Premium Essay

Closing Case 13

In:

Submitted By zbonz007
Words 960
Pages 4
Closing Case: Chapter 13
Bonnie Jordan
Managerial Finance
Instructor: Kristi Rayford
March 11, 2013

The Closing Case in Chapter 13 focuses on options for a 401K for an employee of the East Coast Yacht Company. Several decisions must be made regarding investments, which will be highlighted in this discussion. Equity investments can go into the S & P 500 or an index related option. The former has lower fees, and the latter higher ones. Other elements to be discussed include the aforementioned investment options, graph implications regarding mutual fund investors, market efficiency, and an equity investment decision to be made by the East Coast Yacht employee. The East Coast Yacht company’s finance representative, Dan Ervin, made several comments based on the percentage graph for 10-year return for the Vanguard 500 Index Fund (Ross, et all 2011). Based on this data compiled over two decades, there is a cycle in effect. The numbers (equity mutual funds outperformed the Vanguard 500) swing from almost 70% down to mostly just about 20% and then swing back up to almost 50% (Ross, et all 2011).
Perhaps investing in the S & P 500 index would be timely as the trend is leaning towards other fund investments. The three forms of market efficiency per Andrei Shleifer as Ross, et all (2011) posits, “(are) rationality, independent deviations from rationality, and arbitrage, (p. 399 – 400).” Also, an efficient capital market is one as Ross et all (2011) state, “is one in which stock prices fully reflect available information, (p. 397).” In addition, there are three types of efficiency: (1) information on past prices, (2) publically available information, and (3) all information (Ross, et all 2011). There is a great deal of information needed to make smart investment decisions. As Ross, et all (2011) posits

An efficient financial market

Similar Documents

Premium Essay

Chapter 13 Closing Case

...Business 650: Managerial Finance Week 5 Assignment: Chapter 13 Closing Case February 25, 2013 1. What implications do you draw from the graph for mutual fund investors? The investor should consider the AMEF have only beaten the Vanguard 500 Index Fund twice in the last twenty years (1986, 1987). The graph is also indicating an up and down trend, perhaps reflecting the state of the economy during that time. It is a possibility that AMEF will continue its upward rise in the next five to ten years. “Despite the relative simplicity, mutual-fund investors are still making costly mistakes that are eating into their returns” (Dagher). Making a significant investment based only on the cyclical nature indicated by the graph might not be the best financial idea for the investor. There are other factors to consider besides the information that the graph is providing. In comparison, fees are very low for the Vanguard 500 and it has been in existence much longer, making it practical to study its track record (Ross). However, it would be wise to analyze what those low fees are exactly. Looking at them over the course of one year they might not seem significant but how much do they accumulate during a ten year return? 2. Is the graph consistent or inconsistent with market efficiency? Explain carefully No. The objective of investing in the stock market is to have the best available return on investment. Many investors claim that they can outperform the...

Words: 520 - Pages: 3

Premium Essay

Easr

...Anthony Martinez 11-13-14 Criminal justice 1.All of the following are considered professionals in the courtroom work group, except . A: victim 2. Which U.S sumpre court case forced the prosecution must disclose any evidence that the defense request. U.S V. bagley 3. Which work group member has the responsibility of demonstrating to a jury that a defendant is guilty beyond a reasonable doubt? The prosecutor 4.The role of the defense attorney includes all except? Which one of the following. D: representing the state 5:Which U.S supreme court case established the right of counsel for indigent defendants in federal court proceedings? Johnson V. Zerbst. 6. Which U.S supreme court case established the right to counsel for indigent defendants in state felony court . Gideon V. Wainwright 7. Which U.S supreme court case established the right to counsel for juvenile defendants? In re gault 8. The most widely used system in indigent defense is. public defender program 9. List the order of the steps in criminal trial . 1. Opening statement by prosecutor? Plaintiff 2. Opeing statement by defense 3. Direct examination by prosecutor/ plaintiff. 4..Cross- examination by defense 5. Motions 6..Direct examination by defense 7.Cross examination by plaintiff/prosecutor 8. Closing statement by plaintiff/prosecutor 9. Closing statement by defense 10. Rebuttal argument 11. Jury instructions...

