Question #1: Raising Capital and Capital Budgeting Hello Class! For this discussion you can choose w

Question #1: Raising Capital and Capital Budgeting Hello Class! For this discussion you can choose which question you respond to. Feel free to respond to both, however only one is required. Please respond to ONE of the following questions: Question A Businesses are always looking for ways to raise capital for further expansion or to support themselves through changing economic times. What are the two primary ways a company can raise common equity and why is there a cost associated with reinvestment earnings? Question B What is capital budgeting and what is the difference between independent and mutually exclusive projects? Question #2: Corporate Tax Rate and Business Practices Write a 2-3 page paper. In your paper include the following: An explanation on how the corporate tax rate might affect corporate business practices and why is it important to have project valuation, cash flows, and risk analysis. Please include information and topics from the chapter readings to justify your explanation and reasoning. Include a title page and 3-5 references. Only one reference may be from the internet (not Wikipedia). Please adhere to the Publication Manual of the American Psychological Association (APA), (6th ed., 2nd printing) when writing and submitting assignments and papers.

 

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Forbes picks 25 businesses that have sound business models, strong balance sheets and steady…… 1 answer below »

Forbes picks 25 businesses that have sound business models, strong balance sheets and steady profits—all privately owned and closely held. They contribute to their communities. They have been acknowledged as outstanding by their peers. And they do things any business can learn from. The list is unranked and represents a wide range of industries including American manufacturing. Select one of the companies on the list that has not already been chosen by a classmate. Use the sign-up form located in Moodle’s session 18 to see who has selected what company and to enter your choice. It is based upon a first come, first serve basis. Hint: Before making your selection, do some minimal research to ensure that you have access to information about the company. Once you have signed up for your company, research the company to identify specifics on why this company has been included in Forbes rating. I would recommend the following format in putting this together: • Introduction of Company. Tell me about the company, products sold, how long in business, “their story”, etc. Whatever helps me in understanding your company, including any research in addition to what is in the article. • Why is the Company in this Ranking? Provide an explanation of why this company is included in the Forbes Small Giants including specific detailed factual information to support your position. • Challenges Faced by Your Company. How is this company impacted by external and internal issues such as the competitive, political, economic, socio-cultural or technological environment? • Predictions. Clearly explained predictions of how the company might fare long-term with good rationale. Include any recommendations that you may have.

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The marginal cost of an activity is the: Select one: a. change in the total cost of the activity tha

The marginal cost of an activity is the: Select one: a. change in the total cost of the activity that results fromcarrying out an additional unit of the activity. b. the total cost of the activity divided by the change in thelevel of the activity. c. the total cost of the activity divided by the level of theactivity. d. change in the level of the activity divided by the change inthe cost of the activity. . . .

 

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9 Junkers stock is expected to return 127 percent in a normal economy, -184 percent in a recessionar

9 Junkers stock is expected to return 127 percent in a normal economy, -184 percent in a recessionary economy, and

236 percent in a booming economy The probability of a boom is 8 percent and the probability of a recession is 22

percent What is the expected rate of return on this stock?

a 673 percent b 821 percent c 857 percent d 1022 percent





10 There is a 60 percent probability that a stock will earn 95 percent, a 35 percent probability that it will earn 117

percent, and a 5 percent probability that it will lose 76 percent What is the variance of these returns?

a 0001408 b 0001492 c 0001584 d 0001631





11 Ambrose Industries stock has an average expected rate of return of 136 percent and a standard deviation of 118

percent What is the probability the stock will lose more than 10 percent in any one year?

a 5 percent b 10 percent c 25 percent d 50 percent





12 Kate invested $7,400 in stock A, $11,200 in stock B, and $3,900 in stock C What is the portfolio weight of stock C?

a 01448 b 01623 c 01733 d 01847





13 A portfolio is equally invested in 2 stocks and a risk-free security Stock A is equally as risky as the market and stock

B has a beta of 124 What is the portfolio beta?

a 067 b 075 c 086 d 091





14 Stock A has a beta of 119 and an expected rate of return of 1342 percent The market risk premium is 82 percent

and the risk-free rate is 41 percent Which one of the following statements related to Stock A is correct?

a Stock A is correctly priced

b Stock A is underpriced

c Stock A is overpriced

d The answer cannot be determined based on the information provided





15 A stock has a beta of 096 and a standard deviation of 83 percent The market rate of return is 119 percent and the

market risk premium is 74 percent What is the expected return on the stock?

a 1160 percent b 1181 percent c 1196 percent d 1213 percent



Use this information to answer questions 9 and 10



State of Probability Returns

Economy of State Stock A Stock B Stock C

Boom 10 11 % 33% 15%

Normal 85 8 12 10

Recession 05 3 -46 -6





16 Katie invested 40 percent of her portfolio in stock A, 35 percent in stock B, and the remainder in stock C What is

her expected rate of return on this portfolio?

