...The Cost of Capital for Goff Computer, Inc. BUS650: Managerial Finance (MAH1209A) Dr Charles Smith March 18, 2012. The Cost of Capital for Goff Computer, Inc.: 1. Most publicly traded corporations are required to submit 10Q (quarterly) and 10K (annual) reports to the SEC detailing their financial operations over the previous quarter or year, respectively. These corporate fillings are available on the SEC Web site at www.sec.gov. Go to the SEC Web site, follow the “Search for Company Filings” link, the “Companies & Other Filers” link, enter “Dell Computer,” and search for SEC filings made by Dell. Find the most recent 10Q and 10K and download the forms. Look on the balance sheet to find the book value of debt and the book value of equity. If you look further down the report, you should find a section titled either “Long-term Debt” or “Long –term Debt and Interest Rate Risk Management” that will list a breakdown of Dell’s long-term debt. Answer: The book value of a company's equity is the same as stockholder's equity, which can be computed by subtracting the total value of liabilities from total assets. (Total Assets) = (Total) Liabilities + Stockholder's Equity (book value of equity). Stockholder's Equity (book value of equity) = Total Assets –Total Liabilities. The book value of the company’s liabilities and equity was found from the site http://www.sec.gov . I found Dell’s Form 10K, dated January 28, 2011, and snap shot is attached here with. Dell’s...
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...Perceptual Map Situation Analysis The Situation Analysis will help your company understand current market conditions and how the industry will evolve over the next eight years. The analysis can be done as a group or you can assign parts to individuals and then report back to the rest of the company. An online version of the Situation Analysis is available in the Getting Started area. (customers want better performing products) and for size is -0.7 (customers want smaller products). At the end of Round 1 the center of the Traditional segment will have a performance of 5.7 and a size of 14.3. 5.0 + 0.7 = 5.7 and 15.0 - 0.7 = 14.3 Table 2 displays the segment center locations at the end of each round. Print the Perceptual Map Form in the Industry Conditions Report then use Table 2 to find the location of each segment center for Rounds 1 through 8. Mark the approximate locations on the form (see the example in Figure 1). Remember, the locations in Table 2 are the centers of the segment circles, not product positions. Product positions are reported on page 4 of The Capstone Courier. The exercises require two reports: The Industry Conditions Report and The Capstone Courier, which are available from the website’s Reports link. The Courier is also available from the Capstone Spreadsheet’s Reports menu bar. The Courier available at the start of Round 1 displays the results for Round 0, when all companies are equal. If you access the report from the website, use the Round 0...
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...resources available for you to conduct research, download financial statements, and increase your general knowledge about current accounting issues. In Cases 2 and 3, you will solve unstructured problems like you will do in the real-world. 2. HOW DO I USE THE DATABASES? Download the Accounting Research Handbook that is now available on WebCampus. Included in this booklet are detailed instructions on how to use these databases. This handbook will give you enough information to get you started. (The following pages may be turned into me – you do not need to type up your responses in a separate document. If you are working with a partner, make sure BOTH of your names appear on the assignment). ACCOUNTING RESEARCH CASE 1 – PART A: SEC EDGAR DATABASE This first exercise involves EDGAR, the SEC’s database. You will use EDGAR to find out information about one company. Your company is based on the first letter of your last name. Using the table below, determine which company you are assigned. At the EDGAR home page (www.sec.gov), go to “Company Filings Search” under the heading “Filings.” On the new screen, search by company name (EDGAR is picky about the exact form of the company name, so you may want to click the “contains” button.)...
