Questions
ABC Zimbabwe Limited is a private company wholly(100%) owned by a Zimbabwean with its headoffice in...

ABC Zimbabwe Limited is a private company wholly(100%) owned by a Zimbabwean with its headoffice in Harare.The company is into the manufacturing and selling of earth moving equipment to the mines,construction companies and the government in the country and the COMESA region.You have been appointed as the marketing manager for ABC Zimbabwe Limited and your first task is to present a single paper to management identifying and recommending the type of marketing channels the organisation would use,the function of the marketing channels and the criteria you would use to select the channels if any?

In: Operations Management

An investment company intends to invest a given amount of money in three stocks. The means...

An investment company intends to invest a given amount of money in three stocks.

The means and standard deviations of annual returns are as follows:

Stock Mean Standard Deviation
1 0.14 0.20
2 0.11 0.25
3 0.15 0.08
Stock Coorelation among annual returns
Stocks 1 and 2 0.5
Stocks 1 and 3 0.8
Stocks 2 and 3 0.1

Construct the efficient frontier for portfolios of these stocks. Please explain the involved steps in your modeling and construction.

In: Finance

Kay Construction has the following mutually exclusive projects available. The company has historically used a three...

Kay Construction has the following mutually exclusive projects available. The company has historically used a three year cutoff for projects. The required return is 12 percent.

Year. Project A Project B

0. -$126,000. -$196,000

1. 64500. 44500

2. 45500. 59500

3. 55500. 85500

4. 50500. 115500

5. 45500. 130500

a. Calculate the payback period for both projects.

b. Calculate the NPV for both projects.

c. Which project, if any, should the company accept?

In: Finance

On December 31, 2019, Ayayai Inc. borrowed $4,320,000 at 13% payable annually to finance the construction...

On December 31, 2019, Ayayai Inc. borrowed $4,320,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $518,400; June 1, $864,000; July 1, $2,160,000; December 1, $2,160,000. The building was completed in February 2021. Additional information is provided as follows.
1. Other debt outstanding
10-year, 14% bond, December 31, 2013, interest payable annually $5,760,000
6-year, 11% note, dated December 31, 2017, interest payable annually $2,304,000
2. March 1, 2020, expenditure included land costs of $216,000
3. Interest revenue earned in 2020 $70,560
Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.
The amount of interest $

SHOW LIST OF ACCOUNTS

Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

December 31, 2020
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In: Accounting

Fill in the blank with a number by the accrual method of accounting based on the...

Fill in the blank with a number by the accrual method of accounting based on the following information about a construction company.

What is the amount of revenues ($) on the income statement of March 31st?

Company's total assets and liabilities by the end of February

  • Total Assets (Cash only): $1,084,009
  • Total Liabilities: $155,823


Construction project

  • Contract terms
    • Duration: 3/1 ~ 12/31
    • Contract amount:
      • $512,936 with the owner
      • $470,443 with the subcontractors including the suppliers
    • Terms of payment:
      • Monthly payment
      • The owner pays the contractor within a month after the contractor bills the owner.
      • The owner holds 10% of each payment to the contractors for retention.
      • The contractor pays the subcontractors within a month after the subcontractors bill the contractor.
      • The contractor holds 10% of each payment to the subcontractors for retention.


Information related to revenues and expenses in the project

  1. 3/1 Project Start
  2. 3/26 The subcontractors billed $43,703 to the contractor.
  3. 3/30 The contractor billed $48,928 to the owner.
  4. 4/20 The owner paid 90% of the amount that the contractor billed in March to the contractor. 10% was held for retention.
  5. 4/20 The contractor paid 90% of the amount that the subcontractors billed in March to the subcontractors. 10% was held for retention.
  6. 4/26 The subcontractors billed $76,007 to the contractor.
  7. 4/30 The contractor billed $86,217 to the owner.

In: Accounting

For this Discussion, you will need to conduct research on capacity and facilities before you can...

For this Discussion, you will need to conduct research on capacity and facilities before you can prepare a complete response to the questions asked. Start this research by reviewing the Web Field Trip resources below.

