise him against the use of the data mining technique?

Miss Misha, the CEO of Alamaya Cosmetic (M) Sdn. Bhd. Plans to hold a second meeting with all her supervisors to discuss the launch of new cosmetic product, ‘Booster Serum’. The meeting will be held on Sunday, 30 June 2019, 10:30 a.m. at Kenanga Conference Room, Level 3. As a secretary to Miss Misha, write a notice and agenda of the meeting to be sent to all supervisors.

CONTINUOUS CASE CHAPTER FIVE

The world has been hit by the Coronavirus that is believed to have originated in China. Suppose

you, are the CEO and have set up an automobile factory in the affected area (in China). How

would you deal with the ethical issues that might arise from continuing to operate the factory?

What do you think would be your responsibility to your employees, customers and to society?

PROBLEM 2-2Merger and Consolidation, Goodwill Impairment Stockholders of Acme Company, Baltic Company, and Colt Company are considering alternative arrangementsfor a business combination. Balance sheets and the fair values of each company’s assets on October 1, 2014, wereas follows:

AcmeBalticColtAssets$3,900,000$7,500,000$950,000Liabilities$2,030,000$2,200,000$260,000Common stock, $20 par value2,000,0001,800,000540,000Other contributed capital—0—600,000190,000Retained earnings (deficit)(130,000)2,900,000(40,000)Total equities$3,900,000$7,500,000$950,000Fair values of assets$4,200,000$9,000,000$1,300,000

Acme Company shares have a fair value of $50. A fair (market) price is not available for shares of the othercompanies because they are closely held. Fair values of liabilities equal book values.

Required

:A.Prepare a balance sheet for the business combination. Assume the following: Acme Company acquires all theassets and assumes all the liabilities of Baltic and Colt Companies by issuing in exchange 140,000 shares ofits common stock to Baltic Company and 40,000 shares of its common stock to Colt Company.

B.Assume, further, that the acquisition was consummated on October 1, 2014, as described above. However, bythe end of 2015, Acme was concerned that the fair values of one or both of the acquired units had deteriorated.To test for impairment, Acme decided to measure goodwill impairment using the present value of future cashflows to estimate the fair value of the reporting units (Baltic and Colt). Acme accumulated the following data:

Carrying Value ofFair ValueYearPresent Value Identifiable Identifiable 2015 of Future Cash FlowsNet Assets*Net AssetsBaltic$6,500,000$6,340,000$6,350,000Colt$1,900,0001,200,0001,000,000

Prepare the journal entry, if needed, to record goodwill impairment at December 31, 2015.

Explain Reliance ltd succinctly.I bought shares of Reliance on 08/07/2015 for Rs900/ and sold it on 08/07/2020 for Rs 1812/-.Dividend received from 2015-16 was 6% , (20016-17)- 7%,(2017-18)-8%, (2018-19)-8%, (2019-2020)-6.5%.The face value of shares of Reliance is Rs100/-.Dividends received are invested every year in Bank Saving account at 4%.Find out the Discounted Cash flows over the time 2015-16 to 2019-20 and also for 2020 when shares are sold.Also determine IRR and average Return on investment.

The following information is available from ABC co.'s inventory records for March 2020.

Instructions: Compute the costs of goods sold for March 2020 using the following methods.

a) FIFO with perpetual inventory.

b) Weighted average. (Periodic system).

c) Moving average. (Perpetual system).

d) LIFO with periodic inventory.

e) LIFO with perpetual inventory.