ACCOUNTING MINICASE: ACCT – 08 TEACHING NOTES BUSINESS ETHICS PROGRAM Booking the Budget Teaching Notes What Are the Relevant Facts? 1. Maria and Andy have organized and are responsible for the accounting system of the HMO. 2. Bob and Connie‚ executive officers of the HMO‚ are mainly concerned with rosy sales results. 3. Financial sales accruals have been recorded for numbers that are closer to budget projections than actual sales. 4. Auditors reviewing the financial figures will require
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Running Header: JetBlue Airways IPO Valuation JetBlue Airways IPO Valuation Borislav Belenov‚ Wade Brashear‚ Jamie Clausen‚ Paul Collier‚ Nicole Hagan and Melissa Lein Managerial Finance Chadron State College Professor Steve Stoner May 2009 David Neeleman is the founder of JetBlue Airways‚ which began under the name of “New Air” in 1999. Many JetBlue executives were previously employed by Southwest Airlines‚ a competitor in the area of low cost travel. However‚ Mr. Neeleman’s vision was
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“Entrepreneurs” “Entrepreneurship” “Startup Company” “Entrepreneurial Economics” Entrepreneur Key terms: * Entrepreneur * Social entrepreneur * Serial entrepreneur * Lifestyle entrepreneur * Treps Paraphrasing: Entrepreneur is a person who is willing to put his career and financial security on line with risk in name of new idea and spending time as well as money in new venture. Entrepreneurs have managerial skills‚ team building skills‚ problem solving skills‚ skills
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Marriott Corporation Abstract Marriott Corporation has three divisions – lodging‚ contract services and restaurants – with dissimilar operations. The company uses three separate hurdle rates for the three divisions to value the proposed projects. It is believed that this strategy is more appropriate that using a single firm-wide discount rate because the operations of the three divisions differ drastically. However‚ the company has to ensure that the company uses an appropriate discount rate for
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Analysis Torque is the ability of force to change the rotational motion of a particle. It is also called the moment of force. It is always specified with regard to the axis of rotation. On the experiment the axis of rotation serves as the model balance. This means that as much as torque is directly proportional with the force applied on a particle‚ it is also dependent on the perpendicular distance of the applied force to the axis of rotation. On the first activity we need to determine
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Case Study Analysis HBS: The Coop: Market Research Case Study Analysis HBS: The Coop: Market Research Task 1 Decision Statement of the Coop. Where and how should the Coop invest money to retain the sales to their normal level? Why it is important to the company? The Coop had been going through an impressive growth since the foundation of the restaurant chain in 1974. However‚ about 20 years later‚ it found itself struggling with a sharp decrease in sales of certain restaurants that represented
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Discussion Notes on the Customer Service Process 1. Customer calls in problem by dialing central information phone number. 2. Phone menu system directs customer to choose from the following choices to get to customer service representative: 1. Level 1: Greeting and identify if you have a tone or pulse phone. Choose 1 if you have a tone phone. Stay on the phone if you don’t have a tone phone (put on hold for at least 5 minutes). Time spent listening to greeting and identifying
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5. Evaluate Intel’s shift in strategy under CEO Craig Barrett and new CEO Paul Otellini. Craig Barrett’s strategic focus was on innovation and R&D. He aggressively built new businesses thru acquisitions and internal ventures‚ to the tune of $12 billion. Under his leadership‚ Intel entered a myriad of new markets – wireless‚ networks‚ communications‚ and online services. In 1999‚ he changed the corporate mission statement. Intel went from “being the preeminent supplier to the new computing
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1.i. Test Marketing Expense: These can be identified as sunk costs‚ using the with-or-without test. These costs were undertaken to determine whether the Super project was feasible‚ and would exist even if the project were deemed unfeasible. 1.ii. Overhead Expenses: Mr. Sanberg proposed to include these in the fully allocated method used in Alternative III. However‚ we believe that these expenses have already been attributed to the Jell-O line of products‚ and the data does not explicitly provide
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Tom’s worth compared to the suggested IPO price? Data Summary: Total shares after IPO 2‚849‚000‚000 Risk-free rate 6% Market risk premium 6% Estimated required return for Tom 15%-25% Tom’s 1999 revenue $51‚695‚000 Tom’s tax rate 15% Method 1 - Implied Average Annual Revenue Growth Rate -Use the spreadsheet to compute this growth rate for the three scenarios. Using the Goal Seek tool in Excel‚ estimate the Market Capitalization at IPO if the Implied Average Annual Growth
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