Solved Questions Archives - Page 21 of 1303

Ch 3 Higgins

Ch 3 Higgins
1.Which of the following statements is correct if a firm’s pro forma financial statements project net income of $12,000 and external financing
required of $5,000
A. Total assets cannot grow by more than $10,000.
B. Dividends cannot exceed $10,000.
C. Retained earnings cannot grow by more than $12,000.
D. Long-term debt cannot grow by more than $5,000
2. You are preparing pro forma financial statements for 2014 using the percent-of-sales method. Sales were $100,000 in 2013 and are projected
to be $120,000 in 2014. Net income was $5,000 in 2013 and is projected to be $6,000 in 2014. Equity was $45,000 at year-end 2012 and
$50,000 at year-end 2013. Assuming that this company never issues new equity, never repurchases equity, and never changes its dividend
payout ratio, what would be projected for equity at year-end 2014?
A. $55,000
B. $56,000
C. $60,000
D. Insufficient information is provided to project equity in 2014.
3.On May 1, Vaya Corp. had a beginning cash balance of $175. Vaya’s sales for April were $430 and May sales were $480. During May, the firm
had cash expenses of $110 and made payments on accounts payable of $290. Vaya’s accounts receivable period is 30 days. What is the firm’s
beginning cash balance on June 1?
A. $145
B. $155
C. $205
D. $215
E. $265
4.Ruff Wear expects sales of $560, $650, $670, and $610 for the months of May through August, respectively. The firm collects 20 percent of
sales in the month of sale, 70 percent in the month following the month of sale, and 8 percent in the second month following the month of sale.
The remaining 2 percent of sales is never collected. How much money does the firm expect to collect in the month of August?
A. $621
B. $628
C. $633
D. $639
E. $643
5.You are developing a financial plan for a corporation. Which of the following questions will be considered as you develop this plan?
I. How much will our sales grow?
II. Will additional fixed assets be required?
III. Will dividends be paid to shareholders?
IV. How much new debt must be obtained?
A. I and IV only
B. II and III only
C. I, III, and IV only
D. II, III, and IV only
E. I, II, III, and IV
6.Steve has estimated the cash inflows and outflows for his sporting goods store for next year. The report that he has prepared summarizing
these cash flows is called a:
A. pro forma income statement.
B. sales projection.
C. cash budget.
D. receivables analysis.
E. credit analysis.
F. None of the above.
7.The Limited collects 25 percent of sales in the month of sale, 60 percent of sales in the month following the month of sale, and 15 percent of
sales in the second month following the month of sale. During the month of April, the firm will collect:
A. 60 percent of February sales.
B. 15 percent of April sales.
C. 60 percent of March sales.
D. 15 percent of March sales.
E. 25 percent of February sales.
8.Assume each month has 30 days and AmDocs has a 60-day accounts receivable period. During the second calendar quarter of the year (April,
May, and June), AmDocs will collect payment for the sales it made during which of the months listed below?
A. October, November, and December
B. November, December, and January
C. December, January, and February
D. January, February, and March
E. February, March, and April
9.Which one of the following statements is correct concerning the cash balance of a firm?
A. Most firms attempt to maintain a zero cash balance at all times.
B. The cumulative cash surplus shown on a cash budget is equal to the ending cash balance plus the minimum desired cash balance.
C. Most firms attempt to maximize the cash balance at all times.
D. A cumulative cash deficit on a cash budget indicates the need to acquire additional funds.
E. The ending cash balance must equal the minimum desired cash balance.
10. Which of the following are viable techniques to cope with the uncertainty inherent in realistic financial projections?
I. Simulation
II. Ad hoc adjustments
III. Scenario analysis
IV. Sensitivity analysis
A. II and IV only
B. III and IV only
C. II, III, and IV only
D. I, II, and III only
E. I, III, and IV only
F. I, II, III, and IV
11. The most common approach to developing pro forma financial statements is called the:
A. cash budget method.
B. financial planning method.
C. seasonality approach.
D. percent-of-sales method.
E. market-oriented approach.
F. None of the above.
12.To estimate Missed Places Inc.’s (MP) external financing needs, the CFO needs to figure out how much equity her firm will have at the end of
next year. At the end of the most recent fiscal year, MP’s retained earnings were $158,000. The Controller has estimated that over the next year,
gross profits will be $360,700, earnings after tax will total $23,400, and MP will pay $12,400 in dividends. What are the estimated retained
earnings at the end of next year?
A. $169,000
B. $170,400
C. $181,400
D. $506,300
E. $518,700
F. None of the above.
13. You are estimating your company’s external financing needs for the next year. At the end of the year you expect that owners’ equity will be
$80 million, total assets will amount to $170 million, and total liabilities will be $70 million. How much will your firm need to borrow, or
otherwise acquire, from outside sources during the year?
A. $20 million
B. $70 million
C. $150 million
D. $160 million
E. $180 million
F. None of the above.
14. Cash budgets are less informative than pro forma financial statements: t/f
15. Scenario analysis involves changing one input to a financial forecast, whereas sensitivity analysis involves changing multiple inputs: t/f
16. A drawback of forecasting using spreadsheets is that typical spreadsheet programs are not equipped to deal with the circularity involving
interest expense and debt. t/f
17. Given the same assumptions, cash flow forecasts and pro forma projections will yield the same need for external funding: t/f
18. All else equal, increasing the assumed payables period in a financial forecast will decrease external funding required: t/f
19. An annual financial forecast for 2013 showing no external funding required assures a company that no cash shortfalls are likely to occur
during 2013: t/f
CH 4. Higgins
1. If a company seeks to maximize firm value, it should never grow at a rate above its sustainable growth rate t/f
2. The only way a company can grow at a rate above its current sustainable growth rate is by increasing leverage. t/f
3. In recent years, U.S. companies as a whole have repurchased more equity than they have issued. t/f
4. Share repurchases usually decrease earnings per share. t/f
5. Issue costs of equity are high relative to those of debt t/f
6. One way to manage an actual growth rate above a sustainable growth rate is to decrease prices. t/f
7. Which one of the following will increase the sustainable rate of growth a corporation can achieve?
A. avoidance of external equity financing
B. increase in corporate tax rates
C. reduction in the retention ratio
D. decrease in the dividend payout ratio
E. decrease in sales given a positive profit margin
F. None of the above.
8. Which of these ratios are the determinants of a firm’s sustainable growth rate?
I. Assets-to-equity ratio
II. Profit margin
III. Retention ratio
IV. Asset turnover ratio
A. I and III only
B. II and III only
C. II, III, and IV only
D. I, II, and III only
E. I, II, III, and IV
F. None of the above
9. The retention ratio is:
A. equal to net income divided by the change in total equity.
B. the percentage of net income available to the firm to fund future growth.
C. equal to one minus the asset turnover ratio.
D. the change in retained earnings divided by the dividends paid.
E. the dollar increase in net income divided by the dollar increase in sales.
F. None of the above.
10. Which of the following statements is true?
A. Rapid growth spurs increases in market share and profits and thus, is always a blessing.
B. Firms that grow rapidly only very rarely encounter financial problems.
C. The cash flows generated in a given time period are equal to the profits reported.
D. Profits provide assurance that cash flow will be sufficient to maintain solvency.
E. Due to required cash investments in current assets, fast-growing and profitable companies can literally “grow broke”.
F. None of the above.
11. Which one of the following correctly defines the retention ratio?
A. one plus the dividend payout ratio
