...Amy Nguyen June 10, 2012 Court Case Brief Donald R and Joyce D. Schroerlucke, v. United States, 2011 WL 4440599 (Fed.Cl.), cert. Granted, No. 09-772T (9/21/2011) Facts Plaintiffs, Donald and Joyce Schroerlucke, filed a complaint in the United States Court of Federal Claims alleging they were due a tax refund for unreimbursed losses for the 1997, 1998, 1999, and 2002 tax years. Plaintiffs are husband and wife who filed joint federal income tax returns during all years relevant to this action. In each of those years, the plaintiffs were residents of the State of Georgia. Plaintiff Donald Schroerlucke is a former employee of WorldCom, Inc. In 1989, Mr. Schroerlucke was employed as Vice President of Operations at Long Distance Discounts Services, Inc., the predecessor corporation to WorldCom. Pursuant to stock option agreements with Long Distance Discount Services, Inc., and then with WorldCom, Mr. Schroerlucke accumulated employee stock option grants between July 1991 and January 1998. Mr. Schroerlucke’s employment with WorldCom ended on January 4, 1999, at which time his stock options became fully and immediately vested according to the terms of the stock option agreements and an April 7, 1998 memorandum titled, “WorldCom Employee Stock Option Program,” once his employment ended, Mr. Schroerlucke was required to immediately exercise all of his employee stock options. The April 7, 1998 memorandum stated in part: “Please note that under WorldCom Inc. 1997 Stock...
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...were worth $2.50 at the time of the purchase. Upon the findings by the SEC, Kodiak Energy offered to file a misstatement in order to acknowledge the misrepresentation of the worth of the shares. Kodiak Energy had filed their financials incorrectly 3 separate times each time with the incorrect values reported on their 10-K and 10-Q, and in response the SEC was not satisfied to allow a simple misstatement to be done to correct these errors. With the SEC continuing the investigation into the financial records of Kodiak Energy because they felt that they offered to file the restatement too quickly and were trying to hide that this was more than just an error on their part but was in fact done intentionally in order to increase their capital. Threw the SEC’s investigation it was found that Kodiak Energy had reported 2,251,670 of their shares as flow through shares. In Canada flow through shares are, “Tax advantage investment where in the natural resource sector it allows tax payers in the highest marginal tax rate can reduce their taxable income and receive refundable or...
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...CAN ONTARIO IMPROVE ITS INSIDER TRADING REGULATION AND ENFORCEMENT BY ADOPTING POLICIES USED IN THE USA? Prepared by Muhammad Bilal Amjad 2B Accounting and Financial Management ID 20429857 AFM 231: Business Law School of Accounting and Finance University of Waterloo Friday, August 9, 2013 Abstract The purpose of this paper is to present potential suggestions on how Canada (more specifically, Ontario) can improve its insider trading regulation and enforcement. In order to do so, this paper will compare the insider trading regulation and enforcement in Canada and the USA. It will examine whether or not Ontario should take from the methods used in the USA in order to strengthen its regulation and enforcement of insider trading. Ontario was chosen in particular because securities regulation in Canada falls under the jurisdiction of provincial governments, with Ontario being home to Canada’s largest securities market. Introduction Insider trading is a subject of great significance in security markets all across the globe. Not only does it violate securities law in Canada and many other countries, it is also seen as highly unethical. It applies not only to equity, but also to bond and option markets. Insider trading is deemed illegal primarily because it is contrary to the public trusts upon which security markets operates; it undermines investor confidence, and as a result, discourages investment (Dessaulles, 2013, p. 9). In addition, it is viewed as being immoral because...
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...Avanish Dhakal 5-2 The future value rise the present value falls. 5-3 It’s deceptive, but very common. The deception is particularly imitating given that such lotteries are usually government sponsored 5-5 If the total money is fixed, you want as much as possible as soon as possible. The team wants just the opposite. 9-FV = 5000 * [(1+0.108)^20 -1]/0.108 = 313736 FV = 5000 * [(1+0.108)^40 -1]/0.108 = 2753565.95 or 2753566 10 Pv=c/r 25000/0.06=416666.667 6-6 Bond issuers look at outstanding bonds of similar maturity and risk. The yields on such bonds are used to establish the coupon rate necessary for a particular issue to initially sell for par value. Bond issuers also simply ask potential purchasers what coupon rate would be necessary to attract them. The coupon rate is fixed and simply determines what the bond's coupon payments will be. The required return is what investors actually demand on the issue, and it will fluctuate through time. The coupon rate and required return are equal only if the bond sells for exactly at par. 3- n=9 ,coupon payment =0.6*1000 =$60 =>If the YTM on these bonds is 8 percent, i.e r =8% ,FV =$1000 in calculator, if we put this values, we get price =$875.06 13- COUPON RATE=6.125 BID PRICE=123 13/32 =123.40 ASK PRICE=123 15/32 =123.47 Therefore current asked price=123.47 The change from previous asked price IS -58/32=-1.8125 123.468+1.8125=125.28 7-1 The value of a share of stock can be determined...
