ECO 527 | The MBA Decision | Case 1 | Group 4 | | | | 1. How does Ben’s age affect his decision to get an MBA? We assume that both MBA program start at the beginning of the year‚ now is the beginning of the year at his age of 28 and he can enroll both program now. The following summary table shows the information he can use to make the decision. Option | Dewey and Louis | Ritter College ‚Wilton Univ (2 year program) | Mount Perry College (1 year program) | Tuition
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Facts: Ben Gates Current Job Wilton Mount Perry Annual Salary $50000 90000 78000 Expected Increase 3% 4% 3.5% Working Years 38 36 37 Tax Rate on Salary 26% 31% 29% Annual Tuition 0 $65000 $75000 Books 0 $2500 $3500 Program Length in Years 0 2 1 Signing Bonus 0 15000 12000 Health Insurance 0 3000 3000 Room and Board 0 $2000 $2000 Discount rate 6.5% 1. How does Ben’s age affect his decision to get an MBA? a. Ben’s current age is a key factor in his decision making process. If
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The MBA Decision Ben Gates graduated from college six years ago with a finance undergraduate degree. Since Graduation‚ he has been employed in the finance department at East Coast Yachts. Although he is satisfied with his current job‚ his goal I to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools‚ he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools‚
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Kayla Rodney MBA 575 Case 4 Questions The University of Northwestern Ohio Jinjian Garment Factory Motivating Go-Slow Workers Piecework is a suitable form of paying employees in the garment factory‚ however it is not the best form of payment for the Shenzhen factory. The piecework system employed by the factory in Shenzhen was well suited to the nature of the work. Each worker was assigned to a specific job and earned an exact amount derived from the number of finished pieces times the price of that
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The MBA Decision NPV Options for Ben: 1. Keep Working Salary = $60‚000‚ tax rate = 26%‚ because of tax rate‚ c = $44‚400 R (discount rate) = 6.5% G (growth rate) = 3% T (the number of period working) = 40 So : Present Value (PV) of Growing Annuity. PVW = C ((1 – ( (1+g)/(1+r))t)/ r – g ) PVW= $44 400 ((1 – ((1+3%)/(1+6.5%))40)/ 6.5% - 3%) PVW = $44 400 ((1 – (1.03/1.065)40)/ 0.035) PVW = $ 44 400 ((1 – 0.2627) / 0.035) PVW = $44
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ACCOUNTING BASICS FINAL ASSIGNMENT cIM MBA 2013 Emily Song The final written assignment is individual assignment and will be your own work on performing financial analysis on Amazon.com. Since successful financial ratio analysis is as much an art as it is a science‚ you must use common sense and sound judgment throughout the analysis. The purpose of this assignment is to provide you with the opportunity to: Work with real time financial data via the Web; Evaluate how the company is performing
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Mini Mini Case‚ page 145: 1. How does Ben´s age affect his decision to get an MBA ? Ben’s age has a big impact on his decision to get an MBA. He already worked about 5 years at Dewey and Leweys and he earns the complete salary as an employee. Now it is up to him whether to invest in a higher degree in order to earn more money in the future or to keep his current job and invest his money in other things. It can be a hard decision for a person who already worked 5 years because in these one
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Case History Ben‚ aged 52‚ was born and raised in Siloam Springs‚ Arkansas. At the urging of his supervisor at work‚ Ben has voluntarily sought help from his employer’s human resources department. They have referred Ben to you. Personal and Family History Ben was an only child‚ and he explains that he got a lot of attention. He says that that he loved his parents very much‚ "but they were kinda weird." He adds that "They were like me. Just different‚ ya know?" Ben said that his aunt‚ his
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Mini Case Chapter 1 a. Why is corporate finance important to all managers? Corporate Finance is the specific area of finance dealing with the financial decisions corporations make‚ and the tools and analysis used to make the decisions. Corporate finance is important to all managers because managers must make very important decisions that will direct the future of their businesses. Most of these decisions will be made‚ based on the analysis of its financial status. Corporate finance provides
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Solutions Guide: Please reword the answers to essay type parts so as to guarantee that your answer is an original. Do not submit as your own. Chapter 9: Exercises 9-4‚ 9-7‚ 9-8‚ 9-9‚ 9-11‚ 9-12‚ 9-14‚ 9-16 (pages 347-348) • Problems 9-7‚ 9-12‚ 9-17 (pages 351-355) EXERCISE 9-4. Using Present Value Tables [LO 1] What is the present value of $600 per year for five years if the required return is 10 percent (answer using Table 2 in Appendix B). Cash Present Value Flow Factor Total
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