Brief Exercise 12.1
Final Section of Fellups Income Statement
Net income before extraordinary items
Extraordinary items (net of tax) [loss of 100,000 40,000 of tax saving]
Net Income (A - B)
Brief Exercise 12.2
1. What is the voting power of individual and institutional investors?
Institutional investors are organizations which pool large sums of money and then invest
this money in other investment assets. Because they deal with such a large sum of money,
Do you think that the owners of a corporation can maximize the object of the firm and
satisfy the socially imposed constraints?
Maximizing the stakeholder value is the goal that every organization is striving to achieve
and it is also the bottom line of e
1. What are the sources of funds for a corporation and what are the costs of those
components of funds?
Every business needs a constant source of money to keep running and functioning.
Corporations are able to generate funds through selling of the product
As stated by Jacob and Chase, Inventory is the stock of any item or resource used in an
organization. Inventory system is a set of policies and controls that monitor levels of
inventory and determine what levels should be maintained, when stock should be
We live in a competitive world. Today, there is a fierce competition between brands and
companies to attract more and more customers towards them. This lead to improvisation
of the products that the company has to offer. Today we are also living in a high
After reading the text and the other articles for this weeks reading, I realized one thing
for sure that Operations management is a vast and a very important part of business
management. Investopedia defines it as the administration of business practices
Technology has sure changed the way business is done today. It has also changed the way
individuals conduct their daily errands! Right from shopping for clothes, appliances, toys,
equipments etc to depositing a check in the bank, paying a bill, communicat
Data mining is the process of collecting various kinds of data and information on all users
of the internet and analyzing it to turn into useful information. It enables the users to
classify the population into different segments and may help in the marke
WEEK 6 ASSIGNMENT
13.1 Calculating cost of equity
Common stock Beta 1.21
Risk free rate 3.5%
Expected return on market 11%
Cost of equity capital can be calculated using this information above. Using CAPM:
Rs = 0.035 + 1.21 (0.11 0.035)
Forecasting is important and critical to any business. Forecasting helps businesses to
make appropriate decisions for the future in regards to production, capacity, demand etc.
No matter what mathematical methods we use for forecasting, this continues to
Week 3 Individual Assignment MBA 504 C |
Chapter 3 Problem 13.
a. Weighted moving average:
Fjuly = 0.60(15) + 0.30(16) + 0.10(12)
= 9 + 4.8 + 1.2
Thus forecast for the month
This is an interesting subject for discussion this week. I had no knowledge about this case
and hence I was more interested in understanding the story. This debate over the new fuel
tankers bidding to the US Air Force has been going on for nearly a decade
This continues to be an interesting discussion and assignment topic! The case presented
before us for this discussion is the one that we are familiar with from the first week of
this course. After reading the AMA guidelines about ethics in marketing manag
Polaroid was regarded as a great success story some years ago. The company was
established in 1937 by Edwin Land. Polaroid gained much fame since it was established
and found new success in the post - World War II time as an innovator. In 1948, Edwin
According to the authors of the book A Preface to Marketing Management by Paul Peter.
J and Donnelly J H, the authors state that the marketing concept is a very simple and
straightforward concept and means that an organization should seek to make a profit
Tata motors and Bajaj have both tried to introduce a cheap four wheeler in the Indian
market. The Tata motors company introduced the first car for the Indian market which
was priced a lot less than any car in the market at the time. The price of the Tata
1. What is the historic risk of different financial assets of the U.S. economy and
what can we do with their historic risk premium?
Market risk premium is the difference between the expected return on a market portfolio
and the risk-free rate. One of the
What is the effect of an investment on real assets on the value of the firm and why?
Real assets are tangible assets that have value due to their substance and properties. The
real assets could include precious metal, real estate, agriculture land, commod
1. What are the advantages and disadvantages to our company of financing the
expansion by issuing bonds? By issuing common stock?
Generating capital for a business is a complicated subject and one that needs through
understanding of all the pros and cons.
a. Why do you think Home Depot is paying out only about 38% to 67% of its net
income to stockholders in the form of cash dividends?
Home Depot is a company that is spreading its roots far and long. It is our belief that
Home Depot is not pa
There are various financial statements that the companys use to give the financial picture
of themselves. The income statement is considered very important of all the financial
statements. However, the cash flow statements are probably the most important
Inventories and their measures are an important aspect of accounting for all firms. There
are primarily three methods of inventory valuation. These three methods are:
FIFO First in, First out
LIFO Last in, First out
In the FIFO method,
Brief exercise 9.1
Determining the total cost of equipment for calculating annual depreciation:
Reconditioning cost to prepare for
Total cost of equipment
Brief Exercise 9.2
a. Calculating annual d
Brief Exercise 11.1
Stockholders Equity section of the Balance Sheet
Issued and outstanding common stock (10,000 * 10)
Additional paid-in capital (10,000 * 3)
Total paid-in capital
WEEK 2 INDIVIDUAL ASSIGNMENT 1
a. White Electric Supply was lacking a number of internal controls which let the
book-keeper embezzle $416,000 over the period of five years without being
detected. The internal controls are
1. Why is it important for you, a non-accountant, to be able to interpret and analyze
the financial statements that have been prepared by a company's accountants?
Accounting is one of the most critical aspect of a business. All the managers who are