B. additions to retained earnings divided by net income
C. additions to retained earnings divided by dividends paid
D. net income minus additions to retained earnings
E. net income minus cash dividends
F. None of the above.
12. Which one of the following policies most directly affects the projection of the retained earnings balance to be used on a pro forma
statement?
A. net working capital policy
B. capital structure policy
C. dividend policy
D. capital budgeting policy
E. capacity utilization policy
F. None of the above.
13. Which of the following questions are appropriate to address upon conducting sustainable growth analysis and the financial planning
process?
I. Should the firm merge with a competitor?
II. Should additional equity be sold?
III. Should a particular division be sold?
IV. Should a new product be introduced?
A. I, II, and III only
B. I, II, and IV only
C. I, III, and IV only
D. II, III, and IV only
E. I, II, III, and IV
F. None of the above.
14. The sustainable growth rate of a firm is best described as the:
A. minimum growth rate achievable assuming a 100 percent retention ratio.
B. minimum growth rate achievable if the firm maintains a constant equity multiplier.
C. maximum growth rate achievable excluding external financing of any kind.
D. maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.
E. maximum growth rate achievable with unlimited debt financing.
F. None of the above.
15. The sustainable growth rate:
A. assumes there is no external financing of any kind.
B. assumes no additional long-term debt is available.
C. assumes the debt-equity ratio is constant.
D. assumes the debt-equity ratio is 1.0.
E. assumes all income is retained by the firm.
F. None of the above.
16. Which of the following can affect a firm’s sustainable rate of growth?
I. Asset turnover ratio
II. Profit margin
III. Dividend policy
IV. Financial leverage
A. III only
B. I and III only
C. II, III, and IV only
D. I, II, and IV only
E. I, II, III, and IV
F. None of the above.
17. Gujarat Corporation doubled its shareholders’ equity during the year 2014. Gujarat did not issue any new equity, repurchase any equity, or
pay out any dividends during the year. What is Gujarat’s sustainable growth rate for 2014?
A. 50%
B. 100%
C. 150%
D. 200%
18. Hayesville Corporation had net income of $5 million this year on net sales of $125 million per year. At the beginning of this year, its debtto-equity ratio was 1.5 and it held $75 million in total liabilities. It paid out $2 million in dividends for the year. What is Hayesville
Corporation’s sustainable growth rate?
A. 3%
B. 4%
C. 5%
D. 6%
19. Milano Corporation has experienced growth of 20% for each of the last 5 years. Over this 5-year period, Milano’s return on equity has
never exceeded 15%, its profit margin has held steady at 5%, and its total asset turnover has not changed. Over the 5-year period, Milano
paid no dividends and issued no new equity. Based on this information, which of the following can you most likely infer about Milano’s
performance over the past 5 years?
A. Milano’s leverage has decreased.
B. Milano’s leverage has remained constant.
C. Milano’s leverage has increased.
D. None of the above.
20. Which of the following would increase a company’s need for external finance, all else equal?
A. An increase in the dividend payout ratio
B. A decrease in sales growth
C. An increase in profit margin
D. A decrease in the collection period
21. You constructed a pro forma balance sheet for next year and found that external financing required was negative (i.e., the company
projected a financing surplus). Which of the following options, all else equal, would NOT correct the projected imbalance?
A. A stock repurchase
B. A decrease in accounts payable
C. An increase in cash and marketable securities
D. An increase in the retention ratio
22. The sustainable growth rate:
A. is the highest growth rate attainable for a firm that pays no dividends.
B. is the highest growth rate attainable for a firm without issuing new stock.
C. can never be greater than the return on equity.
D. can be increased by decreasing leverage.
23. Wax Music expects sales of $437,500 next year. The profit margin is 4.8 percent and the firm has a 30 percent dividend payout ratio. What
is the projected increase in retained earnings?
A. $14,700
B. $17,500
C. $18,300
D. $20,600
E. $21,000
F. None of the above.
24. Komatsu has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The asset turnover ratio is 1.6 and the assets-to-equity
ratio (using beginning-of-period equity) is 1.77. What is Komatsu’s sustainable rate of growth?
A. 1.91%
B. 6.12%
C. 10.83%
D. 11.26%
E. 12.74%
F. None of the above.
25. A firm has a retention ratio of 40 percent and a sustainable growth rate of 6.2 percent. Its asset turnover ratio is 0.85 and its assets-toequity ratio (using beginning-of-period equity) is 1.80. What is its profit margin?
A. 3.79%
B. 5.69%
C. 6.75%
D. 10.13%
E. 18.24%
26. Westcomb, Inc. had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $195,000.
During the year, the company sold no new equity. Net income for the year was $72,000 and dividends were $44,640. What is Westcomb’s
sustainable growth rate?
A. 15.32 percent
B. 15.79 percent
C. 17.78 percent
D. 18.01 percent
E. 18.24 percent
27. Which of the following actions would help a firm’s growth problem if its actual sales growth exceeds its sustainable rate of growth?
I. Increase prices
II. Decrease financial leverage
III. Decrease dividends
IV. Prune away less-profitable products
A. I and II only
B. I and III only
C. I, II, and IV only
D. I, III, and IV only
E. I, II, III, and IV
F. None of the above.
28. Please refer to the selected financial information for Boss Stores above. What is the retention ratio for 2013?
A. 0.32
B. 0.68
C. 0.97
D. 1.00
E. None of the above
29. Please refer to the selected financial information for Boss Stores above. What is the actual sales growth rate for 2013?
A. – 17.6%
B. – 7.9%
C. 8.51%
D. 21.4%
E. None of the above.
30. Please refer to the selected financial information for Boss Stores above. What is the sustainable growth rate for 2013?
A. – 17.6%
B. – 7.9%
C. 9.97%
D. 10.27%
E. 12.23%
F. 21.40%
31. Please refer to the selected financial information for Boss Stores above. What is the difference between Boss’s sustainable growth rate and
its actual growth rate for 2014?
A. – 11.40%
B. – 7.09%
C. – 3.04%
D. 5.47%
E. 13.98%
F. 21.40%
Higgins ch 6:
1. Financial leverage:
I. Increases expected ROE but does not affect its variability
II. Increases breakeven, like operating leverage, but increases the rate of earnings per share growth once breakeven is achieved
III. Is a fundamental financial variable affecting sustainable growth
IV. Increases expected return and risk to owners
A. I and II only
B. I and III only
C. II and IV only
D. II, III, and IV only
E. I, II, III, and IV
F. None of the above
2. The best financing choice is the one that:
A. Sets the debt to assets ratio equal to 1
B. Trades off the tax disadvantage of debt against the signaling effects of equity
C. Maximizes expected cash flows
D. Ignores the false comfort of financial flexibility
E. Results in the lowest possible financial distress costs
3. Homemade leverage is:
A. The incurrence of debt by a corporation in order to pay dividends to shareholders
B. The exclusive use of debt to fund a corporate expansion project
C. The borrowing or lending of money by individual shareholders as a means of adjusting their level of financial leverage
D. Best defined as an increase in a firm’s debt-equity ratio
E. The term used to describe the capital structure of a levered firm
F. None of the above
4. The basic lesson of M&M theory is that the value of a firm is dependent upon:
A. The firms capital structure
B. The total cash flow of the firm
C. Minimizing the marketed claims
D. The amount of marketed claims to that firm
E. The size of the stockholder’s claims
F. None of the above
5. The term ‘financial distress costs’ includes which of the following?
I. Direct bankruptcy costs
II. Indirect bankruptcy costs
III. Direct costs related to being financially distressed but not bankrupt
IV. Indirect costs related to being financially distressed but not bankrupt
A. I only
B. III only
C. I and II only
D. III and IV only
E. I, II, III, and IV
F. None of the above
6. Which of the following is/are helpful for evaluating the effect of leverage on a company’s risk and potential returns?
I. Estimated pro forma coverage ratios