a 776 percent b 821 percent c 870 percent d 957 percent

 

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Begin with 1 0 x 106 wild type and 1 0 x This series of problems combines mutation with selection…

Begin with 1 0 x 106 wild type and 1 0 x

This series of problems combines mutation with selection. In one simple scenario, mutations occur in only one direction (wild type turn into mutants but not vice versa), but wild type and mutants have different levels of per capita production. Suppose that a fraction 0.1 of wild type mutate each generation, but that each wild-type individual produces 2.0 offspring while each mutant produces only 1.5 offspring. In each case, find the following.

a. The number of wild-type bacteria that mutate.

b. The number of wild-type bacteria and the number of mutants after mutation.

c. The number of wild-type bacteria and the number of mutants after reproduction.

d. The total number of bacteria after mutation and reproduction.

e. The fraction of mutants after mutation and reproduction.

Begin with 1 0 x 106 wild type and 1 0 x

 

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Probability Exclusive Events 1 The events A and B are mutually exclusive Suppose P(A) = 30 and P(B)

Probability Exclusive Events

1 The events A and B are mutually exclusive Suppose P(A) =
30 and P(B) = 20 What is the probability of either A or B occurring? What is
the probability that neither A nor B will happen?

2 A study by the National Park Service revealed that 50% of
vacationers going to the Rocky Mountain region visit Yellowstone Park, 40
percent visit the Tetons, and 35 percent visit both

a What is the probability a vacationer will visit at least
one of these attractions?

b What is the probability 35 called?

c Are the events mutually exclusive? Explain

3 Customers experiencing technical difficulty with their
Internet cable hookup may call an 800 number for technical support It takes
the technician between 30 seconds to 10 minutes to resolve the problem The distribution
of this support time follows the uniform distribution

a What are the values for a and b in minutes?

b What is the mean time to resolve the problem? What is the
standard deviation of the time?

c What percent of the problems take more than 5 minutes to
resolve

d Supposed we wish to find the middle 50 percent of the
problem-solving times What are the end points of these two times?

4 Compute the mean and variance of the following discrete
probability distribution

x P(x)

2 05

8 03

10 02

5 The director of admissions at Kinzua University on Nova
Scotia estimated the distribution of student admissions for the fall semester
on the basis of past experience What is the expected number of admissions for
the fall semester? Compute the variance and the standard deviation of the
number of admissions

Admissions Probability

1,000 06

1,200 03

1,500 01

6 According to the insurance institute of America, a family
of four spends between $400 and $3,800 per year on all types of insurance
Suppose the money spent is uniformity distributed between these amounts

a What is the mean amount spent on insurance?

b What is the standard deviation of the amount spent?

c If we select a family at random, what is the probability
they spend less than $2,000 per year on insurance per year?

d What is the probability a family spends more than $3,000
per year?

 

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Select an existing small-to-medium business/organisation (or virtual company) seeking an…

Select an existing small-to-medium business/organisation (or virtual company) seeking an implementation of a BI solution to fulfil their business objective(s), and report on the specifications of the Case and the proposed solution in a detailed document (report). If you are looking for more directions, then I suggest the following approaches: ? You may wish to implement a solution for customer relationship management system in a small company (must be novel/original). ? Text mining / text analysis /data mining solution for a small business. ? Data warehousing and BI solution for a small business. ? You may wish to implement a solution for an invoicing system in a company (must be novel/original). ? You may want to proceed with a data driven approach that is to look at raw data for inspiration. In the big data era, there are now many interesting open data on the Web, e.g. check sites like http://data.gov.au/data/. Is there anything interesting you can do with the data? Some suggested examples are: ? Web-based crime visualisation application with crime details stored in DB; ? Web-based real estate project with real estate data stored in DB; clinic management system project with patient and doctor etc… details in DB. • There are even more exciting ideas at https://1000projects.org/projects/phpprojects .

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1)what is the relationship between biblical study and archaeology in the articles? 2)How does the ar

1)what is the relationship between biblical study and archaeology in the articles? 2)How does the archaeological evidence influence the narrative of the Book of Kings 1 within the Bible?

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    The Seattle Times

    Archaeologist sees proof for Bible in ancient wall

    An Israeli archaeologist said Monday that ancient fortifications recently excavated in Jerusalem date back 3,000 years to the time of King Solomon and support the biblical narrative about the era.

    By

    JERUSALEM —

    An Israeli archaeologist said Monday that ancient fortifications recently excavated in Jerusalem date back 3,000 years to the time of King Solomon and support the biblical narrative about the era.

    If the age of the wall is correct, the finding would be an indication that Jerusalem was home to a strong central government that had the resources and manpower needed to build massive fortifications in the 10th century B.C.

