List 5 molecules and cell types that are shared and interconnect the Innate defenses of the body with the Acquired/Adaptive Immunity pathways. Define the defensive functions of each shared component and explain how they connect the immune and innate pathways.

Please answer question 1. Thank you.

You and your team are financial consultants who have been hired by a large, publicly traded electronics firm, Brilliant Electronics (BE), a leader in its industry. The company is looking into manufacturing its new product, a machine using sophisticated state of the art technology developed by BE’s R&D team, overseas. This overseas project will last five years. They’ve asked you to evaluate this project and to make a recommendation about whether or not the company should pursue it. BE’s management team needs your recommendation and the analysis used to arrive at it by no later than April 10, 2020.

The following market data on BE’s securities are current:

Debt: 210,000 6.4 percent coupon bonds outstanding, 25 years to maturity, selling or 108 percent of par; the bonds have $1000 par value each and make semi-annual payments

Common Stock: 8,300,000 shares outstanding, selling for $68 per share; beta=1.1

Preferred Stock: 450,000 shares of 4.5% preferred stock outstanding, selling or $81 per share

Market: 7 percent expected market risk premium; 3.5 percent risk-free rate

The company bought some land three years ago for $3.9 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. The land was appraised last week for $4.4 million on an after-tax basis. In five years, the after-tax value of the land will be $4.8 million, but the company expects to keep the land for a future project. The company wants to build its new manufacturing plant on this land; the plant will cost $37 million to build.

At the end of the project (the end of year 5), the plant can be scrapped for $5.1 million. The manufacturing plant will be depreciated using the straight line method.

The company will incur $6,700,000 in annual fixed costs excluding depreciation. The plan is to manufacture 15,300 machines per year and sell them at $11,450 per machine; the variable production costs are $9,500 per machine. Selling price and costs are expected to remain unchanged over the life of the project.

BE uses PK Global (PKG) as its lead underwriter. PKG charges BE spreads of 8% on new common stock issues, 6% on new preferred stock issues, and 4% on new debt issues. PKG has included all direct and indirect issuance costs (along with its profit) in setting these spreads. BE’s tax rate is 35 percent. The project requires $1,300,000 in initial net working capital investment to get operational. Assume BE raises all equity for new projects externally (that is, BE does not use retained earnings).

The weighted average flotation cost is the sum of the weight of each source of funds in the capital structure of the company times the flotation costs, so:

fT = ($564.4/$827.65)(0.08) + ($36.45/$827.65)(0.06) + ($226.8/$827.65)(0.04) = 0.0682, or 6.82%

Thus the initial investment is increased by the amount of flotation costs:

(Amount raised)(1 – 0.0682) = $37,000,000

Amount raised = $37,000,000/(1 – 0.0682) = $39,708,092

a. A one-page executive summary for the CEO and CFO that provides the client with your recommendation regarding the project and the analysis that supports it.

b. The main body of the report which contains Excel spreadsheets and/or other supporting documentation that the CFO can review in order to gain a thorough understanding of your analysis and to assess its quality and accuracy. This documentation should explain how the consulting team calculated its answers to 1-4 below. It should be labeled in a manner that makes it easy to follow. Your analysis should include, and your recommendation should be based on, the following:

1) What is the NPV and IRR of the project? You will use these calculations to support your recommendation.

Wilma’s Vegetable Market had the following transactions during 2012:

1.   Issued $25,000 of par value common stock for cash.

2.   Recorded and paid wages expense of $10,000.

3.   Acquired land by issuing common stock of par value $50,000.

4.   Declared and paid a cash dividend of $1,000.

5.   Sold a long-term investment (cost $3,000) for cash of $3,000.

6.   Recorded cash sales of $20,000.

7.   Bought inventory for cash of $2,000.

8.   Acquired an investment in IBM stock for cash of $6,000.

9.   Converted bonds payable to common stock in the amount of $10,000.

10. Repaid a 6 year note payable in the amount of $11,000.

What is the net cash provided by (used in) investing activities?

Steven, Inc., acquired a truck on January 1, 2016 for $40,000 cash. The truck was estimated to have a useful life of 10 years with no residual value, and the firm decided to use straight-line amortization. On January 1, 2017, management determined that the remaining useful life was actually only 6 more years. On June 30, 2018, the truck was sold for $25,000.

How much would Steven record as the value of the truck when it is acquired on January 1, 2016?

How much would Steven record as the amortization expense related to the patent for 2016?

Compute the amount of amortization that would be recorded for 2017.