II. The recognition that financing decisions do not affect firm shareholder value
III. A range of earnings chart and proximity of expected EBIT to the breakeven value
IV. A conservative debt policy that obviates the need to evaluate risk
A. I only
B. III only
C. I and III only
D. II and III only
E. IV only
F. None of the above
7. In general, the capital structures used by non-financial US firms:
A. Typically result in debt to asset ratios between 60 and 80 percent
B. Tend to converge to the same proportions of debt and equity
C. Tend to be those that maximize the use of the firms available tax shelters
D. Vary significantly across industries
E. None of the above
8. Which of the following factors favor the issuance of debt in the financing decision?
I. Market signaling
II. Distress costs
III. Tax benefits
IV. Financial flexibility
-D. I, II, and III only
9. Which of the following factors favor the issuance of equity in the financing decision?
I. Market signaling
II. Distress costs
III. Management incentives
IV. Financial flexibility
-C II and IV only
10. Which of the following factors favor the issuance of debt in the financing decision?
V. Market signaling
VI. Distress costs
VII. Management incentives
VIII. Financial flexibility
-B I and III only
11. Which of the following is not a likely financing policy for a rapidly growing business?
-B borrow funds rather than limit growth, thereby limiting growth only as a last resort
12. According to the pecking order theory, which of the following are correct?
I. for financing needs, firms prefer to first tap internal sources such as retained profits and excess cash
II. there is an inverse relationship between a firms profit level and its debt level
III firms prefer to issue new equity rather than source external debt
IV a firms capital structure is dictated by its need for external financing
-D I, II , and IV only
13. TIMES BURDEN COVERED RATIO:
14. CALCULATE EARNINGS PER SHARE
15. INTEREST EARNED RATIO:
16. The interest tax shield has no value when a firm has:
I. No taxable income
II. Debt equity ratio of 1
III. Zero debt
IV no leverage
-C I, III, and IV
Higgins Ch 7:
Higgins Ch 8:
1. Total risk is measured by ____ and systematic risk is measured by ______.
A. Beta; alpha
B. Beta; standard deviation
C. WACC; beta
D. Standard deviation; beta
E. Standard deviation; variance
F. None of the above
2. When investment returns are less than perfectly positively correlated, the resulting diversification effect means that:
A. making an investment in two or three large stocks will eliminate all of the unsystematic risk.
B. making an investment in three companies all within the same industry will greatly reduce the systematic risk.
C. spreading an investment across five diverse companies will not lower the total risk.
D. spreading an investment across many diverse assets will eliminate all of the systematic risk.
E. spreading an investment across many diverse assets will eliminate some of the total risk.
F. None of the above.
3. Unsystematic risk:
A. can be effectively eliminated by portfolio diversification.
B. is compensated for by the risk premium.
C. is measured by beta.
D. is measured by standard deviation.
E. is related to the overall economy.
F. None of the above.
4. Which of the following are examples of diversifiable risk?
I. An earthquake damages Oakland, California.
II. The federal government imposes an additional $1,000 fee on all business entities.
III. Employment taxes increase nationally.
IV. Toymakers are required to improve their safety standards.
A. I and III only
B. II and IV only
C. II and III only
D. I and IV only
E. I, III, and IV only
F. None of the above.
5. Which of the following statements are correct concerning diversifiable, or unsystematic, risks?
I. Diversifiable risks can be largely eliminated by investing in thirty unrelated securities.
II. There is no reward for accepting diversifiable risks.
III. Diversifiable risks are generally associated with an individual firm or industry.
IV. Beta measures diversifiable risk.
A. I and III only
B. II and IV only
C. I and IV only
D. I, II, and III only
E. I, II, III, and IV
F. None of the above.
6. Which of the following statements concerning risk are correct?
I. Systematic risk is measured by beta.
II. The risk premium increases as unsystematic risk increases.
III. Systematic risk is the only part of total risk that should affect asset prices and returns.
IV. Diversifiable risks are market risks you cannot avoid.
A. I and III only
B. II and IV only
C. I and II only
D. III and IV only
E. I, II, and III only
F. None of the above.
7. Which one of the following is an example of systematic risk?
A. The Federal Reserve unexpectedly announces an increase in target interest rates.
B. A flood washes away a firm’s warehouse.
C. A city imposes an additional one percent sales tax on all products.
D. A toymaker has to recall its top-selling toy.
E. Corn prices increase due to increased demand for alternative fuels.
F. None of the above.
8. The excess return earned by a risky asset, for example with a beta of 1.4, over that earned by a risk-free asset is referred to as a:
A. market risk premium.
B. risk premium.
C. systematic return.
D. total return.
E. real rate of return.
F. None of the above.
9. The dividend growth model can be used to compute the cost of equity for a firm in which of the following situations?
I. Firms that have a 100 percent retention ratio
II. Firms that pay an unchanging dividend
III. Firms that pay a constantly increasing dividend
IV. Firms that pay an erratically growing dividend
A. I and II only
B. I and IV only
C. II and III only
D. I, II, and III only
E. I, III, and IV only
F. None of the above.
10. The cost of equity for a firm:
A. tends to remain static for firms with increasing levels of risk.
B. increases as the unsystematic risk of the firm increases.
C. ignores the firm’s risks when that cost is based on the dividend growth model.
D. equals the risk-free rate plus the market risk premium.
E. equals the firm’s pretax weighted average cost of capital.
F. None of the above.
11. The pre-tax cost of debt:
A. is based on the current yield to maturity of the firm’s outstanding bonds.
B. is equal to the coupon rate on the latest bonds issued by a firm.
C. is equivalent to the average current yield on all of a firm’s outstanding bonds.
D. is based on the original yield to maturity on the latest bonds issued by a firm.
E. has to be estimated as it cannot be directly observed in the market.
F. None of the above.
12. The after-tax cost of debt generally increases when:
I. a firm’s bond rating increases.
II. the market-required rate of interest for the company’s bonds increases.
III. tax rates decrease.
IV. bond prices rise.
A. I and III only
B. II and III only
C. I, II, and III only
D. II, III, and IV only
E. I, II, III, and IV
F. None of the above.
Key facts and assumptions concerning FM Foods, Inc. at December 31, 2011, appear below.
13. Estimate FM’s after-tax cost of equity capital.
A. 4.50%
B. 6.92%
C. 7.93%
D. 12.20%
E. 17.48%
F. None of the above.
14. Estimate FM’s after-tax cost of debt capital.
A. 2.21%
B. 4.10%
C. 4.55%
D. 6.30%
E. 7.00%
F. None of the above.
15. Estimate the appropriate weight of equity to be used when calculating FM’s weighted average cost of capital.
A. 11.5%
B. 19.3%
C. 80.7%
D. 88.5%
E. 100.0%
F. None of the above.
16. Estimate the appropriate weight of debt to be used when calculating FM’s weighted average cost of capital.
A. 11.5%
B. 19.3%
C. 80.7%
D. 88.5%
E. 100.0%
F. None of the above.
17. Estimate FM’s weighted-average cost of capital.
A. 6.46%
B. 6.58%
C. 11.27%
D. 11.32%
E. 11.52%
F. None of the above.
18. FM is contemplating an average-risk investment costing $100 million and promising an annual after-tax cash flow of $15 million in
perpetuity. Which of the following statements is/are correct?
I. FM should reject the project because the IRR is greater than the firm’s WACC.
II. FM should accept the project because the IRR is greater than the firm’s WACC.
III. FM should accept the project because the NPV is greater than zero.
IV. FM should reject the project because the NPV is less than zero.
A. I only
B. II only
C. IV only
D. I and IV only
E. II and III only
F. None of the above.
19. Which of the following statements are correct?
I. Using the same risk-adjusted discount rate to discount all future cash flows adjusts for the fact that the more distant cash flows are often more
