Module 3 Case Assignment Coursework Example | Topics and Well Written Essays - 1000 words

Module 3 Case Assignment - Coursework Example Customer values the product if it is unique; it is available at affordable price meeting customers needs quickly. A firm increases value of its products either by increasing its features, quality and utility or by lowering its costs. A company adds value by performing operations and processes efficiently and effectively and by continuous innovation in its activities. A company performs primary activities such as production, sales and marketing, research and development, and servicing activities to satisfy customers’ needs. Many support activities such as efficient materials management, human resource management, and the company infrastructure go along with in value creation process and attaining competitive advantage. Continuous learning and improvement is necessary to sustain competitive advantage and for that each important outcome needs to be compared and benchmarked (Connelley). While Kraft operates several product lines under several product categories, in broader sense, the value chain of Kraft Foods can be broken into inbound logistics, operations, outbound logistics, marketing and sales and finally services. The first three functions lead to demand fulfillment and the last two functions are geared towards generating demands from customers. Each part of the value chain of Kraft can be analyzed, in broader sense, to know how it helps adding value for its customers. Though Kraft outsources its basic raw materials globally it always feels a need to revamp its procurement processes. It is to be noted that before 2010 Kraft had around 77,000 vendors; however, only 1200 vendors met 80% of the supply. In 2010, Kraft decided to move towards more strategic suppliers reducing their numbers and achieved 40 percent incremental savings (Ellinor, 2010). However, the efforts need to be on revamping procurement chain significantly as that is still a major bottleneck for Kraft to meet its expanding demand of its products.

Writing Sample to be submitted with graduate faculty employment Essay

Writing Sample to be submitted with graduate faculty employment application - Essay Example There are several instances where brain scans are brought as court-room evidences to present that the suspect is somehow mentally challenged and thus cannot, for some reason, be charged with death sentence, and so be given lifetime imprisonment instead. Because of this modernity, criminal justice is challenged, and the issue remains unresolved. Immature Brain Neurolaw is creating a scene in providing judgments, leading experts from different fields in constant debate whether when to consider a brain as normal or abnormal, or when to consider the evidence as a legal mitigating circumstance or as an alibi. One contention raised by neuroscientists is that â€Å"adolescents are not as capable of controlling their impulses as adults because the development of neurons in the prefrontal cortex isn’t complete until the early 20s† (Rosen 3). The American Psychiatric Association backed-up this â€Å"anatomically-based† claim that there are differences between juveniles and adults, emphasizing that immature regions of the brain are those related with regulation of emotions, impulse control, risk assessment, and moral reasoning (Fagan 14). These are shown with the aid of modern technology which â€Å"rationalizes† the deviant behavior of juvenile offenders, and the brain is said to function maturely as the individual transitions into adulthood. This argument was essential in the Supreme Court’s decision for offenders below 18 years old not to be sentenced with death penalty. In addition, this neuroscientific evidence has been recently used several times in juvenile cases to influence the decisions of the judge and the jury. However, the complications neurolaw give our courts do not just end there. Law and Technology It is implied that a bigger concern in integrating neuroscience into the criminal justice system concerns cases where juvenile delinquency is not necessarily involved. There seems to be no clear delineation as to when brain sc ans may be considered adequate evidences, and how members of the prosecution committee would weigh the gravity of these proofs. However, the influence of neuroscience in the courts does not seem to cease. The law generally regards individuals responsible for their actions, but accommodations are sometimes granted to explain misconduct, and in this course neuroscience enters, arguing that differences in brain activity may influence behavior (Society of Neuroscience 38). High technology has made it possible for functional magnetic resonance imaging (fMRI), and positron emission tomography (PET) scans to link who we are and how we behave, as asserted by neuroscientists. Kent Kiehl is a prominent neuroscientist who has added psychopathy to the list of conditions that can be observed in fMRI scans, other than those telltale signs established for schizophrenia, bipolar disorder, and post-traumatic stress disorder (PTSD) (Haederle). Highly interested in why psychopaths behave the way they do, Kiehl is involved in a research that scanned the brains of prison inmates and conducted interviews. Kiehl is delving on a possibility that â€Å"there are developmental differences associated with psychopathic traits,† where â€Å"the more severe the traits, the more severe the impairment in the paralimbic system† (qtd. in Haederle). Along with his other assertions based on neuroscience, he believes that it is not a good idea to punish convicted offenders who possess malfunctioning brains. Neuroscience and Criminal Responsibility Another aspect, however, concerns the relevance of neuroscience

