Would you consider it Samsung’s failure not to prepare for this worst-case scenario? Why or why not? As a member of Samsung’s FP&A team, what would you do differently for evaluating future products?
Q: A stock price is currently $80. It is known that at the end of four months it will be either $75 or…
A: Options are derivatives, whose values are derived from the value of an underlying asset. There are…
Q: can it be solve please Useful Houseware Co. Ltd has received a $35,300 loan from Bank Corporation…
A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…
Q: Black Corporation has forecasted sales in 2020 as follows: Jan-P120,000 Feb-P160,000 Mar-P180,000…
A: Cash flows are the cash generated from the operation of the business organisation. In other words,…
Q: (b) Calculate the working capital cycle for both years. Year ended 31st December 2019 2018 Inventory…
A: Working capital cycle - It is defined as the time taken by a firm to convert its current…
Q: Explain the difference between the unbiased expectations theory of the term structure of interest…
A: There are different theories that describe how the interest rates are set.
Q: What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% . What is…
A: Simple interest is interest on investment without any compounding. Compound interest is the interest…
Q: If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to…
A: Loan Amortization: It is the process of paying the loan sum by making loan payments made by the…
Q: 1- Find the internal rate using the method of Internal Rate of Return (IRR) if i = 15%, for the…
A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Outflows…
Q: Bond J has a coupon of 6.2 percent. Bond K has a coupon of 10.2 percent. Both bonds have 20 years to…
A: In the given case, bond price is the present value of future cash flows discounted.
Q: Which of the following functions of the Commercial Bank's primary functions is influence by the…
A: Solution:- Reserve Requirement Ratio (RRR) means the minimum amount of deposit a bank has to keep…
Q: Question 6. One day, a letter arrives in your mailbox. The letter comes from a trusted attorney…
A: Compound interest. FV = A ( 1 + r)n Where FV = amount avaliable including compound interest after n…
Q: Minkov's four cultural dimensions * Your answer Evidently, there is a filipino diaspora in several…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: (Retirement Planing) Now you are 22 years old, you want to retire ate age 65. You would like to…
A: Current Age 22 years Retirement age 65 Semi annual payment amount after retirement is $70,000 Gift…
Q: Christina is deciding whether or not to enroll in a one-year academic program at the start of 2023…
A: The internal rate of return is the rate which equates the present value of cash inflows from a…
Q: QUESTION 4 Which of the following statements are correct? Pick two correct answers. Deposits are…
A: Given, Meaning of deposits:- It is an amount of money which is paid into a bank and to the society…
Q: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2.…
A: In finance we use several financial ratios. These ratios helps us to determine the financial health…
Q: Okik Inc. has a beta coefficient of 1.0 and a required rate of return of 12 percent. The market risk…
A: Capital Asset Pricing Model (CAPM): CAPM is the method of calculating the expected return on…
Q: Which one of the theories states that “the rate of interest is set in the market for money…
A: Interest rates are fluctuated based on different parameters of the economy. There are different…
Q: 3. Suppose a certain bond sold a volume of 2, 375, 000. If the bonds sold for $824.99, calculate the…
A: Given, Meaning of a bond, Bond is an instrument of debt which is floated by the company so that…
Q: You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you…
A: Calculation of Asset Beta: Asset Beta = Equity Beta/1+1-Tax*Debt - Equity ratioAsset Beta =…
Q: Question 5 Capital Budgeting is a critical issue in the sustainability of any given enterprise…
A: The process by which a company evaluates potential major projects or investments that are profitable…
Q: 8. Suppose a certain bond sold a volume of 2, 375, 000. If the bonds sold for $824.99, calculate the…
A: The last price and the volume: The last price refers to the last price at which the bond was sold…
Q: D3 Finance A Business Incubator may also provide marketing assistance to startup companies. Question…
A: Start-up company is referred as the company that has an initial stages of the business. In general,…
Q: Return on HC's Stock 0.5 1.0 1.5 20 RISK (Beta)
A: Capital assets price is used extensively predict required rate of stock considering the risk of the…
Q: what will their total PITI payment be?