Words: 460 - Pages: 2

Premium Essay

Research

...Materials       Federal Tax Decisions         American Federal Tax Reports           American Federal Tax Reports (Prior Years)             2002               AFTR 2d Vol. 89                 89 AFTR 2d 2002-966 (240 B.R. 216) - 89 AFTR 2d 2002-783                   SKLAR v. COMM., 89 AFTR 2d 2002-808 (282 F.3d 610), Code Sec(s) 170; 6103; 6104; 6651, (CA9), 02/27/2002 Notes Top of Form [pic][pic][pic][pic][pic]Saturday Feb. 09, 2013 2:32 PM CST Folder: My Folder sklar Bottom of Form American Federal Tax Reports SKLAR v. COMM., Cite as 89 AFTR 2d 2002-808 (282 F.3d 610), 02/27/2002 , Code Sec(s) 170; 6651 Michael SKLAR; Marla SKLAR, PETITIONERS-APPELLANTS v. COMMISSIONER of Internal Revenue, RESPONDENT-APPELLEE. Case Information: |Code Sec(s): |170; 6651[pg. 2002-808] | |Court Name: |U.S. Court of Appeals, Ninth Circuit, | |Docket No.: |Docket No. 00-70753, | |Date Decided: |02/27/2002. | |Prior History: |Tax Court, (2000) [pic]TC Memo 2000-118,[pic] RIA TC Memo ¶2000-118, [pic]79 CCH TCM 1815 (opinion by | | |Nameroff, Sp.Tr.J.), affirmed. ...

Words: 7226 - Pages: 29

Premium Essay

It Project Management

...Prof. Tom Marx MD Khaleque IT 494-01 June 20, 13 Chapter 5 Running Case (Recreational and Wellness Intranet Project) Approach to collecting requirements Group interviews In this project, group interviews would work well since there is some same level or has the same role of employees. Group interviews require more preparation and more formality to get the information you want from all the participants. You can uncover a richer set of requirements in a shorter period of time if you can keep the group focused. Facilitated sessions In a facilitated session, Project Manager (PM) brings a larger group together to discuss about the upcoming Recreational and Wellness project and its advantages. In facilitated session, PM shares the details about the proposed project asks opinion from the employees. In this case, PM would be able to gather a set of common requirements from the group. Questionnaires Questionnaires are much more informal, and they are good tools to gather requirements from stakeholders. Since the participants are a big group of people, certainly the PM can set a questionnaire to the employees to categorize their opinion. This questionnaire would help PM to decide about what kinds of recreational infrastructure needed and how many users would participate in the program. Prototyping Prototyping is a relatively modern technique for gathering requirements. In this approach, PM gathers preliminary requirements that he uses to build an...

Words: 1732 - Pages: 7

Premium Essay

Partnership

...Partnership. "Bankruptcy": with respect to any Person, shall mean that such Person shall have become insolvent or generally failed to pay, or admitted in writing his or its inability to pay, debts as they become due; or shall have applied for, consented to, or acquiesced in the appointment of, a trustee, receiver or other custodian for such Person or any property of such Person, or such Person makes a general assignment for the benefit of creditors; or, in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is appointed for such Person or for a substantial part of the property of such Person and is not discharged with sixty days; or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding is commenced in respect of such Person and if...

Words: 5897 - Pages: 24

Premium Essay

Week2 Hw

...__B_6. Office supplies on hand to be used next accounting period. _B__7. An expense not yet incurred; paid in advance. __C_8. A revenue earned; not yet collected. Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31, 2014. To simplify the case, the amounts given are in thousands of dollars. | UnadjustedTrial Balance | Adjustments | AdjustedTrial Balance | | | | | Account Titles | Debit | Credit | Debit | Credit | Debit | Credit | Cash | 25 | | | | | | Accounts Receivable | 22 | | | | | | Prepaid Insurance | 17 | | | 13 | | | Machinery | 84 | | | | | | Accumulated Depreciation | | | | 18 | | | Accounts Payable | | 18 | | | | | Wages Payable | | | | 16 | | | Income Taxes Payable | | | | 10 | | | Common Stock (3,000 shares) | | 3 | | | | | Additional Paid-in Capital | | 64 | | | | | Retained Earnings | 16 | | | | | | Revenues | | 111 | | | | | Expenses | 32 | | | | | | Totals | 196 | 196 | | | | | Other data not yet recorded at December 31, 2014, include: a. Insurance expired during 2014, $13. b. Wages payable, $16. c. Depreciation expense for 2014, $18. d. Income tax expense, $10. Required: 1. Prepare the adjusting entries for 2014. 2. Complete the...

