MATH2003J, OPTIMIZATION IN ECONOMICS, BDIC 2022/2023, SPRING Problem Sheet 2 Question 1: For the following LP problems sketch the feasible sets, find all corner points and use the graphical method to solve them: (a) max. 3x1 + 4x2 subject to 3x1 + 2x2 ≤ 6, x1 + 4x2 ≤ 4, x1 ≥ 0, x2 ≥ 0. (b) max. 2x1 + 5x2 subject to −2x1 + 3x2 ≤ 6, 7x1 − 2x2 ≤ 14, x1 + x2 ≤ 5, x1 ≥ 0, x2 ≥ 0. Θ (c) max. 8x1 + 9x2 subject to x1 + 2x2 ≤ 8, 2x1 + 3x2 ≤ 13, x1 + x2 ≤ 6, x1 ≥ 0, x2 ≥ 0. Θ Question 2: Let λ > 0 be a constant. Sketch the feasible set F determined by the inequalities: x1 + x2 ≤ λ , x1 ≥ 0, x2 ≥ 0. Also maximize and minimize the function f(x1 , x2 ) = 2x1 − 2x2 on the feasible set F. Question 3: The region B consists of all (x1 , x2 ) satisfying x1 − 2x2 ≤ 2, 2x1 + x2 ≤ 8, x1 ≥ 0, x2 ≥ 0. Solve the following problems with B as the feasible region: Θ (a) max. 3x1 (b) max. x2 Θ (c) max. 2x1 + 3x2 (d) min. −2x1 + 2x2 Θ (e) min. −2x1 − 3x2 Θ Question 4: A doctor wants to design a breakfast menu for his patients. The menu is to include two items A and B which provide a number of units of vitamin C and iron as given in the table below item units of vitamin C (per gram) units of zinc (per gram) Cost per gram A B 2 1 2 2 $4 $3 The breakfast menu must provide at least 8 units of vitamin C and 10 units of zinc. (a) How many grams of each item should be provided in order to meet the zinc and vitamin C requirements for the minimum cost? What will this breakfast cost? (b) Now suppose the cost of Item B rises to $4 per gram. What is the new minimum cost of the breakfast? Describe all the possible set of breakfasts which achieve this minimum cost.
Course: Programming Project: Student Registration System Description: Build a student registration system where users can add students, view student details, and update student information. Use data structures like dictionaries or lists to manage student records. Key Features: 1. Implement functions to add new students, view student details, and update student information. 2. Use a data structure (e.g., dictionary or list) to store student records. 3. Include error handling for cases such as updating information for a non-existing student.
ISOM 5720 ERP & Enterprise Systems Management Winter 2025 Department of Information Systems, Business Statistics & Operations Management COURSE: ISOM 5720 ERP and Enterprise Systems Management (2-0-0:2) Concepts and practices of enterprise resource management; enterprise resource planning systems and applications, integrated systems approach to managing major business processes, business information reports and analyses. Winter 2025 Saturday (9:30-12:50pm and 2:00-5:20pm), January 4, 11, 18 Wednesday (6:00-9:20pm), January 8, 15 Venue: LSK-1003 (Case classroom) TEXTBOOK You will receive a complimentary copy of the instructor’s text book, Enterprise Systems for Digital Transformation. Other learning materials will be posted on Canvas. GRADING POLICY: Final course grade will be determined by the following criteria and point distribution. Class participation 10 Case analyses 20 Lab exercises 10 ERP simulation games 20 Final exam 40 Total 100 Case analysis will be due before class on the date the case is discussed in class. There will be a total of 2 case submissions. Format of the case analysis and the discussion questions can be found later in the syllabus. Final exam consists of short answer questions, quantitative problems, and critical thinking (essay) questions. Use of SAP is not needed during the exam. A study guide will be provided to help you prepare for the exam. COURSE INTENDED LEARNING OUTCOMES: 1. Compare the strategic values and limitations of enterprise systems 2. Discuss the basic concepts and practices of process-oriented management in a global, competitive environment 3. Define the skills and knowledge to successfully implement an enterprise system in organizations 4. Identify the new development of ERP software and applications for facilitating e-business 5. Demonstrate examples of business process integration through the use of ERP core applications and modules 6. Identify the tangible benefits of enterprise integration for decision making using ERP in a simulated environment SPECIFIC KNOWLEDGE AND SKILLS DEVELOPED: By completing this course, you should be able to: 1. Describe the information systems evolution and its impacts on the development of ERP systems in global businesses as well as local small businesses. 2. Differentiate a business process from a business function. 3. Identify the kinds of data and information that each major functional area produces and needs. 4. Describe the benefits and limitations of system integration. 5. Compare and contrast different ERP architectures (including three-tier, web- based, and service oriented). 6. Explain why ERP system implementations often incorporate process redesign and industry best practices. 7. Compare and contrast different enterprise system implementation strategies and processes. 8. Determine and analyze the total cost of ownership and vendor selection based on financial criteria such as net present value (NPV) and internal rate of return (IRR). 9. Describe how open source, SOA and SaaS will impact the future development of enterprise systems. 10. Describe the major functions and benefits of customer relationship management (CRM) and supply chain management (SCM) software, as an extension of ERP software. 11. Solve a material requirements planning (MRP) problem by determining the timing and quantity requirements for each material. 12. Perform proficiently an integrated business process involving sales and distribution, production planning and control, purchasing, warehouse management, and financial transactions using SAP. 13. Define the security, ethical, and legal issues related to ERP systems and their implementation. 14. Use basic reporting and analytical tools to analyze multidimensional data. 15. Demonstrate essential decision-making skills in an ERP simulation game. ACADEMIC Students at HKUST are expected to observe the Academic Honor Code at all times INTEGRITY: (https://acadreg.ust.hk/generalreg.html for more information). Zero tolerance is shown to those who are caught cheating on any form of assessment and a zero mark will be given. In particular, any act of cheating on exam will automatically result in an F grade for this course. All written assignment will be screened by Turnitin for plagiarism and points will be deducted when the similarity index is considered high (e.g., more than 25%). COURSE OUTLINE January 4 (AM) Introduction n Integrated business solutions n ERP markets and development Case Discussion n Cathay Pacific: Implementing an integrated e-freight solution January 4 (PM) Introduction to SAP n SAP basic navigations Integrated Business Process n Worksheet approach to MRP n Make-to-stock scenario Lab exercise due by next class meeting January 8 (W) ERPsim Logistics Game (for 20% of simulation game’s grade) January 11 (AM) Contemporary Issues and Latest Development n Open source ERP, SOA, and SaaS n Integration with SCM and CRM Case Discussion n Lenovo: Digital transformation for supply chain intelligence Case analysis due before class January 11 (PM) Enterprise Systems Implementation n ERP implementation methodology n System selection and evaluation Business Analytics n Analytics framework and technology, in-memory analytics n Excel’s pivot tables January 15 (W) Case Discussion n Bloom & Grow Asia (I): ERP strategy and planning Case analysis due before class Case Discussion n Bloom & Grow Asia (II): ERP system selection January 18 (AM) Exam (10:30 am – 12:30 noon) January 18 (PM) ERPsim Logistics Game with BI (for 80% of simulation game’s grade) CASE DISCUSSION ASSIGNMENTS General information: While here is no page limit for the case analysis, it should be one to two pages long, single spaced between lines but double spaced between paragraphs. Please note that all written assignments will be checked by Turnitin for plagiarism. Penalty will be imposed for any submission with a high similarity score. To avoid receiving a high similarity score, please do not copy and paste the case assignment questions or extensive use of exact wordings in the case. For each case, a list of suggested questions is given (below) but you don't need to follow them exactly. You can organize your answer any way you think best. Make sure your analysis is concise (use of bullet points for the answers is allowed) and avoids repeating information that already given in the case. A submission link is provided in Canvas for you to upload the analysis. Late assignment will not be accepted unless it is accompanied by a valid (e.g., medical) excuse. Cathay Pacific: Implementing an integrated e-freight solution For class discussion only (a) How crucial was an integrated process and information sharing to Cathay Pacific’s cargo operations? (b) What were the major roles of Cathay Pacific in introducing the e-freight process? How to overcome the challenges when implementing it? (c) Describe how Cathay Pacific’s ultimate success in its air cargo business depended on an alignment of people, process, and technology. Assignment 1. Lenovo: Digital transformation for supply chain intelligence Due before class (a) How did the COVID-19 pandemic disrupt Lenovo’s global supply chain? (b) How could digital transformation help Lenovo achieve its higher performance targets even in the face of global supply chain disruptions? (c) What organizational and technical challenges should Lenovo focus on and overcome for a successful implementation of the SCI framework across its supply chain? Assignment 2. Bloom & Grow Asia (I): ERP strategy and planning Due before class (a) For Bloom & Grow Asia, what specific reasons were presented to justify the first ERP implementation project? Did these reasons warrant an ERP implementation project? (b) What prompted the consideration of a second ERP implementation? Should Bloom & Grow upgrade its existing xTuple system or replace it with a new one? (c) What other recommendations would you give Peter Deacon to ensure a successful implementation and deployment of ERP in the future? What were the major lessons learned in the previous two implementations?