Plagiarism Research Paper Example | Topics and Well Written Essays - 500 words - 1

Plagiarism - Research Paper Example Many academic writers consider is acceptable, but in fact this constitutes plagiarism. Compilation is a practice of compiling various chunks of information from a variety of sources to meet the requirements of the paper that is being written. Even if very little information is taken in this way from other sources, it still constitutes plagiarism. Direct quotation – when exact or near-exact words of another author are used in an academic work; the practice is known as direct quotation. Although rarely used in engineering, a direct quotation is often enclosed in inverted commas while being italicized. Plagiarism may be intentional or unintentional. Unintentional plagiarism may be the result of a referencing error like attributing a work to an unrelated author, misquoting or failing to mention the work of an author in the document. Intentional plagiarism on the other hand may be ignorant or malicious. Learning and improving the writing skills while adopting good time management techniques may assist in avoiding plagiarism. Academic writing involves a higher level of dedication on part of the writer to produce a work that is academically acceptable. Having a sound knowledge of the referencing allows a writer to avoid plagiarism which is an unforgivable sin, in the world of academic works. For this reason, every student should have the basic understanding about referencing and plagiarism. This will enable the student to produce effective academic content that will ultimately improve his

African American civil Essay Example for Free

African American civil Essay Analyze the changes that occurred during the 1960s in the goals, strategies, and support of the movement for African American civil rights. Before the 1960’s, African American civil rights were severely encroached upon. All aspects of American life, from hospitals to schools to water fountains, were segregated,. Literacy tests, poll taxes, the grandfather clause, and pure intimidation kept African Americans out of the polls. The 1960s, the peak years of the civil rights movement, showed changes in the goals of the civil rights movement, evolving from desegregation to voting rights to equal economic opportunity; the accompanying strategiesshifted accordingly with the goals, litigation being more popular during the first goal; and the civil rights movement gained support from whites, including some prominent leaders, but lost some black support, as it progressed. The goals of the African American civil rights movement changed as a catalysts provoked change, or the goals were achieved: the first goal, desegregation, lasted from 1947-1963; the goal of voting rights extended from 1963-1965, and the last goal – equal economic opportunity and improving urban conditions, officially lasted from 1965-1968. In the early 1960s, the civil rights movement focused on targeting the rampant segregation. The movement continued to win desegregation victories through the other strategies, finally culminating in Johnson’s 1964 Civil Rights Act, which outlawed segregation in public accommodations and was specific to prevent the loopholes that other desegregation laws had contained. However, in September 1963, the Baptist Church in Birmingham, Alabama was bombed, killing four black girls. The shock and disgust that the African American community felt at the bombing caused the civil rights movement to schism. The two options were to shift the movemen t or become violent. As a result, the movement changed to focus on achieving voting rights, so that blacks could elect political.

Social interaction and the development of infants

Social interaction and the development of infants In the first two years of an infants life, they undergo many changes that allow them to develop into a fully functioning human being. These developments are controlled by internal and external factors. Social interaction is an exceedingly influential external factor, which can help to form many aspects of development. For example, infants in the first two years of their lives are learning to differentiate between social stimuli, for example recognising mothers face and voice. This is mastered by the infant in a relatively small time scale after birth (Mills Melhuish, 1974). The child can then use this new learned ability to interact with its caregivers, even without understanding the social meaning of their actions, for example when a child smiles, the child is not aware of what a smile means in our society, but when the caregiver sees this sign of emotion, they cannot help but to smile back, and positively reinforces that learned action to the child. To see how important social int eraction is for the development of a child in the first two years of its life, it is important to observe key areas of behaviour such as attachment to others, the childs temperament and their language acquisition. One of the most researched areas of development in children is attachment and how we form them. Attachment, as defined by Ainsworth and Bell 1970, is an affectional tie that once person forms between himself and another specific one. This is the first strong social connection that infants have to another human being/s. Research by Shaffer and Emerson, conducted in 1964, and suggested that there are three stages in the development of primary attachments; the asocial stage, the stage of indiscriminate attachment and the stage of specific attachment. The asocial stage, which spans from birth to six weeks, is when the infant uses signals to interact with its environment, for example crying, babbling, and smiling and so forth, which is not aimed specifically to anyone. The second stage of indiscriminate attachment, the infant has learnt that if