...By walking through a set of financial data for XYZ, this assignment will help you better understand how theoretical stock prices are calculated and how prices may react to market forces such as risk and interest rates. You will use both the CAPM (capital asset pricing model) and the constant growth model (CGM) to arrive at XYZ's stock price. To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. Assignment Guidelines: •Find an estimate of the risk-free rate of interest (krf). To obtain this value, go to Bloomberg.com: Market Data and use the "U.S. 10-year Treasury" bond rate (middle column) as the risk-free rate. In addition, you also need a value for the market risk premium. Use an assumed market risk premium of 7.5%. 2.625% •Download the XYZ Stock Information by clicking the link. •Using the information from the XYZ Stock Information document, record the following values: XYZ's beta (ß)? XYZ’s current annual dividend? XYZ’s 3-year dividend growth rate (g)? Industry P/E ?XYZ's EPS 1. XYZ's beta (ß) = 1.64 2. XYZ's current annual dividend = $0.8 3. XYZ's 3-year dividend growth rate (g) = 8.2% 4. Industry P/E = 23.2 5. XYZ's EPS. = $4.87 •With the information you recorded, use the CAPM to calculate XYZ's required rate of return (ks). Under CAPM: Ks = KRF + ((market Risk Premium) Ks =2.625 + 1.64(7.5) = 14.93% ...
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...Case Study#2 The XYZ Company Katharine Rally is the vice president of operations for the XYZ Company. She oversees operations at a plant that manufactures components for hydraulic systems. Katharine is concerned about the plant’s present production capability. She has reduced the decision situation to three alternatives. The first alternative, which is fully automation, would result in significant changes in present operations. The second alternative, which is semi-automation, involves fewer changes in present operations. The third alternative is to make no changes (do nothing). As a manager of the plant management team, you have been assigned the task of analyzing the alternatives and recommending a course of action. The capital investment and annual revenue for the first two alternatives are shown in the following table: |Alternative |Capital Investment |Future Sales |Annual Revenue | |A |$300,000 |Good |$250,000 | | | |Average |$100,000 | | | |Poor |$50,000 | |B |$85,000 |Good |$100,000 | | | ...
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...into account the strengths and weaknesses of the company. This means that financial ratios are a number of mathematical expressions that are calculated on balance various situations magnitudes a company, the income statement, action or market traded at a given time, so that the information we provide is something like a snapshot. Financial ratios are classified as liquidity ratios, debt and solvency ratios, profitability ratios, management or operational ratios. Liquidity Analysis: Through of these ratios such a level of financial solvency shown short term the company is said to have a capacity to deal with these short-term obligations that trigger the production methods. In other words we can say that is the ability to have an organization to raise money to get liquid cash to fund its normal operation. Management Analysis or activity: Measure the effectiveness and efficiency of management, in the management of working capital, expressed the effects of decisions and policies followed by the company regarding the use of their funds. They show how the company handled regarding collections, cash sales, inventory and total sales. Solvency analysis, debt and leverage: These ratios in this group can be seen entirely by resources obtained from third in the business. Also it shows the support that the company has in relation to its total liabilities. Profitability Analysis: Measure the utility generating capacity by the company. Their purpose is to assess the net result from certain...
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...Summary: XYZ is concerned about the plant’s present production capability. The Vice President, Katherine Rally is contemplating three alternatives: 1) Full automation; 2) Semi-automatic; and 3) Doing nothing. She identified Capital investment, Annual Revenues, Useful life, and Salvage Value of the plants as random variables and noted down their respective probability distributions. The case requires developing a simulation of 50 sample points of Average Worth (AW) at the MARR of 20% and selects the most suitable alternative. Question-a: I used Excel Random Number Generation (RNG) function to generate 50 sample values for each random variables: Capital investment, Annual Revenues, Useful life, and Salvage Value according to their respective probability distribution, mean and standard deviation values. The results are reported in Appendix-A. The value of AW was then calculated based on PW values for each 50 set of data points for both alternatives. The mean and standard deviation values for both alternatives as follows: Alternative-A: Full Automation MEAN: $54,736 STANDARD DEVIATION: $27,420 Alternative-B: Semi-Automation MEAN: $56,491 STANDARD DEVIATION: $7,248 Based on the results, both alternatives will produce in near similar amount of AW. Under alternative-A, the mean value of AW is $54,736 while under alternative B, the mean value of AW is $56,491. However, the Standard Deviation is much lower in case of alternative-B i.e. to employ semi-automation. Because...
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...NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Learner: THIS FORM MUST BE COMPLETELY FILLED IN Please Follow These Procedures: If requested by your mentor, use an assignment cover sheet as the first page of the word processor file. The assignment header should include the Learner’s last name, first initial, course code, dash, and assignment number (DoeJXXX0000-1) justified to the left and the page number justified to the right. Keep a Photocopy or Electronic Copy of Your Assignments: You may need to re-submit assignments if your mentor has indicated that you may or must do so. Academic Integrity: All work submitted in each course must be the Learner’s own. This includes all assignments, exams, term papers, and other projects required by the faculty mentor. The known submission of another person’s work represented as that of the Learner’s without properly citing the source of the work will be considered plagiarism and will result in an unsatisfactory grade for the work submitted or for the entire course, and may result in academic dismissal. | | | |SKS7000-8 |Gillian Silver | | | ...