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...is encapsulated in the SEC filing statement “to organize the world’s information …. and make it universally accessible and useful”. Google explains that it believes that the most effective, and ultimately the most profitable, way to accomplish our mission is to put the needs of our users first. Offering a high-quality user experience has led to strong word-of-mouth promotion and strong traffic growth. Read further details on the culture and ethics of Google in their Ten Things Manifesto. Notable tenets of the Google philosophy are: Focus on the user and all else will follow. It's best to do one thing really, really well. You can make money without doing evil (the founders are well known and chastised for making this statement). Putting users first is reflected in three key commitments illustrated in the Google SEC filings: “1. We will do our best to provide the most relevant and useful search results possible, independent of financial incentives. Our search results will be objective and we will not accept payment for inclusion or ranking in them. We will do our best to provide the most relevant and useful advertising. Advertisements should not be an annoying interruption. If any element on a search result page is influenced by payment to us, we will make it clear to our users. We will never stop working to improve our user experience, our search technology and other important areas of information organization”. In the Google Annual SEC filings (the best source...
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...CH. 32 1. Know the term fiduciary in the context of agency, and the requirements of a fiduciary relationship. “the fi duciary relation [that] results from the manifestation of consent by one person to another that the other shall act in his [or her] behalf and subject to his [or her] control, and consent by the other so to act.” When used as a noun, it refers to a person having a duty created by his or her undertaking to act primarily for another’s benefi t in matters connected with the undertaking. When used as an adjective, as in the phrase fi duciary relationship, it means that the relationship involves trust and confi dence. 2. Know the criteria used by courts to determine a worker's status as employee or independent contractor. Why does this determination make a difference? How much control does the employer exercise over the details of the work? Is the worker engaged in an occupation or business distinct from that of the employer(If so, this points to independent-contractor,) Is the work usually done under the employer’s direction or by a specialist without supervisionDoes the employer supply the tools at the place of work? (For how long is the person employed? What is the method of payment—by time period or at the completion of the job? What degree of skill is required of the worker? ( 3. Know the 4 ways an agency relationship can be created. An agency relationship can arise in four ways: by agreement of the parties, by ratifi cation, by...
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...Course: LS311: Business Law I Instructor: Prof. Jeffery Hazard Unit 9 Assignment: Case Study Name: Bridget Okpobia Date: 12/19/2012 This essay will explain the following four questions. First, would registration with the SEC be required for Dakota Gasworks securities? Second, Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Third what theory or theories might a court use to hold Wallace liable for insider trading? Finally, under the Sarbanes-Oxley Act of 2002, who would be required to certify the accuracy of financial statements filed with the SEC? Would registration with the SEC be required for Dakota Gasworks securities? Why or why not? Reliant Energy has registered securities and faces a takeover attempt, or third party tender offer, then the SEC’s tender offer rules will apply to the transaction. The filings required by these rules provide information to the public about the person making the tender offer. The company, Dakota Gasworks, is experiencing the takeover so they must file with the SEC its responses to the tender offer. These rules set time limits for the tender offer and provide some protection to shareholders. Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Why or why not? Moreover, Emerson did violate rule 10b-5 of the Securities exchange act, in where it protects against insider trading; which is the purchase or sale by person with access to information not available...
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...4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted to make sure he was giving the best advice to his investment clients. Biovail Corporation was one of Canada's largest publicly traded pharmaceutical companies.1 For many years, Biovail had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines. The company commercialized its products, both directly (in Canada) and through strategic partners (internationally). Historically, its main therapeutic areas of focus had been central nervous system disorders, pain management, and cardiovascular disease. Biovail's core competency was its expertise in the development and large-scale manufacturing of pharmaceutical products. It leveraged this expertise by focusing on (1) enhanced formulations of existing drugs, (2) combination products that incorporated two or more different therapeutic classes of drugs, and (3) difficult-to-manufacture generic pharmaceuticals. In the United States, Biovail distributed a number of pharmaceutical products. These included Zovirax®...
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...Volume= 1,700 x 450 x 250 Volume = 191,250,000 cm3 c. To find out how many Wellbutrin XL tablets fit into a trailer 1.5x=191,250,000 X=127,500,000 d. How much revenue does Biovail get from a single pill ? 400% 35% $2.83 Biovail → Distributor → Wholesaler → Retailer 0.52 ← 2.10 / 400% ← 2.83/1.35%=2.10 127,500,000 x 0.52= $6,630,000 One truck can definately carry $10 million worth of Wellbutrin XL tablet product. 2. How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? Since Biovail’s stock is publically owned it needs to file its financial statements with the SEC. The SEC requires that it abide by GAAP. GAAP requires that revenue be recognized when it is earned or realized. Meaning that the company has done everything it is supposed to do; which would include shipment. So Biovail should recognize revenue once its products have reached the Distributor’s FOB. 3. How does the accident affect the stated revenues under different FOB contract structures? Explain your reasoning? If Biovail...