BUSI4567-E1 A LEVEL 4 MODULE, AUTUMN SEMESTER 20xx-20xx BUSI4567 CORPORATE FINANCIAL MANAGMENT Question 1 (a) Compare the advantages of debt financing over equity financing when a corporation is issuing a bond to raise capital for projects. 10 marks (b) What are credit ratings for bonds? How the credit ratings affect the yields of bonds? 10 marks (c) You are required to price a Treasury bond with a coupon rate of 4% and paid annually. The par value of the bond is $1,000. The maturity of the bond is 3 years. i. State the principles of bond valuation. 8 marks ii. What is the price of the bond when the yield to maturity of the bond is 6% annually? 7 marks iii. What is the cost of debt capital when the yield to maturity is 6%? Elaborate your answer. 8 marks iv. What is the relation between bond prices and interest rates? Use a diagram to illustrate the relationship between them. 7 marks Total 50 marks Question 2 The expected return for the US stock market is 8.0 percent per annum and the expected risk- free rate is 3 percent. The following information is available for each of five stocks: Share Beta Realised returns (% p.a.) US Petroleum 0.9 6.0 Google 1.3 7.5 Bank of America 0.5 9.5 Delta Airlines 1.1 10.0 US Mobile 1.0 8.0 (a) Calculate the expected return per annum for each of the five stocks 10 marks (b) Calculate the market risk premium. What does it represent? 6 marks (c) Using the CAPM to assess which stocks are undervalued and which are overvalued; 14 marks (d) What will result in an efficient market if a stock is incorrectly valued? Explain the process by which this error will be corrected, using the five stocks above to illustrate. 10 marks (e) Identify the basic difficulties with using CAPM to calculate required rate of return on assets. 10 marks Total 50 marks Question 3 Company Smiths Group has 60 million shares outstanding with a market price of $5 and no debt. The beta of its equity is 1.5 . The rate of return of the risk free asset is 3% annually. The rate of return on the market is 6% annually. Smiths Group has had consistently stable earnings. The company pays at a 35% tax rate. Management plans to borrow a permanent debt of $100 million to replace $100 million of equity. (Assume MM theory with tax is correct) : (a) What is the required rate of return by shareholders before the issuance of the permanent debt? 4 marks (b) If the cost of debt is 3%. What is the required rate of return by shareholders after the debt financing? 5 marks (c) What are the Weighted Average Costs of Capital (WACC) for the company before and after the debt financing? 7 marks (d) What are the values of the firm before and after the debt financing? 7 marks (e) What are the values of the equity before and after the debt financing? 8 marks (f) Who will benefit from this debt financing and by how much? 7 marks (g) To what extent the MM theory with tax is reasonable? Discuss. 12 marks Total 50 Marks Question 4 (a) Suppose the current dividend for ABC Company is £1.40. Shareholders require a 12% rate of return on the company and its dividend increases by 4% every year forever in the future. What is the price of ABC’s stock today? 10 marks (b) Briefly comment on the following statement: “Companies should always prefer to repurchase stocks rather than paying dividend because stock repurchase could reduce the number of shares and increase earnings per share.” 10 marks (c) Discuss and analyse the controversy on the effects of dividend policy in the real world. 30 marks Total 50 marks Question 5 (a) An investment of £500 will generate one of two outcomes: £400 in one year and £500 in two years OR £350 in one year and £300 in two years. Each outcome has a 50% probability. The discount rate is 15%. i. What is the expected NPV of the investment? 10 marks ii. Assume you have an option to abandon in one year for £300. If you abandon, you keep that as the year one cash flow and give up the year two cash flow. Is the abandonment rational for either outcome? What is the NPV of the investment assuming rational abandonment and the value of the abandonment option? 10 marks (b) Describe four types of real options often encountered in investment opportunities. 10 marks (c) Identify the problems of the discounted cash flow (DCF) analysis for valuing a project and explain the reasons that managers might use real options analysis. 20 marks Total 50 marks Question 6 (a) Briefly define and discuss the following theories on the merger and acquisition phenomena: i. Synergy hypothesis ii. Agency theory (e.g., Hold-up problems) 8 marks (b) What are main objectives of horizontal acquisitions, vertical acquisitions and conglomerate acquisitions respectively? 10 marks (c) The Company Oriental Express is investigating a possible merger with Company EuroToys. The below is basic financial information about the two companies: Oriental Express EuroToys Price per share $3 $2 Number of shares outstanding 50 million 27.5 million Both Oriental Express and EuroToys are mature firm will be $225 million. Oriental Express plans merger. i. What is the synergy of the merger? 5 marks ii. Where does the synergy come from? 8 marks iii. What is the cost to Oriental Express? 5 marks iv. What are the gain and stock price change of Oriental Express? 8 marks v. What are the gain and stock price change of EuroToys? 6 marks firms. The market value of the merged to pay EuroToys $64 million for the Total 50 marks
Calculus I GEIG1402, December 16, 2024 - January 17, 2025 Overview Review of algebraic and trigonometric functions and their graphs, the concepts of limit and continuity, theory and techniques of differentiation, and applications of differentiation, introduction to the theory and techniques of integration. Credits 4 Contact hours 60 Prerequisites Students are assumed to have taken and passed a pre-calculus course. In particular, students should be proficient in high school algebra and geometry, as well as trigonometry. Moreover, they should have studied exponential and logarithmic functions. Required Text(s) “Calculus”, 11th Edition by Larson. Coverage: Chapters 1-6, Select Sections Calculators No graphing calculators, websites, or cellphones may be used on tests. You may use a scientific calculator. However, all answers should be exact unless stated otherwise. Assignments and Graded Work Material will be covered very quickly; it will be difficult to catch up, should one fall behind. There are five types of assignments. Homework: Specific homework exercises will be assigned. It is expected that you will read the sections and complete the assignments by the given due date. It is encouraged to help each other solve homework problems. Homework is for you to improve your skills. Homework will not be graded. If you have questions, please contact your TA or your professor for help. You should complete the homework using topics discussed in the text and lecture. There are many methods of solving calculus concepts. We are strictly using the beginning concepts. Discussions: There will be weekly discussions. On two of these (prior to the midterm and prior to the final exam) you will have two discussions. The first will be an asynchronous discussion on the online platform. You will answer a question and then post a question. There will be guidance at that time. The second will be a synchronous live discussion. You must attend student hours once a week. A discussion question will be posted, and you must be ready to be called on for your response. This is a time to learn from each other and to grow in your mathematical skills. This is a pure participation grade. Incorrect answers are still participation and a way for all of us to grow. Again, the answer should use topics discussed in the text and lecture. Quizzes: There will be two quizzes. The first will be during the first week of class. This will cover chapter 1 and 2.1. The second quiz will be during the 3rd week of class. This will cover chapter 3. You should work these on your own without help. These will be timed. Think of the quizzes as a way to prepare for your exams. There will be around 10 to 20 questions for the quizzes. You must show work where appropriate to get credit for the question. You must use knowledge presented in the current chapter when making calculations. No notes, websites, or other outside resources should be used during the test. This should be YOUR work. Cheating will result in a zero for the quiz and the course. Midterm and Final