Archives: Solution Manual
978-0073526898 Case NFLX 14 Part 4
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 Estimated Price/Share=$12.07 Company Name: NETFLIX INC Required Valuation Parameters (to compute value of common equity): 10.00% 0 3/1/2005 1.00 Enter […]
978-0073526898 Case NFLX 14 Part 3
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% […]
978-0073526898 Case NFLX 14 Part 2
Data Center Industry Code LookUp Annual Financia Click Here f To import historical data double-click any cell or enter ticker above: Company Name Ticker Industry Sector ONTN Go Search Links to SEC filings, Company cial Data is originally from April […]
978-0073526898 Case NFLX 14 Part 1
Company Currently in Model is NETFLIX INC STEP 1 a STEP 2 a STEP 3 a VALUATION: User’s Guide FORECASTING THE FUTURE: UNDERSTANDING THE PAST:
978-0073526898 Case NFLX 10 Part 3
Model Summary Sensitivity Analysis Historical Data For: Forecast Horizon 10 Years NETFLIX INC Most Recent Fiscal Year End: 12/31/2004 This Year’s ROE (%) 10.21% Average ROE (last five years) 977.87% Sales Growth (last five years) #DIV/0! Terminal Year’s ROE (%) […]
978-0073526898 Case NFLX 10 Part 2
Annual Dividend Yield 4.00% Value of Contingent Claim Per Share #NAME? Number of Shares Subject to Claim (000s) 1,000 Total Value of Contingent Claim ($000s) #NAME? Residual Income Valuation ($000) Company Name NETFLIX INC Most Recent Fiscal Year End 12/31/2004 […]
978-0073526898 Case NFLX 10 Part 1
Financial Statements ($000s) inactive Ticker Industry Code Sector Code Company Name #NFLX MG743 MG7 Common Shares Outstanding 52,732 (in 000s at most recent fiscal year end) Estimated Price/Share=$15.99 Actual Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast […]
978-0073526898 Case Interpreting Ratios Part 2
The Margin versus Turnover Trade- Off 0% 5% 10% 15% 20% 25% 30% 35% 0 1 2 3 4 5 6 7 8 9 10 11 Turnover Profit Margin ROE=10% ROE=20% Factors Influencing the Margin vs. Turnover Trade-Off ⚫Lower turnover […]
978-0073526898 Case Interpreting Ratios Part 1
Ratio Analysis Framework for Business Analysis and Valuation 4. Financial Ratio Analysis 5. Cash Flow Analysis 4. Cash Flow Forecasts 3. Valuation Ratios 4. Complications Negative Values Value Creation and Destruction though Financing Transactions STEP 1 Understanding the Past 1. […]
978-0073526898 Case Intel Slides Part 2
Why Was the Stock Price Drop So Large? ⚫Recompute the valuation models in questions 2 and 3, but in each case assume that sales growth and margins immediately fall back from the 2000 levels to to 1999 levels in 2001 […]
978-0073526898 Case Intel Slides Part 1
Intel’s Earnings Torpedo Objectives of Intel Case ⚫Illustrate the role of sales growth rates and gross margins as the two key drivers of value. ⚫Illustrate how the extrapolation of unusually torpedo’, whereby stock price takes a sharp drop when these […]
978-0073526898 Case GUT Web
Equity Valuation and Analysis with eVal The Gabelli Utility Trust Case Objectives ⚫To illustrate security mispricing in a setting where it is relatively straightforward to estimate intrinsic value ⚫Identify common impediments to arbitrage in securities markets ⚫Other ⚫Introduction to closed […]
978-0073526898 Case EnCom Spreadsheet
EnCom Stage 1 End of Period 0 1 2 3 4 5 Discount Factor at 10% 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209 DCF Valuation Cash Inflows 0 600 1,200 1,200 1,200 1,200 Cash Outflows -1,720 -720 -720 -720 -720 0 […]
978-0073526898 Case EnCom Slides Part 4
Measuring Accruals: Sloan (1996) ⚫Sloan’s definition of accruals: Accruals = (DCurrent Assets –DCash) – (DCurrent Liabilities –DST Debt) – Depreciation Expense Note that: Earnings – Cash from Operations = Accruals Deflate by total assets ⚫High Accruals => temporarily high earnings […]