risky than cash flows occurring sooner.
II. If you can borrow all of the money you need for a project at 5%, the cost of capital for this project is 5%.
III. The best way to obtain the cost of debt capital for a firm is to use the coupon rates on its bonds.
IV. The cost of capital, or WACC, is not the correct discount rate to use for all projects undertaken by a firm.
A. I and III only
B. II and IV only
C. I and II only
D. I and IV only
E. I, II, and III only
F. None of the above
20. The capital structure weights used in computing the weighted average cost of capital:
A. are based on the book values of total debt and total equity.
B. are based on the market value of the firm’s debt and equity securities.
C. are computed using the book value of the long-term debt and the book value of equity.
D. remain constant over time unless the firm issues new securities.
E. are restricted to the firm’s debt and common stock.
F. None of the above.
21. The discount rate assigned to an individual project should be based on:
A. the firm’s weighted average cost of capital.
B. the actual sources of funding used for the project.
C. an average of the firm’s overall cost of capital for the past five years.
D. the current risk level of the overall firm.
E. the risks associated with the use of the funds required by the project.
F. None of the above.
22. The weighted average cost of capital for a firm is the:
A. discount rate which the firm should apply to all of the projects it undertakes.
B. rate of return a firm must earn on its existing assets to maintain the current value of its stock.
C. coupon rate the firm should expect to pay on its next bond issue.
D. minimum discount rate the firm should require on any new project.
E. rate of return shareholders should expect to earn on their investment in this firm.
F. None of the above.
23. Blue Diamond Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.75 percent.
The company also has 750,000 shares of 7 percent preferred stock and 2.5 million shares of common stock outstanding. The preferred stock
sells for $53 a share. The common stock has a beta of 1.34 and sells for $42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return
on the market is 11.2 percent. The corporate tax rate is 38 percent. What is the firm’s weighted average cost of capital?
A. 10.39 percent
B. 10.64 percent
C. 11.18 percent
D. 11.30 percent
E. 11.56 percent
F. None of the above.
24. Honest Abe’s is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe’s. Honest Abe’s has a
beta of 1.38 as compared to Integral Designs’ beta of 1.12. Both firms carry no debt, i.e., are 100% equity-financed. The risk-free rate of return is
3.5 percent and the market risk premium is 8 percent. What discount rate should Honest Abe’s use if it considers a project that involves the
manufacturing of furniture?
A. 12.46 percent
B. 12.92 percent
C. 13.50 percent
D. 14.08 percent
E. 14.54 percent
F. None of the above.
Short Answer Questions
Key facts and assumptions concerning Costco Company, at December 31, 2011, appear below.
25. Use the above information to answer the following questions.
a. Estimate Costco’s cost of equity capital.
b. Estimate Costco’s weighted-average cost of capital.
26. Explain the difference between systematic and unsystematic risk, and why one of these types of risks is rewarded with a risk premium while
the other type is not.
27. Suppose that your company’s weighted-average cost of capital is 9 percent. Your company is planning to undertake a project with an internal
rate of return of 12%, but you believe that this project is not a good investment for the firm. What logical arguments might you use to convince
your boss to forego the project despite its high rate of return? Is it possible that making investments with expected returns higher than your
company’s cost of capital will destroy value? If so, how?
28. The standard deviation of returns on Wildcat Oil Drilling is very high. Does this necessarily imply that Wildcat Oil Drilling is a high-risk
investment when investors hold diversified portfolios? Explain why or why not.
29. Investments A and B both cost $100,000 and each promises a single payoff in one year. The distribution of payoffs for each investment
appears below.
Ignoring possible differences in nondiversifiable risk, which investment would a risk-averse investor prefer, and why?
30. What is the present value of a cash flow stream of $10,000 per year annually for 11 years that then grows at 2 percent per year forever?
Assume the appropriate discount rate is 12 percent.
Higgins Ch 9:
1. Which of the following statements are correct?;
I. Liquidation value of a firm is equal to the present worth of expected future;cash flows from operating activities.;
II. When an acquiring firm purchases a target firm’s equity, the acquirer must;assume the target’s liabilities.;
III. III. The market value of a public company reflects the worth of the business to;minority investors.;
IV. IV. The fair market value of a business is usually the lower of its liquidation;value and its going-concern value.;
A. I and III only;
B. II and IV only;
C. II and III only;
D. I, II, and III only;
E. II, III, and IV only;
F. None of the above.;
2. Ginormous Oil entered into an agreement to purchase;all of the outstanding shares of Slick Company for $60 per share. The number
of;outstanding shares at the time of the announcement was 82 million. The book;value of liabilities on the balance sheet of Slick Co. was
$1.46 billion. What;was the cost of this acquisition to the shareholders of Ginormous Oil?;
A. $1.46 billion;
B. $3.46 billion;
C. $4.92 billion;
D. $6.38 billion;
E. $8.38 billion;
F. None of the above.;
3. Ginormous Oil entered into an agreement to purchase;all of the outstanding shares of Slick Company for $60 per share. The
number of;outstanding shares at the time of the announcement was 82 million. The book;value of liabilities on the balance sheet of
Slick Co. was $1.46 billion.;Immediately prior to the Ginormous Oil bid, the shares of Slick Co. traded at;$33 per share. What value
did Ginormous Oil place on the control of Slick;Co.?;
A. $2.21 billion;
B. $2.71 billion;
C. $4.17 billion;
D. $6.38 billion;
E. None of the above.;
4. Which of the following statements is/are correct?;
I. Going-concern value of a firm is equal to the present value of expected net;income.;
II. When a buyer values a target firm, the appropriate discount rate is the;buyer’s weighted-average cost of capital.;
III. The liquidation value estimate of terminal value usually vastly understates;a healthy company’s terminal value.;
IV. The value of a firm’s equity equals the discounted cash flow value of the;firm minus all liabilities.;
A. II only;
B. III only;
C. I and II only;
D. II and III only;
E. II, III, and IV only;
F. None of the above.;
5. Which of the following statements are correct?;
I. Going-concern value of a firm is equal to the present value of expected;future cash flows to owners and creditors.;
II. When an acquiring firm purchases a target firm’s equity, the acquirer need;not assume the target’s liabilities.;
III. The market value of a public company reflects the worth of the business to;minority investors.;
IV. The fair market value of a business is usually the lower of its liquidation;value and its going-concern value.;
A. I and III only
B. II and IV only;
C. II and III only;
D. I, II, and III only;
E. II, III, and IV only;
F. None of the above.;
6. The following table presents forecasted financial;and other information for Scott’s Miracle-Gro Co.;What is an appropriate
estimate of Scott’s terminal value as of the end of;2014, using the perpetual-growth equation as your estimate?;
A. $161 million;
B. $363 million;
C. $3,690 million;
D. $3,838 million;
E. $5,357 million;
F. None of the above.;
7. The following table presents forecasted financial;and other information for Scott’s Miracle-Gro Co.;What is an appropriate estimate of
Scott’s terminal value of equity as of the;end of 2014?;A. $225 million;B. $3,833.0 million;C. $4,207.5 million;D. $4,365.0 million;E.
$6,788.1 million;F. None of the above.;
8. The following table presents forecasted financial;and other information for Scott’s Miracle-Gro Co.;What is an appropriate estimate of
Scott’s terminal value as of the end of;2014, using a warranted multiple of free cash flow as your estimate?
A. $155 million;
B. $2,898.5 million;
C. $3,007.0 million;
D. $4,365.0 million;