Words: 316 - Pages: 2

Premium Essay

Motivaton

...energizes, maintains, and controls behavior. As such, it is clear why it plays an imperative role in the workplace. With over 11,000 employees, SAS Institute has been named Fortune Magazine Best Company in America to work for (“Closing Case Motivating Employees at the SAS Institute”).. Bringing in approximately $2.3 Billion in revenue, SAS Institute is the biggest privately owned software company in the world (“Closing Case Motivating Employees at the SAS Institute”). In this case study, we will take a look at, how does SAS Institute motivate its employees? What factors are likely to contribute to intrinsic and extrinsic motivation? And lastly, how might SAS long term focus affect employee motivation. How Does SAS Motivate its Employees? SAS Institute plays a big part in motivating its employees. It has always been their top priority to make sure that, their employees enjoy coming to their workplace each and every day. Even more so, motivated to do a good job on their work, that they are given. At SAS Institute managers want employees to feel that the contribution, which they are making is important to the company, and that the company appreciates the work they are providing to them. SAS believes in keeping business inside the company (“Closing Case Motivating Employees at the SAS Institute”).. For this reason, they would rather have employees develop new ideas and software’s, instead of going outside the company and using other professionals elsewhere. By doing this, employees...

Words: 1104 - Pages: 5

Premium Essay

Gm Case

...Q1. What are General Mills’ motives for this deal? Please estimate the present value of cost savings. There are several motives for General Mills to acquire Pillsbury as discussed below; - Synergistic effect General Mills management might believe that the business of these two companies is supporting each other or basically so-called synergy. The synergistic effect will benefit both General Mills and Diageo. By acquiring Pillsbury, the company will become more powerful in the competitive market. This could be achieved through combining or sharing the resources, capital, and technologies of both firms. This would eventually result in higher and better efficiencies and increase in production capacity for any future expansion. When the combined firm is bigger, they would absolutely have higher bargaining power over the suppliers. The raw materials could be bought at lower rate than before. - Reduction in competitive forces and competition Upon acquiring the Pillsbury, the company will obtain greater market share among the other rivals in the industry. The company will have more flexibility to control over the pricing strategies, thus might be able to increase profitability. In other words, the selling and marketing will be more efficient. - Future growth and expansion The acquisition will allow General Mills to double its size. The brand will be added more than before acquisition. The company can basically gain more shelf space in the supermarket...

Words: 2761 - Pages: 12

Free Essay

Ppsc

...CONSOLIDATED ADVERTISEMENT NO. 15/2015 APPEARED IN THE NATION & JANG ON SUNDAY 03-05-2015   APPLY ONLINE   EDUCATION DEPARTMENT SR. NO. 84                             RECRUITMENT TO (660) SIX HUNDRED & SIXTY (INCLUDING QUOTA RESERVED FOR DISABLED PERSONS AND QUOTA RESERVED FOR MINORITIES) PERMANENT POSTS OF LECTURER (MALE) IN THE PUNJAB HIGHER EDUCATION DEPARTMENT.               SUBJECT WISE DETAIL OF LECTURERS (MALE) IS GIVEN AS UNDER:-   Case No. | Subject | Total Posts | Open Merit Posts | Disabled Quota | Minorities Quota | 10-RA/2015 | English | 94 | 86 | 3 | 5 | 11-RA/2015 | Mathematics | 71 | 65 | 2 | 4 | 12-RA/2015 | Physics | 68 | 62 | 2 | 4 | 13-RA/2015 | Chemistry | 63 | 58 | 2 | 3 | 14-RA/2015 | Computer Science | 60 | 55 | 2 | 3 | 15-RA/2015 | Economics | 27 | 25 | 1 | 1 | 16-RA/2015 | Biology | 26 | 24 | 1 | 1 | 17-RA/2015 | Statistics | 24 | 22 | 1 | 1 | 18-RA/2015 | Zoology | 13 | 11 | 1 | 1 | 19-RA/2015 | Botany | 12 | 11 | 0 | 1 | 20-RA/2015 | Urdu | 33 | 30 | 1 | 2 | 21-RA/2015 | Islamiat | 24 | 23 | 1 | 0 | 22-RA/2015 | Pakistan Studies | 12 | 11 | 0 | 1 | 23-RA/2015 | Civics / Political Science | 24 | 22 | 1 | 1 | 24-RA/2015 | Physical Education | 26 | 24 | 1 | 1 | 25-RA/2015 | Commerce | 17 | 15 | 1 | 1 | 26-RA/2015 | History | 9 | 8 | 0 | 1 | 27-RA/2015 | Education | 9 | 8 | 0 | 1 | 28-RA/2015 | Arabic | 9 | 8 | 0 | 1 | 29-RA/2015 | Sociology | 5 | 5 | 0 | 0 | 30-RA/2015 | Persian | 5 | 5 | 0...

