Chapter 1 Answers to End of Chapter Questions 1. Agency Problems of MNCs. a. Explain the agency problem of MNCs. ANSWER: The agency problem reflects a conflict of interests between decision-making managers and the owners of the MNC. Agency costs occur in an effort to assure that managers act in the best interest of the owners. b. Why might agency costs be larger for an MNC than for a purely domestic firm? ANSWER: The agency costs are normally larger for MNCs than purely domestic firms for the following
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Notes on this assignment (Problem P19-11) • While this company is an “Inc.” and is a private company in Canada‚ it is part of a multinational group and would therefore comply with IFRS. (Ref: requirement e) • The rate of compensation increase of 3.5%‚ while interesting‚ is not needed in these calculations as it would have been one of many assumptions used by the actuary would have applied in developing the current service cost‚ which is provided. • Both the EPFE (amortize past
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Corporate Profile Air Asia X Berhad is a leading long-haul‚ low-cost airline‚ operating primarily in the Asia Pacific region. Based upon our breakthrough business model‚ we believe that we have the lowest unit cost base of any long-haul airline in the world‚ with Cost per Available-Seat Kilometer (CASK) of US¢3.51 and CASK (excluding fuel) of US¢2.40 for the year ended 2015. This enables us to offer fares that are targeted‚ on average‚ to be 30% to 50% lower than Full Service Carriers and to stimulate
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Alcoa Inc. For the quarter ended 30th September 2015‚ Alcoa Inc. reported revenue of $ 5.6 billion which was 11 % below that reported for the same period last year. The main reason behind this decline in revenue was the divestiture and closure of low margin business and the dent that aluminium price have continued to take in the most recently ended quarter. The net income was $ 44 million down from $ 149 million of third quarter 2014. Adjusted net income was $ 109 million translating into an EPS
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XIAOMI A Chinese electronics company headquarter in Beijing‚ China owns a private incorporation‚ Xiaomi Inc. and according to IDC (2015)‚ it’s the world’s 4th largest smartphone maker. Xiaomi develops‚ design‚ and sells smartphones. The company sold over 60 million smartphones in 2014 with the start-up of US$1.1 billion‚ known as the world’s most valuable technology star-up. Xiaomi’s valuation is over US$46 billion‚ according to (Douglas MacMillan‚ 2015). Over 8000 employees in the company‚ throughout
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APPLE INC. INTRODUCTION: Apple Inc. with its headquarters in Cupertino‚ California is an American multinational corporation which manufactures designs and sells personal computers‚ electronics‚ online services‚ computer software‚ cellular phones‚ portable music players‚ watches and variety of other related things including applications. Apple Inc is mainly famous for its hardware products which includes its smart phone ‘iPhone’‚ Apple TV‚ its portable music player ‘iPod’‚ its line of computers ‘Mac’
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CASE 1.3 Just for FEET‚ Inc. 1. (1) Common-sized Balance Sheet 01/01/1999 01/01/1998 01/01/1997 Current assets: Cash and cash equivalents 2% 18% 37% Marketable securities available for sale - - 9% Accounts receivable 3% 4% 2% Inventory 58% 46% 35% Other current assets 3% 1% 1% Total current assets 65% 69% 84% Property and equipment‚ net 23% 21% 15% Goodwill‚ net 10% 8% - Other 1% 1% 2% Total assets 100% 100% 100% Current liabilities: Short-term
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Case Analysis: Apple Inc.‚ 2012 IBM introduced the personal computer into the mainstream in the 1980’s‚ after Apple pioneered the first usable “personal ” computing devices. By the early 1990’s‚ lower price and expanding capabilities drove the growth of “Wintel” (the windows OS combined with an Intel processor). The revenue growth continued through the early 2000’s then lowed over the next decades. The personal computer (PC) industry is in high dynamics‚ with new products emerging and old technology
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Sew What? Inc. has grown from a tiny kitchen and garage operation to a multimillion- dollar enterprise throughout the years by utilizing information technologies to contribute to the success of the business. The company began as a small company that was comfortable with utilizing word-of-mouth for business sales and only making sales local. Overtime‚ the founder became aware that she needed to branch out to other areas once she lost a contract. She lost the contract due to not having an active website
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1. The most likely cause of Bado’s hypocalcemia is chronic hypoparathyroidism which is secondary to a thyroidectomy. Hypoparathyroidism may be due to a failure to respond to vitamin D or a deficiency of it or a failure to respond to PTH. With the removal of Bongo’s thyroid‚ that is what caused his low levels of blood plasma Calcium level to be where it was when it was tested. 2. a. Hypocalcemia decreases the concentration of calcium outside of cell which increases the cells excitability and lowers
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