Essays

The key elements of fiction and its logical application

English 1B: Writing Assignment #1: Fiction Your task in this first paper is to demonstrate your understanding of some of the key elements of fiction and how a logical application of these elements can support your interpretation of a literary work. ORDER NOW Specifically, select any one of the stories we have read thus far, or […]

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Writing Creatively Or Engage In Sociological Observations.

Rewrite the script! Do you ever close your eyes and reimagine television shows or films? I certainly do! For example, what would happen if Harry Potter were a girl and also one of colour! Pick a show or film and consider changing the race, class, gender, age, or health of the central character. Consider the […]

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ou will need to cite at least one source from the background materials in each answer, and include at least three total references from the background materials in your paper. Once you have thoroughly reviewed the readings in the background materials and are comfortable with the concepts of intellectual property, write a four to five page paper addressing the questions regarding these five scenarios: Suppose you run into a friend who has a new idea for a business or product every time you see him. This time he is convinced he has invented a cutting-edge new management system called “Beverage-Based Management” whereby employees improve their performance by drinking high-caffeine energy drinks with a shot of vodka during their lunch breaks. Your friend provides a pile of research studies showing that caffeine can increase alertness and productivity while alcohol can reduce inhibitions and increase communication between employees. You are a bit skeptical of his idea but think at least some companies might buy his system (at least for comedy purposes). Your friend wants to get a patent on “Beverage-Based Management.” Would you advise that he seek a patent for this idea? If not, what other form of intellectual property protection might be a better choice for your friend? Your business owns a piece of heavy machinery that is worth $200,000. However, the cost of insuring the full $200,000 value of your machinery is more than your business can currently afford. So instead you tell the insurance company that the machinery is worth $100,000 and buy a cheaper policy. Then there is a fire at your factory and the $200,000 heavy machinery is completely destroyed. However you are at least slightly relieved since you hope the insurance company will at least pay the $100,000 that you told the insurance company the machinery was worth even though this will only cover half the damage. But after reading up on business insurance in DuBoff (2004) can you really be certain the insurance company will pay up when they find out that you intentionally undervalued the machinery? You find some sheet music on a webpage, and you cannot find any copyright information on the webpage at all. You do a word search on the title of the song and also check a federal registry of copyrights and cannot find this song. You and some musician friends like this song and plan to record it. Since the song was not in any federal registry and no copyright information was given on the webpage where you found the song, are you legally free to record and perform the song for money, or are their legal liabilities you still may face for using this song? The An family owns a famous Vietnamese restaurant in Los Angeles called Crustacean which is famous for their garlic noodles. Unlike other dishes on the menu, the garlic noodles are cooked in a separate “Secret Kitchen” where only immediate members of the An family are allowed. Suppose one of the members of the An family goes on vacation to New York and eats at a restaurant and finds that this restaurant’s garlic noodles taste almost exactly the same as those served at Crustacean. They also recognize one of the waiters at this restaurant as one who used to work at Crustacean (but is not a member of the An family). Do trade secret laws give the An family any legal protection for their garlic noodle recipes? If so, what kind of information or evidence do you think the An family would need in order to successfully sue this New York restaurant for stealing their trade secrets? Suppose you are an engineer, and one day you decide to take apart your iPhone. After playing around with the wiring and circuits, you find a way to increase the amount of time the iPhone can operate before needing to be recharged. You try the same method with other smartphones such as Samsung, but your method only works for iPhones. You successfully obtain a patent from the U.S. Patent Office for your new method for improving the function of iPhones. Will this patent allow you to manufacture your own brand of smartphones identical to the iPhone but with extended time before needing to be recharged? If not, how else might you be able to make money from your iPhone?

Intellectual Property rights

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Intellectual property rights

Patent protection

The “Beverage Based Management” idea is best protected by a patent. Patent is a property right that offers protection giving the owner monopoly rights over his invention. Patent allows the innovator to forbid the usage, making and selling of his idea by other people or parties. The right is given in certain territory over a specific period of time. With the patent the friend who is the owner of the idea will be in a position to protect the idea from being taken by other companies.

