Gulf Corporation elects S status effective for tax year 2014

Gulf Corporation elects S status effective for tax year 2014. As of January 1, 2014, Gulf’s assets were appraised as follows.

Adjusted BasisFair Market ValueCash$16,010$16,010Accounts receivable–0–$55,400Inventory (FIFO)$70,000$90,000Investment in land$110,000$195,000Building$220,000$275,000Goodwill–0–$93,000

In each of the following situations, calculate any built-in gains tax, assuming that the highest corporate tax rate is 35%. C corporation taxable income would have been $100,000.

(I)
During 2014, Gulf collects $48,000 of the accounts receivable and sells 80% of the inventory for $99,000.

(II) In 2015, Gulf sells the land held for investment for $203,000.

(III) In 2016, the building is sold for $270,000.

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Peter and Sandy own a medium-sized manufacturing firm

Peter and Sandy own a medium-sized manufacturing firm, Max Security Ltd in Auckland. The company manufactures and installs security alarms for commercial and home security. Max Security Ltd has experienced rapid growth because of the new technology that improves the company’s monitoring efficiency. The company is owned equally by Peter and Sandy holding 250,000 shares each. If either wishes to sell the shares, the shares have to be offered first to the other shareholder at a discounted price.  In 2017, Peter and Sandy have decided to value their holdings in the company for financial planning purposes. To accomplish this, they have gathered the following information about their main competitors.

EPS (Cents) DPS (Cents) Share Price ($) ROE (%) Required rate (%)

Hub Security Ltd -0.20 0.04 3.25 9.5 7.75

Reliable Security Plus 0.31 0.14 2.90 10.5 9.25

Kiwi Monitoring Ltd 0.16 0.16 12.10 10.25 9.00

Industry Average 0.24 0.18 7.05 10.5 8.75

Last year, Max Security Ltd had an EPS of $0.35, and Peter and Sandy were paid a dividend of $52,500 each. The company also had a return on equity of 18%. Peter and Sandy believe a required rate of return of 14% for the company is appropriate.

Required:

1. Calculate the share price of the company assuming the company continues its current growth rate (growth rate should be inferred from the data given) into the infinite period (adjust to 2 decimal places).

2. To verify their calculations, Peter and Sandy have hired Richard Hill, a consultant. Richard was previously an equity analyst, and he has a good understanding of the security Industry. Richard has examined the company’s financial statements as well as those of its competitors. Although Max Security Ltd currently has a technological advantage, Richard’s research indicates that Max Security’s competitors are investigating other methods to improve efficiency. Given this, Richard believes that Max Security’s technological advantage will last for only five years. After that period, the company’s growth is likely to slow down to the industry average, and so the industry average required return will be a more appropriate rate for valuation. Under Richard’s assumptions, what is the estimated share price?

3. What is the current industry average price-earnings ratio (PER)? Using Richard’s estimation in part (2) above, calculate Max Security’s price-earnings ratio. Comment on FOUR differences in PERs and explain why these differences may exist?

Price – earnings ratio is the price the market places on 1$ of a firm’s earnings.

4. After discussion with Richard, Peter and Sandy agree that they would like to increase the value of the company’s equity. Like many business owners, they want to retain control of the company and do not want to sell shares to outside investors. They also feel that the company’s debt is at a manageable level and do not want to borrow more money. What steps can they take to increase the share price?  – justify each of your suggestions.

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Environmental governance is a concept in political ecology

Environmental governance is a concept in political ecology, environmental policy, and international global administration. Environmental governance advocates for sustainable development for the managing of all human activities – political, social, and economic. It views natural resources and the environment as global public goods that benefits everyone, that is, everyone is entitled for clean breathable air, and a stable climate, and continual biodiversity. This is accomplished through several government agencies, mainly the World Meteorological Organization (WMO) that works on climate and atmosphere, and the International Atomic Energy Agency (IAEA) that focuses on nuclear security (Brandes & Brooks, 2005, p. 8).

The world may someday “collapse” due to accelerating environmental problems. Agree or disagree with this statement and list two (2) reasons in support of your position. Provide one (1) example of how global corporations alleviate environmental problems and one (1) example of how global corporations contribute to environmental problems.