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...STRENGTHS Global recognition: General Electric has ventured into the world market thus gaining global recognition for its unique goods and services. In the year 2009, Forbes magazine ranked GE as the world's largest company. Hurbert (2007) notes that General Electric's brand is the world's most recognized brand. This kind of recognition has given it a competitive edge over other companies due to its ability to attract more customers. Global strength and competitiveness:The Company’s products have been recognized for their quality and the company is known for meeting customer-specific needs (General Electric, 2009). As a result, it has attracted numerous clients including corporations and government agencies and its competitive position is quite favorable. GE is the biggest lender in many of the countries where it invests with exception of the United States (Hurbert, 2007). Its power generation equipment generates a quarter of the world's electricity everyday. Excellent Management: GE utilizes a unique management style, whereby business operations are divided into business units. Each business unit plays a distinct role within the company and has its own independent management. Examples include GE Commercial Finance, GE Equipment Services, GE Energy, GE Insurance, and GE Consumer Finance among others. This kind of management style increases productivity due to the high level of accountability and efficiency that business unit managers are expected to maintain. Diversified...
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...operations and asset management Asset Turnover: Sales Average Total assets Inventory Turnover: COGS Average Inventory Days in inventory: 365 Inventory turnover Accounts Receivable turnover: Credit sales Average accounts receivable Days in Receivables: 365 A/R Turnover Accounts payable turnover: Credit purchases Average Accounts payable Days in payables: 365 A/P turnover Operating cycle: Days in inventory + Days in A/R – Days in A/P Liquidity ratios: Indicate ability of the firm to meet short-term obligations Working Capital: Current Assets – Current Liabilities Current Ratio: Current Assets Current Liabilities Quick Ratio: Cash + Receivables + S/T Investments Current Liabilities Defensive Interval Ratio: Cash + S/T investments + A/R (COGS + SG&A + R&D)/365 This ratio provides a measure of a firm’s ability to operate using its available cash and near cash assets. This will give you the number of days the firm can operate with available quick assets. Solvency ratios: Indicate the ability of the firm to meet long-term obligations Debt to assets ratio: Total Liabilities Total Assets L/T Debt to assets ratio: L/T Debt Total assets Debt to equity: Total Liabilities Total equity You also can use S/T debt + L/T debt in the numerator Times Interest Earned: EBIT Interest Expense Profitability ratios: Indicate...
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...1/32 From Nobel Prize to Project Management: Getting Risks Right by Bent Flyvbjerg, Ph.D. & Dr. Techn. Aalborg University, Denmark Printed in Project Management Journal, vol. 37, no. 3, August 2006, pp. 5-15 See in-print version here: http://flyvbjerg.plan.aau.dk/Publications2006/Nobel-PMJ2006.pdf 2/32 Abstract A major source of risk in project management is inaccurate forecasts of project costs, demand, and other impacts. The paper presents a promising new approach to mitigating such risk, based on theories of decision making under uncertainty which won the 2002 Nobel prize in economics. First, the paper documents inaccuracy and risk in project management. Second, it explains inaccuracy in terms of optimism bias and strategic misrepresentation. Third, the theoretical basis is presented for a promising new method called "reference class forecasting," which achieves accuracy by basing forecasts on actual performance in a reference class of comparable projects and thereby bypassing both optimism bias and strategic misrepresentation. Fourth, the paper presents the first instance of practical reference class forecasting, which concerns cost forecasts for large transportation infrastructure projects. Finally, potentials for and barriers to reference class forecasting are assessed. The American Planning Association Endorses Reference Class Forecasting In April 2005, based on a study of inaccuracy in demand forecasts for public works projects by Flyvbjerg, Holm, and...