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This case has two separate parts. Part I: Capital Budgeting Practice Problems a. Consider the project with the following expected cash flows: Year Cash flow 0 -$400,000 1 $100,000 2 $120,000 3 $850,000 If the discount rate is 0%, what is the project’s net present value? If the discount rate is 2%, what is the project’s net present value? If the discount rate is 6%, what is the project’s net present value? If the discount rate is 11%, what is the project’s net present value? With a cost of capital of 5%, what is this project’s modified internal rate of return? Now draw (for yourself) a chart where the discount rate is on the horizontal axis (the “x” axis) and the net present value on the vertical axis (the Y axis). Plot the net present value of the project as a function of the discount rate by dots for the four discount rates. Connect the four points using a free hand ‘smooth’ curve. The curve intersects the horizontal line at a particular discount rate. What is this discount rate at which the graph intersects the horizontal axis? [ Look at the graph you draw and write a short paragraph stating what the graph ‘shows’] b. Consider a project with the expected cash flows: Year Cash flow 0 -$815,000 1 $141,000 2 $320,000 3 $440,000 What is this project’s internal rate of return? If the discount rate is 1%, what is this project’s net present value? If the discount rate is 4%, what is this project’s net present value? If the discount rate is 10%, what is this project’s net present value? If the discount rate is 18%, what is this project’s net present value? Now draw (for yourself) a chart where the discount rate is on the horizontal axis (the “x” axis) and the net present value on the vertical axis (the Y axis). Plot the net present value of the project as a function of the discount rate by dots for the four discount rates. Connect the four points using a free hand ‘smooth’ curve. The curve intersects the horizontal line at a particular discount rate. What is this discount rate at which the graph intersects the horizontal axis? [ Observe the graph and write a short paragraph stating what the graph ‘shows’] c. Read the background materials. Then write a one-to-two page paper answering the following question: Which method do you think is the better one for making capital budgeting decisions – IRR or NPV? Part 2: Equity and Debt Read the article below available in ProQuest: American Superconductor switch ; Westboro company plans to raise money through a stock offering, Andi Esposito. Telegram & Gazette. Worcester, Mass.: Aug 26, 2003. pg. E.1 Abstract (Article Summary) “AMSC’s management and board of directors believe the decision to forgo a secured debt financing and to adopt an equity financing strategy under current market conditions is in the best interests of our shareholders,” said Gregory J. Yurek, chief executive officer of AMSC. The 265-employee company has operations in Westboro and Devens and in Wisconsin. Finally, the Northeast blackout “shined a lot of light on the problems we have been talking about as a company for three to four years,” Mr. Yurek said. AMSC products, such as a system installed this year in the aging Connecticut grid and high temperature superconductor power cables and other devices bought by China for its grid, are designed to improve the cost, efficiency and reliability of systems that generate, deliver and use electric power. “We are a company with products out there solving problems today,” he said. After reading the background materials and doing your research, apply what you learned from the background materials and write a two to three page paper answering the following questions: What are the advantages and disadvantages for AMSC to forgo their debt financing and take on equity financing? Do you agree with their decision? How can a company’s cost of equity be determined? Is there a tax deduction from the use of debt financing? Please explain. Explain your answers thoroughly. Be sure to support your opinions on these assignment questions with references to the background materials or to other articles in your paper. Assignment Expectations This assignment consists of a quantitative section (Part 1) and an essay section (Part 2) below. Upload both sections as one Word document by the end of the Module.

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Part I: Capital Budgeting Practice Problems

Year 

Cash flow

Discount Rate

NPV

Cost of Capital

IRR

0

($400,000)

0

$     (800,000.00)

2.0

2.4

1

$100,000 

2

$       850,000.00 

8.5

2

$120,000 

6

$       863,333.33 

7.2

3

$850,000 

11

$       876,614.58 

1.0

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This SLP has two parts. Part I Every company has capital projects. The company you have selected must need something! Be it a new wing to the building, a new product line to be funded, a new piece of equipment, find one new acquisition your company needs. Once you have identified the new possible investment item, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded? Issues might be: Risk Cost Politics (getting it through committees) Public Relations etc., Identify a potential capital project for your company describe such a project and write a short summary of the problems you see in getting the funding to see it through. Part II Examine the structure and activities in your organization and identify two projects or events that required an investment. One should be a ‘current project’ and the other long-term investment project. For each project or event, identify the preferable source of funding. You may not have access to the actual source of funding so limit your paper to the source YOU feel is most appropriate. Then explain why you feel that source is most appropriate. SLP Assignment Expectations For Part I, you must discuss both the estimates of the initial investments and the annual incremental after-tax cash flow that is expected to emanate from the investment.

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Sources of funds

Carvana Company

Carvana Company is an American based company in the technology business. The company deals with selling used cars online. The company carries out all transaction online and the client is directed on the vending machine to pick up the purchased car. Customers get to view the cars properties on the company’s website. Lately customers have forwarded complains that the used cars have more diverse problems when driven. The company is seeking to introduce a technology that inspects any faults in the car system.