it cries it will receive attention, but is still not aimed at a particular individual and the child can be comforted by anyone. This stage lasts u ntil around seven months after birth. The last stage, specific attachment, can be observed between seven and eleven months, and is suggests that the infant will start to form specific attachments to caregivers, a bond is then made, and will no longer accept comfort from others. Bowlby (1988) described that the need for social attachment between the infant and its caregiver is because the infant needs to actively seek to attain or maintain proximity to another individual that is more attuned to their surroundings and can provide for the infants needs (attachment behaviour). There have been three key theories to try and explain why we form attachments, and if it is important for children to form social bonds in the early stages of life. The psychoanalytical theory proposes that feeding and the production of food is the main reason why we form attachments. Based on Freuds psychosexual stages, this theory focuses on the oral stage (the first of the stages), and suggests that the child gets pleasure from attaining food through sucking behaviour (Miller, 1993). Erikson in his stage theory (1950, 1968) states that the first year of life is where the infant establishes trust between themselves and a caregiver, who in return provides nutrition and comfort. Without this trust, the child does not know whether they will be provided with the vital source of support that the child needs to survive. There are two main learning theories, the first being the early learning theory. The psychoanalytical theory is closely linked to this theory, as they both suggest that being provided with food is the main reason why we attach. This theory revolves around the secondary drive hypothesis by Dollard and Miller (1950), which explains that infants attach to the mother to gain access to important things that are needed for survival, things that they cannot provide for themselves for example food and warmth, all of which soothe the childs cries. This social interaction between the mother and the child then allows for the infant to associate this with the caregiver, and the bond is strengthened. However, this hypothesis disagrees with research conducted by Shaffer and Emerson (1964), which found that the infant can become attached to more than one caregiver, who is not necessarily the sole provider to the physiological needs of the child. The second learning theory for attachment is the social learning theory devised by Hay and Vespo, (1988). The theory states that the child does not automatically become attached to the mother, or caregivers, but that the caregivers has to interact with the child and show them affection, for the child to feel a connection with them, from which they can then form a relationship together. Another theory of attachment is Ethological theory, which states that there is an evolutionary role in the reasoning of why we as humans attach. The theory suggests that mothers before birth are already biologically predisposed to become attached to their offspring, and therefore ensures that they survive, and the species can continue. Research to support this theory was mainly collected by Bowlby (1969, 1980), who suggests that attachment is monotropic; focused on only one caregiver, namely the mother. However, research by Ainsworth (1979) disagrees with Bowlbys theory of monotropy, and suggests that infants form more than one attachment to many different caregivers. This is supported by Shaffer and Emersons study, which displayed attachments to other close family members for example grandparents and fathers. It has also been found that siblings can also be important in contributing to the social development of infants (Adler, 1964). These three theories suggest that attachment between the infant and its caregiver is formed relatively easily, but comparatively, if a child has little to no access to social interaction in the first two years of their life, it can be particularly harmful to the childs development. This can be explained by the social stimulation hypothesis which can be observed in research collected in the 1940s, which showed the children growing up in institutions had a low staff to child ratio and so rarely had any interaction with a caregiver. Children were also segregated from each other, and so were cut off from all forms of social stimulation. At first the infants acted no different from those brought up in normal family homes where the children are given lots of attention and interaction, but after six months there was a noticeable difference; the childrens behaviour changes and the children were completely avoidant of any social activities (negative working model of the self) and see that the y are not getting noticed by others (negative working model of others), (Goldfarb, 1943). This research implies that children need constant social interaction to develop properly. Bowlby (1953), after studying institutional care after the Second World War, saw that the care that the children were receiving was more physical, and not for their emotional needs. He developed the maternal deprivation hypothesis; suggested that infants should experience a warm, intimate and continuous relationship with his mother. Conversely, infants in institutions in which there are a much higher staff to infant ratio generally interact normally with their caregivers and develop well throughout life and suffer fewer effects (Tizard and Rees, 1975). Language is another element of develop in the first two years that is strongly influenced by social interaction. There are three main theories that discuss what influences our language acquisition. The learning/empiricist perspective explains that children