A: PITI Payment: It represents principal, interest, taxes, and insurance payments towards the monthly…
Q: A stock has a beta of 1.88. The risk free rate is 1.775% and the market risk premium is 5%. What is…
A: Risk free rate = 1.775% Beta = 1.88 Market return = 5%
Q: Atlantis Fisheries issues zero coupon bonds on the market at a price of $435 per bond. If these…
A: Call Price = Market Price * (1+Yield to call)^Years to call Yield to call = (Call price / Market…
Q: 1. Net Assets method 2. Yield method 3. Fair value method
A: Since in the given case, we firstly make the different class of shares to uniform class of shares,…
Q: Lino borrows ₱600,000 with interest at 14% compounded quarterly. He agrees to settle this obligation…
A: Annuity involves the payment of a periodic amount up to a specified period of time, and eventually a…
Q: present value of bond?
A: Bond refers to the investment securities in which an investor lends money to the government for a…
Q: maintenance costs of this equipment are estimated to be about $25,000 per year. Salvage value is…
A: EUAC is uniform annual equivalent cost that is equivalent to all costs of equipment.
Q: Harvey manufacturing company expected in 2021 to have 18% increase in sales compared to 2020 sales…
A: Retained earnings of a company are those profits earned by the company but not distributed to the…
Q: Q)Suppose that in 2018 the price index was 120 and Ifikile purchased R35 000 worth of bonds. One…
A: Concept. Real after tax interest . It is actual benefit of investment after considering into account…
Q: How much money be invested today in order to withdraw P1500 per year at the end of each year for 8…
A: Annual withdrawal (P) = P1500 Interest rate (r) = 8% Number of withdrawals (n) = 8
Q: onsider the following options portfolio. You write a call option on IBM with exercise ou also write…
A: In writing call will give you profit when prices goes below exercise price and writing put will give…
Q: A student needs P4000 per year for 4 years to attend college. Her father invested P5000 in a 7%…
A: Amount invested in year 0 (X) = P 5000 Amount withdrawn in year 17, 18, 19 and 20 (A) = P 4000 r =…
Q: A woman expects to have $10,000 in 4 years to buy a pair of earrings. She plans to create a sinking…
A: FV Amount required = $10000 Period = 4 years pmt Amount deposited every 6 months Fund…
Q: a certain loan was arranged such that Dino will pay ₱5,500 every month for the first 7 months; no…
A: As the period goes on the due to effect of compounding the future value of amount goes on increasing…
Q: Suppose you are considering buying a put option on Coca Cola (KO) stock. The stock price on November…
A: Put option: This option holder will have right to sell a stock, but it is not an obligation to sell…
Q: Discuss two ways in which foreign aid could actually be harmful to a country's development.
A: International aid, international transfer of capital, goods or services by a national or…
Q: o. Denive Lu uhere symbols have their usual meonings
A: F=1+in-1iAF = Future valuei = interest raten=number of periodA=Annuity amountFuture value…
Q: I was thinking about the topic B. What would be the answer : b. Ignoring tax, depreciation, and…
A: Payback period is a capital budgeting technique which helps the company in knowing that in…
Q: Returns earned over a given time period are called realized returns. Historical data on realized…
A: 1) Average Realized return (Mean) is the average of all years return 2) Standard Deviation is the…
Q: Security Sinle-index Model Estimates X Y 2 3 1 Bi 1.5 1.3 0.8 o(e.) 3% 1% 2% Given the data for…
A: Expected Return on each security: E_X = alpha_i + Beta_i*E(r_m) = 2 + 1.5*0.08 = 2.12% Similarly,…
Q: IN Capital Asset Pricing Model a) how is it used in practice b) how important is this model c)…
A: Risk and return are the two inseparable parts of the investment. Before investing in any security,…
Q: Suppose a French bottle of champagne costs 20.5 euros. Instructions: Enter your responses rounded to…
A: The cost of one currency expressed in another currency is called exchange rate. Currencies are…
Q: The market price of a stock is $35.00. An investor has purchased a call option for 100 shares of…
A: Price of underlying asset = $35 Exercise price = $20 Number of shares = 100 Intrinsic value of the…
Q: Bond Info: Coupon Rate 11.875% Quoted Yield 3.000% Maturity Date May 29, 2023 Frequency 2 Tax Rate…
A: Bonds carry the payment of interest each period and these are based on stipulated rate mentioned on…
Q: Bond matures in 15 years. Coupon rate 18%. Payment made in weekly. R = 12%. After 10 years coupon…
A: Rate of Return (ROR) is the Gain or Loss on investment over a certain period of time. A positive…
Q: If she can sell the car after 3 years for $40,000, what is the total amount she will pay over the…
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…
We examine what might happen in the worst-case scenario, but the true worst case would involve a total disaster with extremely remote probability. We certainly would like to prepare ourselves for the worst possible outcome, but shall we make decisions based on something that is extremely unlikely to happen? Consider Samsung’s recent experience. Samsung was forced to recall 2.5million Galaxy Note 7 smartphones just one month after it was introduced because multiple reports on the phones caught fire, and eventually stopped all production in the following month. Some estimated that Samsung incurred a $5 billion write-off due to this fiasco.