Web Field Trip

Store design & construction. (2016). Retrieved from http://supermarketnews.com/news/store-design-construction

Phillips, T. (2016). Phillips enterprises, Inc. Food market designs. Retrieved from http://www.foodmarketdesigns.com

How to Layout Your Supermarket

Be sure each of the questions below is addressed. Address each question individually and be careful not to combine your questions and answers:

A. Identify a supermarket/grocery market to discuss for this Discussion topic.

B. What departments within the market tend to be co-located (adjacent to one another)? Do you believe the co-location is planned? If so, why?

C. What departments within the market tend to be distant from one another? What purpose is accomplished by separating these departments so far apart from each other?

D. Why is the layout of the supermarket so important to the overall delivery of the products and services provided?

E. What recommendations would you make to the layout of the supermarket to make the layout more effective or efficient?

Please provide this ASAP.

Thanks

In: Operations Management

Assume that you recently graduated from ADU’s MHA program and landed a job as an assistant...

Assume that you recently graduated from ADU’s MHA program and landed a job as an assistant financial officer with the Cleveland Clinic. The clinic has $100,000 sitting in a checking account. The funds were designated by the board for the construction of a proton therapy facility. Construction of the facility will start one year from now. Your first assignment is to invest the $100,000 with the understanding that you need to plan for a one-year holding period because the funds must be available when construction begins in one year. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes.                 

State of Economy

Probability

T-Bills

Alta Inds.

Repo Men

American Foam

Market Port.

Recession

0.1

8.00%

-22.0%

28.0%

10.0%

-13.0%

Below Average

0.2

8.00%

-2.0%

14.7%

-10.0%

1.0%

Average

0.4

8.00%

20.0%

0.0%

7.0%

15.0%

Above Average

0.2

8.00%

35.0%

-10.0%

45.0%

29.0%

Boom

0.1

8.00%

50.0%

-20.0%

30.0%

43.0%

Barney Smith Investment Advisors recently issued estimates for the state of the economy and the rate of return on each state of the economy. Alta Industries, Inc. is an electronics firm; Repo Men Inc. collects past due debts; and American Foam manufactures mattresses and various other foam products. Barney Smith also maintains an "index fund" which owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund and thus obtain average stock market results. Given the situation as described, answer the following questions.                  

a. Calculate the expected rate of return on each alternative.

b. Calculate the standard deviation of returns on each alternative.

c. Calculate the coefficient of variation on each alternative.

d. Calculate the beta on each alternative.

g. Suppose you create a two-stock portfolio by investing $50,000 in Alta Industries and $50,000 in Repo    Men. Calculate the expected return, standard deviation, coefficient of variation, and beta for this    portfolio. How does the risk of this two-stock portfolio compare with the risk of the individual stocks if they were held in isolation?

In: Finance

Please I need it urgently “Hassen Constructions SAOG”, the company is situated in Al Khuwair. The...

Please I need it urgently

  1. “Hassen Constructions SAOG”, the company is situated in Al Khuwair. The organization is specialised in the manufacturing of building materials that are used in construction sites.

Currently the company’s capital structure (total capital) is ungeared. However, the owners of Hassen constructions is planning to change their capital structure into a leverage (geared) capital structure as they believe having a debt component in its capital structure will be beneficial to the organization.

The company total capital is RO 300 million which is an equity-based capital structure. The company has two share buyback options available to move into a leverage(geared) capital structure.

Option 1

The company has an option in converting 30% of its equity capital to debt capital at an interest rate of 7%.

Option 2

The company has an option of converting 50% of its equity capital to debt capital at an interest rate of 7.5%

To evaluate the impact on the alternative policies the financial accountant of the company has presented the following data to evaluate the impact on ROE in the current capital structure and the above two given options.

The financial accountant believes that based on the sales forecast the sales could be either weak, average or strong. The probability for the market to be weak is 0.3, average 0.5 and strong 0.2.

The profits before interest and tax (PBIT) , if the market is considered to be weak is RO 30 million, if the market is average the PBIT is 50% greater than the market is weak and if the market is considered to be strong it is 75% greater than if the market is average.

