Market Value


“As a member of the Finance Department of Ranch Manufacturing your supervisor has asked you to compute the appropriate discount rate to use when evaluating the purchase of new packaging equipment for the plant. Under the assumption that the firm’s present capital structure reflects the appropriate mix of capital sources for the firm, you have determined the market value of the firm’s capital structure as follows:

Market Value

Bonds 4,200,000
Preferred Stock 1,500,000
Common Stock 5,500,000

To finance the purchase, Ranch Manufacturing will sell 10-year bonds paying 7.3% per year at the market price $1,028. Preferred stock paying a $2.05 dividend can be sold for $25.45. Common stock for Ranch Manufacturing is currently selling for $55.07 per share and the firm paid $2.97 dividend last year. Dividend’s are expected to grow at a rate of 5.2% per year indefinitely. If the firm’s tax is 30% what discount rate should you use to evaluate the equipment purchase.”

Multiple Choice

The overall goals of anthropological research include this aspect of human biology:
assessing the influence of biochemistry on human behavioral evolution.
description and analysis of the evolution of Homo sapiens.
description of human brain anatomy.
mapping the genome of Homo sapiens.

Politics is difficult to define cross-culturally because:

authority is absent in some cultures.
individual cultures do not view the use of power as a political force.
one culture views another culture’s politics ethnocentrically.
there are few common features in political systems

A major difference between a rite of passage and a rite of intensification is that:
rites of passage are generally associated with religious beliefs; rites of intensification are not.
ceremonies associated with rites of passage last several days while those associated with rites of intensification last a week or more.
rites of passage involve the entire community; rites of intensification only involve the individual who is undergoing a social change in their status and social role.
rites of passage focus on the individual; rites of intensification focus on the group.

From the perspective of anthropology, the idea of separate human races is:
valid at the subspecies level.
valid geographically and evolutionarily.
invalid because no clusters of separate genetic traits exist.
invalid because ABO blood group distribution is inaccurate.

Theoretical models in anthropology are:
models of ideal culture.
devices for explaining and understanding cultures.
approaches to fieldwork that uncovers actual cultural behavior.
modes of analysis that can’t be proven

The first evidence of early human subsistence strategies comes from:
archaeological sites with Acheulean hand axes and evidence of butchering.
archaeological sites with Oldowan tools and stone cut marks overlying animal chew marks on bones.
archaeological sites with projectile points and fire hearths.
archaeological sites in the Mediterranean and Europe where Oldowan tools are found.

What type of subsistence strategy is based on simple crop production without the benefit of cultivation or irrigation?
Foraging
Agriculture
Horticulture
Pastoralism

The most common kinship system in North America today consists of __________ descent groups known as __________.
ambilineal; phratries
unilateral;clans
bilateral; moieties
bilateral; kindreds

Real options analysis is most – Multiple Choice

1. Real options analysis is most appropriate when
the total investment required is small, but the environment is uncertain.
the investment required can be justified by Discounted Cash Flow (DCF) techniques.
a small investment up front can be followed by a series of subsequent investments.
there is no prospect

2. Complete the following sentence: “Virtual organizations __________ whereas modular organizations __________.”
are usually permanent; are usually temporary
accept interdependent destinies; pursue collective strategies
pursue collective strategies; forfeit strategic control
give up part of their strategic control; retain full strategic control

3. The phrase that best defines a virtual organization is
a dot.com company.
a type of modular structure.
an organization that uses information technology to integrate different functions.
a continually evolving network of independent companies.

4. Effective ambidextrous organizations have alignment, which means that
employees are rewarded according to both profit and sales growth.
managers are focused on growth opportunities.
there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.
divisional-level goals are consistent with overall corporate goals.

5. Important advantages of a holding company structure include
savings in personnel and overhead expenses associated with a small corporate office.
a high level of awareness at the corporate office of issues facing individual divisions.
a high level of control of division executives by executives at the corporate level.
gaining synergistic benefits across businesses.