978-0073526898 Case EnCom Slides Part 3
Stage 2 Questions 7. Compute EnCom’s ROE for each of the five periods using each of the above three accounting methods. Explain how each of the different accounting methods impacts EnCom’s ROE. •Immediately expensing the costs temporarily depresses ROE, but […]
978-0073526898 Case EnCom Slides Part 2
Stage 2 of EnCom Example ⚫An incremental investment project is available to EnCom, with data as follows: –EnCom can engage in a marketing campaign during period 1, with total marketing costs of $300, payable in cash at the end of […]
978-0073526898 Case EnCom Slides Part 1
EnCom Corporation The Analysis of Earnings Quality Defining Earnings Quality ⚫What criteria would a high quality accounting system satisfy? ⚫Accounting rate of return on equity (ROE) would provide good measure of internal rate of return (IRR) on the portfolio of […]
978-0073526898 Case Boston Slides Part 3
Pro Forma Provision Computations •Setting the Provision for Bad Debts at 10% of notes receivable issued during the period, we have: Provision = 10% of 1,467,065*= 146,707 *This amount is found in the investing section of the statement of cash […]
978-0073526898 Case Boston Slides Part 2
Overall Evaluation of Boston Chicken’s Business Strategy ⚫Financing business is lackluster, but has important synergies for franchising business. Credit risk is a big concern here. ⚫Franchise business looks great, so long as franchisees can keep paying bills. ⚫Restaurant business looks […]
978-0073526898 Case Boston Slides Part 1
Boston Chicken Case Case Overview ⚫Rapidly growing restaurant chain is one of the hottest names on Wall Street ⚫Sales and earnings show consistent growth ⚫But a small number of detractors argue that the strategy is flawed and the accounting numbers […]
978-0073526898 Case Bally Slides Part 3
What Happened at Bally? ⚫Revenue growth slows and income turns negative ⚫Took a $55 million charge for membership receivable reserve at the end of 2002. CEO resigns. ⚫Switched to modified cash-basis accounting at the end of 2003, resulting in a […]
978-0073526898 Case Bally Slides Part 2
Bally Revenue Restatement BALLY TOTAL FITNESS HOLDING CORP Consolidated Statements of Income 31-Dec-98 In Thousands Except Per Share Amounts For Period Ended Dec 31, 1998 12/31/98 Restated Net revenues: — — Membership revenues — — Initial membership fees on financed […]
978-0073526898 Case Bally Slides Part 1
Turnaround at Bally Total Fitness Case Overview ⚫A second revenue recognition case to compare and contrast with the Boston Chicken Case. ⚫New management promotes installment membership –Significant provision for loan losses on receivables –Revenues are deferred and recognized ratably over […]
978-0073526898 Case Apple Part 2
Ratio Analysis (7) Ratio Analysis (8 & 9) ⚫Relative IBM, Apple does not use debt financing, thus losing out on the ability to leverage its high RNOA into an even higher ROE debt. ⚫Relative to IBM, Apple sits on a […]
978-0073526898 Case Apple Part 1
Equity Valuation and Analysis with eVal Apple and the iFad Case Overview ⚫Comprehensive analysis of a growth company employing conservative accounting ⚫Assessment of company involves: –Evaluation of future growth opportunities –Sustainability of current profitability –Impact of conservative accounting on future […]
978-0073526898 Case Amzn Eval2 Model Replicating Analyst Model Part 4
10 11 12 13 14 15 16 17 18 19 20 21 22 -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% -36.69% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% -2791787 […]
