...announced his future plans. We understand that the event of his departure is controversial, and our investors have many questions regarding the corresponding SEC investigation. Rest assured that we here at XYZ are working our hardest to resolve this matter and restore the trust our investors and the public at large have placed in us. We have always maintained absolute integrity and utmost professionalism in our ethical and corporate behavior, and we stand by that assertion today. We here at XYZ appreciate your patience and continued trust, and we hope that our relationship continues well into the future. Thank you. To: Alex Morgan, Manager Date: 8/3/2015 Subject: SEC investigation Mr. Manager. At this time we are under investigation for alleged revenue misappropriation by the Securities and Exchange Commission (SEC). We are legally required to turn over all appropriate and relevant accounting evidence to the SEC investigators who will be arriving at our corporate offices later today. Our major responsibility is to make sure that all our accounting personnel are available for the investigators to interview. Our full cooperation on this matter is of utmost importance. We are also required to contact our external auditor, Deloitte LLP, and have our audit team get in contact with the SEC investigators. We need to make sure that our external auditors are fully debriefed on the situation. There have been rumors circulating in the media concerning...
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...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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...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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...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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...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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...1. Identify the ethical and legal issues of which Albert needs to be aware. There were many ethical issues within this case study. They included: * Albert and his wife took advantage of the “players” at the parties they attended. Seeping information from them while they were intoxicated. Soon both of them started to use this strategy to increase their profits and build upon their portfolios. * Albert and his wife used their uncle, a janitor to gain information from the law offices he cleaned to gain information on companies. With this information Albert and Mary had an inside track in the market. * Barry putting Albert or Mary’s trade before the client order, this is called spinning and is considered unethical. And you have Barry demanding insider information on several companies. * Mary used insider information from her father who worked for a major health care company to initiate a hostile takeover for benefits towards her portfolio and her selected friends and colleges. * Buy stock for boss and boss’s friends, and they’ll give him a bonus. The only legal issue I noticed was the emails that Mary received. 2. Discuss the advantages and disadvantages of each decision that Albert could make and has made. Many advantages were: * Due to the information that he received from the players and his uncle, Albert had inside information which helped him to become successful within the market. * Assisting Barry helped Albert get...
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...Memorandum To: Reader From: Date: July 11, 2014 Re: Violation of SEC Rule 10-b-5 of the Federal statue Summary Aquaman is president of a marine research company called "Underwater Leagues, Inc." On April 1, the research director of Underwater Leagues tells Aquaman that they've come up with "Oxygum," a means of breathing underwater by chewing a special kind of gum. Aquaman knows a great product when he hears it. He delays announcing the invention to the public so that he can buy all the stock he can get his hands on. He buys 50,000 shares of Underwater Leagues, at $10 a share. After the announcement, the share price skyrockets to $50 per share. a) If the shareholders bring a derivative action against Aquaman, what federal law should they accuse Aquaman of having violated (i.e., which federal statute)? b) Did Aquaman actually violate that statute? Explain. c) If Aquaman were found to have violated that statute, what remedy would the shareholders be able to seek (i.e., how much money would Aquaman be liable for. Issue First issue: (1) Pursuant to what federal statute would the shareholders claim Aquaman violated, and was he truly in violation of that statute? Rule Section 10(b) of the Securities Exchange Act, Rule 10b-5, 17 C.F.R. § 240.10b, prohibit any person, directly or indirectly, from committing fraud in connection with the sale or purchase of securities. 17 CFR § 240.10b-5 (2014) is entitled “Employment of Manipulative and Deceptive Practices...
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...AIG was at the center of the financial crisis and probably without AIG the subprime crisis would not be as severe as we seen. AIG was used as an instrument to fuel the housing boom. The AIG executives were running the financial product unit ethically but not efficiently. From the email communication one thing is apparent that the executive were very optimistic and they never priced in the risk effectively. The assumption that there will be no calls from counterparties to execute the credit default swaps related to subprime market were not unethical and may have been completely driven by the amount of revenue generated by the credit default swaps for the financial product division. The situation was unprecedented and except very few no one was able to predict the extent of the mortgage defaults in USA. There was lack of the risk assessment standards within AIG that is apparent from the communications. The person who was running the Financial Product division Cassano did very poor job for adapting to the changing market conditions. Again AIG could have limited the losses by pricing the credit default swaps correctly by integrating in it the changing market conditions. If we look at the conduct when it happened the situation did not seem like violation of ethical conduct. Back than when AIG was making big profits no one realized the post effect of the failure of these complex securities and AIG was one of the preferred investments due to performance of its financial product unit...