Exams: There will be a required midterm and final exam. The midterm will be during the second week and will cover the first two chapters. The final exam will be during the fifth week and will cover chapters 3 through 6. You must show work where appropriate to get credit for the question. You must use knowledge presented in the current chapter when making calculations. These will be timed. There will be around 30 questions per exam. No notes, websites, or other outside resources should be used during the test. This should be YOUR work. Cheating will result in a zero for the quiz and the course. Both exams will be proctored. Both the midterm and the final exam in this course must be visually proctored. For most students, that will mean visual proctoring via VooV where students will be required to show their immediate testing area to the proctor. Students may also use an approved Testing Center at a college or university if online proctoring is unsuitable. Contact the instructor at the beginning of the semester if you need an alternative to online proctoring. Homework 15% Quizzes 25% Midterm Exam 25% Final Exam 25% Participation 10% Grading System of FCU Letter Grade A+ A A- B+ B B- C+ C C- D E X Scores 90-100 85-89 80-84 77-79 73-76 70-72 67-69 63-66 60-62 40-59 1-39 0 Late Assignments and Make-up Exams If under ANY circumstances (excused or unexcused) you cannot take a quiz, you will have the ability to have the midterm exam replace your missing quiz 1. The final exam can replace your missing quiz 2. However, this only holds for ONE quiz. Do not bring me notes from doctors, police, or other qualified professionals for absences. The date and time for the midterm and final are SET! Do not plan trips during the midterm and final exam day. You will receive a 0% if you do not take either one. You must show all of your work on the tests. Unsupported answers will earn no credit. Partial credit is given for correct work shown even if you do not get the correct answer. There are no late submissions for any assignments. The due dates are firm. If you miss a discussion day, you will NOT be able to make-up the grade.
5QQMN532 Asset Management Tutorial 4 Practical applications of bond valuation and bond portfolio strategies Question 1 How can a perpetuity, which has an infinite maturity, have a duration as short as 10 or 20 years? Question 2 What is the duration of a 6% coupon bond making semi-annual coupon payments for 3 years until maturity with a face value of $1,000 if a) the yield to maturity is 6%, or alternatively, b) the yield to maturity is 10%? Question 3 A 9-year bond paying coupons annually has a yield of 10% and a duration of 7.194 years. If the market yield changes by 50 basis points, what is the percentage change in the bond’s price? Question 4 An insurance company must make payments to a customer of $10 million in one year and $4 million in five years. The yield curve is flat at 10%. a) If the insurer wants to fully fund and immunize its obligation to this customer with a zero-coupon bond, what is the maturity of the bond it must purchase? b) What must be the face value and the market value of that zero-coupon bond? Question 5 You are managing a portfolio of $1 million. Your target duration is 10 years, and you can invest in two bonds, a zero-coupon bond with maturity of five years and a perpetuity, each currently yielding 5%. a) How much of (i) the zero-coupon bond and (ii) the perpetuity will you hold in your portfolio? b) How will these fractions change next year? Question 6 You are an asset manager. You are looking to offer your client some return exposure to bonds. Consult the key investor information document (KIID) for the AXA Sterling Corporate Bond Fund which is uploaded on Keats. Focus on the following questions: a) What types of assets does this fund invest in? b) Is the fund closed or open-ended? c) Does it follow an active or a passive strategy? d) What are the key risks for investors to consider? e) Who would you recommend this fund to?
ECON0016: Macroeconomic Theory and Policy Term 1, Problem set 4 1. A supply shock (25 marks) (a) Use the 3-equation model to analyse the effect of a reduction in the markup that shifts the PS curve permanently upwards. Period 1 1. The shock hits, the PS curve shifts up changing equilibrium output to y’e. The PC and the MR curve both shift so that they passes through the new point of medium run equilibrium (the blue dot). Note: if you argue that PC curve does not shift in period 1 but with one-period lag (because workers do not fully realize the PS curve shifts, i.e., workers also have adaptive expectation on medium-run equilibrium output), it is also fine. The dynamics of inflation and output are different though. 2. At the old level of equilibrium output, unemployment is unchanged wage setters want to keep their real wage constant and the nominal wage increases by the level of expected inflation πT 3. Firms set prices as a lower markup over wages (i.e. real wages are higher than expected, due to the shock) so inflation falls to π1< πT 4. The economy moves to the red point, with y=ye (the old equilibrium level), π= π1 5. The central bank is now off its MR curve. Interest rates are assumed only to affect the economy with a one-period lag, so the CB it needs to forecast where the PC will be in the next period. Actual inflation today is π1 so the CB knows expected inflation in the next period will be π1 so forecasts that the PC moves to PC1 6. The CB chooses real interest so that the economy will be at on the intersection of this forecast PC and the MR in the next period Period 2 1. The reduction in interest rates in period 1 increases investment (and will also have an effect on consumption) so moves the economy along the IS curve. Aggregate demand and output change to y2 2. Inflation expectations are updated to last period’s inflation π2 and the PC shifts to PC1. 3. Output is above the new equilibrium, so unemployment is lower and workers have more bargaining power. They increase their wages by more than expected inflation to reflect this, a total of π2 >π1. The gap π2 – π1 is a measure of the extra bargaining power workers have as a result of lower unemployment/ 4. Firms immediately set prices as a markup over wages so prices increase by π2 5. The economy moves to the green point, with y=y2, π= π2. The central bank then guides the economy along the new MR curve back to the new point of medium-run equilibrium. (b) List three other factors that can shift the price-setting curve · Tax rates · Labour productivity · Commodity prices · … and other things which affect the non-labour parts of the production function (c) How will the response of the economy change if the central bank does not update its output target after the shock? · Steps 1 -4 in the first period are the same as above. · The CB then forecasts the PC and sets interest rates so that given this PC the economy in the next period will be on the MR curve i.e. at the green point. · At this point, output is at the new equilibrium, expected inflation is equal to actual inflation and there are no forces to move the economy away from this point · What happens next will depend on how the central bank responds to this situation of being away from both its targets. This will be covered in class. 2. Expectational errors and rational expectations (a) Taking the case considered in part (a) of Q1, write down the expectational error in each period i.e. the difference between actual inflation and expected inflation Period Actual inflation Expected inflation Error (expected inflation less actual inflation) 1 π1 πT πT-π1>0 2 π2 π1 π1- π2