    That’s a key point of dispute among scholars, because it would match the Bible’s account that the Hebrew kings David and Solomon ruled from Jerusalem around that time.

    While some Holy Land archaeologists support that version of history – including the archaeologist behind the dig, Eilat Mazar – others posit that David’s monarchy was largely mythical and that there was no strong government to speak of in that era.

    Speaking to reporters at the site Monday, Mazar, from the Hebrew University of Jerusalem, called her find “the most significant construction we have from First Temple days in Israel.”

    “It means that at that time, the 10th century, in Jerusalem there was a regime capable of carrying out such construction,” she said.

    Based on what she believes to be the age of the fortifications and their location, she suggested it was built by Solomon, David’s son, and mentioned in the Book of Kings.

    The fortifications, including a monumental gatehouse and a 77-yard (70-meter) long section of an ancient wall, are located just outside the present-day walls of Jerusalem’s Old City, next to the holy compound known to Jews as the Temple Mount and to Muslims as the Noble Sanctuary. According to the Old Testament, it was Solomon who built the first Jewish Temple on the site.

    That temple was destroyed by Babylonians, rebuilt, renovated by King Herod 2,000 years ago and then destroyed again by Roman legions in 70 A.D. The compound now houses two important Islamic buildings, the golden-capped Dome of the Rock and the Al-Aqsa mosque.

    Archaeologists have excavated the fortifications in the past, first in the 1860s and most recently in the 1980s. But Mazar claimed her dig was the first complete excavation and the first to turn up strong evidence for the wall’s age: a large number of pottery shards, which archaeologists often use to figure out the age of findings.

    Aren Maeir, an archaeology professor at Bar Ilan University near Tel Aviv, said he has yet to see evidence that the fortifications are as old as Mazar claims. There are remains from the 10th century in Jerusalem, he said, but proof of a strong, centralized kingdom at that time remains “tenuous.”

    While some see the biblical account of the kingdom of David and Solomon as accurate and others reject it entirely, Maeir said the truth was likely somewhere in the middle. 

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  • “There’s a kernel of historicity in the story of the kingdom of David,” he said.

    The Jerusalem Post

    ‘J’lem city wall dates back to King Solomon’ By BY ABE SELIG

    “It’s the most significant construction we have from First Temple days in Israel,” says archeologist Eilat Mazar.

    Ancient stone fortifications that were recently uncovered outside the walls of Jerusalem’s Old City date back some 3,000 years to the time of King Solomon and support the biblical narrative about the era, according to archeologist Dr. Eilat Mazar, who spoke to a group of reporters at the site on Monday.

    If the age of the wall is correct, the finding would be an indication that Jerusalem was home to a strong central government that had the resources and manpower needed to build massive fortifications in the 10th century BCE.

    “It’s the most significant construction we have from First Temple days in Israel,” Mazar said on Monday. “And it means that at that time, the 10th century, in Jerusalem there was a regime capable of carrying out such construction.”

    The section of the city wall revealed, which is 70 meters long and six meters high, is located in the area known as the Ophel, between the City of David and the southern wall of the Temple Mount.

    An inner gatehouse for access into the royal quarter of the city was uncovered in the city wall complex, along with a royal structure adjacent to the gatehouse and a corner tower that overlooks a substantial section of the adjacent Kidron Valley.

    The excavations in the Ophel area were carried out over a three-month period under the auspices of Hebrew University and with funding provided by Daniel Mintz and Meredith Berkman, a New York couple interested in biblical archeology.

    The excavations were carried out in cooperation with the Israel Antiquities Authority, the Israel Nature and Parks Authority, and the Company for the Development of East Jerusalem. Archeology students from the Hebrew University of Jerusalem, as well as volunteer students from the Herbert W. Armstrong College in Edmond, Oklahoma and hired workers all participated in the excavation work.

    “The city wall that has been uncovered testifies to a ruling presence,” Mazar said. “Its strength and form of construction indicate a high level of engineering, and the city wall is at the eastern end of the Ophel area in a high, strategic location atop the western slope of the Kidron Valley.

    “A comparison of this latest finding with city walls and gates from the period of the First Temple, as well as pottery found at the site, enable us to postulate, with a great degree of assurance, that the wall that has been revealed is that which was built by King Solomon in Jerusalem in the latter part of the tenth century BCE,” she continued.

    “This is the first time that a structure from that time has been found that may correlate with written descriptions of Solomon’s building in Jerusalem,” she added.

    “The Bible tells us that Solomon built – with the assistance of the Phoenicians, who were outstanding builders – the Temple and his new palace and surrounded them with a city, most probably connected to the more ancient wall of the City of David.”

    Mazar specifically cited the third chapter of Kings I, which includes the words “until he [Solomon] had made an end of building his own house, and the house of the Lord, and the wall of Jerusalem round about.”