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HBH Enterprises is a large publicly listed company

HBH Enterprises is a large publicly listed company, specialised in manufacturing washing machines.  The company is looking to set up a manufacturing plant to produce a new line of washing machines. This project will be a six-year project. The company bought a piece of land four years ago for $ 10 million in anticipation of using it for its proposed manufacturing plant. If the company sold the land today, it would receive $ 11.5 million after taxes. In six years, the land can be sold for $8 million after taxes and reclamation costs. HBH Enterprises wants to build a new manufacturing plant on this land. The plant will cost $350 million to build. The following market data on HBH’s securities are current:

Debt

$250,000,000, 6.75% coupon bonds outstanding with 20 years to maturity redeemable at par, selling for 92 percent of par; the bonds have a $1000 par value each and make semi-annual coupon payments.

Equity

40,000,000ordinary shares, selling for $42.50 per share

Non-redeemable Preference shares

15,000,000 shares (par value $ 12 per share) with 5.5% dividends (after taxes), selling for $24 per share

The following information is relevant:

· HBH Enterprises’  tax rate is 28%

The company had been paying dividends on its ordinary shares consistently. Dividends paid during the past five years is as follows

Year (-4) ($) 2.25

Year (-3) ($) 2.35

Year (-2) ($) 2.81

Year (-1) ($) 2.95

Year (0) ($) 3.20

The project requires $ 11 million in initial net working capital investment in year 0 to become operational.
Work all solutions to the nearest two decimals.

Required:

Calculate the project’s initial, (time 0) cash flows, taking into account all side effects.

(2 marks)

Compute the weighted average cost of capital (WACC) of HBH Enterprises. Show all workings and state the assumptions underlying your computations.

(12 marks)

Using the WACC computed in part (2) above and assuming the following, compute the project’s Net Present Value (NPV), Internal Rate of Return (IRR) and the Profitability Index (PI)
The manufacturing plant has a ten-year tax life, and HBH Enterprises uses Diminishing value method depreciation for the plant at 20% per annum. At the end of the project, (i.e., at the end of year 6), the plant can be scrapped for $ 71 million.
The project will incur $310 million per annum in fixed costs
HBH Enterprises will manufacture 420,000 washing machines per year and expects to sell them at an average price of $ 2,500 per washing machine.
The variable production costs are $ 1,400 per washing machine.
At the end of year 6, the company will sell the land.

(16 marks)

2.2. What are the pros and cons of using risk-adjusted costs of capital for individual investments?

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BUS 430 Assignment 2 (Inventory Management)

BUS 430 Assignment 2: Inventory Management

Research two (2) manufacturing or two (2) service companies that manage inventory

NEEDS to be (6-8) page paper:

Determine the types of inventories these companies currently manage and describe their essential inventory characteristics.
Analyze how each of their goods and service design concepts are integrated.
Evaluate the role their inventory plays in the company’s performance, operational efficiency, and customer satisfaction.
Compare and contrast the four (4) different types of layouts found with each company; explain the importance of the layouts to the company’s manufacturing or service operations.
Determine at least two (2) metrics to evaluate supply chain performance of the companies; suggest improvements to the design and operations of their supply chains based on those metrics.
Suggest ways to improve the inventory management for each of the companies without affecting operations and the customer benefit package. Provide a rationale to support the suggestion.
Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

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HSA 530 Assignment 2 (Human Resources Policies and Procedures)

HSA 530 Assignment 2: Human Resources Policies and Procedures

Due Week 8 and worth 320 points

Continuing with the scenario from Assignment 1, imagine that you have been hired as the Manager of Human Resources for the acute care hospital. Your first task is to make a set of policies and procedures to ensure that the organization’s HRM processes are aligned with the organization’s goals and objectives. You are also responsible for completing a hiring plan, training plan, compensation and benefits plan, and a performance appraisal.

a six to eight (6-8) page paper in which you:

Examine a significant way that the Joint Commission has influenced the basic functions of HRM and predict the likely impact of the policies and procedures at the your acute hospital. Provide support for your rationale.
Analyze the importance of collaboration between HR and department managers when filling open positions, indicating the most likely impact on the hiring process.
have a detailed outline of a training program for managers. The outline should include, at a minimum, interviewing techniques that both help managers identify the best candidate for the job and meet the requirements of appropriate employment laws and regulations.
Determine the most significant factor that should be considered in order to develop a compensation and benefit plan that is fair, competitive, and aligned with the organization’s strategic objectives, indicating the direct impact of each factor on the elements.
Recommend a performance appraisal method that you believe would be the most effective for the organization and support the reasons for your decision. Provide support for your recommendation.
have a strategy to effectively manage both performance- and behavioral-based employee problems, which will lead to the desired behavior result.
Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

The specific course learning outcomes associated with this assignment are:

Develop the key components of an employment agreement.
Examine the influence of the Joint Commission on the development of job descriptions and performance management programs.
Develop an effective interview and selection process that meets the requirements of employment laws and regulations.
Propose ways that job performance and training can be integrated.
Analyze the challenges that confront health care employers in providing competitive compensation and benefit programs.
Analyze the objectives and methods of an effective performance appraisal process.
Use technology and information resources to research issues in health services human resource management.
Write clearly and concisely about health services human resource management using proper writing mechanics.

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You are an administrator for the Contoso Corporation

You are an administrator for the Contoso Corporation. The Contoso Corporation has two (2) large sites. The corporate office is in New York and the manufacturing site is in Cleveland, Ohio. In addition, the Contoso Corporation has five (5) smaller sites.

At the Corporate site, you currently have eight (8) physical Hyper-V hosts that host approximately one hundred twenty (120) virtual machines. The virtual machines are running Windows Server 2008 R2 and Windows Server 2012. The servers are needed to host email, various databases, file services, print services, and a point-of sales-application. The virtual machines are stored on a centrally located storage area network (SAN) that has multiple power supplies, and use redundant array of independent disks (RAID).

Over the last three (3) years, you have had two (2) power failures that caused the servers to go down at the corporate office. Recently, during one (1) of these incidents, files on one (1) of the servers were corrupted. It was later discovered that the backup could only partially restore the data files, but could not restore the server itself.

The servers must remain available and reliable. As the administrator, you must ensure that you can recover from a failure or problem quickly with minimum loss.

three to five (3-5) page paper in which you:

Develop a continuity plan / disaster recovery plan for Contoso Corporation in which you address the following: Suggest an approach that provides redundancy (failover) for all mission critical functions in the event of a disaster including power failure. Consider the following in your approach: Essential Infrastructure; Email; Database; File Services; Print Services; Point-of-Sale Applications; Power Redundancy Solutions.
Identify the changes that should be made to the backup procedures in order to address the problem with the server backups.
Outline the necessary actions that Server Administrators must verify for proper operation of servers in the event of a failover.
  Provide a plan for returning all services back to the primary systems once the crisis has passed.
Examine the pros and cons of moving part of the data center to the Cleveland office and housing it there on a permanent basis. Provide your recommendation for the stated action.

The specific course learning outcomes associated with this assignment are:

Demonstrate the ability to describe, manage, and configure load balancing and failover clustering.
Demonstrate the ability to configure and manage backups to include role-specific and online or cloud environments.
Demonstrate the ability to recover servers to include files and volumes.
Use technology and information resources to research issues in advanced network infrastructure environments.
Write clearly and concisely about advanced network infrastructure topics using proper writing mechanics and technical style conventions.

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One of your friends at the UNSW Business School is Mike Tuckerberg

One of your friends at the UNSW Business School is Mike Tuckerberg. Mike is an entrepreneur and he has just started a new social network for UNSW Business School students which is called “Schoolbook”. Schoolbook allows its members to share their news and pictures.

You also know of two other students in the UNSW Business School called Elder Rower and Younger Rower. Elder and Younger are identical twins. You know that they have just won a defamation court case and, after expenses, they have each been awarded $250,000.