BUSI4567-E1 A LEVEL 4 MODULE, AUTUMN SEMESTER 2022-2023 BUSI4567 CORPORATE FINANCIAL MAMAGEMENG Question 1 a. What is capital budgeting? Explain why it is important in financial decisions? · Capital budgeting is a process to make investment decision on future projects · Capital budgeting estimates future cash flows and the discount rate in order to determine whether the return from potential project meets the benchmark · The financial manager should consider any projects that add shareholders’ value. · However, due to limited resources, only projects generate best returns to investors can be considered. · 10 marks b. Discuss NPV and IRR rules in selecting projects. Explain their advantages and disadvantages in investment decision making. 18 marks c. Comment on the below statement: “If the NPV of a project is zero, then the return to investors is zero. So the project should be rejected.” 8 marks d. A company is planning for a potential project with a beta of 1.2. The Treasury bill rate is 3% per annum, and the expected return on the market portfolio is 8% per annum. Assume the capital asset pricing model holds. i. What is the risk premium on the market? The risk premium on the market is rm – rf = 8% - 3% = 5% 3 marks ii. What is the required rate of return on the project? Required rate of return on this project: r = rf + β(rm – rf) = 3% + 1.2x(8% - 3%) = 9% 5 marks iii. If an investment with a beta of 0.8 offers an expected return of 9.8%, does’ it have a positive NPV? Explain. For an investment with 0.8 beta, the required rate of return is R = rf + β(rm – rf) = 3% +0.8 x (8% - 3%) = 7%. If this project offers an expected rate of return of 9.8%, which is greater than 7%, then its NPV will be positive because the project is expected to generate higher a rate of return than investors requires. 6 marks Total 50 marks Question 2 a. Discuss the role of correlation between risky assets in portfolio construction, using diagram to illustrate. The correlation between risky assets in portfolio construction plays a key role in achieving the best possible effect of diversifications. The lower correlations between assets, the more gain from diversification. More specifically, the lower correction between assets, the better performance for the relation between risk and returns of investment. Actually, the fundamental driving force for diversification is because the assets are not perfectly correlated, as a result, there is a room for achieving a higher rate of return at the given level of risk, or lower level of risk at a given rate of return, or both. b. 18 marks c. A portfolio manager is considering three financial securities for investment. The first is a stock issued by Northern Banking Corporation, the second is a bond issued by Budweiser Beer Corporation and the third is a Treasury Bill that yields a rate of 3% per annum. The expected annual rates of return and standard deviation are as follows: Expected return Standard Deviation Stock (S) 15% 27% Bond (B) 6% 12% i. If you were to fully invest in a portfolio with the two risky securities to achieve a 10% expected rate of return, what must be the investment proportions of the efficient portfolio and what is the standard deviation of this portfolio? Suppose the correlation coefficient between the stock and the bond is -0.3. According to the formula of portfolio return: wSxrS + wBxrB = rP wSxrS + (1-wS)xrB = rP è wSx15% + (1-wS)x6% = 10% (2 marks for formulas) wS = 4/9 wB = 5/9 (5 marks for correct results) Standard deviation of this portfolio: SD=(wS2xσS2+wB2xσB2+2wSxwBxρSBxσSxσB)=[(4/9)2x27%2+(5/9)2x12%2+ 2(4/9)x(5/9)x-0.3x27%x12%]0.5 = 11.9% (3 marks for correct formula and 4 marks for correct results) 2 marks for discussion of results. 12 marks ii. Illustrate, through a diagram, how the risk free asset can help investors to get an even better efficient frontier? The introduction of risk free asset into the portfolio construction will change efficient frontier from “curvy shape” to a straight line. This is the best efficient frontier for investors. 6 marks iii. Illustrate and explain that the Capital Market Line offers investors the best trade-off between risk and return, even though the investors have different degrees of risk tolerance. Marking scheme: The capital market line provides the best trade-off between risk and returns. Investors only need to choose a mix between the two assets: the market portfolio and the risk free asset according to own risk tolerance for best investment opportunities. 10 marks iv. Can you find an optimal portfolio which satisfies all investors with different risk attitudes? Explain why. Following the discussion in (iii), there is no an optimal portfolio that satisfied all investors. Each investor has a portfolio optimal to their own tolerance. 4 marks Total 50 marks Question 3 a. Draw a diagram to explain the MM theory of capital structure with and without taxes. Explain the cost of debt, cost of equity and the cost of capital at different debt ratios. 1. MM theory without taxes: 2. MM theory with tax: 5 marks for each diagram (or 10 marks for one diagram illustrating both MM with and without tax). 4 marks more for clear explanation to each theory; 2 more marks for citations of the literature. 22 marks b. South Ocean Development Corporation (SODC) starts life with all-equity financing and a cost of equity of 14 percent. Suppose it refinances to the following market-value capital structure: Debt (D) 45% At rD = 9.5% Equity (E) 55% ZD pays taxes at a marginal rate of Tc = 30 percent. Assume MM’s theory with tax holds. i. Use MM’s proposition 2 to calculate the new cost of equity. According to MM theory 1963, the risk of equity will increase with additional debt. rE’ = rA + (1-Tc)x(rA – rD)xD/E = 14% + (1-0.35)x(14% - 9.5%)x45/55 =16.39% (correct formula 2 marks, correct answer 4 marks, 1 mark for discussion) 6 marks ii. Calculate ZD’s after-tax weighted-average cost of capital. WACC = rDx(1-Tc) x D/A+rExD/A = 9.5x(1-0.35)x.45 + 16.39x.55 = 11.79% 6 marks c. Here are the book value and market value balance sheets of the United Printing Company (UP) after a $40 million debt finance: Book (in millions) Market (in millions) Net working capital 20 Debt 40 Net working capital 20 Debt 40 Long-term assets 80 Equity 60 Long-term assets 140 Equity 120 100 100 160 160 Assume that MM’s theory holds with taxes. There is no growth, and the debt of $40 millions is expected to be permanent. Assume a 30 percent corporate tax rate. i. How much of the firm’s value is accounted for by the debt-generated tax shield? There is $40 million debt, according to MM with tax, which generates 40x30% = $12 million value from tax shield. 5 marks ii. What was the original value of the company before the debt finance? E + D +TcxD = 160 D = 40 TcxD = 30%x40 = 12 So E = 160 – 40 – 12 = $108 million 5 marks iii. Who benefited from the decision of debt finance and by how much? The shareholders will benefit from the debt finance by $12 million. 6 marks Total 50 marks Question 4 The Company South Light has $8 million cash for dividends. There are 4 million shares outstanding on the market. Currently, the stock price of the company is $10 per share. a. If the board decides to pay the dividends in cash, what will the stock price be on the ex-dividend day? Discuss the impact of the cash dividends to shareholders’ wealth. Assume no taxes. The earning per share of the company = $8 million / 4 million shares = $2 per share. If the company pays all earning as cash dividends, then on the ex-dividend day, the stock price will reduce by $2 to $8. 5 marks b. If the board decides to use the cash to repurchase the company’s stock from the market. Assume no taxes. i. How many stocks can be repurchased with the cash? With $8 million in cash, the company can purchase $8,000,000/$10 = 800,000 shares. 5 marks ii. What will the stock price be before and after the stock repurchase and why? The stock price before and after the stock repurchase will stay the same (4 marks) on a market without friction and information asymmetry (2 marks). This is because dividend policy is a financial decision, as argued by MM (1961) theory, which cannot generate positive NPV to shareholders (2 marks). 