E. $7,042.2 million;
F. None of the above.;
9. Atmosphere, Inc. has offered $860 million cash for;all of the common stock in ACE Corporation. Based on recent market information;ACE
is worth $710 million as an independent operation. For the merger to make;economic sense for Atmosphere, what would the minimum
estimated value of the;enhancements from the merger have to be?
A. $0
B. $75 million;
C. $150 million;
D. $710 million;
E. $860 million;
F. None of the above.;
10. Consider the following premerger information about;a bidding firm (Buyitall Inc.) and a target firm (Tarjay Corp.). Assume that;neither
firm has any debt outstanding.;Buyitall has estimated that the present value of any enhancements that Buyitall;expects from acquiring
Tarjay is $2,600. What is the NPV of the merger assuming;that Tarjay is willing to be acquired for $28 per share in cash?;
A. $400;
B. $600;
C. $1,800;
D. $2,200;
E. $2,600;
F. None of the above.;
Figure 9.1In March of 2011, Macklemore Corp. considered an acquisition of Blue;Scholar Learning, Inc. (BSL), a privately-held educational
software firm. As a;first step in deciding what price to bid for BSL, Macklemore’s CFO, Ryan Lewis;has prepared a five-year financial
projection for the company assuming the;acquisition takes place. Use this projection and BSL’s 2010 actual financial;figures to answer the
questions below.;
11. What is BSL’s free cash flow (in $ millions) for;2011?;
A. – $938;
B. – $792;
C. – $7;
D. $122;
E. $1,091;
F. None of the above.;
12. Estimate the present value of BSL’s free cash flow;(in $ millions) for the years 2011 – 2015. Macklemore’s WACC is 8.0 percent.;BSL’s WACC is
11.5 percent, and the average of the two companies’ WACCs;weighted by sales, is 8.2 percent.;
A. – $1.29;
B. $628.24;
C. $720.58;
D. $726.68
E. $743.94;
F. None of the above.;
13. Estimate BSL’s value (in $ millions) at the end of;2010 assuming it is worth the book value of its assets at the end of 2015.;Macklemore’s
WACC is 8.0 percent. BSL’s WACC is 11.5 percent, and the average;of the two companies’ WACCs, weighted by sales, is 8.2 percent.;
A. $628.24;
B. $3,669.01;
C. $4,297.25;
D. $4,412.94;
E. $4,984.28;
F. $6,951.24;
G. None of the above.;
14. Assume BSL is worth the book value of its assets;at the end of 2015. Macklemore’s WACC is 8.0 percent. BSL’s WACC is 11.5;percent, and the
average of the two companies’ WACCs, weighted by sales, is 8.2;percent. What is the maximum acquisition price (in $ millions)
Macklemore;should pay to acquire BSL’s equity?;
A. $1,702.25;
B. $2,227.25;
C. $2,342.94;
D. $2,383.94;
E. $2,603.25;
F. $4,297.25;
G. None of the above.;
15. Estimate BSL’s value (in $ millions) at the end of;2010 assuming that in the years after 2015 the company’s free cash flow grows 4;percent
per year in perpetuity. Macklemore’s WACC is 8.0 percent. BSL’s WACC is;11.5 percent, and the average of the two companies’ WACCs, weighted
by sales;is 8.2 percent.
A. $4,297.25
B. $4,571.09;
C. $4,686.78;
D. $6,181.09;
E. $5,351.19;
F. $7,423.16;G. None of the above.;
16. Assume that in the years after 2015 the company’s;free cash flow grows 4 percent per year in perpetuity. Macklemore’s WACC is
8.0;percent. BSL’s WACC is 11.5 percent, and the average of the two companies;WACCs, weighted by sales, is 8.2 percent. What is the maximum
acquisition price;(in $ millions) Macklemore should pay to acquire BSL’s equity at the end of;2010?;
A. $1,976.09;
B. $2,501.09;
C. $2,877.09;
D. $4,195.09;
E. $4,571.09;
F. None of the above.;
17. Estimate BSL’s value (in $ millions) at the end of;2010 assuming that at year-end 2015 the company’s equity is worth 15 times;earnings after
tax and its debt is worth book value. Macklemore’s WACC is 8.0;percent. BSL’s WACC is 11.5 percent, and the average of the two
companies;WACCs, weighted by sales, is 8.2 percent.;
A. $628.24;
B. $3,669.01;
C. $7,429.74
D. $6,343.26;
E. $6,755.83;
F. $7,008.06;
G. None of the above.;
18. Assume that at year-end 2015 the company’s equity;is worth 15 times earnings after tax and its debt is worth book value.;Macklemore’s
WACC is 8.0 percent. BSL’s WACC is 11.5 percent, and the average;of the two companies’ WACCs, weighted by sales, is 8.2 percent. What is
the;maximum acquisition price (in $ millions) Macklemore should pay to acquire;BSL’s equity at the end of 2010?;
A. $3,484.68;
B. $4,723.26;
C. $4,938.06;
D. $5,554.68;
E. $6,343.26
F. None of the above.;
Short Answer Questions;
19. The following information is available about;Chiantivino Corp. (CC);An activist investor is confident that by terminating CC’s moneylosing;fortified wine division, she can increase free cash flow by $4 million annually;for the next decade. In addition, she estimates that an
immediate, special;dividend of $10 million can be financed by the sale of the division.;a. Assuming these actions do not affect CC’s cost of
capital, what is the;maximum price per share the investor would be justified in bidding for control;of CC? What percentage premium does this
represent?;b. Show your answer if you conduct a sensitivity analysis by assuming the cost;of capital is 15 percent and the increased cash flow is
only $3.5 million per;year.;
20. Below is a recent income statement for Gatlin;Camera;Calculate Gatlin’s free cash flow in this year assuming it spent $510 on new;capital
equipment and increased current assets net of noninterest-bearing;current liabilities $340.;The following table presents a four-year forecast
for;Kenmore Air, Inc.;
21. Estimate the fair market value of Kenmore Air at;the end of 2012. Assume that after 2016, earnings before interest and tax will;remain
constant at $200 million, depreciation will equal capital expenditures;in each year, and working capital will not change. Kenmore Air’s;weightedaverage cost of capital is 11 percent and its tax rate is 40;percent.;
22. Estimate the fair market value per share of;Kenmore Air’s equity at the end of 2016 if the company has 40 million shares;outstanding and
the market value of its interest-bearing liabilities on the;valuation date equals $250 million.;
23. Estimate the fair market value of Kenmore Air’s;equity per share at the end of 2012 under the following assumptions;a. EBIT in year 2016 is
$200 million, and then grows at 5 percent per year;forever.;b. To support the perpetual growth in EBIT, capital expenditures in year 2017;exceed
depreciation by $30 million, and this difference grows 5 percent per;year forever.;c. Similarly, working capital investments are $15 million in
2017, and this;amount grows 5 percent per year forever.;
24. Estimate the fair market value of Kenmore Air’s;equity per share at the end of 2012 under the following assumptions;a. EBIT in year 2016
will be $200 million.;b. At year-end 2016, Kenmore Air has reached maturity, and analysts expect its;equity will sell for 12 times year 2016 net
income.;c. At year-end 2016, Kenmore Air has $250 million of interest-bearing;liabilities outstanding at an average interest rate of 10 percent.;
25. Ametek, Inc. is a billion dollar manufacturer of;electronic instruments and motors headquartered in Paoli, Pennsylvania. Use the;following
information on Ametek and five other similar companies to value;Ametek, Inc. on December 31, 2010.;*American Power Conversion has no
interest-bearing debt;outstanding.;MV = Market value, BV = Book value. Market value is estimated as book value of;interest-bearing debt +
market value of equity. Earnings are fiscal year earnings.;
26. Rainy City Coffee’s (RCC) free cash flow next year;will be $100 million and it is expected to grow at a 4 percent annual rate;indefinitely. The
company’s weighted average cost of capital is 10 percent, the;market value of its liabilities is $1 billion, and it has 20 million
shares;outstanding.;a. Estimate the price per share of RCC’s common stock.;b. A hedge fund believes that by selling the company’s private jet
and;instituting other cost savings, it can increase RCC’s free cash flow next year;to $110 million and can add a full percentage point to RCC’s
growth rate;without affecting its cost of capital. What is the maximum price per share the;hedge fund can justify bidding for control of RCC?;
27. Empirical evidence indicates that the returns to;shareholders of the target firm vary significantly from the returns to the;shareholders of the
acquiring firm. Identify the shareholders that tend to;realize the smaller return. Does your answer depend on the way the acquisition;is
financed?