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...XYZ Company, INC. XYZ Company will be able to increase their gross revenue by expanding there offerings into underserved markets. By expanding they will be able to increase their revenue with the lest capital needed. However, there are some upfront cost associated with the expansion. We presume the overall cost of the expansion will require them to take out loans from their current equity. By expanding they will have an increase in cost by approximately 9.3%. With the increase in marketing and the costs of sales going up, do primarily to a new market and the branding associated with the new market. However they can expect an initial return on the investment of 11% within the first year and increasing by approximately 4% each year for the next 4 years. With a plateau expected in the 6th year for the newly expanded market. The company will need to take out an initial loan for the expansion. With a Net Profit of $144,335 they should not exceed $72,000 and expect a full return of their initial loan within 5 years. By expanding they should be able to avoid future loan needs by rolling the increased revenue into the next expansion. This will prevent becoming overextended and allow the company to continue to grow and maintain profitability. Buy expanding slowly the company can avert funds towards the expansion process and avoid financing. This will help to ensure continued success even during difficult economic times. As well, by keeping the companies debts low...
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...XYZ Research Company XYZ Research Company XYZ Research Company was incorporated in 2010 and centers on developing new technology for interplanetary exploration. The company has many patents and has historically expensed all the costs associated with obtaining their patents. The owners of XYZ Research Company are unsure whether patent costs that have been expensed can be capitalized and whether or not periodic impairment testing is required. I have been hired as a consultant to research the proper accounting standards currently in place for the methods or recording patents, the useful life of patents amortization of patents, capitalization limits of patents and the impairment testing required. My immediate assumptions would be that no costs have been capitalized and no impairment testing has been done since I have been hired to research the proper accounting standards. A patent is the exclusive right granted by a government to the inventor to manufacture, use, or sell an invention for a certain number of years. A patent is considered an intangible asset, because a patent does not have physical substance and provides no long-term value to the owning entity. There are three different types of patents, a utility patent, a design patent and a plant patent. A U.S. patent lasts for 20 years. Patent expenses are any costs associated with obtaining the patent, which include application, registration, documentation and other legal fees as necessary. XYZ Research Company...
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...Both these types of business firms have no separate legal existence apart from the persons who owns the business and properties cannot be held under the name of the business firms. All contracts are signed in the name of the individuals who own the business and their liability is unlimited. Forms of business formation in Malaysia | Company | Partnership | Sole-proprietorship | 1. | StructureA company is a person separate from its members. | Two or more persons carrying on business with a view of profit. | Individual in business on his own. | 2. | RegistrationNeed to be registered with the Registrar of Companies as a company. | Need to register their business under the Registration of Businesses Act, 1956. | Needs to register his business under the Registration of Businesses Act, 1956. | 3. | TransferabilityShares in a company are generally transferable although the right of transfer may be restricted. | Generally, a partner cannot transfer his status as partner to someone else without the consent of all the other partners. | A sole-proprietor may transfer his business to someone else. | 4. | ManagementMembers of a company as such are neither its managers (directors) nor is agents. | Partners are agents of the firm for carrying on its business in the ordinary course of business and are generally entitled to manage the firm. | The sole- proprietor owns and manages the firm himself and can employ employees to manage the firm for him. | 5. | Number of...
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...[pic] NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Student: Andrew Akinmoladun THIS FORM MUST BE COMPLETELY FILLED IN Follow these procedures: If requested by your instructor, please include an assignment cover sheet. This will become the first page of your assignment. In addition, your assignment header should include your last name, first initial, course code, dash, and assignment number. This should be left justified, with the page number right justified. For example: Save a copy of your assignments: You may need to re-submit an assignment at your instructor’s request. Make sure you save your files in accessible location. Academic integrity: All work submitted in each course must be your own original work. This includes all assignments, exams, term papers, and other projects required by your instructor. Knowingly submitting another person’s work as your own, without properly citing the source of the work, is considered plagiarism. This will result in an unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. | | | |Course ID SKS7000-8-3 |Instructor: Instructor: Milton Kabia , PhD | | | ...
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...the organization with care and proper management; they are also maintaining a risk assessment report. Review of Security Controls They have documented the security plan for the organization and they keep on reviewing and improving the same. Lifecycle It deals with the configuration management system implemented in the company. On every Wednesday, the management plans a meeting for a change request. All the things regarding the change is discussed in the meeting, like why the change is required, what would be its benefits & is their any risk to execute them in the system, etc. The company has a separate development and pre-production environments set-up, so whenever any change is required in the system, the changes are done on Development environment, if it is successful, the same is replicated in pre-production environment. After the successful implementation in dev. and pre-prod environments the changes are done in the production system. But before implementing any changes in production environment, you need an approval from the same from the CMS Team, and this approval is taken in the change management meeting. Certification and Accreditation Company is following all the certification and accreditation and they have documented the same. System Security Plan ABC Inc. has deployed https protocol; they are following other security measures as well and have documented the same too. Operational Controls 6. Personnel Security The users are not trained on the security...