Compute the amount of the loss that would be recorded upon the sale of the truck on June 30, 2018.

Thank you for your help!

Hayes Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $100,000 cash. The following information was gathered. Description Initial Cost on Seller’s Books Depreciation to Date on Seller’s Books Book Value on Seller’s Books Appraised Value Machinery $100,000 $50,000 $50,000 $90,000 Equipment 60,000 10,000 50,000 30,000 Asset 3: This machine was acquired by making a $10,000 down payment and issuing a $30,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $15,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $35,900. Asset 4: This machinery was acquired by trading in used machinery. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows. Cost of machinery traded $100,000 Accumulated depreciation to date of sale 40,000 Fair value of machinery traded 80,000 Cash received 10,000 Fair value of machinery acquired 70,000 Asset 5: Equipment was acquired by issuing 100 shares of $8 par value common stock. The stock had a market price of $11 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $150,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date Payment 2/1 $120,000 6/1 360,000 9/1 480,000 11/1 100,000 To finance construction of the building, a $600,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $200,000 of other outstanding debt during the year at a borrowing rate of 8%. Record the acquisition of each of these assets.

2. DesMoines Valley Company has two divisions, Computer Services and Consultancy Services. In addition to their external customers, each division performs work for the other division. The external fees earned by each division in 20X5 were $200,000 for Computer Services and $350,000 for Consultancy Services. Computer Services worked 3,000 hours for Consultancy Services, who, in turn, Consultancy Services worked 1,200 hours for Computer Services. The total costs of external services performed by Computer Services were $110,000 and $240,000 by Consultancy Services.

Required:

a.   Determine the operating income for each division and for the company as a whole if the transfer price from Computer Services to Consultancy Services is $15 per hour and the transfer price from Consultancy Services to Computer Services is $12.50 per hour.

b.   Determine the operating income for each division and for the company as a whole if the transfer price between divisions is $17 per hour.

c.   What are the operating income results for each division and for the company as a whole if the two divisions net the hours worked for each other and charge $12.50 per hour for the one with the excess? Which division manager prefers this arrangement?

3. Dow Company manufactures tables in U.S. The standard (budgeted) cost of one unit is shown below:

QUESTION 5

1. Sales between affiliated companies will be recorded

5 points   

QUESTION 6

1. When affiliated companies sell on credit the trade balances, intercompany receivables and payables

5 points   

QUESTION 7

The equity method of accounting for investments would be applied in which situation:

5 points   

QUESTION 8

U.S. company that has purchased inventory from a German vendor would be exposed to a net exchange gain on the unpaid balance if the

After reading the following case, please answer the following questions:

1. Why does agency problem arise?

2. What is the cost of agency problem?

3. How to minimize the agency problem?

CASE STUDY ON AGENCY PROBLEM ABC

Company started operations in early 1970. The company produces specialized items for manufacturing cars. Most of the raw materials used are imported from Brazil because the cost is low and the labor is very cheap. The CEO for ABC Company, Mr. Rodriguez, makes every attempt to keep the cost at the lowest. From 1970 to 2000 net income has increased at a rate of at least 25% per year. There are around 20,000 shareholders that hold ABC Company shares. Shareholders are very happy with the company’s performance. Mr. Rodriguez always held a meeting with Board of Directors to inform them of any decision involve in the company. As such the BOD is very happy with the company performance and Mr. Rodriguez managing style. Every year, the staff received cash bonus of around 2 to 3 times of their salary and Mr. Rodriguez received many incentives from the company including cars, houses and cash. However, at the end of 2001, the cost of raw material increases because of the attack of SARS virus in Brazil. The sales for the year were also reduced. By September 2001, Mr. Rodriguez held an emergency meeting with all the staffs. It is estimated that the income for the year will be reduced. By January 2002, after the preparation of the financial statements, net income showed a decreased of around 45% from last year. Mr. Rodriguez demanded the treasures and the controller to do something with the figures. During the BOD meeting in April 2002, the company announced a 15%increase in the income and declared a dividend of around 5% higher than last year. The shareholders reacted positively to the announcement and started buying more shares of the company. For the next five years, the company continue to decrease in income but providing a good news to the shareholders and giving shareholders higher profit. In 2008, the BOD requested for the company to change the auditor for the company. After the auditing process, the new auditor revealed that the company is in the state of bankruptcy and there are zero balance cash in the bank account. One month after that the company was forced to closed down. Shareholder were surprised with the announcement and lost all their money. The employees lost their job and many creditors couldn’t claim their money. Shareholders are currently suing Mr. Rodriguez and the company for their losses.