Topic 7: Emerging Technology

Consider some of the new and emerging technologies you have used recently or learned in the topic and identify which of the technologies you like. Which do you not like? Provide some specific examples of how you used any of these technologies and justify your like or dislike of the technology. In replies to peers, state whether you agree or disagree with the assessment provided? Share your own experience with the use of that technology.

Using the Tech Trends Report for the current year (available at https://futuretodayinstitute.com),topic Resources, and your own experience, consider current technology that you use as a part of your job or that is used within your field of study. Articulate ways it could be changed, upgraded, or improved by emerging technologies, such as those presented in the topic Resources, to help you do your job/future job more efficiently or effectively. Provide specific examples to support your ideas. In replies to peers, provide additional examples of similar emerging technologies and their workplace application.

The purpose of this assignment is to explore emerging technologies that were discussed in class that are used in business enterprises.The following emerging technologies were discussed during this course:

Blockchain
Artificial Intelligence (AI)
Augmented Reality (AR)
Machine Learning
Cognitive Computing

Choose three emerging technologies from the list above that you think will further change the way companies will conduct business over the next 10 years.In a Microsoft Excel spreadsheet, create a table that summarizes the following information. When creating the chart, be sure to include a title and proper labels on rows and columns to ensure that readers can understand the information being presented.

Name of each emerging technology (NOTE: apps, social media, or devices are not emerging technology; emerging technologies are ones discussed in DQ 1).
Description of the role of the technology and how it correlates to information systems.
Description of how the technology could change business operations.
Description of how the technology could change the way employees work.
Description of how the technology could change customer interaction or the customer experience.
Description of how the technology could help business organizations gain competitive advantage.
Description of how the technology could help the organization meet goals more quickly or efficiently.
Documentation of resources used to learn about each technology.

Submit the Microsoft Excel spreadsheet only. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.You are not required to submit this assignment to LopesWrite.Benchmark InformationThis benchmark assignment assesses the following programmatic competencies:BS Business for Secondary Education7.2: Explain the role of information technology and systems within business enterprises.

Topic 6: Social Media

Search two blogging and two microblogging social media channels that businesses can use to gain competitive advantage and explain how has each changed the way information is communicated and used to influence social perception? In replies to peers, identify whether your organization or businesses within your field of study are using the social media channels identified. Are these channels effective in communicating with consumers and creating competitive advantage? Provide specific examples to illustrate your ideas.

How do companies use social media channel “influencers” to promote their product? Discuss any legal or ethical issues associated with this type of promotion? Provide a link to a specific example that illustrates your idea. In replies to peers, elaborate on the legal and ethical issues presented by peers by researching and discussing actual cases that illustrate the ideas presented. Include links to relevant articles in your reply.

The purpose of this assignment is to identify social media data collection strategies and the legal and ethical issues associated with social media data mining.

Part 1

Conduct research to identify how business organizations mine social media to collect data so they can obtain a competitive advantage in the marketplace. Locate examples of several strategies and companies. You cannot use examples already referenced in the topic Resources. Research the legal and ethical issues that are associated with data mining activities, including specific laws that govern data mining and examples of companies that have faced legal issues and negative consequences as a result of ethical issues resulting from the data mining strategies they employed.

Create a PowerPoint presentation (minimum of eight content slides) that summarizes your findings and addresses the following. Include a reference slide at the end of the presentation.

Describe strategies business organizations use to mine social media to collect data and provide supporting examples.
Discuss how the data that are mined via social media can be used to create a competitive advantage for the business organizations.
Describe legal issues associated with business data mining activities, including specific laws governing data mining practices.
Provide an example of a company that faced legal issues as a result of the data mining strategies it employed.
Discuss ethical issues associated with business data mining activities.
Provide an example of a company that faced negative consequences as a result of ethical issues resulting from the data mining strategies it employed.

Part 2

Practice delivering your PowerPoint. Using Loom, record your delivery of the PowerPoint presentation. Refer to the topic Resources for additional guidance on recording your presentation with Loom. Employ the following public speaking strategies:

Speak slowly and clearly.
Make eye contact.
Present yourself in a professional manner.
Make sure that you are visible in the video.

General Requirements

Refer to the resource, “Creating Effective PowerPoint Presentations,” located in the Student Success Center, for additional guidance on completing this assignment in the appropriate style.

Submit the PowerPoint presentation file with the link to the Loom video presentation as the last reference in the references list slide. Do not try to upload the video file: It will be too big and will not upload. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.

While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are not required to submit this assignment to LopesWrite.

Topic 5: Mobile Technology And App Design

If you had the technical capability, what type of app would you create for the business where you currently work or your selected field of study that is completely new or significantly different from an existing app? Explain how your app would change the way the business operates or gains competitive advantage and why you think others might adopt and pay for the app. In replies to peers, provide feedback about the app proposal and the additional competitive advantages it could potentially produce if adopted.

The evolution of smartphones has opened up a new venue for organizations and businesses to communicate and conduct commerce. Research and discuss an emerging mobile technology trend that can further enhance the way organizations in your line of work or field of study use mobile technology. Include a link to your research with your post. In replies to peers, explain how the mobile technologies recommended by peers could be applied to your business or field of study.

The purpose of this assignment is to execute key steps in the mobile app planning and design process and to explain how mobile technology and apps can be used to drive business results and create competitive advantage.