The current applicable tax rate is 25%

Required:

  1. Calculate expected annual return on equity (ROE) under each option (the current, option I and option II)
  2. Calculate expected average annual return on equity (ROE) considering all options together.
  3. Evaluate the benefits and drawbacks of Hassen constructions in to changing their capital structure from and equity based to leverage. And, advise which of the three options (current or option I or option II) that Hassan Construction SAOG should go for under a normal situation? And substantiate your advice with suitable reasons.

d. Evaluate the factors that Hassen construction should consider when evaluating its capital structure policy.                                    

In: Accounting

6.1 A statute gives the Department of the Interior the power to allow or to curtail...

6.1 A statute gives the Department of the Interior the power to allow or to curtail mining within the national forests “as the best interests of all users of the national forest shall dictate.” Is this a valid delegation of legislative power to the agency, or is it too broad a delegation of power? 8.1 Before deciding which remedies are available under Article 2 of the UCC, one must first determine whether the transaction involved the sale of goods. Consider the following fact patterns. A. Tanzer entered into a contract with Audio Visual Artistry to install a “smart home” system in Tanzer’s house, which was under construction. The contract included expert installation services for a custom home theatre, lighting, music, and phone system. Was the contract for a sale of goods or services? [Audio Visual Artistry v. Tanzer, 403 S.W.3d 789 (Tenn. Ct. App. 2012).] B. Wachter, a construction company, entered into a contract to purchase an accounting and project management software package from DCI, a company that develops, markets, and supports software for construction companies. The package included “installation of the software, a full year of maintenance, and a training and consulting package.” Was the contract for a sale of goods or services? [Wachter Management Co. v. Dexter & Chaney, Inc., 144 P.3d 747 (Kan. 2006).] C. A customer sued a New York restaurant for breach of warranty after a glass of water allegedly exploded in his hand during the course of a meal. Does the claim involve the sale of goods? [Gunning ex rel. Gunning v. Small Feast Caterers, Inc., 777 N.Y.S.2d 268 (N.Y. Sup. 2004).] D . Brenda Brandt underwent an operation at the Sarah Bush Lincoln Health Center to implant a ProtoGen Sling to resolve her urinary incontinence. Instead of solving the problem, the sling resulted in serious complications and was subsequently removed. After the device was recalled by its manufacturer, Brandt sued the Health Center for breach of warranty. Does the claim involve the sale of goods or services? [Brandt v. Boston Scientific Corp., 792 N.E.2d 296 (Ill. 2003).

In: Accounting

“Hassen Constructions SAOG”, the company is situated in Al Khuwair. The organization is specialised in the...

  1. “Hassen Constructions SAOG”, the company is situated in Al Khuwair. The organization is specialised in the manufacturing of building materials that are used in construction sites.

Currently the company’s capital structure (total capital) is ungeared. However, the owners of Hassen constructions is planning to change their capital structure into a leverage (geared) capital structure as they believe having a debt component in its capital structure will be beneficial to the organization.

The company total capital is RO 300 million which is an equity-based capital structure. The company has two share buyback options available to move into a leverage(geared) capital structure.

Option 1

The company has an option in converting 30% of its equity capital to debt capital at an interest rate of 7%.

Option 2

The company has an option of converting 50% of its equity capital to debt capital at an interest rate of 7.5%

To evaluate the impact on the alternative policies the financial accountant of the company has presented the following data to evaluate the impact on ROE in the current capital structure and the above two given options.

The financial accountant believes that based on the sales forecast the sales could be either weak, average or strong. The probability for the market to be weak is 0.3, average 0.5 and strong 0.2.

The profits before interest and tax (PBIT) , if the market is considered to be weak is RO 30 million, if the market is average the PBIT is 50% greater than the market is weak and if the market is considered to be strong it is 75% greater than if the market is average.

The current applicable tax rate is 25%

Required:

  1. Calculate expected annual return on equity (ROE) under each option (the current, option I and option II)
  2. Calculate expected average annual return on equity (ROE) considering all options together.
  3. Evaluate the benefits and drawbacks of Hassen constructions in to changing their capital structure from and equity based to leverage. And, advise which of the three options (current or option I or option II) that Hassan Construction SAOG should go for under a normal situation? And substantiate your advice with suitable reasons.

Evaluate the factors that Hassen construction should consider when evaluating its capital structure policy.

In: Accounting