8 marks iii. Explain why the popularity of stock repurchases has been growing faster than the cash dividends as a method for companies to distribute cash to their stockholders. When the markets are not perfect, stock repurchase sometime matters to stock value: · Flexibility. Firms view dividends as a commitment to shareholders and hesitant to reduce an existing dividend. Repurchases do not represent a similar commitment. · Stock repurchase allows investors to decide if they want the current cash flow and associated tax consequences · Stock repurchase has a significant tax advantage over a cash dividend (as most time the tax on cash dividends is higher then the tax on capital gain.) · Share repurchase can offset to dilution and leads to an increase in earnings per share. But the increase in earnings per share will not affect the value of the share. Information asymmetry. The second explanation about the impact of stock repurchase on stock value, is information asymmetry between the insiders and outside investors: · Stock repurchases send a positive signal that management believes that the current price is undervalued. · Tender offers send a more positive signal than open market repurchases because the company is stating a specific price · The stock price often increases when repurchases are announced 10 marks c. Discuss the effects of dividend policy in the real world. Students should start from MM dividend irrelevance theory with the assumptions, then various theories include tax, information asymmetry, clientele effect. For answers with key bullet points, 12 marks. With good understanding and discussion, 18 marks. Answers with literature of relevant theories 20-22 marks 22 marks Total 50 marks Question 5 a. In 2018, the PCG Company made a rights issue at $4.5 a share of one new share for every four shares held, Before the issue there were 10 million shares outstanding and the share price was $5.5. i. What was the total amount of new money raised? There were 10 million shares. For a one for 4 rights issue, there were 2.5 million new shares after. So total new money raised: $4.5x2.5 million = $11.25 million 4 marks i. What was the prospective stock price after the issue? ($4.5x2,500,000+$5.5x10,000,000)/12,500,000 = $5.3 7 marks ii. What was the value of one right? The value of one right = price after – offer price = $5.3 - $4.5 = $0.8 7 marks iii. How far could the total value of the company fall before shareholders would be unwilling to take up the rights? Shareholders would not be willing to purchase the new share when stock price decreased to equal to or lower than $4.6 per share as they could buy the company’s stock cheaper from the market. 6 marks b. Company ABC is issuing a bond with face value of $1,000, and coupon rate of 6% per annum. The maturity of the bond is 4 years. The yield to maturity of the bond is 3% annually. i. What is the bond price? According to bond valuation formula: (2 marks) Where coupon payments = $1,000x6% = $60 P = 60/(1+0.03) + 60/(1+0.03)2 + 60/(1+0.03)3 + 1060/(1+0.03)4 = $1111.51 (4 marks) 6 marks ii. If the interest rate increases, whether the bond price increases or decreases? Illustration using a diagram. When interest rate increases, the bond price will decrease (3 marks). (2 marks for diagram) 5 marks c. What is leasing and what are the advantages of leasing over other means of financing? Lease is a rental agreement that extends for a year or more and for a series of fixed payments (3 marks) · Operating Leases - Short-term, cancelable lease (2 marks) · Financial Leases - Long-term, noncancelable lease. (2 marks) Advantages of leasing (6 marks for bullet points, 2 marks for good discussion): · Short-term leases are convenient · Cancellation options are valuable · Maintenance is provided · Standardization leads to low costs - Lessors are special in the area, so more efficient service or scale of economy. · Tax shields can be used · Leasing and financial distress - When lessee has financial distress, court will enforce the lease payments to lessor · Avoiding the alternative minimum tax 15 marks Total 50 marks Question 6 a. Describe and explain possible motives for mergers and acquisitions · Creation of synergy · Market power · Economy of scale · Vertical integration to avoid hold-up problem · Combination of complimentary resources · Improve efficiency · Industry consolidation (6 marks for key points, 2 marks for good explanation) 8 marks b. What are main objectives of horizontal acquisitions, vertical acquisitions and conglomerate acquisitions respectively? Horizontal · both firms are in the same industry · economy of scale · market power Vertical · firms are in different stages of the production process · vertical integration to avoid hold up problem Conglomerate · The combination of two firms that operate in unrelated business areas · New market or products · Risk diversification 3 marks for key points of each type of merger, 1 mark for good explanation 10 marks c. As financial manager, you are required to value a potential merger deal between your Company Green Energy and another Company ABC Mining. You are given the below information: Green Energy ABC Mining Expected earnings per share next year $0.66 $0.35 Expected dividend per share next year $0.25 $0.252 Number of shares 1,000,000 500,000 Stock price $8.0 $4.2 You estimate that investors currently expect a steady growth of about 4 percent in ABC Mining’ earnings and dividends. Under new management this growth rate would be increased to 5 percent per year, without any additional capital investment required. i. How much is the synergy of the acquisition? Current stock price for Company ABC Mining and g = 4%. $4.2 = 0.252/(r – 4%) èr = 10% The new stock price of ABC Mining after being taken over: P = 0.252/(10% - 5%) = $5.04 Stock price will increase by $5.04 - $4.2 = $0.84. Total market value of ABC Mining will increase by: $0.84 x 500,000 = $420,000, this increase is the synergy of the merger, which comes from improved management efficiency. 10 marks ii. What is the cost of the acquisition to Green Energy if Green Energy pays $4.6 in cash for each share of ABC Mining? Cost = Cash Paid – PVB = $4.6 ´ 500,000 – $4.2 x 500,000 = $200,000 5 marks iii. What is the gain to Green Energy? Gains to Green Energy = synergy – cost = $420,000 - $200,000 = $220,000 6 marks iv. What is the gain to ABC Mining Gain to ABC Mining = cost to Green Energy = $200,000 5 marks v. What will be the new stock prices when the merge deal is announced? The stock price of Green Energy will increase by: $220,000/$8,000,000 = The stock price of ABC Mining will increase by: $200,000/($4.2x500,000) = 9.5% 6 marks Total 50 marks
Department of Finance (07 36334) Financial Statement Analysis and Business Valuation Individual Assignment 1 - credit analysis report Assessment Guidance Autumn 2024 Main objectives of this assignment: a) To encourage students to analyse their chosen firms’ financial performance and position from 2020 to 2023 (for some firms from 2019 to 2022 due to their financial year enddate falls after June) by applying the analysis techniques learned from the modules. They are required to reformulate the financial statements in order to identify accounts related to operating, financing and investing. After that, to calculate the accounting ratios based on the reformulated financial statements. Then to evaluate their sample firms’ financial statement performance and position with referring to qualitative data – managers’ statement, notes to the accounts, external auditor’s reports. b) Students’ own judgements and arguments based on both qualitative and quantitative data, for supporting evaluation are essential. They are required to provide comment on whether to approve the application of three years bank load from their chosen sample firms as a bank manager. About the assignment: 1) Students are required to collect copies of chosen firm’s annual reports in the past four years, few copies of FT news in the past four years. The detail of electronic databases is printed on the course outline. 2) Writing an credit analysis report with referring to the three assignment questions. 3) Students must present full references for their assignments. 4) Students must submit copies of past financial statements only (i.e. B/S, income statements, cash flow statement, group statement of comprehensive income), not the whole annual reports, as appendices of their assignments. 5) Tables, figures, graphs, references and appendices are excluded from word limit of 2,000. Assessment criteria: Part a: Reformulate the financial statements of your sample firm and a competitor firm you have chosen over the four financial years from 2020 to 2023 (or from 2019 to 2022 in some cases when firms have to publish their annual report in the second half of 2024). (30%) 50%-59% (Marks: 15 – 17): 1) Introduction of the core business activities of the sample firm and competitor firms. 2) Reformulate the selected financial statements of sample firm correctly. 60%-69% (Marks: 18 – 20): 1) Introduction of the core business activities of the sample firm and competitor firms. Identifying the business strategic stage of the sample firm. 2) Reformulate the selected financial statements of both sample firms and control firms correctly. 70% or above (Marks: 21 or above): 1) Introduction of the core business activities of the sample firm and competitor firms. Identifying the business strategic stage of the sample firm with SWOT analysis, Boston Consulting Group, or Lifecycle model. 