learn their language by listening to their parents speech and imitating it (Bandura, 1971) and by positive reinforcement when the infant says something grammatically correct (Skinner 1957). Research by Weisman and Snow (2001) found that if caregivers expose their children to more advanced words earlier on in life, then the childs language will be more developed than other children of the same age group. However, it has been argued that children cannot learn syntax this way, as seen by Baron (1992), when children are just learning new sentences; they create statements that adults do not say and therefore could not have imitated. Chomsky (1959, 1968) disagrees with the learning perspective and suggests a more biological/nativist approach and not a social implication. He suggests that language is too complicated for it to just be learned from caregivers, instead that children born with an innate language acquisition device (LAD) in the brain which processes verbal input. Slobin (1985) thinks that we have an inborn language-making capacity (LMC) instead of an LAD. Both of these systems supposedly enable infants to combine vocabulary that has been collected in the brain, enables them to understand what it means, and then can use this knowledge to create sentences. Lenneberg (1967), combined the two theories of Chomsky and Slobin, and suggests the sensitive-period hypothesis, which states that the best time to learn a language is before adolescence; after this period has been reached language becomes very difficult to learn. For example, a case study of 14 year old Genie (Curtiss, 1977), who until this age was ke pt locked away with little to no social interaction, and was beaten by her father if she made any noise. When Genie was discovered, she had not had access to language and so could not speak. When she was taught language, she was able to conjure up sentences quite easily, however she was unable to acquire the rules of syntax, which young children learn early on in life without being taught to, supporting Baron (1992) theory. However, Moerk (1989) suggests that language development cannot be explained using LAD or LMC because the researchers themselves do not understand how they work, and how the information received in the brain is processed and understood. The interactionist perspective suggests that both empiricist (social) and nativists (biological) perspective both contribute to learning acquisition (Tomasello, 1995). A third factor for development that is influenced by social interaction in childhood is temperament. A definition of temperament as described by Hartup and Van Lieshout (1995) is a substrate for personality development, consisting of simple, basic styles that emerge early and that are tied closely to distinctive modes of emotional expression. Thomas and Chess (1977, 1989) reported three main type of temperamental styles; Easy infants; happy, easily comforted, Slow to warm up infants; fussy and are less adaptive, and Difficult infants; negative, extreme reactions for example long periods of continuous crying. Hartup and Van Lieshout (1995), suggests that temperament has social implications for the way in which an infant relates to other people for example difficult infants are more likely to develop behavioural problems as they get older. A way to try and combat this behaviour is for caregivers to provide more stimulating challenges for the child and try to promote the children to act in a more pro-active manner (Smith, Cowie and Blades, 1998). Thus suggesting that although temperament can continue throughout life, using social techniques can reduce aspects of temperamental behaviour as the child develops. In conclusion, attachment to caregivers, language acquisition and a childs temperament are all influenced by social interaction, and can be seen that the lack of it can lead to developmental abnormalities in children. For infants to develop healthily in the first two years of their life, it appears that they need high amounts of cognitive stimulation, feelings of security from those that care for them, and encouragement for behaviour, so that the child can positively attribute their actions and use these social cues, for example smiling and babbling, to develop all the key skills that they will need as they grow up.

Francios Rabelias Essay -- essays research papers

In Italy, early 1300s, a cultural movement began. This period of time is known as the Renaissance, an age of reborn interest in the arts. During this time artist emerged with paintings that recognized daily life, in contrast with paintings of holy and importain people just a few years earlier. Artist began to paint in three dimensions, writers began write satires, and they started blending their opinions into their stories. They became concerned with human welfare, humanism. “ Humanism was a program of study rather than a unified philosophy. It stressed the studia humanitatis, or humanities, which included grammar, rhetoric (the art of persuasive argument), poetry, history, and moral philosophy. It was designed to make the Christian well-rounded and virtuous. '; People like Michangelo, Leonardo da Vinchi, Lorenzo de Medici, Raphael,and St. Thomas More were humanists. They were concerned with human welfare, this is the reason why it is represented in there works. The one I am going to focus on is Francios Rabelias. Rabelias was a writer. Over time many of the information we have about him as been lost or destroyed. “We have most of his works, but it is believed there is more. '; Below I have listed a believed chronology of Rabelias, it may have inaccurate due the lack of information on Rabelias. “1494 Now the Generally accepted date of Rabelias’s birth, although at times it has been published back as far as 1483. Born at La Devini...