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...4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted to make sure he was giving the best advice to his investment clients. Biovail Corporation was one of Canada's largest publicly traded pharmaceutical companies.1 For many years, Biovail had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines. The company commercialized its products, both directly (in Canada) and through strategic partners (internationally). Historically, its main therapeutic areas of focus had been central nervous system disorders, pain management, and cardiovascular disease. Biovail's core competency was its expertise in the development and large-scale manufacturing of pharmaceutical products. It leveraged this expertise by focusing on (1) enhanced formulations of existing drugs, (2) combination products that incorporated two or more different therapeutic classes of drugs, and (3) difficult-to-manufacture generic pharmaceuticals. In the United States, Biovail distributed a number of pharmaceutical products. These included ...
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...Harvard Business School 9-192-040 Rev. June 22, 1993 Accounting for Frequent Fliers By 1991, almost all U.S. airline companies offered frequent flier programs to their passengers. Under these programs, passengers could become members of a program where the miles they flew would be recorded and accumulated to earn free future flights. The proliferation and growth of frequent flier programs created concerns about the proper way to account for and report them in financial reports. The airlines, the Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), and the Financial Accounting Standards Board (FASB) had each voiced concerns about measuring the expenses and reporting airlines’ obligations under frequent flier programs. The percentage of revenue passenger miles (the number of miles flown by revenue passengers including free-flight-award passengers; computed by multiplying the number of revenue passengers by the miles they have flown) flown under free travel awards was less than 5% for all U.S. airlines combined. However, on some routes for some airlines (U.S. mainland to Hawaii, for example) the percentage of revenue passenger miles represented by free flights exceeded 12%. And there was some evidence that the problem was growing. Background of Frequent Flier Programs American Airlines first introduced frequent flier programs in 1981. Initially the program was meant to be a promotional gimmick designed to attract more customers...
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...relatively new company. Financial misstatements have occurred with the company more than one time. Despite the effects this has had on their image in the business world, Groupon believes they have weathered the storm and created an invested customer base despite the hiccups they have faced along the way. In late September 2011, Groupon restated its 2010 revenue figures due to "an error in presentation" discovered by regulators (Groupon, 2011). The accounting method, referred to as “Adjusted Consolidated Segment Operating Income,” excludes marketing costs – a major portion of their expenses (Gustin, 2012). This is an example of an accounting principle that needed to be changed. Excluding the marketing costs artificially inflates the net income figures and paints Groupon in a much more positive light than is reality. “Groupon restated its revenue after the Securities and Exchange Commission challenged its methodology” (De la merced, 2012). In 2012, the coupon company was again charged with the duty of correcting their financial statements. This restatement reduced the revenue for the quarter by $14.3 million. According to Groupon, the revisions were made after discovering executives had failed to set aside enough money for customer refunds. It is believed that this stems from the large increase in higher priced deals on the site. The “Groupon Promise” refunds deals that leave...
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...KRISPY KRÈME DOUGNUT (KKD) CASE ANALYSIS The case of KKD shows a decreasing performance and profit that is not good for the company. Having this status, KKD is not leading toward its objective which is to transform KKD and improve its performances. The following exhibits will be discussed as follows and will be used to evaluate KKD’s performances that will help the company on how to make decision and strategize for improvement to increase its performance again. • KKD have three segments in its business. This includes company operations, franchise operations, and KK supply chain operations. • The figure shows that the segment that gives a large amount in both revenue and operating expenses is the company stores. In the other hand, the franchise is the main segment that gives a small amount in the company’s revenue and expense. • As a conclusion, this shows that the segment in which the company is operating, company stores is the dominant factor that produce large amount of revenue and expenses while the franchise has the lesser revenue and operating expenses. • The figure shows that from the three segments of KKD total company stores are decreasing from 133 down to 113 while for the franchise segment, numbers shows that this segment has increased from 269 franchise stores to 282 franchise stores. • Though the company has increased its franchise stores, as shown in exhibit 1, franchise stores offers minimal revenue thus, it doesn’t generate...