Words: 1536 - Pages: 7

Premium Essay

Mod G Unit 2 Spelling

...Interorganizational Conflict- Conflict within the organization. 4. Concise- Organized manner. 5. Salutation- A greeting such as "Dear-" and "To Whom It May Concern." 6. Phenomenological- Term that decribes viewing a situation from the other person's point of view. 7. Regard- Pertaining to. 8. Dental Radiograph- X-ray of teeth. 9. Intrapersonal Conflict- Conflict within oneself when one is expected to perform a task that does not meet personal goals, values, beliefs, or expertise. 10. Humanistic Theories- Theory based on the works of Maslow and Rogers. 11. Complimentary Closing- Final message of a letter such as "sincerely" and "truley yours." 12. Organization- A process through which you identify what you want to say and the results you hope to attain with your communication. 13. Simplified- Format similar to full-blocked, except that open punctuation is used, no salutation or complimentary closing is included, a subject line in all capital letters must be used, the word "subject" is omitted, the signer's identification appears in all capital letters, and lists are indented 5 spaces. If numbered list is used, the period is omitted and the list is not indented. 14. Semantics- Meaning of words and language. 15. Jargon- Specialized words, acronyms (groups of initials), and other terms that are unique to a given group. 16. Diagnostic Model- Clasts of a patient's mouth used as a tool in treatment planning. 17. Objective Statement- Findings a dentist makes...

Words: 433 - Pages: 2

Premium Essay

Dishwasher Assignment

...Finance Assignment Submitted by, Ukiwo Anya Vipin Sekar Chandrasekar Date : November 6, 2015 A Summary of the Economist Article: Reinventing the Company (October 24, 2015) The article talks about the rise of startups and the way they are changing how business is done and what it means to be a company. They are referred to as disrupters or insurgent companies. It illustrates this fact further with examples of Uber, Airbnb and cloud computing companies who are now threats to cabbies, hoteliers and hardware makers. It also points out the unique characteristic of these insurgent companies, which is the fusion of ownership with responsibility. This is in contrast with the public company in which owners do not have direct control of the company. Moreover, the insurgents’ model is becoming more appealing unlike the public company model, which is becoming less appealing after many years of dominance and implementation. There are several reasons for this dissatisfaction with the public company, in spite of its good qualities. Firstly, the managers of these public companies usually put their own interests first by using several means available to them to boost their incomes. Secondly, the link between the companies and people is weak. Thirdly, it is now very difficult to be publically listed due to too many regulations. All these reasons impose costs on the public...

Words: 1780 - Pages: 8

Premium Essay

Lego

...product. | Response Feedback: | An agile approach is often used for projects in which the business team cannot clearly express the scope early in the product life cycle, but the team does want to provide a potentially shippable product earlier rather than later. An agile project team typically uses several iterations or deliveries of software instead of waiting until the end of the project to provide one product. | | | | | * Question 2 0 out of 0 points | | | Which of the following is a pre-initiation task? | | | | | Selected Answer: | b. Developing a business case for a project | Correct Answer: | b. Developing a business case for a project | Response Feedback: | It is good practice to lay the groundwork for a project before it officially starts. Senior managers often perform several tasks, sometimes called pre-initiation tasks which include the development of a business case for a project. | | | | | * Question 3 0 out of 0 points | | | A sprint review is a meeting in which the team demonstrates to the product owner what it has completed during the sprint. | | | | | Selected Answer: |  True | Correct Answer: |  True | Response Feedback: | A sprint review is a meeting in which the team demonstrates to the product owner what it has completed during the sprint. | | | | | * Question 4 0 out of 0 points | | | The output of the stakeholder management strategy results is a project charter. | | | | | Selected...

