Financial Management Problems and case #6 Essay

Financial Management Problems and case #6 - Essay Example Reporting a large loss and/or increasing dividend payout would have a negative effect on cash and profitability. Problem 9: MVA - Henderson Industries, with a stock price of $60, $500MM of issued common stock, and an MVA of $130MM has shares outstanding in the amount of 10,500,000; the result of the sum of the book value ($500MM) and the market value added ($130MM) divided by the share price. Problem 10: Cash Flow - Based on the information provided regarding Bailey Corporation's Income Statement: (a) The net operating profit after taxes is $3B [NOPAT=EBIT(1-Tax rate)=$4B(1-$1B)]. (b) The net cash flow is $4.5B [NCF=NI+D&A=$1.5B+$3B]. (c) The operating cash flow is $6B [OCF=EBIT(1-Tax rate)+D&A=$3B+$3B]. (d) The free cash flow is $2.7B [FCF=OCF-IOC=$6B-$3.3B]. Problem 11: Income Statement - Based on the information provided regarding Hermann Industries' Income Statement forecasts, the forecasted net income would be achieved by a sales figure of $ 12,681,481.47: Sales $12,681,481.47 Operating Costs (55% of Sales) ($ 6,974,814.81) EBITDA $ 5,706,666.66 Depreciation & Amortization ($ 880,000.00) EBIT $ 4,826,666.66 Interest ($ 660,000.00) EBT $ 4,166,666.66 Taxes (40%) ($ 1,666,666.66) Net Income $ 2,500,000.00 EMBA 503, Financial Management Case Six YOUR FULL NAME YOUR INSTITUION OR SCHOOL PROFESSOR DATE Lottery Winnings: Case Study Six 1. If you were one of the winners, which option would you select Why I would choose the cash option. I would do this primarily because I could invest the money safely and obtain a return that, although less than the annuity payment, would still give me more money than I need each year and would never... Problem 9: MVA - Henderson Industries, with a stock price of $60, $500MM of issued common stock, and an MVA of $130MM has shares outstanding in the amount of 10,500,000; the result of the sum of the book value ($500MM) and the market value added ($130MM) divided by the share price. Problem 11: Income Statement - Based on the information provided regarding Hermann Industries' Income Statement forecasts, the forecasted net income would be achieved by a sales figure of $ 12,681,481.47: 1. If you were one of the winners, which option would you select Why I would choose the cash option. I would do this primarily because I could invest the money safely and obtain a return that, although less than the annuity payment, would still give me more money than I need each year and would never diminish the principal. Also, if I did not spend all of the money gained from the investment, the compound interest would increase my portfolio significantly. Finally, my tax burden would be less over the long term because capital gains from the investments are taxed at a lower rate in the U.S. than regular income. 3. Is the State of Michigan justified in advertising the prize amount as $363 million Explain.

Plants and Animals Essay Example | Topics and Well Written Essays - 1250 words

Plants and Animals - Essay Example Paleoethnobotany refers to as the study of relationships between plants and animals, though the use of the archaeological records. The present human beings are aware of how people benefitted from plants for clothing, food, medicine, boats, houses, and a variety of tools and structures. Therefore, in the contemporary society, individuals try to understand the ecological and cultural dynamics of the previous food ways; techniques for producing, procuring, and managing plant resources; and the meaning that plants had to the past human beings (Merlin, 2003). Archeology and paleoethnobotany have a close relationship between themselves. Paleoethnobotany is the sub-field of archeology that deals with the study of plant remains from excavations. Therefore, archeology supports paleoethnobotany by providing the study materials, especially the plant remains. People can be able to understand the relationship between animals and plants through archeology. ... It is apparent that paleobotany differs from paleoethnobotany because paleobotany does not include the relationship between plants and animals, but only considers plant remains in their geological settings (Merlin, 2003). Artifactual and Paleoethnobotanical data A researcher depends on the collected data in order to support or test the hypothesis of a given research. For instance, there has been a need of data to support the hypothetical use of psychoactive drugs in the historical period. Researchers extract most of the data from the literature of disciplines such as archeology, anthropology, palynology, and ethnobotany. Dating of various evidences varies in relative reliability and technique. Artifactual and paleoethnobotanical data are forms of data that provide the archeological evidence for the relationship between plants and man in the previous days (Merlin, 2003). An example of the relationship is how ancient people used the psychoactive drugs. The artifactual data is the subje ct to some type of reconstruction and interpretation (Merlin, 2003). There will be a disagreement regarding the interpretation of the artistic, medicinal, religious, or other practical inspiration of an artifact. Paleoethnobotanical evidence results from the assignment of specimens to specific taxonomic groups, and verification of its putative use by human beings is sometimes contentious (Merlin, 2003). The most reliable archeological information results from the combination of artifactual and paleoethnobotanical evidences (Merlin, 2003). Merlin’s Hypothesis The evidence on use of cannabis for recreation, fiber, medicine, and ceremony is enough to go against Merlin’s hypothesis, which