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...2 Analysis of return of Bharti Airtel: 6 4. Measurement of central tendency: 6 4.1 Mode: 7 4.2 Median: 7 4.3 Mean 7 5. Conclusion: 8 REFERENCES 10 1.0. Introduction: Generally shares are issued in the primary market and new issued shares are traded in the secondary market. BSE and NSE are two renowned stock exchanges which plays an important role in Indian stock market. Most of the big companies in India are listed in these stock exchanges. The companies are enlisted with these stock exchanges as per rules and regulation specified by particular stock exchanges (Greer and Kolbe, 2008). In Indian context the company distributes the shares in lieu of capital with the help of these stock exchanges. It is an essential pillar of private sector companies. Mallin and Ow–Yong (2009) commented that capital formation is the main function of stock exchanges. Beside the main function stock exchanges in India do lots of work. It provides a place where all the securities are traded. Security market provides a linkage between saving sector and corporate sector. Stock market generally provides the all the information about price and trading of the securities altogether. The author selects three big companies i.e. Reliance industries ltd, ONGC, Bharti Airtel Ltd, to compare as required in the assignment. In this report the author collects financial and statistical data of these companies and analyse them to make reasonable comments on the above companies (CACEIS, 2010). 2.0...
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...Keynesian Economics, Helping the US Economy Keynesian philosophy states that in order to manage economic downturns, government intervention in the economy is imperative. It was Keynesian Economic Philosophy that kept America out of another depression during the Great Recession due to the fiscal and monetary stimulus (Seidman 32-53, 22p). By examining the government’s need for spending money on welfare, cutting taxes, regulating and monitoring the financial markets, and government spending on military, America sees how a Keynesian approach is a necessity. The American Government needs to continue using the Keynesian model in order to enhance the performance of the economy. Keynesian Philosophy provides government assisted programs to those who qualify. One form of assistance is Welfare. Welfare provides benefits and economic assistance to low or no income Americans. With the dismal economy, there are now over 100 million people on welfare according to the Census Bureau; and this doesn’t include those receiving Social Security or Medicare (GOPUSAStaff). Food Stamps are one of many divisions of welfare. The food stamps program, also known as the Supplementary Nutrition Assistance Program (SNAP), helps low or no income citizens buy food. There are over 46 million people on SNAP as of June, 2012 (Luhby). That is more than one in seven Americans and more than 25% of eligible Americans do not participate in the food stamps program. There are millions of low-income seniors struggling...
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...CARIBBEAN E XAM I NAT I O N S COUNCIL 6010 CARIBBEAN SECONDARY EDUCATION CERTIFICATE® EXAMINATION *J1601219020* 12 JANUARY 2016 (a.m.) J1601219020 FILL IN ALL THE INFORMATION REQUESTED CLEARLY IN CAPITAL LETTERS. TEST CODE 0 1 2 1 9 0 2 0 SUBJECT ENGLISH B – Paper 02 PROFICIENCY GENERAL REGISTRATION NUMBER SCHOOL/CENTRE NUMBER NAME OF SCHOOL/CENTRE CANDIDATE’S FULL NAME (FIRST, MIDDLE, LAST) DATE OF BIRTH D D M M Y Y Y SIGNATURE __________________________________________________ *0121902001* 0121902001 Y 0121902002 E PA G TH IS W RI TE ON T DO NO *0121902002* TEST CODE FORM TP 2016010 CARIBBEAN E XAM I NAT I O N S 01219020 JANUARY 2016 COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE® EXAMINATION ENGLISH B Paper 02 – General Proficiency 2 hours 10 minutes READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1. This paper consists of TWELVE questions, arranged in THREE sections as follows: Section A: DRAMA Questions 1 and 2: Shakespeare Questions 3 and 4: Modern Drama Section B: POETRY Questions 5 and 6 Section C: PROSE FICTION Questions 7 to 10: Novel Questions 11 and 12: Short Story 2. Answer THREE questions only, ONE question from EACH section. 3. You MUST write in essay format and develop ALL your responses fully. 4. Write your answers...
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...acknowledging the source. This research focuses on the acts of plagiarism which are considered as fraud, hence highly discouraged. With easy availability of information, today, plagiarism has become a bigger problem. There is a remarkable tendency of people copying and pasting material from different sources without acknowledging the source of information (Arthur, 2007). The reasons that make people to plagiarise are ignorance towards the rules of grammar, desperation due to too many assignments and jobs. Other inherent reasons are careless note-taking, procrastinating owing to poor planning, writing anxiety on account of lack of confidence in one’s writing abilities. However, others attribute it to outright laziness to working, deception by other people and lack of intellectual investment when the workload is demanding (Arthur, 2007). Plagiarism covers a vast array of instances ranging from politics, research, journalism and academia. Since it is an illegal act, the perpetrators knowing of the penalties that they are going to be posed to, usually give many excuses so as to avoid facing the dire consequences. These people usually claim not to have known or may have unwittingly duplicated someone’s work unintentionally (Arthur, 2007). They just cannot accept that it was their entire fault. Misunderstanding is one of the excuses given. This is common in an academic setting. In addition to the above reasons,...
