IAS 23 Borrowing cost deals with the interest capitalisation on a qualifying asset which says borrowing costs are ‘interest and other costs that an entity incurs in connection with the borrowing of funds’.Any such other borrowing cost incurred can be treated as expenses. Explain.
E – Portfolio: “Design Thinking”
You are to conduct a search of the Internet on the topic: Design Thinking. You should review the items you find and select a minimum of 5 items per topic and link them to your portfolio. You are not to upload files from the Internet, as you do not own copyright, and if you do, this will be plagiarism. You are to use links to your items only. You may include short focused items from Video or Audio clips lectures and/or tutorials, and your own work that you produce in the tutorials. The centre of your multi-columned Mahara page must be a Rich picture or concept map of the material you have presented showing how it all links together. Your portfolio should capture rich ideas, resources and innovative practice around business analysis within the frame of the topic listed above.
You are to write a brief discussion for each of the 5 items as to why you chose that item, and why you thought the items chosen are appropriate to the weekly topic..
Each portfolio should be comprised of the following three sections for each item:
• Title- Provides an informative title identifying the item;
• Rich Picture- A diagram using Cmap software of the main ideas and themes of your reseach helping to link the different media content together. You may choose to embed your links in this picture as well as hyperlink
• Link – provide 5 working links that can be followed to the original source location. each hyperlinked or (embeded if audio or video) to the start of the relevant discussion.
• Discussion – describe how the item links to the topic, and how the item increases your understanding of the topic. Include the citation to your item following Harvard formatting.
• Reflection – discuss how the item increases your understanding of the topic.
Attachment:- Assignment File.rar
• Assignments must be submitted via the LMS subject webpage. • Remember to keep a copy of your assignment. • This assignment will account for 15% of your final grade. • Limit: 1250 words (diagrams do not count toward the word limit.) Spending on health care now constitutes a significant fraction of total expenditure. Understanding the efficacy of this spending is therefore relatively important. When it comes to contagious diseases, there are generally two strategies that can be adopted. The first involves prevention, which includes vaccinations to lower or eliminate the risk of contracting a disease. The second involves treatment of those unfortunate enough to get sick, treatment typically requires some form of a drug. Since pharmaceutical companies can produce both vaccines and drugs, we would like to understand the incentives they have to develop each type of medicine. To explore this question, consider a population of 100 consumers, 90 of whom have a low disease risk, say 10%. The remaining ten have a high risk – to make things simple, assume they are certain to contract the disease. In addition, suppose the disease generates personal harm equal to the loss of $100 for each individual when they are infected. Suppose also that pharmaceuticals of either form (vaccines or drugs) are costless to produce (once R & D has occurred) and are perfectly effective. Question 1. Start by considering the demand for the vaccine. For the group of high risk people, what is the maximum price they would be prepared to pay? For the low risk group, calculate the maximum price they would pay as the personal value of the harm times the risk of contracting the disease. Use these two pieces of information, along with the number of people in each group to construct the demand function for the vaccine and plot it on a diagram. [2 points] 1 Question 2. What price would a profit maximising monopolist charge for a vaccine? What are the monopoly profits on the vaccine? What is the efficient outcome (i.e. SMB = SMC)? What is the welfare under the monopoly and at the efficient allocation?[5 points] Question 3.Now consider the demand for the drug (assume that the vaccine is not available). Construct the demand function for the drug and plot it on a diagram. What price would a profit maximising monopolist charge for the drug? What are the monopoly profits from the drug? What is the efficient outcome? What is the welfare under the monopoly and at the efficient allocation? [5 points] Question 4. If the R&D costs of the vaccine and drug are the same, what will the pharmaceutical company do? Explain your answer in terms of the variation in the willingness to pay and the size of the R& D costs. What would a social planner do? [5 points] Question 5. What are the R&D cost for the vaccine and the R&D cost for the vaccine drug that would make a pharmaceutical company indifferent between developing the vaccine and the drug? Is the social planner indifferent in this case? Explain any difference.