- Would you consider it Samsung’s failure not to prepare for this worst-case scenario? Why or why not?
- As a member of Samsung’s FP&A team, what would you do differently for evaluating future products?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- SENE ELL Co. recently recalled 6 million cars due to faulty third-party ignition switches that were linked to 13 deaths. For more than a decade, the company decided against a very inexpensive switch upgrade and continued to use the vendor’s ignition switches even though they did not meet the company’s performance specifications. A growing number of lawsuits ensued and company’s stock sank due to heavy media attention, congressional inquiries, and a Department of Justice criminal investigation. The most significant risk management lesson to date from the company recall is: CHOICES: A) An organization that ignores or mistreats its external stakeholders does so at its own peril. B) The Company failed to develop an ethical organizational culture that guided its strategic planning and daily operations. C) Cost-benefit analysis is an ineffective decision-making technique, as demonstrated in rejecting a 57-cent fix for the ignition switches. D) Reliance upon third-party vendors results…The economic shock associated with the COVID-19 pandemic is likely to be significantlylarger than anything seen since the financial crisis of 2008/09. The spread of COVID-19has already had a high human cost, and, with public health systems struggling to cope,these costs will continue to grow. The policies put in place by governments to slow thetransmission of COVID-19 have led, in many countries, to massive demand and supplyshock. This has led to significant trade disruptions, drops in commodity prices, and thetightening of financial conditions in many countries. These effects have already led tolarge increases in unemployment and underemployment rates and will continue tothreaten the survival of many firms worldwide (Loayza and Pennings, 2020).Government revenues are projected to fall as a consequence of the pandemic because ofdeclining economic activity. As fiscal space is already limited in many countries, there isa danger that policy responses to the crisis will either be…Consider the following scenario: A hoverboard is a self-balancing scooter that uses body position and weight transfer to control the device. Hoverboards use a lithium-ion battery pack, which was found to overheat causing an increased risk for the product to catch fire or explode. Several people were badly injured from these fires and explosions. As a result, a recall was issued in mid-2016 on most hoverboard models. Customers were asked to return the product to the original point of sale (the retailer). Retailers were required to accept returns and provide repair when available. In some cases, retailers were held accountable by consumers, and not the manufacturer of the hoverboards. You are the retailer in this situation and must decide if the hoverboard scenario creates any contingent liabilities. If so, what are the contingent liabilities? Do the conditions meet FASB requirements for contingent liability reporting? Which of the four possible treatments are best suited for the…
- The Japanese tsunami disaster of March 2011 had a negative effect on the automobile industry. With production and distribution in Japan at a standstill, American auto assembly plants could not get the auto parts that usually come from Japan. "The Japanese Crisis, Terrorism, and American Business," companies must stay flexible, and create appropriate, alternate plans in case they are confronted by unexpected occurrences. These actions are more specifically referred to as Group of answer choices a. operational planning b. contingency planning c. tactical planning d. motivational planningInfinity Designs, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Home and Garden Expo. The exhibit will cost the company $12,000 for space. At the show, Infinity Designs will present a slide show on a PC, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous jobs. The company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $201,000 Less: Design supplies (variable cost) $17,000 Salary of Samantha Spade (owner) 80,000 Salary of Kim Bridesdale (full time employee) 55,000 Rent 18,000 Utilities 6,000 Depreciation of office equipment 3,600 Printing of…The CFO of PKD Corporation is very uncomfortable with its current risk exposure related to the possibility of business disruptions. Specifically, PKD is heavily involved in E-business, and its internal information systems are tightly interlinked with its key customers’ systems. The CFO has estimated that every hour of system downtime will cost the company about $10,000 in sales. The CFO and CIO have further estimated that if the system were to fail, the average downtime would be one hour per incident. They have anticipated that PKD will likely experience 50 downtime incidents in a given year due to internal computer system problems and another 50 incidents per year due to external problems—specifically, system failures with the Internet service provider (ISP). Currently, PKD pays an annualized cost of $150,000 for redundant computer and communication systems, and $100,000 for ISP support just to keep the total expected number of incidents to 100 per year. Required: Given the…