2) Reformulate the selected financial statements of both sample firms and control firms correctly, with a clear illustration about the operating, financing and investing activities. Part b: Undertake a credit analysis based on the financial position and performance of the company you have chosen over the four financial years from 2020 to 2023 (or from 2019 to 2022 in some cases). Note: not the mostrecent year. Compare the performance and financial position of your chosen company with the data from a company’s leading competitor. (50%) 50-59% (Marks: 25 – 29): 1) Calculate ratios based on the reformulated statements and/or normal financial statements correctly. 2) Generally illustrate the changes in ratios but without support of qualitative data (like managers or student’s own view based on past news.) 60%-69% (Marks: 30 – 34): 1) Calculate ratios based on the reformulated/normal statements correctly and compare them with those of the competitor firm. 2) Critically discuss the changes in ratios with the support of qualitative data (like managers or analysts’ point of views/reasons, or student’s own view based on past news). 70% or above (Marks: 35 or above): 1) Calculate ratios based on the reformulated and normal statements correctly and compare them with those of the competitor firm. 2) Critically discuss the changes in ratios with the support of qualitative data (like managers or analysts’ point of views/reasons, or student’s own view based on past news). Students’ points of view show their understanding about the sample firm’s financial performance and position, in addition, they can clearly identify the weakness/strength of the financial performance and position of the sample firm. Their analysis is logical without contradiction. Part c: Based on the above analysis, as a bank manager, you need to make decision on whether you approve the three years bank loan application from your sample firm. (10%) 50%-59% (Marks: 5): Student provides his/her recommendation. 60%-69% (Marks: 6): Student provides his/her recommendation with referring to the results of analysis. 70% or above (Marks: 7 or above): Student provides his/her recommendation with referring to the results of analysis – this part is related to the quality of analysis. Part d: Presentation (10%) 50%-59% (Marks: 5): Presentation: formal references are provided, adopting well recognised data sources, and there are some minor English mistakes at illustration. 60%-69% (Marks: 6): Presentation: formal references are provided, adopting well recognised data sources, and there are some a few English mistakes at illustration. 70% or above (Marks: 7 or above): Presentation: formal references are provided, adopting well recognised data sources, and there is no English mistake at illustration. (07 36334) Financial Statement Analysis and Business Valuation Individual Assignment 2 - equity analysis report Assessment Guidance Autumn 2024 Main objectives of this assignment: a) To encourage students to forecast their chosen firms’ financial performance and position in 2023 (2022) by applying financial analysts’ forecast in equity report or statistical methods. Finally, to calculate the fundamental value of the sample firm’sordinary share by the end of the fourth financial year (2023, or for some firms in 2022). b) Accuracy of the forecasts is not the focus, but students’ own judgements/ arguments/assumptions derived based on both qualitative and quantitative data, for supporting their forecasts and valuations are essential. About the assignment: 1) Students are required write an equity report with referring to the three assignment questions. 2) Students must present full references for their assignments. 3) Students must submit copies of past financial statements only (i.e. B/S, income statements, cash flow statement, group statement of comprehensive income), not the whole annual reports, and copies of financial analysts’ reports as appendices of their assignments. 4) Tables, figures, graphs, references and appendices are excluded from word limit of 2,000. Assessment criteria: Part a: Predict the financial position and performance of the company in the fifth financial year (i.e. 2024 or in some cases 2023) by using methods introduced on lectures. Please state the assumptions used to forecast the company’s financial position and performance in its fourth financial year. Then, compare the predictions with the company’s realised results in the fifth financial year. (Marks: 50%) 50-59% (Marks: 25 – 29): (1) Adopt common size and trend analysis (2) Without refer to analysts’ reports but relying on a simple statistic method, like mean, geometric means at deriving sales forecasts, without indication of assumptions. Or simply adopt one analyst’s sales forecasts from his/her report but without discussing his/her reasons. (3) Indication of the difference between the expected and realized results but lack of explanation. 60%-69% (Marks: 30 – 34): (1) Adopt common size and trend analysis (2) Adopt two analysts’ sales forecasts. Or adopt one statistics model, such as Holt’smethod, multivariate regression model, or other models with illustration of assumptions. (3) Students also compare analysts’ reasons and forecasts with their own perception based on their work on Assignment 1. (4) Compare and explain the difference between the estimated forecasts and the realized financial performance or position. 70% or above (Marks: 35 or above): (1) Adopt common size and trend analysis (2) Refer to two analysts’ sales forecasts, and critically evaluate their reasons. Or adopt one statistics model, such as Holt’s method, multivariate regression model, or other models with illustration of assumptions. (3) Students also compare analysts’ reasons and forecasts with their own perception based on their work on Assignment 1. (4) Compare and explain the difference between the expected and realized financial performance with referring to qualitative data, such as analysts’ or managers’ explanation, and past news. The forecasts must match with the business strategic position of the sample firm identified at Assignment 1. Part b: Calculate the company’s forecasted value of equity per share at the end of the fourth financial (i.e. 2023, or in some cases 2022) year by using one equity valuation model. You need to state your assumptions based on the work of part (b). (Mark: 40%) 50-59% (Marks: 20 – 23): (1) Adopt one equity valuation model and apply it correctly. (2) Only referring to the analyst’s long term growth rate (of residual income, residual operating income or free cash flows, or free cash flows to equity, or dividend) but without explanation. (3) Generally compare the fundamental value of ordinary share derived with the realized share price by the end of fourth financial year. 60%-69% (Marks: 24 – 27): (1) Adopt one equity valuation model and apply it correctly. (2) The work of valuation model is consistent to the work in Part (a). (3) Referring to the analyst’s long term growth rate (of one of above variables) with referring to their explanations or assumptions. (4) Compare and explain the difference between the expected and realized share price with referring to some qualitative information. 70% or above (Marks: 28 or above): (1) Adopt one equity valuation model and apply it correctly. (2) The work of valuation model is consistent to the work in Part (a). (3) Referring to the analyst’s long term growth rate (of one of the above variables) with referring to their explanations or assumptions. Students present their own view on long term growth rate based on his/her perception on the sample firm’s financial performance. (4) Compare and explain the difference between the expected and realized financial performance with referring to qualitative data, such as analysts’ or managers’ explanation, and past news. Provide recommendation on whether the company would be a suitable investment target. Part c: Presentation (10%) 50%-59% (Marks: 5): Presentation: formal references are provided, adopting well recognised data sources, and there are some minor English mistakes at illustration. 60%-69% (Marks: 6): Presentation: formal references are provided, adopting well recognised data sources, and there are some a few English mistakes at illustration. 70% or above (Marks: 7 or above): Presentation: formal references are provided, adopting well recognised data sources, and there is no English mistake at illustration.