Fin300 Midterm

Ryerson University CFIN300 Midterm Exam Fall 2007 There are 2. 0 hours in this exam. Version A Student Name____________________________ (Please Print) Student Number_________________________________ Notes: 1. This is a closed book exam. You may only have pens, pencils and a calculator at your desk. 2. A formula sheet is attached to the end of the exam. You may detach the formula sheet from the exam. Please fill out the scanner sheet as you go along in the exam. You will not be given extra time at the end of the exam to fill it out. 3.Select the best possible answer for each multiple-choice question 4. Each of the 30 MC questions is worth 1 mark Marks: Available Total 30_________ There are 14 pages in this exam. |2. |Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay this money over the next six years by making monthly | | |payments of $2,215. 10. What is the interest rate on the loan? Express your answer with annual compounding. | |A) |5. 98% | |B) |6. 63% | |C) |4 . 1% | |D) |5. 65% | |E) |5. 80% | |3. |How much would you pay for a security that pays you $500 every 4 months for the next 10 years if you require a return of 8% per | | |year compounded monthly? | |A) |$11,228. 48 | |B) |$15,000. 00 | |C) |$10,260. 0 | |D) |$13,724. 90 | |E) |$10,200. 23 | |4. |You can earn 5% per year compounded annually for the next 4 years, followed by 8% per year compounded quarterly for 5 years. | | |What is the average annual compounded rate of return over the 9 year period? Express your answer with monthly compounding. | |A) | | |B) |6. 2% | |C) |6. 97% | |D) |6. 43% | |E) |6. 59% | |5. |You have just purchased a house for $540,000 with a $200,000 down payment. You are going to get a mortgage at the TF bank for | | |the balance. TF is charging a rate of 5. 8% per year compounded semi-annually on 5 year term mortgages.You want to make weekly| | |payments amortized over 20 years. What is your weekly payment? | |A) |$877. 60 | |B) |$549. 01 | |C) |$545. 47 | |D) | | |E) |$871. 92 | |6. |Master Meter is planning on constructing a new $20 million facility. The company plans to pay 20% of the cost in cash and | | |finance the balance.How much will each monthly loan payment be if they can borrow the necessary funds for 30 years at 9% per | | |year compounded semi-annually? | |A) |$128,740 | |B) |$158,567 | |C) |$160,925 | |D) |$141,982 | |E) |$126,853 | 7. |Gerry Industries has some 8% (per year compounded semi-annually) coupon bonds on the market that are selling at $989, pay | | |interest semi-annually, and mature in fifteen years. The company would like to issue $1 million in new fifteen-year bonds. What | | |coupon rate should be applied to the new bonds if Gerry Industries wants to sell them at par? Express your answer with | | |semi-annual compounding. | |A) |8. 00% | |B) |8. 3% | |C) |7. 87% | |D) |8. 13% | |E) |8. 26% | |8. |You have decided to save $30 a week for the next three years as an emergency fund. You can earn 3. 5 % per year compounded | | |weekly. How much would you have to deposit in one lump sum today to have the same amount in your savings at the end of three | | |years? |A) |$4,441. 26 | |B) |$4,382. 74 | |C) |$4,288. 87 | |D) |$4,305. 19 | |E) |$4,414. 14 | |9. |A credit card company charges you an interest rate of 1. 25% per month.The annual percentage rate is ____ and the effective | | |annual rate is _______. | |A) |15. 00%; 16. 08% | |B) |16. 08%; 15. 00% | |C) |15. 00%; 15. 00% | |D) |15. 00%; 14. 55% | |E) |14. 55%; 15. 00% | |10. The Friendly Bank wants to earn an effective annual rate of 9% on its auto loans. If interest is compounded monthly, what APR | | |must they charge? | |A) |8. 65% | |B) |9. 17% | |C) |8. 58% | |D) |9. 38% | |E) |8. 