978-0073526898 Case Amzn Eval2 Model Replicating Analyst Model Part 3
12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 2,804,896 3,001,238 3,211,325 3,436,118 3,676,646 3,934,011 4,209,392 4,504,049 4,819,333 5,156,686 5,517,654 5,903,890 6,317,162 6,759,363 243,238 212,287 185,275 161,700 141,125 123,168 107,496 93,818 81,880 71,461 62,368 54,432 […]
978-0073526898 Case Amzn Eval2 Model Replicating Analyst Model Part 2
Estimated Price/Share=$14.98 Company Name: AMAZON COM INC Required Valuation Parameters (to compute value of common equity): ————————————————————–—————————————————————————-> 22.60% —————————-> 0 —————————————————————————-> 6/30/2001 ————> 1.00 Enter Cost of Debt:———————————————————————————————- 8.00% Enter Cost of Preferred Stock:—————————–————————–———————-> 9.00% Optional Valuation Parameters (to compute […]
978-0073526898 Case Amzn Eval2 Model Replicating Analyst Model Part 1
Financial Statements ($000s) inactive Ticker Industry Code Sector Code Company Name Common Shares Outstanding 370,000 (in 000s at most recent fiscal year end) Estimated Price/Share=$14.98 Actual Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast […]
978-1483340074 Syllabus
PART III: THE SYLLABUS (SPRING, 2015) CALIFORNIA STATE UNIVERSITY SAN MARCOS COLLEGE OF BUSINESS ADMINISTRATION COURSE: MANAGEMENT IN DIFFERENT CULTURES MGMT 461, SECTION 02, LEC 20071 INSTRUCTOR: PROFESSOR MARTIN J. GANNON Spring, 2015. TuTh, Room 306 Markstein, 3-4:50 p.m. OFFICE: […]
978-1483340074 Studying Guide Part 2
How is it different from business practices in your country? Chapter 10: The German Symphony 1. Was Germany founded earlier or later than other major European nations? Who was Frederick the Great of Prussia, and how did he and Prussia […]
978-1483340074 Studying Guide Part 1
PART V: MULTIPLE CHOICE AND ESSAY QUESTIONS FOR THE NINE CHAPTERS NOT REQUIRED IN THE THREE EXAMS Chapter 6: Kimchi and Korea 1. They are known as the Irish of Asia: a. The Chinese 2. This nation was widely known […]
978-1483340074 Exam Part 3
d. Mexico* e. Australia 2. An example of a cleft national culture in the major book of the book focused on this topic is: 3. The Dance of Shiva best reflects: a. linearity b. cyclicality* c. spontaneity d. conservatism e. […]
978-1483340074 Exam Part 2
d. A mosaic e. Constant warfare 5. The nation that explicitly incorporated the concept of a mosaic into its constitution to define the nation’s perspective on ethnic groups is: 6. Power in French organizations tends to be: a. Bottom up […]
978-1483340074 Exam Part 1
PART IV: THE THREE EXAMINATIONS FIRST EXAM There are 43 multiple choice questions, each worth 1.5 points. You can answer 1. The Japanese term Shikata (the plural is kata) can be defined as: a. Rule* b. Friendliness c. Spirit d. […]
978-1483340074 Chapter 9
CHAPTER 9: A METAPHOR IN DEPTH: THE GERMAN SYMPHONY In this chapter there is an extended treatment of the manner in which the instructor can 1. Narrative Summary The metaphor used for Germany is the symphony orchestra. German culture is […]
978-1483340074 Chapter 8
CHAPTER 8: CROSS-CULTURAL NEGOTIATIONS As businesspeople increasingly interact with those of other national and ethnic cultures, they need to understand the process of negotiation. This chapter is a brief introduction to this topic, with special attention being devoted to cross-cultural […]
978-1483340074 Chapter 7
CHAPTER 7: ADDITIONAL BEHAVIORS ACROSS CULTURES In this chapter we provide exercises for additional behaviors that are significant across cultures. These behaviors are related to the concepts presented in previous chapters, for 1990, Lambert et al., 1979, and Cashmore & […]
