Why has Wal-Mart viewed international expansion as a critical part of its strategy? Wal-Mart has viewed international expansion as a critical part of its strategy because of a number of reasons. First‚ Wal-Mart saw the potential for increased profits and sales in new markets.“After rapid expansion during the 1980s and 1990s‚ Wal-Mart faces limits to growth in its home market and has been forced to look internationally for opportunities”(Ball‚ 2007). Second‚ Wal-Mart saw the need “to protect their
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( Answers to Mini-Case Questions BioCom Inc. This mini-case provides a review of the methodology and rationale associated with the various capital budgeting evaluation methods such as payback period‚ discounted payback period‚ NPV‚ IRR‚ MIRR‚ and PI. 1. Compute the payback period for each project. |Time of Cash Flow |Nano Test Tubes |Microsurgery Kit | |Investment |−$11‚000.00 |−$11‚000.00
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Organizational Behavior – Chapter 17‚ Notes institutionalization A condition that occurs when an organization takes ona life of its own‚ apart from any of its members‚ and acquires immortality. When an organization becomes institutionalized‚ it takes on a life of its own‚ apart from its founders or any of its members. When an organization becomes institutionalized‚ it becomes valued for itself‚ not merely for the goods or services it produces. It acquires immortality. If its original goals
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Chapter 6 Forecasting Case Problem 2: Forecasting Lost Sales 1. The data used for the forecast is the Carlson sales data for the 48 months preceding the storm. Using the trend and seasonal method‚ the seasonal indexes and forecasts of sales assuming the hurricane had not occurred are as follows: Month Seasonal Index Month Forecast ($ million) January 0.957 September 2.16 February 0.819 October 2.54 March 0.907 November 3.06 April 0.929 December 4.60 May 1.011 June 0.937 July 0.936
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End-of-Chapter Question Solutions 1 ____________________________________________________________ ________________________________ CHAPTER 5: FOREIGN CURRENCY DERIVATIVES 1. Options versus Futures. Explain the difference between foreign currency options and futures and when either might be most appropriately used. An option is a contract giving the buyer the right but not the obligation to buy or sell a given amount of foreign exchange at a fixed price for a specified time period. A future
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Chapter 17 Resources from the Sea Multiple Choice Questions 1. Finfish and shellfish provide approximately what percentage of animal protein consumed by humans around the world? A. 0.5% B. 1% C. 10% D. 20% E. 30% 2. Traditional fisheries are those that: A. Catches are routinely recorded B. Catch shellfish‚ not finfish C. Do not use boats D. Use relatively simple gear and methods E. Catches are not sold to the general public 3. When did the world population reach
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Capital Budgeting Mini Case There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well‚ for example‚ the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring
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EXERCISE 18-1 (10-15 minutes) Add or deduct from accounting income (a) 2 deduct (b) 1 add (c) 3 add (d) 1 add (e) 2 deduct (f) 2 deduct (g) 1 add (h 3 deduct (i) 3 deduct (j) 1 add (k) 1 add (l) 1 add EXERCISE 18-3 (15-20 minutes) (a) Accounting income $105‚000 Permanent differences: Non-deductible fines 11‚000 116‚000 Timing differences: Excess of CCA over amortization (16‚000 ) Excess rent collected over rent earned 24‚000 Taxable income $124‚000
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In order to decide on an IPO price‚ we must look at the current financial position of the company‚ as well as make projections for possible future scenarios. From the data given‚ we know that Prairie Home Stores (PHS) has a current book value of $80‚000‚000. With 400‚000 outstanding shares‚ the book equity per share is $200. There are two possible paths for future performance to consider. The first‚ a constant growth scenario‚ assumes that PHS will continue on its current trajectory of paying
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1. What appears to be the problem areas in the Hobby Horse Company? The problem with Hobby Horse Company is that they were having a tough year throughout 2011. The company has $45 million loan that is due at the end of September‚ however the company does not have the means to cover the cost of the loan. Looking at the financial statement the company has fairly high leverage where their equity is not as strong. In addition‚ their current assets don’t cover current liabilities—meaning that the company
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