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...Accounting: Focus on the Red Flags Written by Richard M. Rockwood May 2002 © Copyright 2002, FocusInvestor.com. All rights reserved. This material is for personal use only. It is a violation of federal copyright law to reproduce part or all of this publication without written permission from FocusInvestor.com. The goal of this short article is to show the investor examples of how companies can manipulate their reported earnings. This article also provides information on what warnings signs to look for. The article has taken information from a variety of sources in order to provide the reader with a quick overview of accounting red flags. Focused investors practicing portfolio concentration should be particularly aware of these issues. I have written the article for the individual investor who has an intermediate level of accounting knowledge. That being said I believe the beginning investor with only a moderate understanding of accounting will benefit from a close reading of this article if for no other reason that to understand what elements of accounting they should study more closely. While this article focuses on accounting issues all investors should investigate the management team of a company before investing since the management team has such a strong influence of any companies operations and how they report their results. To this end I would strongly urge all investors to first study the way management treats their shareholders. Do they provide...
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...Corruption p. 7 11. Lavish Lifestyle and Philanthropy p. 8 12. Impact on Stakeholders p. 9 13. Charges p. 10 14. Outcome and Fairness of Punishment p. 10 15. Conclusion p. 12 16. References p. 13 HealthSouth and the Scrushy Way Richard Scrushy overcame challenging teenage years, dropping out of high school and later obtaining his GED to become one of the most successful executives in the United States. Scrushy did so by subsequently getting his respiratory therapist certification and opening his own rehabilitation center, an all-in-one medical facility that led many to copy his idea. Scrushy founded HealthSouth in 1996 using $1 million in seed capital and turned it into a hugely successful medical services empire worth over $4 billion at its prime (Haddad, Weintraub, & Grow, 2003). HealthSouth had become the largest provider of outpatient surgery, rehabilitation, and diagnostic and imaging services as well as the third largest publicly held company in Alabama (Chaubey, 2006). Scrushy is best known, however, for his deplorable lack of ethics and the massive fraud he perpetrated during his tenure with HealthSouth. Government Subsidies Scrushy mistakenly assumed that generous...
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...THE JOURNAL OF FINANCE • VOL. LVI, NO. 4 • AUGUST 2001 Investor Psychology and Asset Pricing DAVID HIRSHLEIFER* ABSTRACT The basic paradigm of asset pricing is in vibrant f lux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both risk and misvaluation. This survey sketches a framework for understanding decision biases, evaluates the a priori arguments and the capital market evidence bearing on the importance of investor psychology for security prices, and reviews recent models. The best plan is . . . to profit by the folly of others. — Pliny the Elder, from John Bartlett, comp. Familiar Quotations, 9th ed. 1901. IN THE MUDDLED DAYS BEFORE THE RISE of modern finance, some otherwisereputable economists, such as Adam Smith, Irving Fisher, John Maynard Keynes, and Harry Markowitz, thought that individual psychology affects prices.1 What if the creators of asset-pricing theory had followed this thread? Picture a school of sociologists at the University of Chicago proposing the Deficient Markets Hypothesis: that prices inaccurately ref lect all available information. A brilliant Stanford psychologist, call him Bill Blunte, invents the Deranged Anticipation and Perception Model ~or DAPM!, in which proxies for market misvaluation are used to predict security returns. Imagine the euphoria when researchers discovered that these mispricing proxies...
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...articulations (Kimmel, 2013). The third step is recognizing the multifaceted nature and all-inclusiveness of perceiving the range of incomes in monetary reporting. FASB and IASB have likewise worked together in the advancement of another single income acknowledgment standard. Both FASB and IASB are of the conclusion that straightforwardness and appreciation of money related articulations can increment if organizations record and report every budgetary instrument at reasonable quality. A percentage of the feedback on both FASB and IASB is that they speak to a split model. The commentators assert that some monetary instruments state at reasonable quality. A few advances and receivables (reported resources) with compensated expense can make a deception two organizations. The idea of one business is searching for two outcomes from comparative securities representing those securities in diverse techniques (Kimmel, 2013)....
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