Integrated Case on Control
September 30, 2011
Integrated Case on Control
As the new police chief of Sunny Grove, I have been given the task to solve the
operational problems of the department. The effort to prevent dishonesty and control officers
will be
Week 7 Niquita Gatlin
Chapter 15 Questions 15-1a, 15-3, 15-4, 15-5, and 15-8
5-1a
Capital Structure: The system or manner in which a firms assests are financed. Capital
structure is generally expressed as the percentage of every type of capital used by fi
1
Group Project: Franklin D. Roosevelt
MNGT 5670
May 2, 2011
Franklin D. Roosevelt
Franklin Delano Roosevelt was born in 1882 and served as the thirty-second
President of the USA from 1933-1945. He belonged to an old, wealthy New York family and was
a dis
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An auto manufacturer advertises that 90% of the cars we have ever made are still on the road.
a. Assuming this is literally true, how can it be explained?
Assuming that this is true it can be explained that the auto manufacturer is 90% confident
that the
Infomercials often peddle products under the guise of "studies show". While some of the
products are surprisingly good (e.g., FoodSaver, Foreman Grill, Ronco Rotisserie), many of the
products are not.
Why should you be initially suspicious of any products
Traffic Tickets Given
Stem-and-Leaf Display
10
20
2
8
0
23
15
5
10
12
15
Descriptive Statistics
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
Stem unit:1
Boxplot
Statistics
Sample Size
x
10
20
2
8
0
23
15
5
10
12
15
Descriptive statistics
count
mean
sample variance
sample standard deviation
minimum
maximum
range
x
11
10.91
50.69
7.12
0
23
23
population variance
population standard deviation
46.08
6.79
standard error of the mean
2.15
ske
Chapter 16 Questions 16-1a, k, & l
a. Working Capital: current assets used in operations
Net working capital: current assets minus all current liabilities
Net operating working capital: (NWOC) current operating assets minus current operating
liabilities
k
Chapter 7 Question 7-1h
Equilibrium; The condition unde which the expected return on a security as seen by the
marginal investor is just equal to its required return
Efficient Markets Hypothesis (EMH); holds that 1: stocks are always in equilibrium and 2:
11.1
a.
Equipment
NOWC Investment
Initial investment outlay
$9,000,000
3000000
$12,000,000
b. No, this will not change my answer because last year's expenditure is
a sunk cost and does not represent an incremental cash flow.
c. This would affect my answer
Chapter 25: Problem 1
a.
CFO = -20M, CO1 = 3, FO1 = 20, I = 13
PV Factor of 20 years annuity @13% =
1
1
(1.13) 20
0.13
= 7.02475
PV of $3 million per year for 20 years = $3 7.02475 = $21.0743
NPV =
=-20+ $21.0743
NPV = $1.074M
b.
Tax Imposed (50% Probabil
Chapter 20: Problems 1, 2, 5
20.1
a.) Sale proceeds = $3,000,000*$5
= $15,000,000
Gross profit of security broker = Sales proceeds Proceeds to public
= $15,000,000 -$14,000,000
= $1,000,000
Expenses of security broker for the issue = $300,000
Net profit o
Ch 19 Problems 1,2,3,6
19.1
PV of 8% bond = 1000
= 1000*0.08(1+k)^20-1)/(k*(1+k)^20) +1000/(1+k)^20
k is the interest rate
k = 0.08 = 8%
PV of 6% bond = 1000
= (1000*0.06(1.08^20-1)/(0.08*1.08^20) + (1000+w)/1.08^20
w = warrant value
= 1000 = w/1.08^20 +
Chapter 17: Problems 1, 2, 3, 9
17.1
$1 = Mexican pesos
$1 = 111.23 Japanese yen
Cross rate=
Yen
Peso
Dollar *
peso
Yen
Dollar
= Yen
peso
=
0.1111 dollars per peso * 111.23 yen per dollar
= 12.358 yen per peso
17.2
Forward Exchange Rate = $0.009 * (1+7%/2
Chapter 8: Problems 1, 3, 4, 6
8.1
Stock price
Strike price
Market price of option
$30
$25
$7
Exercise value of option
$5.00
Time value of option
$2.00
8.3
Current stock price $15
Strike price of option $15
Time to maturity of option 6 mths
variance of st
Chapter 5 Questions 5-1b, g, k, & l
b. Par value; The nominal or face value of a stock or bond.
Maturity date; The date when the bonds par value is repaid to the bondholder.
Coupon payment; Dollar amount of interest paid to each bondholder on the interest
Chapter 4 Questions 4-1c and i
c.
Annuity: an equal amount of cash flows paid periodically to an account for a specified period of
time
Lump-sum payment: an amount that is paid once now or at a certain future date
Cash flow: the term used when there is an
Chapter 1 Questions (not problems) 1-2, 1-3, 1-4, 1-6, 1-7, and 1-9
1-2.
Three principal forms of organizations: Proprietorship, Partnership, Corporation
Advantages of Proprietorship and Partnership:
1. Decision making easy
2. Income not taxed double
3. N
Investing in Facebook
Facebook is an extremely extraordinary business. It is very hard to put a value on the
company within the next five to ten years from now. Facebook seem less than worthwhile as a
stock purchase to interested investors. Facebook could