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...Martha Stewart Martha Stewart is an author, editor, and a homemaking advocate. Over the last two decades Stewart has held a prominent position in the American publishing industry. She was the author of several books, hundreds of articles on the domestic arts, editor of a national homekeeping magazine, host for two popular daytime television programs, and commercial spokeswoman for K-Mart (Wikipedia). At the height of her career, Stewart’s success came to an abrupt hault as she encountered many hardships that were responsible for her undesireable reputation and diminished trust in the business world. In December 2001 Stewart held 3,928 shares in ImClone, a New York-based biotech firm. On the morning of December 27, Aliza Waksal, the daughter of the firm's CEO, Sam Waksal, told Douglas Faneuil, the assistant to Stewart’s Merrill Lynch broker, Peter Bacanovic, to sell the ImClone shares in her account. Soon after, Sam Waksal's accountant tried to sell Sam's shares as well. Faneuil told Bacanovic about the Waksals' desire to sell, and Bacanovic quickly called Stewart, leaving a message that ImClone's stock was going to start trading downward. Stewart sold her ImClone shares on the afternoon of the 27th. The following day, December 28th, The Food and Drug Administration reported publicly that ImClone’s promising cancer drug Erbitux was not going to be approved. After the announcement, ImClone’s stock fell sharply and Martha Stewart saved around $45,000 by selling early (Henwood)...
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...controversial and sensitive disclosures for companies to communicate to investors. How your company handles these disclosures can make a strong statement to investors about your company’s transparency. The history of insider transaction disclosure on the Web illustrates companies’ sensitivity and reluctance to provide this information to investors. For years, regulators such as the U.S. Securities and Exchange Commission (SEC) tried to improve transparency around insider trading only to be blocked by heavy corporate lobbying. Eventually, it took massive corporate scandals and collapses in 2001 for the tide to turn against the business lobby. Finally, the SEC introduced rules forcing all U.S. companies to provide access to their insider transaction filings on their corporate websites starting in June 2003. The SEC also dramatically shortened the deadline for insiders to make their filings and made significant improvements to the EDGAR database to accommodate electronic insider reporting. Under the old rules executives had up to 41 days to file reports with the SEC. With the new rules, however, insiders have to file reports by the end of the second business day following the day on which the transaction is executed. Significant geographic differences in insider disclosure Regulators in several countries have followed the SEC’s lead, but with varying levels of effectiveness because most lack a central electronic repository like EDGAR. Consequently, insider transaction reporting is still...
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...Identify the ethical and legal issues of which Albert needs to be aware- The first ethical issue would be Albert and Marry taking advantage of the players of large organizations by getting them drunk to get information out of them. The second ethical issue is that when Marry lost her job Albert lost a lot of money in high risk markets with his father’s friend’s portfolios. These men were old and that was most likely their retirement fund. Another HUGE ethical and I believe legal issue would be that Albert used his uncle to gain access to law offices and gather information of certain clients and businesses. Mary also used information from her father to help another company take over the one he worked for. Using this insider information is an issue. Legal issues that they face are the emails that marry forwarded with obscene messages and images that caused her to lose her job. As well as Al dealing with blackmail from Barry to give him the IPO information, or else he’ll report him for spinning. Discuss the advantages and disadvantages of each decision that albert could make or has made- Although Alberts and Mary’s use of insider trading made them a substantial amount of money and enhanced their portfolios; it was still illegal and they could both lose their jobs. The same goes for the use of his uncles keys to gain access to certain law offices. A disadvantage from marry forwarding emails would be that she lost her job. The disadvantage of Albert giving into Barry’s blackmail...
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...Tax Memo Facts: Doug Jones timely submitted his 2009 tax return and elected married filing jointly status with his wife, Darlene. Doug and Darlene did not request an extension for their 2009 tax return. Doug and Darlene owed and paid the IRS $124,000 for their 2009 tax year. Two years later, Doug amended his return and claimed married filing separate status. By changing his filing status, Doug sought a refund for an overpayment for the tax year 2009 (he paid more tax in the original joint return than he owed on a separate return). Issue: Can Doug and Darlene change their filing status in 2009 from married filing jointly to married filing separately two years after their original return was filed to receive a refund for over payment Authorities: Reg. Sec. 1.6013-1(a)(1) J.A Haigh v Commr, 97 TCM 1794, Dec. 57,858(M), TC Memo. 2009-140 Conclusion: Doug and Darlene cannot amend their 2009 return to change their filing status. When a couple files a joint return they can amend the return until their original due date. Analysis: Reg. Sec. 1.6013-1(a)(1) states “For any taxable year with respect to which a joint return has been filed, separate returns shall not be made by the spouses after the time for filing the return of either has expired”. James Haigh went to court to argue that he should be allowed to amend his return from married filing jointly; to married...
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