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...typically show the short-term and long-term liquidity and obligations of the company, as well as the leverage of the company and capital structure (Investopedia, 2013) . The income statement shows the components of profit and loss for a certain accounting period. It will typically also show subtotals for gross profit, operating income, and net income after taxes. Normally this is shown over a quarter or fiscal year (Investopedia, 2013). The statement of owners’ equity shows the activity with the company’s owners for a specified period of time. It will also show changes in assets and liabilities that do not impact income, such as unrealized gains and losses on securities (accounting-basics-for-students.com, 2013) The statement of cash flows shows the cash inflows and outflows of the company for a specified period of time. All companies are required to provide this report to the SEC quarterly (Investopedia, 2013). The first of two ways to prepare a statement of cash flows if the direct method, which shows the actual inflows and outflows of cash and investment income. The second, indirect method starts with net income and then reconciles net income to the cash inflows and outflows. Investors will often be most interested the income statement, because it shows how much money the company has made in a certain period. It also shows as its bottom line a calculation of earnings per share, which will be important to...
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...Case 08-5 Sell-I t Products I nc. Sell) business is the manufacturing, marketing, and distribution of consumer products. SPI sells all its products to grocery stores, drug stores, and mass merchandisers in the United States, Canada, Mexico, Asia, and Europe. SPI has a dedicated sales force with individuals assigned by geographic area. SPI is organized into three divisions that include the following products: 1. Beauty care cosmetics and shampoo. 2. Family care paper towels and diapers. 3. Drinks and snacks Blasto Energy Drink, Jazzy Juice, and Fruit & Granola Snacks each of these products contains no added sugar or preservatives in order to appeal to the diet- and health-conscious consumer. The production, distribution, are subject to the Federal Food, Drug, and Cosmetic Act (FD&C Act) in the United States and other federal, local, and state laws in the regions in which SPI conducts business. snack markets has remained fairly constant over the past few years and is expected to remain fairly constant in the foreseeable future, SPI expects to face increased competition in the energy drink marketplace because of the introduction of new energy drinks by two 2011. Managers responsible for each product line (product managers) report to the respective divisional executive vice presidents (EVPs), who are responsible for the day-to-day operations of the division. The EVPs report to the chief executive officer (CEO). The CEO makes decisions regarding the...
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...The Gekko was used influence tactic to Bud in the movie. Such as influence tactic about the film is push pressure tactic, upward appeal, exchange, pull the inspirational appeal, pull the personal appeal, pull ingratiation, and pull conclusion. The first influence tactic type was pushed the pressure Bud. For example, Bud had a lot of responsibility. Gekko pressured him to find out insider information that he needed to make specific decisions. Without those information, Gekko was not happy because he didn’t generate money from it. The second influence tactic types were upward appeal. Bud’s didn’t report anything to his boss. Also, Bud provides Gekko some inside information. For example, Bud pitches him stocks, but is unimpressed. Desperate, Bud provides him some inside information about Bluestar Airlines. The third influence tactic types were exchange. When began Bud told to him inside information, so Gekko wants Bud to spy on British CEO. Because he wants to make big money, if Bud don’t want to join him. Bud will be lose anything. The four pull influence tactic types was inspirational appeal. Just like movies Bud always looked up to Gekko before even meeting him. He aspired to be as successful as Gekko was in Wall Street. Because of this, Bud was easily influenced to go against his father’s beliefs became of he will success from knowing inside information. Bud would stop at nothing to impress the one who inspired him. The influence tactic types were pulled personal...
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