44% | Use the following to answer question 11: |Rondolo, Inc. |2006 Income Statement | |Net Sales |$12,800 | |Less: Cost of Goods Sold |10,400 | |Less: Depreciation |680 | |Earnings Before Interest and Taxes |1,720 | |Less: Interest Pa id |280 | |Taxable Income |$1,440 | |Less: Taxes |500 | |Net Income |$940 | | Dividends |$423 | | Additions to retained earnings |$517 | |Rondolo, Inc. |2006 Balance Sheet | |Cash | |$520 | |Accounts payable | |$1,810 | |Accounts rec | |1,080 | |Long-term debt | |3,600 | |Inventory | |3,120 | |Common stock | |5,000 | |Total | |$4,720 | |Retained earnings | |1,790 | |Net fixed assets | |7,480 | | | | | |Total assets | |$12,200 | |Total liabilities & equity | |$12,200 | | | | | | | | | |11. |Rondolo, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. | | |The tax rate and the dividend payout ratio will remain constant.How much additional debt is required if no new equity is raised| | |and sales are projected to increase by 4 percent? | |A) |-$122. 08 | |B) |$598. 75 | |C) |$416. 00 | |D) |-$562. 50 | |E) |$318. 01 | |12. |Your brother-in-law borrowed $2,000 from you four years ago and then disappeared. Yesterday he returned and expressed a desire | | |to pay back the loan, including the interest accrued.Assuming that you had agreed to charge him 10% per year compounded | | |annually, and assuming that he wishes to make five equal annual payments beginning in one year, how much would your | | |brother-in-law have to pay you annually in order to pay off the debt? (Assume that the loan continues to accrue interest at 10% | | |per year. ) | |A) |$738. 63 | |B) |$798. 24 | |C) |$772. 45 | |D) |$697. 43 | |E) |$751. 46 | |13. |What information to you need to find the 3 year forward rate starting 2 years from now? |A) |2 and 5 year zero coupon spot rates | |B) |3-year zero coupon spot rate | |C) |2 and 3 year zero coupon spot rates | |D) |5 year zero coupon spot rate | |E) |3 and 5 year zero coupon spot rates | |14. |You have been making payments for the last 25 years and have finally paid off your mortgage.Your original mortgage was for | | |$345,000 and the interest rate was 5% per year comp ounded semi-annually for the entire 25 year period. How much interest have | | |you paid over the last 5 years of the mortgage? | |A) | | |B) |$120,392. 23 | |C) |$13,931. 87 | |D) |$80,743. 13 | |E) |$106,460. 37 | |15. |Which of the following is (are) sources of cash? | | | | | |I. | |an increase in accounts receivable | | | | | |II. | | |a decrease in common stock | | | | | |III. | | |an increase in long-term debt | | | | | |IV. | |a decrease in accounts payable | | | | |A) |I, II, and IV only | |B) |II and IV only | |C) |I only | |D) |III only | |E) |I and III only | |16. Financial planning allows firms to: | | | | | |I. | | |avoid future losses. | | | | | |II. | | |develop contingency plans. | | | | | |III. | | |ascertain expected financing needs. | | | | | |IV. | | |explore and evaluate various options. | | | |A) |I, II, III, and IV | |B) |I and IV only | |C) |III and IV only | |D) |II and III only | |E) |II, III, and IV only | Use the following to answer q uestion 17: |Current |$100 | |Assets | | |A) |$52. 00 | |B) |$22. 50 | |C) |$0. 00 | |D) |$4. 50 | |E) |$29. 50 | |18. |A new security will pay an initial cash flow of $100 in 1 year. Thereafter it will pay cash flows every month for the rest of | | |time.The cash flows will grow at 3% per year compounded monthly forever. If you require a return of 6% per year compounded | | |monthly, how much would you be willing to pay for this security? | |A) |$18,932. 30 | |B) |$40,000. 00 | |C) |$37,864. 59 | |D) |$33,333. 33 | |E) |$20,000. 00 | |19. |Which one of the following actions is the best example of an agency problem? |A) |Basing management bonuses on the attainment of specific financial goals | |B) |Requiring stockholders approval of all management compensation decisions | |C) |Paying management bonuses based on the current market value of the firm's stock | |D) |Paying management bonuses based on the number of store locations opened during the year | |E) |Accepting a project th at enhances both management salaries and the market value of the firm's stock | |20. |The bonds of Frank's Welding, Inc. pay an 8% annual coupon, have a 7. 98% (per year compounded annually) yield to maturity and | | |have a face value of $1,000. The current rate of inflation is 2. 