Attachments:
Assignment2.pdf
List and explain the 3 decision process questions confronting the producer in pure competition. 1) Total Revenue = price*quantity (TR=P*Q) 2) Average Revenue = price (AR=P) 3) Marginal Revenue = price (MR=P)
Choose a mobile platform and prepare a 3- to 5-slide Microsoft® PowerPoint® presentation as a sales pitch directed at a fictitious company looking to standardize on a platform for its employees.
Include the following:
Format your speaker notes according to APA guidelines, along with references.
Goodway plc is a holding company owning shares in various subsidiary companies. Its directors are currently considering several projects which will increase the range of the business activities undertaken by Goodway plc and its subsidiaries. The directors would like to use discounted cash flow techniques in their evaluation of these projects but as yet no weighted average cost of capital (WACC) has been calculated.
Lord Harris Tweed, the Managing Director, has called a meeting of the directors to discuss the calculation and use of the weighted average cost of capital as the discount rate for future capital investment decisions.
Shilpa Gohal, the Finance Manager, has been asked to draw up some relevant figures for the calculation of the company’s weighted average cost of capital, as shown below.
Goodway plc has an authorised share capital of 10 million 25p ordinary shares, of which 8 million have been issued. The current ex div market price per ordinary share is £1.10, a dividend of 11.4p per share having been paid recently. The company’s project analyst has calculated that 12% is the most appropriate after-tax cost of equity capital.
Extracts from the latest balance sheets for the group are given below:
Goodway plc
(£000s)
Issued share capital
2,000
Share premium
1,960
Reserves
3,745
Shareholders’ funds
7,705
Minority interests
895
3% irredeemable loan stock
1,400
9% redeemable loan stock
1,500
6% unsecured loan stock
2,000
Bank loans
1,540
Total non-current liabilities
6,440
All debt interest is payable annually and all the current year’s payments will be made shortly. The current cum interest market prices for £100 nominal value stock are £31.60 and £103.26 for the 3% and 9% loan stock respectively. Both the 9% loan stock and the 6% unsecured loan stock are redeemable at par in ten years’ time. The 6% stock is not traded on the open market, but the analyst estimates that its effective current ex-interest market price for £100 nominal stock is £75.42. The bank loans bear a nominal interest at 13% and are repayable in six years. The effective corporation tax rate of Goodway plc is 35%.
Lord Harris Tweed remarks that once the WACC had been calculated, it should be used to calculate all the proposed capital investment projects that were about to be undertaken. They had always used one discount rate in the past, and the economic climate was favourable and unlikely to change in the future. Esther Banda, the Production Director, also agrees stating that one discount rate would give uniformity to their decision-making process. However, Shilpa Gohal is not so sure, as, “not all of the proposed investments have the same risk profile, and discount rates based on the cost of their individual financing, might be more appropriate,” (i.e. those projects financed by a specific source of debt, for instance, should be discounted at the cost of the particular source).
Mark Darcy, Shilpa’s assistant, points out that some of the proposed projects are outside the organisation’s usual activities and that, therefore, any WACC based on figures related to their current activities may be inappropriate. He says, “When I was at university I remember calculating a risk-based discount rate based on the Capital Asset Pricing Model.”
Once he has attracted attention Mark also decides to demonstrate how intelligent he is and says, “I also remember that whatever WACC we use it would be better to have a lower one as this will make future projects more attractive. I know that the cost of debt is supposed to be cheaper than the cost of equity. Therefore, I think we should restructure and issue more debt and attempt to lower our WACC.”
Required:
Task 1
Calculate the effective Weighted Average Cost of Capital (WACC) from the information given in the scenario, as initially required by the directors.
(15 marks)
Task 2
Provide a consideration of Shilpa Gohal’s opinion with regard to the calculation of a suitable cost of capital.
(10 marks)
Task 3
Mark Darcy has introduced the possibility of using the Capital Asset Pricing Model (CAPM) in order to calculate a suitable cost of capital for projects.
a) Provide a full rationale as to the use of CAPM for the calculation of a risk-adjusted specific discount rate.