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Again, we will be going through a variety of hypothetical scenarios. For each scenario, you need to explain the reasoning behind your answer and use at least one reference from the background materials to support your answer. Overall you need to have a minimum of three references from the background materials cited in your paper. In addition to three sources from the background materials, feel free to cite additional sources that are not included in the background materials. However, any citation should be from credible sources such as articles. Your paper should be 4- to 5-pages total in length. Suppose you own a shipping business and have your own fleet of trucks. When you hired your truck drivers you did a thorough background check and made sure they all had clean driving records. However, recently you had more business than you could handle with your existing fleet and used an independent contractor for some of your shipping. This independent contractor ends up getting in a huge accident and destroying some of your client’s merchandise in the process. Your client finds out that this independent contractor, unlike your own employees, does not have a good driving record and has had his driving license revoked or suspended on several occasions. Are you liable for the damages your client faced? Now suppose as owner of your business you have been generally satisfied with the performance of all of your employees. But one of your employees begins to slip a bit in their performance and has also gotten on your nerves a bit recently. One day when you are in a bad mood you decide to fire this employee without any kind of warning. However, a few days later you begin to worry about legal consequences even though none of your employees have contracts and your employee handbook states that anyone can be terminated at your own discretion. What kind of legal risks, if any, do you face for terminating this employee? You are the owner of an Italian restaurant famous for your very tasty pesto sauce that no other restaurant in the city can beat. As a result of your tasty recipes, you are the only successful Italian restaurant in town. To protect your business from potential competitors, you make all new chefs that you hire sign a noncompetition agreement that forbids them from opening up an Italian restaurant anywhere in the U.S. for five years if they leave. Would such an agreement be likely to hold up in court if one of your chefs violates it? Now suppose you are the owner of a company and have designated your personal assistant as your purchasing agent for the purchase of all office supply orders of less than $500. Your assistant makes a purchase of some discount office supplies for a total price of $450. You are unhappy with the quality of these supplies but there is a no-return policy for these supplies since there were purchased in a special clearance sale. Are you obligated to pay the $450 even though you did not specifically approve this purchase? You are the owner of a retail business, and you have fallen behind for many months on your loan repayments to the bank (you owe a total of $100,000). The bank has become fed up and now wants you to hand them over all of your remaining company funds to pay back the loan. However, the holiday shopping season is coming up in a few months and this is where you typically do 60-70% of your business for the year. Without your company funds you will not be able to pay your rent and pay your staff, so you will not be able to pay back the bank until after the holiday season. If you end up needing to file for bankruptcy, what type do you think would be most appropriate for this situation – Chapter 7, Chapter 11, or Chapter 13? (This will be under the Pearson background material)

Employment law

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Employment law

Independent contractor

Independent contractors are hired by firms on a one-time base. Contractors are hired according to job demand that entails inclusion of an extra work force that is terminated once the job is completed. The firm that hires them pays for their services but do not control their activities thus they remain as their own boss. The firms do not pay for their social security taxes, also does not offer them a compensation policy, are not subjected to rules that the employer impose and their incomes taxes are not withheld.

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After receiving excellent legal advice from you regarding contracts and legal structure, your brother’s lemonade stand business has become so successful that Peter’s lemon tree is not nearly adequate to supply all of the lemonade stands. This is good news, but also brings up a variety of legal issues now that additional labor and funds may be necessary to secure a wider supply of lemons. While the lemonade stand, business is highly successful, your brother still cannot afford an attorney. And because of the excellent legal advice you have been giving him he has come back for more advice on the legal challenges involved in securing a new supply of lemons and expanding the business. Using references to the background materials including: DuBoff (2004), and the Pearson tutorial, write a two to three page paper discussing the following legal issues involved in the efforts to increase the supply of lemons for your brother’s business. Make sure to cite at least one source from the required background materials for each of your three answers, and to use at least 2 total references in your answer: While your brother is the CEO of the company, Peter as Chief Operating Officer has been running many of the day to day operations such as supervising employees and overseeing production of lemonade. However, he has also engaging in other actions not listed in his job description such as negotiating the purchase of lemon sales from other kids in the neighborhood with lemon trees in their yards. Your brother has so far allowed Peter to engage in these actions but is becoming concerned. What kind of agency relationship does Peter currently have with your brother? What kind of agency relationship would you recommend? Peter’s idea for securing more lemons is to utilize the skills of his employees, who have become quite expert in climbing trees and using ladders in order to pick the largest and freshest lemons from the top of the trees. He wishes to hire more lemon pickers and find neighbors with lemon trees who want to make some extra money in exchange for allowing their employees to pick some fresh lemons. Your brother sees some wisdom in this approach but also wants to consider purchasing lemons directly from a local farmer even these lemons will be a little more expensive and not as fresh. From an employment law perspective, which approach would be preferable? Your brother wants to get a small loan to finance the purchase of a large batch of lemons and hire some new employees. He visits several banks, but the loan officers all laugh and says there is no way a bank will give a loan to an 18-year-old with a lemonade stand. Your brother presents detailed financial statements showing that his company has very good financial prospects, but still no bank will loan to him. You personally don’t want to lend him your own money because you want him to learn to survive in business on his own, so what other measures could you or your brother use to convince the bank to lend the money?