5% per year compounded annually.What is the real rate of return| | |on these bonds? | |A) |5. 42 percent | |B) |5. 48 percent | |C) |5. 35 percent | |D) |5. 37 percent | |E) |5. 32 percent | |21. |What is the future value of the following cash flows at the end of year 3 if the interest rate is 6% per year compounded | | |annually? The cash flows occur at the end of each year. | | | | |Year 1 | | |Year 2 | | |Year 3 | | | | | |$5,180 | | |$9,600 | | |$2,250 | | | | |A) |$19,341. 02 | |B) |$15,916. 8 | |C) |$19,608. 07 | |D) |$18,246. 25 | |E) |$18,109. 08 | |22. |The I. C. James Co. invested $10,000 six years ago at 5% per year simple interest. The I. M. Smart Co. invested $10,000 six years | | |a go at 5% per year compounded annually. Which one of the following statements is true concerning these two investments? | | | | | |I. | | |The I. C.James Co. has an account value of $13,400. 96 today. | | | | | |II. | | |The I. C. James Co. will have an account value of $13,400. 96 six years from now. | | | | | |III. | | |The I. M Smart Co. will earn $525 interest in the second year. | | | | | |IV. | | |Both the I. C. James Co. and the I. M. Smart Co. will earn $500 interest in the first year. | | | |A) |II, III and IV only | |B) |II and IV only | |C) |I and III only | |D) |III and IV only | |E) |I, III and IV only | |23. |The bonds of Microhard, Inc. carry a 10% annual coupon, have a $1,000 face value, and mature in four years. Bonds of equivalent| | |risk yield 15% (per year compounded annually). Microhard is having cash flow problems and has asked its bondholders to accept | | |the following deal: The firm would like to make the next three coupon payments at half the schedu led amount, and make the final | | |coupon payment be $251.If this plan is implemented, the market price of the bond will (rise/fall) to ___________. (Continue to| | |assume a 15% required return. ) | |A) |$892. 51 | |B) |$865. 45 | |C) |$829. 42 | |D) |$808. 89 | |E) |$851. 25 | |24. Your older sister deposited $5,000 today at 8% per year compounded annually for five years. You would like to have just as much | | |money at the end of the next five years as your sister. However, you can only earn 6% per year compounded annually. How much | | |more money must you deposit today than your sister if you are to have the same amount at the end of five years? | |A) |$367. 32 | |B) |$399. 05 | |C) |$489. 84 | |D) |$201. 0 | |E) |$423. 81 | |25. |Net income differs from operating cash flow due to the handling of: | |A) |Interest expense and depreciation. | |B) |Depreciation and dividends. | |C) |Dividends and non-interest expense. | |D) |Dividends and interest expense. | |E) |Dividends, interest expense, and depreciation. | |26. |Shirley adds $1,000 to her savings on the last day of each month. Shawn adds $1,000 to his savings on the first day of each | | |month.They both earn an 8% per year compounded quarterly rate of return. What is the difference in their savings account | | |balances at the end of 35 years? | |A) |$13,923. 34 | |B) |$15,794. 64 | |C) |$16,776. 34 | |D) |$14,996. 47 | |E) |$12,846. 88 | Use the following to answer questions 27-30: |KLM, Inc. |2006 Income Statement | |Net sales |$3,685 | |Cost of goods sold |$3,180 | |Depreciation |$104 | |Earnings before interest and taxes |$401 | |Interest paid |$25 | |Taxable income |$376 | |Taxes |$128 | |Net income |$248 | |Dividends paid |$60 | |Addition to retained earnings |$188 | | | |KLM Corporation | |Balance Sheets as of December 31, 2005 and 2006 | | | | |2005 |2006 | |2005 |2006 | |Cash |$520 |$601 |Accounts payable |$621 |$704 | |Accounts rec. $235 |$219 |Notes payable |$333 |$272 | |Inv entory |$964 |$799 |Current liabilities |$954 |$976 | |Current assets |$1,719 |$1,619 |Long-term debt |$350 |$60 | |Net fixed assets |$890 |$930 |Common stock |$800 |$820 | | | | |Retained earnings |$505 |$693 | |Total assets |$2,609 |$2,549 |Total liabilities and Owner's equity |$2,609 |$2,549 | |27. |What is the net capital