978-1483340074 Chapter 6
CHAPTER 6: SOCIOLINGUISTICS It is frequently asserted that approximately 30% of the communication between individuals is transmitted by the words they use. The other 70% occurs through the following types of non-verbal communication: * Kinetics – the study of body […]
978-1483340074 Chapter 4 Part 1
31 CHAPTER 4: CULTURAL METAPHORS The work of Kluckholn and Strodtbeck, Hall, Hofstede and many others who study national cross-cultural differences has been invaluable in the area of cross-cultural studies. Their dimensions of culture constitute a base upon which a […]
978-1483340074 Chapter 3
CHAPTER 3: THE DIMENSIONS OF CULTURE – PART 2 Since the end of World War II anthropologists and particularly psychologists have studied the dimensions along which cultures vary, and they have found empirical support for at least 22 dimensions (Osland […]
978-1483340074 Chapter 2
Gannon and Pillai, Understanding Global Cultures, Sixth Edition Instructor Resource CHAPTER 2: THE DIMENSIONS OF CULTURE, PART 1 Continuing with our applications and exercises on culture, we are now going to get more familiar with the concept of cultural dimensions. […]
978-1483340074 Chapter 5
69 CHAPTER 5: CULTURES AS PROCESSES, OUTCOMES, AND EMOTIONAL EXPRESSION Edward Hall (Hall and Hall, 1989) is a prominent cultural anthropolist whose work on monochronic and polychronic time is highlighted in Chapter 2. His theoretical framework also outcome-oriented cultures, for […]
978-1483340074 Chapter 4 Part 2
Figure 4.7 Summary of the British Cultural Metaphor (The traditional British House), Access Leverage Points (ALP’s), and Interventions Strategies. Step 1 The Sub-Metaphorical Constructs Step 2 The Access Leverage Points Step 3 The Intervention Strategies Historical Foundations of Great Britain […]
978-1483340074 Chapter 11
CHAPTER 11: TRAINING VIDEOS AND WEBSITES Cross-cultural training videos help to enrich the learning process. My strong preference is for videos containing several short vignettes or incidents lasting two to three minutes to encourage active learning. Before showing a video, […]
978-1483340074 Chapter 10
CHAPTER 10: A METAPHOR IN DEPTH: THE JAPANESE GARDEN 1. Narrative Summary The metaphor used to describe Japan is the wet garden. The fluidity yet essentially unchanging nature of the water in the pond’s garden illustrates how the Japanese perceive […]
978-1483340074 Chapter 1
Gannon and Pillai, Understanding Global Cultures, Sixth Edition Instructor Resource CHAPTER 1: UNDERSTANDING CROSS-CULTURAL DIFFERENCES EXERCISE 1.1: CULTURE AND GROUP EFFECTIVENESS Many individuals do not consider that cultural differences or culture are important. They believe that individuals tend to be […]
978-1337090582 Appendix Appendix 14A
Appendix 14A Breakeven Analysis APPENDIX 14A BREAKEVEN ANALYSIS ANSWERS TO QUESTIONS: 1. A linear breakeven chart is constructed as follows: a. The total revenue (TR) function is found by drawing a line through the origin with a b. The total […]
978-1260153590 Chapter 9 Solutions Manual Part 3
23. Given the seven-year payback, the worst case is that the payback occurs at the end of the seventh year. Thus, the worst-case: The best case has infinite cash flows beyond the payback point. Thus, the best-case NPV is infinite. […]
978-1259732782 Section Section 4 Part 3
96 Section 4 Sample Syllabi and Daily Course Schedules CLASS SCHEDULE FOR A 10-WEEK (OR QUARTER-LENGTH) COURSE (SAMPLE 1) 2 class meetings per week 1Orientation and course preview; lecture on Chapter 1 2Lecture/discussion of Chapter 2 and Connect learning assurance […]