Part 1 – Review How to Build a Mobile App Requirements Document

Before working on the assignment, review the “How to Build a Mobile App Requirements Document,” located in the topic Resources, to learn the process of designing a mobile app. The PowerPoint presentation you will create for this assignment should include the following:

Business requirements, mobile app objectives, and product vision statement.
Target audience and user journey.
List of features.
Monetization model.
Product and technical specification.
Platforms for which the app is being developed.
Maintenance and upgrade requirements.
Dependencies, assumptions, constraints, and submission.
Explanation of how the app could create a competitive advantage for the organization.
Discussion on how tenets of servant leadership and conscious capitalism can be applied to the project to use business as a force for good to improve society and help communities prosper.
Documentation of sources: correct citation of research references in APA reference format.

Part 2 – Choosing a Sustainable Development Goal

One of the key principles of the Colangelo College of Business is that business is a force for good to improve society and help communities prosper. For this assignment, consider the GCU’s “Statement on the Integration of Faith and Work,” located in the topic Resources, and the tenets of servant leadership, conscious capitalism, and the sustainable development goals described in “Measuring Progress Towards the Sustainable Development Goals,” also located in the topic Resources.

Select a sustainable development goal from the list of sustainable development goals located in the topic Resources. Choose a goal that you would like to promote. Here is the list of sustainable development goals:

End poverty in all its forms everywhere.
End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.
Ensure healthy lives and promote well-being for all at all ages.
Ensure inclusive and quality education for all and promote lifelong learning.
Achieve gender equality and empower all women and girls.
Ensure access to water and sanitation for all.
Ensure access to affordable, reliable, sustainable and modern energy for all.
Promote inclusive and sustainable economic growth, employment, and decent work for all.
Build resilient infrastructure, promote sustainable industrialization, and foster innovation.
Reduce inequality within and among countries.
Make cities inclusive, safe, resilient, and sustainable.
Ensure sustainable consumption and production patterns.
Take urgent action to combat climate change and its effects.
Conserve and sustainably use the oceans, seas, and marine resources.
Sustainably manage forests, combat desertification, halt and reverse land degradation, and halt biodiversity loss.
Promote just, peaceful, and inclusive societies.
Revitalize the global partnership for sustainable development.

Part 3 – Creating the PowerPoint Presentation

Imagine that your company is partnering with the United Nations to plan and design a mobile app as part of an initiative to fundraise and increase awareness about your selected sustainable development goal.

Create a PowerPoint presentation (10 slides minimum) that includes the following:

Outlines the development plan and design specifics of the mobile app.
Explains how the app can be used to drive business results and create business as a force for good.
Includes speaker notes to provide details about the content of each slide.
Includes discussion of the importance of business being a force for good to improve society and help communities prosper.
Includes how the tenets of servant leadership and conscious capitalism can be applied to the project to ensure this is appropriate.

Submit the Microsoft PowerPoint presentation file only. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.

Refer to the resource, “Creating Effective PowerPoint Presentations,” located in the Student Success Center, for additional guidance on completing this assignment in the appropriate style.

General Requirements

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are not required to submit this assignment to LopesWrite.

Topic 4: Internet And Cloud Computing

How does utilizing the Internet and the cloud help a business achieve organizational and operational goals or competitive advantage? Use two specific examples to support your ideas. In replies to peers, provide additional examples of how the Internet and cloud computing can be employed.

Identify and explain two ways you use the cloud as a consumer. Identify potential risks associated with using the cloud in such ways. What are the pros and cons consumers must consider when using the cloud to store and share information? Choose a peer that has used the cloud in a manner different from your post and comment on your experiences with using the cloud in this way, including advantages and disadvantages of this type of use.

The purpose of this assignment is to articulate how various industries use the Internet and cloud computing resources in business operations and to establish a competitive advantage.

Part 1

Conduct research about the use of the Internet and cloud computing in a business sector related to your field of study.

Create a PowerPoint presentation with a minimum of eight slides that summarizes your findings. The presentation should address the following:

Describe the business sector.
Provide specific examples of how the industry is utilizing the Internet and cloud computing resources in business operations.
Explain how the use of Internet and cloud computing resources has helped the company gain competitive advantage by providing a specific example.
Discuss specific technology disruptors the industry/business sector has seen in the last 1-3 years.
Discuss how the industry/business sector is changing as a result of the use of Internet and cloud computing resources.
Include a reference slide at the end of the presentation.

Part 2

Practice delivering your PowerPoint presentation. Using Loom, record your delivery of the PowerPoint presentation. Refer to the topic Resources for additional guidance on recording your presentation with Loom. Employ the following public speaking strategies:

Speak slowly and clearly.
Make eye contact.
Present yourself in a professional manner.
Make sure that you are visible in the Loom bubble on the same screen with the PowerPoint slides.

General Requirements

Refer to the resource, “Creating Effective PowerPoint Presentations,” located in the Student Success Center, for additional guidance on completing this assignment in the appropriate style.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are not required to submit this assignment to LopesWrite.

Topic 3: Networks, Security, And Privacy

What is the importance of system security within the organization where you currently work or at an organization within your field of study? What are the legal and ethical implications the organization could face for failing to protect systems and information? Identify and explain three strategies the organization could implement to protect its systems and information against threats. In replies to peers, consider whether the three identified strategies are the best defense against threats. Justify your response.

What is your perception of the current threats presented by social media or Internet sites that you frequent? How can you protect your personal information to minimize these threats? In replies to peers, provide additional ways to protect personal information on social channels and the Internet through providing examples found in your own research or by citing the topic Resources.

The purpose of this assignment is to explore legal and ethical issues related to networks, privacy, and security, as well as to research specific types of privacy and security threats and the measures that employee users should take to maintain privacy and security within an organization.

Assume you are part of the IT security team in your organization. Research one common employee IT privacy and security issues and ways that employee users can protect themselves and the business from privacy and security breaches and risks. Some common risks to business include:

Lack of password management
Electronic storage and transfer of information
Privilege abuse by employees
Use of unapproved hardware and software
Data mishandling
Equipment misuse (including hardware and systems)
Knowledge misuse
Unapproved workarounds
Securing company data and information on personal employee devices (e.g., cell phones, tablets)
Collaboration with third-party service providers
Social engineering
Phishing attacks

Summarize your research findings and educate employees about the identified IT privacy and security issues.

Create a PowerPoint presentation with a minimum of six slides that addresses the following:

Define the employee privacy/security issue and explain why it could be a risk for an organization.
Provide a specific workplace scenario to illustrate the employee privacy/security issue.
Discuss the legal and ethical implications the privacy/security issue presents for the employee, the company, and the customer.
Describe the negative impact the employee privacy/security issue could present to the organization in terms of its overall effect on accounting, finance, marketing, management, economics, and general business operations.
Discuss the ways that employee users can protect themselves and the business from these types of privacy and security breaches and risks.
Discuss specific policies, strategies, and techniques that could be employed by the organization and the employee to minimize the identified employee privacy/security issue.
Discuss how to educate employees about the identified IT privacy and security risks.
Include speaker notes at the bottom of each slide.

Submit the Microsoft PowerPoint presentation file only. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.

Refer to the resource, “Creating Effective PowerPoint Presentations,” located in the Student Success Center, for additional guidance on completing this assignment in the appropriate style.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance. .

Topic 2: Hardware And Software

In your own words, can you explain the difference between system and application software? How does your business or organizations within your field of study use both system and application software? Are there constraints between using one type of system software with different application products? In replies to peers, explain whether you agree with the differences and constraints your peers discussed?

Other than Microsoft Office and Quicken, what are two common software products that are used in your workplace or organizations within your field of study? Can you provide an explanation and practical examples of how the software is used? In replies to peers, consider one of the following:

Your experience with the identified software
Advantages and disadvantages
Available alternate software that could be considered?