Words: 7880 - Pages: 32

Premium Essay

Effect of Future Trading on Spot Market Market Volatili

...Market Volatility By Using Garch Model On Cnx Bank Nifty And Found That There Is No Impact Of Future Trading On Spot Market Volatility. However, Impact Of New News Increased And Persistence Effect Of Old News Decreased In Post Future Period. 2. Impact Of Derivative Trading On Stock Market Volatility In India: A Study Of S&P CNX Nifty. Ruchika Gahlot, Saroj K. Datta, Sheeba Kapil The Purpose Of The Study Is To Examine The Impact Of Derivative Trading On Stock Market Volatility. The Sample Data Consist Of Closing Prices Of S&P Cnx Nifty As Well As Closing Prices Of Five Derivative Stocks And Five Non Derivative Stocks From April 1, 2002 To March 31, 2005. The Study Uses Garch Model To Capture Nature Of Volatility Over Time And Volatility Clustering Phenomenon Of Data. The Evidences Suggest That There Is No Significant Change In The Volatility Of S &P Cnx Nifty, But The Structure Of Volatility Has Changed To Some Extent. However, Results Show Mixed Effect In Case Of 10 Individual Stocks. These Results Can Assist...

Words: 797 - Pages: 4

Premium Essay

Busse Place

...Jonathan Nieh Law 434 Business Skills for Real Estate Lawyers Professor Habibi 3/2/2015 Case Study: South Park IV 1. Considering the recent upward trend of employment, the downward trend of vacancies in the area for industrial properties, the relatively good terms being offered for financing, and the recent upward trend of oil prices, I believe that this would be a good property for Laflin to acquire. 2. Laflin’s assumptions: vacancy rate of 5%, management fee of 4%, he needs only $15,000 for structural reserves, there will be no closing costs, and most importantly that either the current tenants will extend their leases for the same rates that they are currently being charged or that he will be able to re-rent the property for the current rate. His last assumption is incorrect, however, because the tenants indicated to him that they would only extend their leases if Laflin actually reduced their rents to $2 per square foot which would drop gross potential rents to $160,000. His vacancy rate seems very low as well considering the fact the average vacancy rate for Houston in 1989 was 13% and was much higher the previous few years. The management fee of 4% appears accurate as management fees typically range from 3-5%. However, his assumption that he would need only $15,000 for structural reserves seems rather low. Since current monthly rents are about $16,666, his structural reserves wouldn’t even be enough for one month’s rent. If it were me, I would have at...

Words: 1148 - Pages: 5

Premium Essay

Work Breakdown Structure

...WBS * Review Case 7d … 10/27/15 – 11/3/15 * Purchase Case 1d … 10/27/15 – 10/27/2015 * Read Case 7d … 10/27/2015 – 11/3/2015 (Predecessors: Purchase Case) * Take notes 7d … 10/27/2015 – 11/3/2015 (Predecessors: Read Case) * Discuss Case Issues 10d … 11/3/2015 – 11/13/2015 (Predecessors: Read Case) * Group Meeting 10d … 11/3/2015 – 11/13/2015 * Review Notes 10d … 11/3/2015 – 11/13/2015 (Predecessors: Take Notes) * Consider Action Plan 4d … 11/13/2015 – 11/17/2015 (Predecessors: Review Notes) * Determine Action Plan 10d … 11/17/2015 – 11/27/2015 * Consider Options 10d … 11/17/2015 – 11/27/2015 * Choose Best Plan 10d … 11/17/2015 – 11/27/2015 (Predecessors: Consider Options) * Discuss Implementation 4d… 11/27/2015 – 12/1/2015 (Predecessors: Choose Best Plan) * Execute the Plan 7d … 12/1/2015 – 12/7/2015 (Predecessors: Determine Action Plan) * Status Report 7d … 12/1/2015 – 12/7/2015 (Predecessors: Execute the Plan) * Monitor Progress 7d … 12/1/2015 – 12/7/2015 * Create Presentation and Visual aid 7d… 12/1/2015 -12/7/2015 * Fix Issues 7d … 12/1/2015 – 12/7/2015 (Predecessors: Monitor Progres) * Case Closing 3d … 12/7/2015 – 12/10/2015 (Predecessors: Execute the Plan) * Archive Documents 3d … 12/7/2015 – 12/10/2015 * Review group successes 3d … 12/7/2015 – 12/10/2015 * Review group failures 3d … 12/7/2015 – 12/10/2015 * Post-Project Review 1d… 12/11/2015...

Words: 276 - Pages: 2