YEAR 2022-23 EXAM CANDIDATE ID: BSDG1 MODULE CODE: GEOG0093 MODULE NAME: Conservation and Environmental Management COURSE PAPER TITLE: Perceptions, Concerns, and Barriers to the Implementation of Conservation-Friendly Agriculture Amongst English Crop Farmers WORD COUNT: 1,985 words 3. Details of fieldwork project Project title Perceptions, Concerns, and Barriers to the Implementation of Conservation-Friendly Agriculture Amongst English Crop Farmers Subject keywords (please provide 3) Conservation, Agriculture, Perceptions Project location (country and region) England, East of England Fieldwork dates From 1 February 2023 to 30 April 2024 Total number of days in the field 184 days of fieldwork (6 months) 4. Abstract (101 words) This fifteen-month research project aims to better understand farmers’ thinking and decision-making concerning their farms and the (non-)implementation of conservation- friendly practices. Thirty interviews and twelve focus group discussions will be organised with farmers situated in the East of England region of England, United Kingdom. The region presents high concentrations of crop farming and is a valuable site to further explore perceptions and concerns crop farmers have, as well as barriers they experience regarding conservation and agriculture. The project will make significant contributions to expanding conversations with different stakeholders in the region, and to academic literature on rural identities, conservation, and decision-making. 6. Aims and objectives of project (199 words) This research project aims to contribute to a better understanding of farmers’ thinking and decision-making concerning their land and conservation in their agricultural practices. This will contribute to the literature on rural identities, farming decisions, and conservation agriculture. The methods and findings from this region-specific research could moreover be replicated and applied to better address farmers’ concerns and needs across England. Lastly, the proposed research also aims to recentre soils and the importance of soil health for conservation, farmers, and society alike. The research project’s objectives are: 1. To discern crop farmers’ perceptions and understanding of conservation and conservation agriculture in the East of England region. 2. To explore rural farming identities and how these interact with the types of agriculture pursued and/or rejected by crop farmers in the East of England region. 3. To identify concerns about and barriers to implementing conservation agriculture amongst crop farmers located in the East of England region. 4. To fill research gaps in the literature surrounding conservation agriculture and reasons for, or challenges experienced with, its adoption and/or rejection by crop farmers. 5. To establish collective spaces and times for the exchange of insights and concerns on research themes with diverse stakeholders. 7. Proposed research (including background, research location, methodologies, and project timeline) (932 words) Background In 2022, the utilised agricultural area of England accounted for 69% of the country’s total area, and the total croppable area comprised of 55% of this statistic (Defra 2022, online). As the primary agricultural landowners and ‘stewards’ (Beedell & Rehman, 2000, p.118; Raymond, 2016) of landscapes, farmers have significant influence over these large swathes of land. Intensive farming practices used in conventional agriculture have significantly contributed to the degradation of soils and endangered soil health; so, the conservation of soils is vital for a healthy planet and agricultural system (Henneron et al., 2015). As the main people who engage with soils on an everyday basis, farmers stand at the frontlines of conservation and the ‘safeguard[ing]’ of natural environments (Defra, 2022, p.4). They must be included in discussions and consulted on their opinions. Persuaded by the principles of conservation agriculture comprising, (1) minimum soil disturbance; (2) permanent soil organic cover; and (3) species diversification (FAO, n.d., online); this project seeks to better understand farmers’ decisions and challenges regarding generally implementing more conservation-friendly agriculture. Studies have shown that farming identities and values are closely linked to the decision-making and agricultural orientations of farmers (Burton, 2004; Raymond et al., 2016; Riley et al., 2018; and Beestra, Slagle & Toman, 2021). Concurrently, scientific, and expert knowledge has been prioritised over the ‘pre-existing agrarian knowledge cultures’ that farmers ‘occupy’ (Morris, 2006, p.117). This project thus seeks to recentre attention on farmers and rewind to attempt to understand the diverse baselines we are currently operating from. What do farmers understand under the term conservation? How are they currently engaging with conservation (or not) on their farms? How have and do farmers make decisions in this regard? And what concerns and barriers do farmers experience in the implementation of conservation-friendly agricultural measures? These questions are all part of the research plan and will aid in patching up the knowledge and sharing gap between farmers, scientists, and policy officers. Acknowledging local contexts and knowledge, considering ‘the bottom-up perspective’ (Halbrendt, 2014, p.51), and gaining a detailed understanding of the barriers and incentives farmers experience as regards conservation is ‘essential for the actual participation of people’ (Jam, 2022, p.37) in conservation-friendly practices. Studies have notably demonstrated different approaches to investigating determinants of farmers’ attitudes and behaviours concerning adopting conservation practices (Werner et al., 2017; Chatterjee et al., 2021). Yet as Burton also notes, there is a ‘critical need to rethink our approaches’ (2004, p.212) to understand and further incorporate farmer identities and how these interact with others (Riley et al., 2018). The unpacking of farmers’ perceptions of and relationships to conservation needs to present a holistic account and recognise farmers as situated and enmeshed in several social, economic, and political contexts, backgrounds, and futures. The proposed research project intends to concentrate on this precisely, utilising individual and group setting methods, and in a geographic region with a high percentage of crop/cereal farms. Ultimately, the idea is to conduct a social science-based project to collect and evaluate qualitative information on farmers and the research themes. Research Location The proposed research will take place on thirty different farms located in the East of England region, in which cereal farms accounted for 51% and general cropping farms for 33% of the total farmed area in 2019 (Defra, 2021, p.26). This region comprises Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Luton, Norfolk, Peterborough, Southend-on-Sea, Suffolk, and Thurrock. The research will sample crop farms spread across these ten counties and which implement diverse agriculture types, including conventional intensive and alternative agriculture such as organic and conservation. Methodologies This research project will rely on several methods to engage with participants thoroughly and appropriately. To begin, further preliminary research will be conducted on both agriculture and conservation in the East of England region through analysis of existing academic literature to compile a literature review. The preliminary research stage will also include the identification and contacting of different farms through email/phone, and the advertisement of this research project through local news outlets. Research purposes and consent forms will be presented and thoroughly discussed with willing participants in this time as well, to ensure transparency, begin building trust, and provide space for opting out. The fieldwork will consist of two different methods, namely, (a) an initial semi-structured interview with individual farmers, followed by, (b) six focus group sessions with five farmers each and held twice per group, so twelve sessions in total. The interviews are to engage with and learn about the farmers and their work individually, whereas the focus group sessions will serve to collectively debrief and further explore thematic questions and concerns. Interviews will be transcribed and coded before conducting the focus group sessions to better structure them and try grouping farms according to themes (e.g., geographic closeness, shared concerns, opposing views) that connect them or could somehow prove useful to participants. Interviews will be audio recorded whilst the method for recording the focus group sessions (audio, visual, paper) will be decided on in consultation with participants. All findings will ultimately be analysed together through coding, identification of common/opposing themes, and reflections in existing literature, to form the basis of discussion in the writing up of this research project. Timeline The research project is to be conducted over the course on one year and three months, or fifteen months in total. The following timeline is proposed for the unfolding of the research project: Month Research Phase February 2023 to April 2023 Preliminary Research May 2023 to October 2023 Fieldwork (interviews and focus groups) November 2023 to January 2023 Analysis of Findings February 2023 to April 2024 Preparation of Findings for Publication 8. In country collaborations and local benefits (100 words) The project will collaborate with the East of England Agricultural Society (EEAS) for promotion and networking purposes, affording better access to larger agricultural communities. The project will also collaborate with the East Anglia Team of the National Farmers’ Union (NFU). Rob Wise, the Regional Environment Adviser, and County Advisers will serve as key contacts throughout the different stages of research. Local benefits of the project are numerous, among them are (a) the visibility the project will bring to these farmers’ concerns and perceptions, and (b) the connecting of local findings with existing literature in the form. of a special report. 