Chapter 8. Mini-Case Assume that you have just been hired as a financial analyst by Triple Play Inc.‚ a mid-sized California company that specializes in creating high-fashion clothing. Because no one at Triple Play is familiar with the basics of financial options‚ you have been asked to prepare a brief report that firm’s executives can use to gain a cursory understanding of the topic. To begin‚ you gathered some outside materials on the subject and used these materials to draft a list of pertinent
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there would be no net income to report as taxable income. 1(c) What is your determination regarding reducing the taxable amount of income for both (a) and (b) above? To lessen the amount of tax on the income‚ John Smith could make report as an S Corporation and pay wages to the shareholders if it would be less than the $300‚000. Mr. Smith could provide several retirement plans. The plans could be IRAs‚ profit sharing plans‚ or benefit plans‚ which need to be started before the end of year. He
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Case Study Reflection: Bruce/Brenda Gabriel R. Boynton Abnormal Psychology Professor Wolfson September 24‚ 2012 Diagnostic Overview: Gender Identity Disorder (GID) is defined as: “strong and persistent cross gender identification” and “persistent discomfort with his or her sex or sense of inappropriateness in the gender of that sex (DSM-IV)”. Put simply: it is a painful inner conflict between a person’s physical gender‚ and the gender he or she identifies as. For example‚ a person who
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exercise price. In this case‚ option B’s premium price is lower. The trade off is between a lower exercise price‚ higher premium price‚ option A‚ that better hedges against the yen if it were to appreciate in value (exercising the option) and a higher exercise price‚ lower priced premium that reduces cost if the hedge does not appreciate in value (the option is not exercised). 2.Should Blades allow its yen position to be unhedged? Describe the tradeoff. The case stated that “the futures
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Executive Review Porsche is a company that prides itself in quality and customer satisfaction. Because of this customers are always considered to be first priority for the company. The only issue with this business method is that the shareholders do not feel valued. Porsche operates more like a family-owned firm instead of focusing mainly on shareholder value. While operating like a family-owned firm may be admired by some‚ it also has a downside. The company has been somewhat infamous for occasional
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need “to protect their existing markets‚ profits‚ and sales”(Ball‚ 2007) from other international businesses. Finally‚ the third reason that Wal-Mart viewed international expansion as a critical part of its strategy was “to help satisfy management ’s overall desire for growth”(Ball‚2007). What did Wal-Mart do to enable the company to achieve success in Canada and Latin America? Why did Wal-Mart fail to achieve similar Success in Europe? Wal-Mart achieved success in Canada and Latin America
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a. Should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? Should the company be interested in incremental cash flows‚ incremental profits‚ total free cash flows‚ or total profits? Caledonia should focus on cash flows‚ not accounting profits. Free cash flows are able to be reinvested‚ whereas accounting profits are shown when they are earned‚ not when the cash is actually received. The company should be interested in incremental after-tax cash flows
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Cast Brian Smith – CIO John Johnson – CEO Stan Abrams – CFO Fred Tompkins – Head of Manufacturing (Most powerful executive lel) Harriet Simpson – VP of HR Brenda Barnes – VP of Marketing Ted Kwok – VP or R&D 1. What are the issues with current IT planning process? Budget given is equal to 2% of revenue Budget might fluctuate depending on actual revenue Budget for new infrastructure and initiatives/strategies are basically leftovers after the maintenance cost/keeping the lights on. As
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"Why do I keep this around?" Martin Drysdale wondered. "It infuriates me every time I see all that satisfaction over something that is now the bane of my existence." He looked gloomily at the offending photo which showed the project team happily "clinking" pop cans and coffee cups in a toast: "Here’s to TUFS!" The Technical Underwriting Financial System (TUFS) was the largest single investment in IT ever made by Northern Insurance‚ and it was going to transform Northern by streamlining the underwriting
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Mini Cases: Cost of Capital Part A: Cost of Debt Mini Case 1: Cost of perpetual/Irredeemable debt Ashok Leyland issued Rs 100 Lakhs 12% debentures of Rs. 100 each. Calculate the cost of debt in each of the following cases. (Assume corporate tax rate being 40%). Case (a) If debentures are issued at par with no floatation cost. Case (b) If debentures are issued at par with 5% floatation cost. Case (c) If debentures are issued at 10% premium with 5% floatation cost. Case (d) If debentures are issued
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