The purpose of this assignment is to use Microsoft Excel to create a laptop computer system cost comparison spreadsheet and utilize Microsoft PowerPoint to report the costs and pros and cons of various computer systems.

Your manager has approved the purchase of new laptop computers for your department.

Part 1 – Laptop Computer Cost Comparison

Create an Excel spreadsheet and, in a text box, identify and describe three software programs specific to your career field of study. This should not include Microsoft Office. The software should be used for productivity, data management, unique needs of the field, increasing market share, and increasing competitive advantage.

From this perspective, research various computer systems. In your Excel spreadsheet, identify and summarize the cost base for three laptop computer systems. Include information on the specifications listed below:

Computer brand and model
Price
CPU: type, clock speed, number of cores
RAM: amount and type
Screen size and resolution
Primary disk: capacity, hard drive or SSD
Optical disc drive (optional)

At the bottom of the spreadsheet, merge a block of several cells to create a large cell. In this area, provide a link to the website where this product can be found.

Add a new worksheet page and create two pie charts.
Pie Chart 1 should compare the cost of the three laptop systems.
Pie Chart 2 should compare the cost of the three software programs.

Only the Microsoft Excel spreadsheet file will be accepted. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.

Part II – Laptop Computer System Selection Presentation

Now that you researched three different laptop computer systems, select a laptop computer system that you chose to recommend to the management for the purchase. Create a PowerPoint presentation with a minimum of six slides that you can use to summarize and justify the laptop computer you have selected. Management has asked that you address the following in the presentation.

Computer brand and model
Price
CPU: type, clock speed, number of cores
RAM: amount and type
Screen size and resolution
Primary disk: capacity, hard drive or SSD
Optical disc drive (may be optional)
Detailed discussion of software specific to your career field of study that will be used for productivity, data management, unique needs of the field, increasing market share, and increasing competitive advantage (QuickBooks, SalesForce, Google Analytics, Epic, etc.), including the associated cost.

Only the Microsoft PowerPoint presentation file will be accepted. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.

Microsoft Office Essentials – TOPIC 1

Why is the knowledge of basic Excel skills crucial for success in the workplace or businesses within your field of study? How could this knowledge be applied in your chosen or future career field? Provide two examples. In replies to peers, consider the commonalities and differences you see in how this knowledge is applied across career fields, and explain how lack of working knowledge in Excel could negatively impact the business.

Discuss software solutions most commonly used within your current workplace or within your field of study. Describe how working knowledge of these applications can create a competitive advantage for you as an employee or potential employees. Explain how the use of these software solutions can help you execute your job more efficiently and effectively. In replies to peers, consider the following, discuss whether their chosen software solutions could be useful in your current workplace or within your field of study and provide relevant example.

The purpose of this assignment is to utilize Microsoft Excel and PowerPoint to create a business presentation.

Part 1

As a sales manager at Lopes Athletics Productions, you are required to report your sales numbers weekly and share them with the vice president of sales. Create an Excel spreadsheet that provides the following information.

Total sales for each type of video.
Total sales of all videos.
Percentage of total sales for each type of video.
A bar chart that summarizes the sales data.

The data needed for the spreadsheet is as follows. In all, you will need to create at least four columns; Video Type, Unit Price, Total Sales (for each type of video), and Percentage of Total Sales (for each type of video.

Pilates sold 156 videos at $29.99 each.
Step sold 392 videos at $14.99 each.
Weight Training sold 147 videos at $54.99 each.
Kickboxing sold 282 videos at $29.99 each.
Yoga sold 165 videos at $34.99 each.

Add a second worksheet to your workbook.

Insert a chart in a bar format linked to data on your first worksheet.
This bar chart should reflect the total sales of each type of video.
Review the rubric to see how the spreadsheet will be assessed

Part 2

Create a PowerPoint presentation with a minimum of five slides based upon the Excel spreadsheet you created in Part 1 of this assignment.

Utilize the bar chart from the spreadsheet as a graphic element on at least one slide in the presentation. The presentation should summarize the following information for the vice president of sales:

Total sales for each type of video.
Total sales of all videos.
Percentage of total sales for each type of video.

In addition to the content, the presentation will be assessed on the following criteria:

Slide structure includes correct use of bullet points and the 6 x 6 rule.
Slide appearance includes consistent theme, text alignment, readable font, clear photos/charts.
Slide content is accurate, concise, and focused on a single topic.
Use of chart enhances the presentation and illustrates slide information.
Speaker notes are appropriate for explaining slide content and add details not presented on the slide.

Submit the PowerPoint presentation file. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.

General Requirements

Submit both the Excel spreadsheet file and the Microsoft PowerPoint presentation file. Do not submit any other file format, such as an Adobe PDF file, or you will not earn full credit.

Refer to the resource, “Creating Effective PowerPoint Presentations,” located in the Student Success Center, for additional guidance on completing this assignment in the appropriate style.

APA style is not required, but solid academic writing is expected.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

Benchmark Information

This benchmark assignment assesses the following programmatic competencies:

BS Business Secondary Education

7.1: Demonstrate computer literacy skills.

After we have studied the theories, concepts, methodologies, and perspectives from this course’s readings and beyond

Description
After we have studied the theories, concepts, methodologies, and perspectives from this course’s readings and beyond, e.g. Science in Society, students are provided the hands-on learning opportunity to analyze and critique a science fiction film, or film pertaining to visions of science and technology, their ethics, philosophy, metaphor, allegory, and their relationship to society, humanity, mankind, nature and environment.

identify the ethical and philosophical dimensions of science and technology;
? Analyze critically how they are embedded in metaphors and narratives that represent deep cultural ideals and assumptions;
? Identify the ways that our ideas about science and technology are shaped by representations, where ideas arise about science and technology both currently and historically.
? Demonstrate a historical understanding of the power and value structures, in which science and technology are cultural and social products and thus are articulated in cultural metaphors and narratives.
? Examine critically the ways in which science and technology are means to ends (and what that ends might be) and the extent to which science and technology have become ends in themselves (and what the impact of that might be).
? Identify how the cinematic, literary and non-verbal representations of science and technology create discourse power that shapes fashion, capitalism, propaganda, buzzword and catchphrase.
? Show an understanding that between the poles marked by the radical critique of science as totally relative and the position that science equals “Truth,” there exists a range of questions and modes of inquiry that might represent alternative ways to “do” science.
? Make active connections/synthesis to your previous G.E. and other coursework in discussion, oral reports, and written work.

Part 1. A brief summary of main plots, characters and storyline connecting to visions and principles of science and technology;
o Part 2. A brief List of Theories with their Definitions. At least you must use three or 60% theories from our class besides your other classes for your film
critique and analysis, e.g. Science in Society;
o Part 3. Most importantly, your Critique and Analysis by applying the theories you listed and defined in Part 2 to the plots, characters, metaphors
and narratives, themes, thesis, and arguments, which are pertinent to visions of science and technology of the film.

Let’s discuss whether online dating has the potential to change society

Description
Let’s discuss whether online dating has the potential to change society in addition to increased interracial dating and marriage. Has the online format fundamentally changed the custom of dating, or has it just deepened the pool and streamlined the business of vetting potential dates? Or perhaps you don’t think it’s done this at all. Explain why.

Do you think our customs of dating will be the norm by 2075, or will we have moved to the future as expressed in the video from this week? Explain why.