Agency relationship

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Agency relationship

Abstract

Agency relationship is considered to be an arrangement between a principal and an agent. The arrangements is through legal appointment of an agent to act on behalf of the principal. The relationship is fiduciary and guided by avoidance of conflict of interest from the agent. A well drafted contract states terms and conditions of the relationship that the both parties have to follow.

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For each of the scenarios below, explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning. There’s a substantial unexpected increase in inflation. There’s a major recession in the U.S. A major lawsuit is filed against one large publicly traded corporation. Use the CAPM to answer the following questions: Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset “i” is 12%, the Risk-Free Rate is 4%, and the Beta (b) for Asset “i” is 1.2. Find the Risk-Free Rate given that the Expected Rate of Return on Asset “j” is 9%, the Expected Return on the Market Portfolio is 10%, and the Beta (b) for Asset “j” is 0.8. What do you think the Beta (β) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain. In one page explain what you think is the main ‘message’ of the Capital Asset Pricing Model to corporations and what is the main message of the CAPM to investors? Assignment Expectations The Case report should be a two-page report. Please show your work for quantitative questions.

Capital Asset Pricing Model

Diversifiable risk commonly known as unsystematic risk entails the risks that affects a particular security or industry.  The risk can be reduced by the investor diversifying his investments portfolio in different stocks and different industries. Undiversifiable risks can also be termed as systematic risks which affect the whole market without effects on a particular industry or stock. Systematic risk is hard to predict when it will occur and also cannot be avoided completely though it can be mitigated.

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What is your personal discount rate or rate of preferences? That is, how much would you pay for a promise of $1,000 to be received one year from now? Would you discount it by 10%, 5%, etc? Do research on the Internet and show the reference for the information. Professor’s Note: In addition to searching the Internet for text related to this threaded discussion, please watch the following videos (click on the following link to access these videos) and post your comments about the video’s. http://www.youtube.com/watch?v=ks33lMoxst0 Introduction to Present Value http://www.youtube.com/watch?v=4LSktB7Pk_c Present Value 2 http://www.youtube.com/watch?v=nScQsMmohZ0 Time value of money calculations using the TI BAII Plus calculator – part 1

Present value

Present discount rate is considered to be the current worth of a particular future sum of money together with its flow in a specified rate of return. The discount rate determines the proper way to value future flow of cash. The discounted value theory is demonstrated by the act of investing now is more worth than investing later.

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Using Yahoo! Finance: http://finance.yahoo.com/ find the value of beta for your reference company (Swift transportation Company). Write a two page paper discussing the following items: What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio? Given the beta of your company, the present yield to maturity on U.S. government bonds maturing in one year (currently about 4.5% annually) and an assessment that the market risk premium (that is – the difference between the expected rate of return on the ‘market portfolio’ and the risk-free rate of interest) is 6.5%, use the CAPM equation in order to find out what is the present ‘cost of equity’ of your company? Explain what is the meaning of the ‘cost of equity’. Choose two other companies, look up their “Beta” and report the names of these companies and their betas. Suppose you invest one third of your money in each of the stocks of these companies. What will the beta of the portfolio be? Given the data in (b), what will the Expected Rate of Return on this portfolio be? Do you feel that the three-stock portfolio is sufficiently diversified or does it still have risk that can be diversified away? Explain. SLP Assignment Expectations In a two-page report explain your answers thoroughly with references to the background materials. Make sure to demonstrate a strong understanding of the concept of beta and the risk/return trade off. Please use these references (In addition to these references you may use others): Managing Risk and Return (2015) Pearson Learning Solution, New York: https://media.pearsoncmg.com/pcp/pls/course_connect/business/intro_to_finance/lesson_05/default.htm?iframe=true&width=800&height=500&align=center Financial Markets (2015) Pearson Learning Solution, New York: https://media.pearsoncmg.com/pcp/pls/course_connect/business/intro_to_finance/lesson_02/default.htm?iframe=true&width=800&height=500&align=center

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Beta coefficient

Beta is considered to be a measure that determines the systematic risk of a security comparing it to the whole market. The coefficient indicates the risk that a share price is likely to face in line with the movement of the prices in the market. Beta aids in the calculation of expected return in capital asset pricing model. Regression analysis is used in calculated the beta which represents security returns tendency of responding to the variations in the market.

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