(15 marks)
b) One particular capital project available to Goodway would involve an expansion into an unfamiliar industry, at the time when the above financial data was gathered.
At this time it was estimated that the appropriate risk free rate of return in the economy was 5% and that the return on the market is assumed to be 14%.
Should the investment take place Goodway does not anticipate that its gearing will change from that indicated in the scenario. Corporate debt is assumed to have a beta of 0.20 (i.e. it is not risk free) and the company’s equity beta is estimated at 0.78.
At the time, a typical surrogate company in the same industry, Noggin plc, has the following Balance Sheet.
£m
Non-current assets 3.00
Net current assets 2.01
5.01
Financed by:
Long Term debt 2.60
Ordinary shares (£1 par value/share) 0.60
Reserves 1.81 5.01
The share price for Noggin plc at the Balance Sheet date is £3.51 and the equity beta of the company is 1.51. Noggin has the same effective rate of taxation as Goodway plc.
Required:
You should estimate a risk-adjusted Weighted Average Cost of Capital (using CAPM) which Goodway can use in the proposed diversification into the unfamiliar industry.
(10 marks)
Task 4
Provide a critical analysis that considers Mark Darcy’s comments concerning the possibility of issuing more debt in order to lower the Weighted Average Cost of Capital.
You should provide a well-researched response indicating whether or not you agree with his suggestion.
(30 marks)
Task 5
Instead of undertaking ‘organic’ growth as indicated in Task 3 (b) Goodwaycould expand into the unfamiliar industry by acquisition.
You are required to provide a critical analysis of the relative benefits of the two types of growth (i.e. ‘organic’ and acquisition) from Goodway’s point of view.
(20 marks)
(Total 100 marks)
Further Information
You are required to present well-structured answers of no more than 3,000 words in total(excluding calculations).
Attachments:
For-Answers.doc
A rectangular-sectioned beam of 75 mm x 50 mrn cross-section is used as a simply supported beamand carries a uniformly distributed load of 500 N/m over a span of 3 m. The beam is supported in such a way thatits long edges are inclined at 20″ to the vertical. Determine:(a) the maximum stress set up in the cross-section:(b) the vertical deflection at mid-span.E = 208 GNlm’ ,
I read this essay called Our Barbies, Ourselves I did not understand please if you read it then I need help the quotation that I being giving form my teacher.
This is Quotation
1.What did you feel about this story? And how do you react to it?
2.“If Barbie was designed by a man.”Prager writes in her second paragraph, “Suddenly a lot of things make sense to me.” What are these “things and how do they relate to prager’smain idea? What is that idea?
3.What elements of Barbie does Prager analyze, and how does she reassemble these elements into a new whole? Support your answer with evidence from the essay.
4.Why id division or analysis essential for prager to make her claims about Barbie? Is analyze of BarbieÂ’s features important even to readers already familiar with the doll?
A monopoly firm faces a demand curve given by the following equation: P = $500 – 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. You may wish to arrive at the answers mathematically, or by using a graph (the graph is not required to be presented), either way, please provide a brief description of how you arrived at your results.
a) How much will the firm produce?
b) How much will it charge?
c) Can you determine its profit per day? (Hint: you can; state how much it is.)
d) Suppose a tax of $1,000 per day is imposed on the firm. How will this affect its price?
e) How would the $1,000 per day tax its output per day?
f) How would the $1,000 per day tax affect its profit per day?
g) Now suppose a tax of $100 per unit is imposed. How will this affect the firm’s price?
h) How would a $100 per unit tax affect the firm’s profit maximizing output per day?
i) How would the $100 per unit tax affect the firms profit per day?
4th Assignment: Write a report about one of software packages for data analysis. the SPSS
write introduction
what the function of theprogram
important of program
what type of research dealing with it
what the advantage and disadvantage of SPss
write conclusion
in 5 pages please
and add any information you want about the program