6. An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?
Functional structure
Matrix structure
Strategic business unit structure
Holding company structure

7. What is the name of the practice that many modular organizations use to grow?
operational effectiveness
outsourcing
strategic leveraging
strategic enabling

8. Which of the following statements would least likely be found in a corporate credo?
Maximize financial benefits for stakeholders.
Provide secure and stable employment for employees.
Establish an environment that enhances professional growth.
Support community organizations and projects.

9. Leaders play a key role in developing and sustaining an organization’s
status quo.
culture.
reporting relationships.
rules and regulations.

10. The “bottom-up” perspective of empowerment
clarifies the organization’s values and mission.
builds teams to encourage cooperative behavior.
communicates specific plans.
encourages employees to “ask permission rather than forgiveness.”

11. Which of the following is not a characteristic of a successful learning organization?
They create a proactive, creative approach to the unknown.
They actively solicit the involvement of employees at all levels.
They regularly engage in activities to reinforce the status quo.
They enable everyone to use their intelligence and apply their imagination.

12. Coercive power is
the power exercised by use of fear of punishment for errors of omission or commission by employees.
the power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates.
is the type that arises from a manager’s access, control, and distribution of information that is not freely available to everyone in an organization.
the ability of the leader or manager to confer rewards for positive behaviors or outcomes.

13. Refusal to share information, conflicts over resources, conflicts between departments and divisions, and petty interpersonal differences are symptoms of which type of barrier to change?
systemic barriers
political barriers
behavioral barriers
all of these

14. Expert power
is derived from organizationally conferred decision-making authority.
arises from a manager’s access, control, and distribution of information that is not freely available to everyone in an organization.
is derived from referent power.
is derived from the leader’s capability and knowledge in a particular field.

15. Strategic reasons for undertaking a corporate venture include which of the following?
entering into new markets
expanding capabilities by acquiring new knowledge
building the corporation’s base of resources
all of these

16. Product champions
are typically senior executives.
are usually inventors of some sort.
scavenge for resources and encourage others to back promising new ideas.
are strong supporters of the status quo.

17. The innovation dilemma known as seeds versus weeds refers to
choosing to pursue radical rather than incremental innovations.
choosing to pursue product rather than process innovations.
promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts.
none of these.

18. __________ produce fundamental changes that can transform a company or even revolutionize an industry, while __________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs.
Technological breakthroughs; product-market breakthroughs
New technologies; new paradigms
Incremental innovations; radical innovations
Radical innovations; incremental innovations

19. Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow?
business risk taking
financial risk taking
personal risk taking
technological risk taking

20. A simple structure is characterized by
high specialization and low centralization.
low specialization and high centralization.
low formality and low creativity.
high formality and low centralization.


Success Stories

Your manager believes in learning from other companies’ success stories as well as stories of failure. In particular, she likes to apply various management theories when possible, rather than starting from the beginning every time a decision has to be made. She asks you to write a memo to her addressing the following:
From any recent or current event in the news, discuss and explain the use of these two specific theories that the firms you researched believed in
In the human resource area, moving toward an employee empowerment culture
In the marketing area, the theory of penetration pricing
For each of these two, explain the following:
The issue being addressed that gave rise to employing these theories
How the theory being followed leads to specific actions on the part of the company
Results achieved
If you had been the senior manager in these situations, at those companies, how might you have addressed the situation any differently? What other theory could have been the basis for the decision.

QNT 351 Optional Activity Data Set


 

Student
Gender
Age
Years of Work Experience
Time Spent on the Homework
Jenny
F
35
11
2.5
Sandy
F
52
6
4
Linda
F
47
25
3
Lilly
F
25
7
2
Nichole
F
43
5
4.5
Sally
F
60
30
3.5
Lisa
F
38
2
4
Brook
F
22
4
1.5
John
M
23
5
2
Dave
M
32
14
2.5
Shawn
M
54
31
5
Kurt
M
29
7
3
Brandon
M
36
18
4.5
Brian
M
42
26
3.5
Review the age and gender data in the data set.
Display gender information in a chart and plot age data in a box plot.
Calculate the appropriate measure of central tendency and variability for the age and gender. What conclusion can you draw from the data?