    The six-meter-high gatehouse of the uncovered city wall complex is built in a style typical of those from the period of the First Temple, like Megiddo, Beersheba and Ashdod. It has a symmetrical plan of four identical small rooms, two on each side of the main passageway.

    A large, adjacent tower also stood at the site, covering an area of 24 by 18 meters, where it served as a watchtower to protect entry to the city. Today the tower is located under the nearby road and still needs to be excavated.

    Pottery shards discovered within the fill of the lowest floor of the royal building near the gatehouse also testify to the 10th-century-BCE dating of the complex. On the floor, excavators found remnants of large storage jars that survived destruction by fire and that were found in rooms that apparently served as storage areas on the ground floor of the building. One of the jars shows a partial inscription in ancient Hebrew indicating it belonged to a high-level government official.

    “The jars that were found are the largest ever found in Jerusalem,” said Mazar, adding that “the inscription found on one of them shows that it belonged to a government official, apparently the person responsible for overseeing the provision of baked goods to the royal court.”

    In addition to the pottery shards, cult figurines were also found in the area, as were seal impressions on jar handles with the word “to the king,” testifying to their usage within the monarchy. Also found were seal impressions (bullae) with Hebrew names, indicating the royal nature of the structure.

    Nonetheless, other archeologists posit that the biblical narrative reflecting the existence of a powerful monarchy in Jerusalem is largely mythical and that there was no strong government to speak of in that era.

    Aren Maeir, an archeology professor at Bar Ilan University, said he has yet to see evidence that the fortifications are as old as Mazar claims. There are remains from the 10th century in Jerusalem, he said, but proof of a strong, centralized kingdom at that time remains “tenuous.”

    While some see the biblical account of the kingdoms of David and Solomon as accurate and others reject it entirely, Maeir said the truth was likely somewhere in the middle.

    “There’s a kernel of historicity in the story of the kingdom of David,” he said.

    AP contributed to this report 

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CASE 7: Whole Foods Market: The Deutsche Bank Report Case Introduction/Overview This case… 1 answer below »

CASE 7: Whole Foods Market: The Deutsche Bank Report

Case Introduction/Overview

This case examines the decisions of Deutsche Bank research analyst Karen Short in May 2014 while covering the stock of Whole Foods Market, the leading natural and organic food retailer. Having recently issued a “buy” recommendation for the stock backed by a strong financial forecast, Short must reevaluate her decision in the face of a lower-than-expected earnings announcement by Whole Foods management and an associated market price decline.

Students are invited to scrutinize the analyst’s financial forecast considering the developing industry dynamics and Whole Foods’ competitive position. The forecasting objective focuses on evaluating the appropriateness of Short’s current financial forecast by exposing students to the mechanics of financial statement modeling and sensitivity analysis. The valuation objective focuses on evaluating her buy recommendation using a discounted-cash-flow–or market-multiples–based valuation approach.

Case Report Instructions

This is a “Directly answer a set of questions” case report. For this case study, answer each of the following questions (as per the guidelines in “Learning with Cases and Writing Case Reports”).

The following questions concern issues related to financial forecasting:

1. How would you describe Whole Foods’ strategy?

2. Prepare a competitor analysis. How would you define Whole Foods’ industry? Who are Whole Foods’ competitors?

3. How attractive is Whole Foods’ current market position? Is it sustainable?

4. What do the financial ratios in Exhibit 4 tell you about the past operating performance of Whole Foods? How informative are the historical ratios for Whole Foods’ prospective performance?

5. Examine Exhibit 7 in detail. How important are each of the underlying financial assumptions in the ROA forecast? What assumptions (i.e., margins, asset turnover, growth) play the biggest role in driving the anticipated improvements in ROA?

6. Do you agree with the existing financial assumptions in the Deutsche Bank forecast? If so, why? If not, what adjustments would you make to the model?

The following questions concern issues related to valuation:

7. What evidence is there that Whole Foods has been successful? Do you anticipate that this success will continue?

8. The student spreadsheet for Whole Foods Market located on the student textbook website (file titled: “Case_07_Whole_Foods_Market_F1776X” extends the Exhibit 7 forecast for eight years. As a starting valuation, what do you believe the implied value of Whole Foods’ shares to be, based on this base-case forecast? For your discount rate, please use a market risk premium of 5.0%.

9. What is your assessment of the base-case forecast? Do you believe that it provides a fair representation of the financial prospects for Whole Foods? If not, what changes would you make?

10. What are the primary value drivers underlying the stock price of Whole Foods?

To date, Short’s research report recommends that Whole Foods is undervalued by the market and is a buy. In light of recent events, do you think she should continue to maintain that recommendation? Back up your analysis with a discounted cash flow valuation of Whole Foods that explicitly outlines the assumptions that are important to support your argument

 

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