Mike has talked to Elder Rower about investing in Schoolbook. Mike and Elder Rower agreed that Elder Rower would invest $100,000 in Schoolbook. They recorded their agreement in a document that had the heading “Terms Sheet”. This terms sheet included the following elements:

(a) This terms sheet outlines the principal terms with respect to the operation of Schoolbook

(b) Mike Tuckerberg and Elder Rower are each referred to as a ‘Party’ and collectively as ‘the Parties’.

(c) The Parties agree that this terms sheet is intended to be legally binding and to constitute the obligations of the Parties.

(d) Each Party is entitled to an equal share of the profits made by Schoolbook.

After the Terms Sheet was signed on 1 December 2016, Mike worked really hard to make Schoolbook a success. Elder Rower dropped out of UNSW and went to a start-up business called SnappyTalk. He invested his balance of $150,000 in SnappyTalk, which is set to become a “unicorn” when it has its initial public offering in early 2018.

Younger Rower has been helping Mike to spread the news about Schoolbook through his extensive social media contacts. In July 2017, Mike was pleased to work out that Schoolbook had made a profit of $50,000 from online advertising, mainly using Google Adwords.

Mike sent Elder Rower $25,000 via a bank transfer on 31 July 2017.

On 1 August, he received:

(a) an email from Elder Rower that said “thanks for the dividend, I look forward to many more as does my brother Younger”; and
(b) an email from Younger Rower that said “where is my dividend? My brother and I always invest together”.

Mike knows that you are a keen student of business law and asks you what he should do now and why. You should include:

(a) What contract or contracts have been formed? When were the contract or contracts formed? Who are the parties? (2 marks)
(b) Advice to Mike as to what the issues are (4 marks)
(c) Your analysis is of those issues (12 marks)
(d) What Mike should do now (2 marks)

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George Large (SSN 000-11-1111) and his wife Marge Large (000-22-2222)

George Large (SSN 000-11-1111) and his wife Marge Large (000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want to prepare their 2012 income tax return based on the information below:

George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus and expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return excess reimbursement; none of the reimbursement was related to meals and entertainment.

Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car a total of $24,000 miles during the year and placed car in service on June 1, 2010. His log indicates that $18,000 miles were for sale calls to customers at the customers’ offices and the remainder was personal mileage. George uses the standard rate method. Assume his business miles were driven evenly during the year

George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss business before, during and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five day trip to the Toyboat headquarters in Musty, OH.

He was so well prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip:

Airfare                $200

Lodging              $85/day

Meals                  $50/day

Taxicabs             $20/day

Marge Large is self-employed. She repair’s rubber toy boats in the basement of their home, which is 25% of the house’s square footage. The business code is 811490. She had the following income and expenses.

Income from rubber toy boat repairs     $15,000

Cost of supplies                                      $ 5,000

Contract labor                                         $ 3,500

Long-distance phone calls – business    $   500

The Large’s home cost a total of $150,000 of which the cost of land was $20,000. The FMV of the house is $225,000. The house is depreciable over a 39 year recovery period. The Larges incurred the following total other expenses:

Utility bills for the house             $2,000

Real estate taxes                        $2,500

Mortgage interest                        $4,500

Cash charitable contributions      $3,500

Required:

Prepare Federal Form 1040, Schedule A , Schedule C and Schedule SE for form 1040 , and Federal Form 2106 and Federal Form 8829 for the income tax year 2012 . (Assume that no estimated taxes were paid by the Larges.)

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Betty, an employee of Shining Sun Daycare Center

Betty, an employee of Shining Sun Daycare Center, read an article in Healthy Child Magazine saying that the average 3-year-old child is 37 in. tall. Betty works with 3-year-olds at Shining Sun, so later that week, she measured the height of each child who had just turned or was about to turn 3 years old. Here are their heights in inches: 41, 40, 36, 42, 39, 38, 33, 44, 39, 41.

a. State the nondirectional hypothesis.

b. Determine the critical t for α = .05.

c. Calculate t. Show your calculations.

d. Is the height of 3-year-olds in Shining Sun Daycare Center significantly different from the height given in the magazine?

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