Purpose of Assignment

Students should understand and be able to calculate the net present value and internal rate of return for corporate cash flows, determine project cash flows and a company’s sales, variable costs, fixed costs, and its breakeven point.

Assignment Steps

Resources: Tutorial help on Excel® and Word® functions can be found on the Microsoft®Office website. There are also additional tutorials via the web that offer support for office products.

Complete the following Questions and Problems from each chapter as indicated.

******SHOW ALL WORK AND ANALYSIS******

Prepare in Microsoft® Excel® or Word.

• Ch. 9: Questions 7 & 8 (Questions and Problems section)
• Ch. 10: Questions 3 & 13 (Questions and Problems section)
• Ch. 11: Questions 1 & 7 (Questions and Problems section)

Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.

Purpose of Assignment

Students should understand and be able to calculate the net present value and internal rate of return for corporate cash flows, determine project cash flows and a company’s sales, variable costs, fixed costs, and its breakeven point.

Assignment Steps

Resources: Tutorial help on Excel® and Word® functions can be found on the Microsoft®Office website. There are also additional tutorials via the web that offer support for office products.

Complete the following Questions and Problems from each chapter as indicated.

******SHOW ALL WORK AND ANALYSIS******

Prepare in Microsoft® Excel® or Word.

• Ch. 9: Questions 7 & 8 (Questions and Problems section)
• Ch. 10: Questions 3 & 13 (Questions and Problems section)
• Ch. 11: Questions 1 & 7 (Questions and Problems section)

Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.

1:After reading the chapter, I learned that there are many advantages of doing business in partnership.

Advantages of partnership include that:

• The business is easy to establish and start-up costs will be low compare to do business by your own.
• You will have more capital available to invest in the business.
• Borrowing capacity will be greater.
• Business will be diverse.
• High-calibre employees can be made partners
• There is opportunity for income splitting, an advantage of particular importance due to resultant tax savings.
• Partners’ business affairs are private.
• There is limited external regulation.
• It’s easy to change your legal structure later if circumstances change.
• At the end, two heads (or more) are always better than one head.

2:A limited partnership has two types of partners, general and limited.  General partners manage the operations and have unlimited liability.  Limited partners invest capital but do not participate in the management of the business limiting their liability to a maximum of their capital investment.  Limited Partnerships must produce a certificate of limited partnership, signed and executed to make the limited partnership legally binding.

The main tax advantage of the limited partnerships is that the business pays no tax and the profits and losses of the business flow directly to the limited partners which can offset other income they have established elsewhere.  Understanding that the losses will occur in the early years, as the business becomes profitable in the later year, the limited partners will be taxed at a lower rate on their longterm capital gains.  This is a very strategic opportunity, typically hedge funds and private equity funds.

3:Great post Melissa! In all those different entrepreneurship, limited partnerships are generally not the best choice for a new business, unless you expect to have many passive investors because of all the required filings and administrative complexities. If you have two or more partners who want to be actively involved, a general partnership would be much easier to form. However, one of the major advantages of a partnership is the tax treatment it enjoys. A partnership doesn’t pay tax on its income but “passes through” any profits or losses to the individual partners. So in general, in the company the general partners own and operate the business and assume liability for the partnership, while the limited partners serve as investors only; they have no control over the company and are not subject to the same liabilities as the general partners.

4:A corporation is a fictitious legal entity, owned by the shareholders who elect a board of directors who vote on fundamental changes in the corporation.  According to chapter 27, there are three distinct characteristics of a corporation:

1. free transferability of shares by stakeholders;

2. perpetual existence (unless a duration is stated in the articles of incorporation); and

3. centralized management that is composed of a board of directors and officers of the corporation.

The owners (shareholders) have limited liability much like limited partners in a partnership where they are only liable to the extent of their capital contributions.

There are numerous types of corporations e.g., private, public, closely held, professional, government-owned, domestic, foreign and alien, etc.

i posted the brief for you

-the marking criteria

-and the formulas to calculate the ratio of the company MERCEDES and explain in the text as the example shows then u have to calculate the ratio of the other companies and calculate them and compare them in the table and plz put all the aprrendix

-and also an example report that my teacher gave us you can’t take any data or informations but you have to follow the same instructions the ratio of the other companies and calculate them and compare them in the table and plz put all the aprrendix

i posted the brief for you

-the marking criteria

-and the formulas to calculate the ratio of the company MERCEDES and explain in the text as the example shows then u have to calculate the ratio of the other companies and calculate them and compare them in the table and plz put all the aprrendix

-and also an example report that my teacher gave us you can’t take any data or informations but you have to follow the same instructions the ratio of the other companies and calculate them and compare them in the table and plz put all the aprrendix

“Health Reform” Please respond to the following:

• Examine two (2) efforts at health reform in the United States that occurred during the 1900s. Determine the major political and social factors that influenced the outcomes for each. Support your rationale with specific examples of such influence.
• From the e-Activity, compare and contrast at least two (2) pros and cons of developing a state health insurance exchange. Speculate on which exchange you believe would be most beneficial for the majority of the insured in your state. Provide support for your rationale.“Health Reform” Please respond to the following:
  • Examine two (2) efforts at health reform in the United States that occurred during the 1900s. Determine the major political and social factors that influenced the outcomes for each. Support your rationale with specific examples of such influence.
  • From the e-Activity, compare and contrast at least two (2) pros and cons of developing a state health insurance exchange. Speculate on which exchange you believe would be most beneficial for the majority of the insured in your state. Provide support for your rationale.

Problem 1

You buy 100 shares of GE in a margin account at $60 a share

The initial margin is 40%

The cost of borrowing is 5% (from your broker)

The stock pays a dividend of $1 a share

The minimum maintenance requirement is 20%

1) In 1 year the stock rises to $80 – what is the percentage return on your investment?

2) Calculate the % return if you had not used margin (cash account)- why are they different?

Given that net worth = Assets (items of value) – Liabilities (things you owe)

3) What would your net worth be if the stock dropped to $35 in 1 year? Explain what would most likely happen in this scenario.

4) Calculate the price at which you will receive a margin call – base your calculation on the information that is present when you make the purchase – hence at time t=0

Problem 2

You sell short 100 shares of ABC at $75 a share

The initial margin is 50%

The cost of borrowing money in the margin account in 5%

Ignore cost of borrowing shares

The stock pays a dividend of $2 a share

The minimum maintenance requirement is 20%

5) Calculate the price at which you will receive a margin call – base your calculation on the information that is present when you initiate the short sale – hence at time t=0

6) In 2 years the stock rises to $100 a share – what is the annual percentage return on your investment?

7) What is the equity in your account after 2 years and would you have received a margin call before the 2-year time period elapsed? Explain