1. XYZ Chocolate Company has $280,000 of 6% bonds outstanding along with 20,000 shares of $1.40
preferred stock and 400,000 shares of common stock. Assuming the firm has a 36% tax rate, compute
the earning per share (EPS) for an EBIT of $316,800. (4 Point
1. using the DuPont method, evaluate the effects of the following relationships for the Star Corporation.
A. Star Corporation has a profit margin of 5 percent and its return on assets is 20 percent. What is its
assets turnover ratio?
ROA = assets turnover
assume interest rate is X%,
(1+X) 9 =3.000
By using the future value table, we could find out that
When interest is compounded annually,
5 years & 4 %
1. You are about to purchase a 15-year bond, ($1,000 face value) with 4% annual
coupon. If the current market rate (required rate of return) is 5%, at what price
should you be willing to buy this bond? Assuming that this bond pays interest on
an annual ba
. You can invest in either corporate bonds which yield 5.12%, or municipal bonds (of
equal risk) which yield 3.35%. Which investment should you choose? Ignore state
A. Your personal tax rate is 35%
B. Your personal tax rate is 14%
FOCUS TRAVEL AGENCY
ON MARCH 31, 2010
FOCUS TRAVEL AGENCY
For the year ended March 31th, 2010
Total operating expense
ASSIGNMENT # 6
THIS ASSIGNMENT HAS THREE PROBLEMS WITH THE FOLLOWING
-1. Using the DuPont method, evaluate the effects of the following relationships for the Star
A. Star Corporation has a profit mar
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The _ approach to constrained
resource scheduling problems is the only
feasible method of attacking large,
nonlinear, complex problems that tend to
occur in the real world of project
Chapter 6; Project Activity Planning
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According to the authors, any
project plan must contain all of
the following EXCEPT _.
a "ballpark" estimates
According to the authors, the
task of risk identification will be
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The authors recommend preparing a schedule for each _.
major task level in the WBS
The calculation of the standard deviation for the beta distribution is based on the
assumption that _.
the range is appr
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The authors identify _ estimation errors as the two types of generic estimation
random and systematic
_ budgeting aggregates income and expenditures by project or program, often
in addition to ag
Chapter 4; Negotiation and the Management of Conflict
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According to the authors, the favored
technique for resolving conflict is
According to the authors, the nature of
negotiation as it applies to p
Chapter 5; The Project in the Organizational Structure
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is a _.
Name only team (NOT)
Chapter 1; Projects in contemporary organizations
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According to PMBOK, a _ is a
temporary endeavor undertaken to
create a unique product or service.
According to the authors, the prime
objectives of project
Chapter 3; The Project Manager
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According to the authors, of all the
characteristics desirable in a project
manager, _ is the most important
According to the authors, the analytic
Chapter 2; Strategic Management and Project Selection
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21. The mastery of the skills
required to manage projects
competently is referred to in the
literature as _.
project management maturity
The Astebro study (200
Risk Response Planning
- The question now becomes: What can we do about
- Risk response planning is concerned with developing
strategies to cope with risk. '
~ Risk transfer: Purchase insurance, buy equipment with
- Risk mitigation: Re
Chapter 7-1 Estimating Project Budgets
' In order to develop a budget, we must:
— Forecast What resources the project will require
— Determine the required quantity of each
— Decide When they will be needed
— Understand how much they will cost - including
VIEW SYSTEM AS CONNECTED COMPONENTS.
COMPONENTS ARE FUNCTIONS.
CONNECTIONS REPRESENT INTERFACES.
COMMUNICATE CRITICAL ACTIVITIES AND RELATIONSHIPS.
EXAMPLE: ARCHITECTURE OF MANUFACTURING.
CRITICAL FOR INTEGRATED P
The fact that a project exists within the
boundaries of a larger parent organization
makes it clear that, to be successful the
project must be defined in terms of the
goals and objectives of parent enterprise.