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...Introduction An organization’s behavior determines by culture, structure, leadership, internal and external factors of organization; therefore, the manager must be able to recognize and react to the factors in order to achieve the organization’s goals. Human behavior in the organization is complex and it differs from every individual to another. Organizations face challenges to match the task, manager and subordinate in an efficient and effective way. Manager or Management in the organization should analyze the tasks, required skills and assemble a team that match each other skills; therefore the management can create an enrich and conflict free team which need to perform the job well. This report is based on XYZ Company’s challenges such as declining of Sales, low level of employee morale and low level of motivation. Also other behavioral issues observations such as conflicts in the work place, absenteeism, lack of trust and integrity between the superior and the subordinates, occasional sabotage, high temper people with severe stress. This report is primarily based on the study of the MARS model, type of individual behavior in organizations and ethics and values in the workplace. Also this report contains the solution for the above problem. Literature Review a. MARS Model MARS model is a model explain individual behavior as a result of internal and external factors or influences acting together. The name of the model is an acronym for individual...
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...Associate Level Material Appendix G Disaster Plan Assignment Read the descriptions for Company A and Company B and select one. Create a disaster plan for your selected company that includes how you would recommend the company back up and protect its network data. Your plan must be 1,250 to 1,500 words in length, and your recommendations must be based on the RAID system of data protection. Your plan must also address how the company should protect against natural disasters that might occur in its geographic location. Include any charts, graphs, or visual components that are helpful in illustrating your plan. Company A The IST Department of XYZ Computers is located on the first floor. Payroll and all human resources records are processed daily and bi-weekly for 10,000 employees. After payroll is run, data is backed up using tapes. No firewall is in place, and e-mail is on the same server as payroll. XYZ Computers is located in the southern part of the United States in an area that receives heavy rain. During the weekend, a major water pipe broke and flooded the first floor. The water caused extensive damage to the servers, which were also on the first floor. Create a disaster plan to prevent this sort of problem from happening in the future. Company B 123 Textiles Corporation is located in a high-crime area that also experiences occasional earthquakes. A new network was set up with the server by a window. All systems are backed up once a month on an exterior...
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...reputation in a company that has prompted me to forward my resume. Over a span of 20 years, I have provided professional services in a myriad of industry segments, encompassing the globe. My most-recent work history includes a 10-year stint with XYZ Corporation. XYZ is one of our nation’s largest environmentally conscious, independent power producers. My professional tenure has provided me with years of comprehensive business experience working and negotiating with senior-level management and key personnel at many of the Fortune 500 companies. Including companies like; Boeing, Kimberly-Clark, Johnson & Johnson, and Calpine, to mention only a few. While many of these endeavors have been challenging, they have also been rewarding. They have provided me with continual growth and success, both personally and professionally. However, most of these professional endeavors have required extensive travel and ultimately time away from home. Therefore, I have made the decision to pursue a career path that is rewarding, professionally and personally. While this decision has not been easy, it has afforded me the opportunity to further my education and to pursue a position at a local company. You will certainly not regret providing me with a position within your organization. I look forward to proving myself as a valuable asset to your management team. I would appreciate an opportunity to meet with you and discuss how my professional experience will best meet your company and management...
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...IIMA Summer Placements Process: CV Rule Book (2013-14) PGP Placement Committee July 2013 Indian Institute of Management Ahmedabad Contents What is this document? .......................................................................................................... 3 Structure of the CV ................................................................................................................. 4 1. 2. 3. 4. 5. 6. 7. 8. 9. Header ......................................................................................................................... 4 Body – Information Content ......................................................................................... 4 Body – Work Experience, Internships & Projects ......................................................... 4 Body – Education ......................................................................................................... 5 Body – Academic & Scholastic Achievements ............................................................. 6 Body – Positions of Responsibility ............................................................................... 7 Body – Extracurricular Achievements........................................................................... 8 Body – Hobbies & Interests.......................................................................................... 8 Footer .................................................................................................................
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...of college. She is anticipating a large expense on books but is hoping to save some money on purchasing school supplies by looking at discount retailers instead of the college bookstore. Misty has found two companies, Company A and Company B, with some great back to school deals on school supplies. Company A is offering ten percent off each dollar spent on school supplies with no minimum purchase required. While that sounds like a great deal, Company B is offering twenty-five percent off all school supplies purchased after spending an initial one hundred dollars. While both options offer a great discount, Misty wants to determine which would save her the most money. Before moving any further, Misty must determine what her total bill for school supplies might be by identifying the items she will need to purchase and then totaling the final cost. Once that has been ascertained, she will need to calculate the possible savings on each plan to determine which one will be most cost effective. Task B In order to calculate the savings, Misty is going to let (y) represent to total cost of her school supplies after all discounts have been applied. She will use (d) to represent the discount percent she is going to receive from the company. As prices from each company are comparable, she has calculated the total cost of her school supplies to be $230.00 which will be represented as the variable (x). The following is an...
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