indicates that 584 is the optimum stocking quantity. Daily profit at this stocking quantity is $331.4346. b. Using the newsvendor model‚ Cu = 1 - 0.2 = 0.8 and Co = .2. Cu /(Cu + Co) = .8. Using the spreadsheet‚ we found Q* = NORM.INV(.8‚500‚100) = 584.16. The simulation and newsvendor model give the same optimal stocking quantity. 2. a. According to the simulation spreadsheet‚ 4 hours of investment in creation maximizes daily profit at $371.33. b. Sheen would choose an effort level where the marginal
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the firm’s financial data. 2. Select appropriate discount rate based on WACC 3. Discount each cashflow back to it present value 4. Obtain the terminal value through an application of terminal value multiple 5. You add these values together 6. Using this method‚ Martin calculates the price of Cox’s share to be $54.29 Multiple Valuation: 1. Identify comparable firms that have growth‚ cashflow and risks similar to those of target firm whose value is in question. 2. Obtain the individual multiple
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Problem 6-1A 1. Principle violated- Divide responsibilities for related transactions and separate recordkeeping from custody of assets. The business will need to separate the duties of Ms. Flat. She is currently recording all cash receipts and posting the payments to the customer accounts. This leaves much room for error and fraud. Ms. Flat also has control or access over all cash receipts as well as being responsible for posting the payment to accounts. 2. Principle violated- Establish Responsibilities
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Laura Martin case study Question 1- Laura Martin says she gets "paid to talk" - to whom is she talking? Answer: Laura Martin is talking with investors. She would meet with many company representatives including the CEO‚ CFO‚ operating division chiefs and head of investor relations. She is in connections with these investors via telephone‚ fax‚ voice mail or email. It is approximately 900 individual per month. Question 2- Given this crazy web of relationships‚ what are Martin’s incentives
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Monica Ashley’s Case Analysis Monica Ashley’s case is a very conclusive example of how the correct use of power and influence in management is as important as‚ and sometimes even more important than‚ having all the right answers and being able to back them up with data. Monica Ashley is a brilliant employee‚ and a very good Project Manager. She deserves a lot of credit for being able to complete the project‚ even though she has been removed towards the end. Her ability to concentrate on her work
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Case 6-2 Birch Paper Company Internal Environment • Medium sized‚ partly integrated paper company • Portion of paperboard output was converted into corrugated boxes by the Thompson Division • Four producing divisions and a timberland division to supply part of company’s pulp requirements • Divisions judge independently on basis of profits and return on investments • Decentralization successful‚ company’s profits and competitive position improved External Environment Customer/Supplier
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Ashley Graham has been a model for sixteen years and has struggled with how the fashion industry deals with the size difference of models. In 2003 she was signed on to Ford Models‚ and last year in 2016 she became the first plus size model to be on the cover of a Sports Illustrated Swimsuit issue. In 2010 Lane Bryant came out with an ad titled‚ Not what Mom Would Wear‚ which was rather controversial; it consisted of shots of Ashley in different lingerie‚ preparing for a date. Television stations
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The Ashley Treatment Ashley is a nine-year-old girl with the mental age of a three-month-old. Her condition means she will never walk‚ talk or even roll over. She is totally helpless without the devotion and care of her parents. In 2004 her parents decided to medically intervene with puberty. Along with hormone doses to limit her growth‚ Ashley ’s parents also decided on surgery to block breast growth and had her uterus and appendix removed. I am going to give the arguments for and against this
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multiples analysis General assumptions of multiples analysis are that the other firms in the industry arecomparable to the firm being valued. The market‚ on average‚ prices these firmscorrectly‚ but makes errors on the pricing of individual stocks. Exhibit 2 shows aselection of comparable firms‚ assuming that these firms have the same growth‚ riskand return as Cox Communications. There is also the assumption that financialfundamentals such as EBITDA are defined identically in all firms‚ with the sameaccounting methods and reporting periods
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July 13‚ 2005‚ the Federal Express Asia-Pacific president of Cunningham and the president of Guangdong Airport Management Corporation Liu Jing formally signed a contract‚ the Federal Express Asia-Pacific hub at Guangzhou New Baiyun Airport will be settled. This marks the full launch of FedEx in China‚ and the layout of the Chinese market. The face of Federal Express building in an annual rate of 5-7 branches‚ DHL had to increase vigilance and active war of defense. When the competitors get rid of
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