spending for 2006? | |A) |$208 | |B) |$144 | |C) |-$144 | |D) |$64 | |E) |-$64 | |28. |What is the cash flow from assets for 2006? |A) |$1,307 | |B) |$2,259 | |C) |$355 | |D) |$2,503 | |E) |$111 | |29. |What is the operating cash flow for 2006? | |A) |$480 | |B) |$169 | |C) |$425 | |D) |$272 | |E) |$377 | |30. |What is the change in net working capital for 2006? |A) |$122 | |B) |$643 | |C) |$765 | |D) |-$643 | |E) |-$122 | |31. |A number of years ago you bought some land for $100,000. Today it is worth $225,000. If the land has been rising is price by | | |5% per year compounded annually, how long have you owned the land? | |A) |14. 1 years | |B) |16. years | |C) |Can't be determined with the given information | |D) |13. 8 years | |E) |12. 4 years | |FV = PV (1+tr) |[pic] | |FV = PV (1+r)t |[pic] | |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] | |[pic] |[pic] | |[pic] |[pic] | |[pic] |[pic] | |[pic] |Total Dollar Return (TDR) = Dividend Income + Capital Gain (Loss) | | | | | |[pic] | |[pic] |[pic] | |[pic] |Variance of returns [pic] | |[pic] |[pic] | |[pic] |[pic] | |[pic] |[pic] | |Arbitrage Pricing Theory |PV of CCA tax shield [pic] | |[pic] | | |Current Ratio |= |Current Assets | |Total Asset |= |Sales | | | |Current Liabilities | |Turnover | |Total Assets | | | | | | | | | |Quick Ratio |= |Current Assets – Inventory | |ROA |= |Net Income | | |Current Liabilities | | | |Total Assets | | | | | | | | | |Inventory Turnover |= |COGS | |ROE |= |Net Income | | | |Inventory | | | |Total Equity | | | | | | | | | |Cash Ratio |= |Cash | |P/E Ratio |= |Price/common share | | | |Current Liabilities | | | |E PS | | | | | | | | | |Receivables |= |Sales | |Dividend Payout |= |DPS | |Turnover | |Accounts Receivable | |Ratio | |EPS | | | | | | | | | |D/E Ratio |= |Total Debt | |Dividend Payout |= |Cash Dividends | | | |Total Equity | |Ratio | |Net Income | | | | | | | | | |Total Debt Ratio |= |Total Debt | |Market to Book | |Price / Common share | | | |Total Assets | |Ratio |= |Book value of equity | | | | | | | | | | | | | | | | | |Equity multiplier |= |Total Assets | |Profit |= |Net Income | | | |Total Equity |Margin | |Sales | | | | | | | | | |Net Working |= |Net Working Capital | |Interval Measure |= |Current Assets | |Capital-Total Asset | |Total Assets | | | |Average Daily Operating Costs | | | | | | | | | |Long Term Debt |= |Long Term Debt | |Cash Coverage |= |EBIT + Depreciation | |Ratio | |Total Equity + LT Debt | |Ratio | |Interest | | | | | | | | | | | | | | | | |Days’ Sales in |= |365 Days | |Days’ Sales in |= |365 Days | |Receivables | |Receivables Turnover | |Inv entory | |Inventory Turnover | | | | | | | | | |Internal Growth |= |ROA x R | |‘Sustainable |= |ROE x R | |Rate | |1 – ROA x R | |Growth Rate | |1 – ROE x R | | | | | | | | | | | | | |‘Sustainable |= |p(S/A)(1+D/E) x R | | | | | |Growth Rate | |1 – p(S/A)(1+D/E) x R | | | | | | | | | |NWC |= |Sales | |Fixed Asset |= |Sales | |Turnover | |NWC | |Turnover | |Net Fixed Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Times Interest |= |EBIT | |CF from Assets = | | | | | |Operating CF – Cap Ex – Additions to NWC | | | | | | | | | | | |Operating CF = EBIT + Deprec – Tax | | | | | |=Sales – Costs – Taxes | | | | | |= (Sales – Costs) x (1 – Tc) + Deprec x Tc | | | | | | | | | | | |Cap Ex = End Gross FA – Beg Gross FA | | | | | |Cap Ex = End Net FA – Beg Net FA + Deprec | | | | | | | | | | |Add to NWC = End NWC – Beg NWC | | | | | | | | | | | |CF to Debtholders = Interest – Net New Debt | | | | | | | | | | | |CF to Shareholders = Divs – Net New Equity | | | | | | | | | | | |CF from Assets = CF to Debtholders + CF to | | | | | |Shareholders | |Earned | |Interest Charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Answer Key |2. |E | |3. |E | |4. |E | |5. B | |6. |E | |7. |D | |8. |A | |9. |A | |10. |A | |11. |A | |12. |C | |13. |A | |14. C | |15. |D | |16. |E | |17. |E | |18. |C | |19. |D | |20. |C | |21. |D | |22. D | |23. |C | |24. |C | |25. |A | |26. |D | |27. |B | |28. |C | |29. |E | |30. |E | |31. |B |