- In December 2019, a novel coronavirus outbreak was first documented in Wuhan, China. This virus triggered crisis for the global economy and markets including Ghana. With an escalating number of confirmed cases globally, the World Health Organization (WHO) declared the virus tobe a global pandemic, meaning that it will have a sustained global impact.In order to stop the spread of the Covid-19 outbreak, many countries across the world including Ghana implemented very tough measures such as introduction of travel restrictions, strict lockdown to try to contain the virus. The repercussion of these measures has been a total halt to major industrial production chains and as such affecting government’s tax revenue.Furthermore, some safety protocols such as the use of nose masks, the frequent washing of hands and the use of a 70% based alcohol sanitizer in sanitizing hands and also the practice of social distancing were recommended by World Health Organization to help stop the spread of the…Late in 2021, a “bug” was discovered in a software product that was installed for several of your company's clients. Although the bug was not your company's fault, the CEO of the company feels strongly that company software engineers should assist the clients with a programming solution since the company recommended the software. Clients will be contacted early in 2022 and should have fixes in place for all those affected by the end of the first quarter of 2022. The estimated cost is $7,000. Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements for 2021.Zynex Co manufactures a range of electronic devices, which it sells to online stores and retail outlets. It has a risk-seeking attitude and its objective is to maximise profit. Six months ago it released a new version of its smartphone, the ZV. Zynex Co's main smartphone competitor has announced that it will launch a new version of its smartphone in one month's time and Zynex Co is concerned about the effect of the launch of this rival product on future demand for the ZV. For each of the previous ten smartphones launched by its competitors, Zynex Co's marketing team has analysed the impact on Zynex Co's sales performance. This data was retained specifically for the purpose of forecasting future demand of Zynex Co's smartphones and is stored in the company's financial database. Based on this analysis, the marketing team has identified three possible outcomes for the impact on the demand of the ZV: a small decrease, a medium decrease and a large decrease. Production volumes for the ZV…
- A steel manufacturing plant was considering to shut-down its plant due to very less demand in the market because of Covid 19 pandemic. List down any 5 non-cost considerations in a shut-down decision.One of the main concerns in the coronavirus outbreak is the spreadof the virus during air travel. To avoid the risk of spreadingvirusand eliminate concernsduring air travel, airlines started to circulate fresh air in the airplane cabins every 3 minutes. For this purpose, air needs to be compressedfrom outside to inside the airplane cabinand conditioned for passenger comfort and safety. Calculate the average cost of this new implementation to Turkish Airlines for one of its national flights assuming that the energy costs 2 Turkish liras (TL) per kW hr?Tangent Controls Ltd. is a manufacturer of crash-protected event recorders that are used in railway systems around the world to record event data. These data can be retrieved and analyzed to monitor and improve operations, but also to provide diagnostic data in the event of rail crashes. The small Ottawa-based company has customers across the world, but its largest market is North America. The company has been hurt by the U.S. economy, seeing a 12% decline in sales over the prior year. The company is hoping that the latest industry developments, which call for a significant increase in the shipment of oil by railcar, will mean an increase in sales. In the meantime, the company has been seeking new investors and has approached a leading Canadian venture capital firm to see if it might be interested in investing. As part of its approach, Tangent has provided the following financial information for the most recent fiscal year. TANGENT CONTROLS LTD. Statement of Financial Position As at…