9. How will the project further geographical knowledge? (100 words) This project will further geographical knowledge by concentrating on understanding land use and agricultural decision-making of crop farmers in the East of England region. In doing so, it will also examine the spatial distribution of the thirty different farms included in the research which is important to geographically contextualising the region. Existing literature lying at the intersection of conservation and agriculture in the region is extremely limited and rather closer to non-existent. This research project would therefore make a significant contribution in terms of knowledge and insight sharing and synthesising for both the region and academic literature in this regard. 10. Project outcomes and wider significance, applied benefits and plan for local and wider dissemination of results (208 words) The project outcomes will be synthesised in writing in, (a) one special report intended for participants, collaborators, the public, and non-academic audiences; and (b) two articles that will be submitted to academic journals for publication. Target journals are the Journal of Environmental Management, Sociologia Ruralis, the Journal of Soil and Water Conservation, and Environmental Science and Policy. The project’s wider significance lies in its timely focus on an increasingly popular agricultural method amidst alarming soil degradation statistics (Environment Agency, 2019, p.5). Its applied benefits for the agricultural community and academia lie in the thorough debriefs and sharing of results in focus group discussions and promotional events, which will stimulate critical discussion. Findings of the project will be disseminated through writing the special report and two academic articles. Researchers will also be broadcasting the publication of these papers in local media and news outlets which were collaborated with in the preliminary research phase. Additionally, two launch events will be held in collaboration with the EEAS and NFU to increase community engagement and also present findings. Lastly, the research project will be presented at two conferences, that is, the European Rural Geographies Conference (June 2023) and the next the East of England Farming Conference (previous one held in November 2022). 11. Permissions needed (if applicable) (45 words) Permission is needed to enter the private properties of farmers for interviews and focus group sessions. Permission and any limitations thereto will be discussed in advance and specified in the consent forms which participants must sign if they choose to engage in the research process. 12. Summary of key elements of ethical assessment (300 words). The research will be conducted on farms meaning private property; no data will be collected prior to researchers obtaining consent forms and entry permissions. Participants will be recruited through self-identification and being approached by the researchers. Interested individuals who wish to proceed with the project will be given a consent form to consult and make a final decision with after being introduced to its purposes and having clarifying questions answered. Participants will be asked to consent to sharing minimal demographic data while still retaining their anonymity and may withdraw from the project at any point without consequence. Main ethical issues that may arise over the course of this research include handling disagreements between participants of the project, which is why regional advisors and collaborators have been identified and contacted for researchers to consult with. Another ethical issue may be handling informal conversations or interests of participants and researchers beyond the scope of this project. Parties will therefore only be in contact over official channels of communication (UCL email/work phones) during working hours and maintain ethical boundaries throughout. All references to other farmers who have not consented to participating in the project that may be mentioned during fieldwork will be omitted and/or erased from field notes and recordings. The project is collecting and generating data in the form. of field notes, audio tapes, transcripts, and perhaps video (to be decided with participants of focus groups) which will all be digitally stored on safe UCL servers and physically on campus grounds for the duration of the project. Only researchers and research advisors will have access to this data, and all personal data will be stored and processed in compliance with the General Data Protection Regulation. All data will be securely deleted two years after the conclusion of the project in April 2026.
MECH E4320 (Fall 2024): Homework #5 Please turn in your homework through Courseworks by the scheduled time. Please show and explain your work clearly and completely in order to earn full credit. 1. Write down the conservation equations for mass, species, and sensible enthalpy derived in class (before the simplification to a one step reaction which led to the nondimensional forms). What do each of the terms correspond to physically? What assumptions/approximations were used in their derivation? (50 points) 2. Starting from the conservation equations for Yi and hs derived in class (that correspond to Eqs. 5.6.1-5.6.2 in Combustion Physics), write down the definitions for Yi, hs, and T and then show and explain all the intermediate steps necessary to derive Eqs. 5.6.3-5.6.10 for the completely nondimensionalized conservation equations. (Note that there is a typo in Eq. 5.6.5: T in Eq. 5.6.5 should be a t which is a nondimensional time—not to be confused with the nondimensional temperature, T) Would this choice of nondimensionalization be appropriate for flowing systems of a given velocity, v0? Why or why not? (50 points)
CS/Math 240: Introduction to Discrete Mathematics Reading 11 : Relations and Functions In reading 3, we described a correspondence between predicates on one variable and sets. A predicate defines a set, namely the set of all elements of the domain that satisfy the predicate. Conversely, any set S defines a predicate P (x): x ∈ S. Today we discuss an extension of this correspondence to predicates on two variables. 11.1 Relations Consider a predicate P (x, y) where x ∈ D1 and y ∈ D2 (recall that D1 and D2 are called domains). This predicate defines a (binary) relation. We can think of it as a set of pairs of elements, one from D1 and one from D2, that satisfy the predicate. 11.1.1 Examples Example 11.1: • P (x, y): x is a parent of y • C(x, y): x is a child of y • M(x, y): x is the mother of y • S(x, y): x is the spouse of y Example 11.2: Some more mathematically flavored predicates we have seen are • x ∈ y: x is an element of y • x ≤ y: x is a subset of y • x < y: x is less than y • x ≤ y: x is less than or equal to y • x j y: x divides y • x () y: x is logically equivalent to y (in other words, x and y have the same truth table) • x 3 y: x and y have the same remainder after division by 3 (in other words, x and y are congruent modulo 3). Observe that sometimes both variables of a predicate come from the same domain, and some- times they come from diferent domains. For example, both variables in ≤ are sets. On the other hand, in the relation ∈, the domain for x is some set S, and the domain for y is the set of all subsets of S. We could make x and y be from the same domain if we chose the set of all sets as the domain. 11.1.2 Formal Definition of a Relation We saw examples of operations that make new sets out of old sets. These operations included taking intersections, unions, or power sets. In order to define relations formally, we introduce another operation on sets. Definition 11.1. The Cartesian product of sets A and B, denoted A × B, is the set of all pairs of elements a ∈ A and b ∈ B , that is, A × B = {(a, b) | a ∈ A ∧ b ∈ B}. The parentheses in the notation (a, b) indicate that order matters. Thus, when we describe an element of A × B, we always list the element of A first and the element of B second. Two elements of A × B are the same if and only if both of their components are the same. Formally, (a1 , b1 ) = (a2 , b2 ) if and only if a1 = a2 and b1 = b2 . We now define a relation as a subset of the Cartesian product. Definition 11.2. A relation R between A and B (sometimes from A to B) is a subset of A × B . We call A the domain of R, and B the codomain of R. If A = B, we say R is a relation on A. The notation (x, y) ∈ R means that x is related to y by R, and we often denote this by xRy instead of using the former notation. For example, we say x ≤ y and x < y, and don’t say (x, y) ∈≤ or (x, y) ∈ |B| if f is injective but not total. If f is a surjective function, we have |A| ≥ |B| . This does not require f to be total. If f is a bijective total function, then |A| = |B| . We can use the observations about injective, surjective, and bijective functions to compare cardinalities of sets. For example, if we can find a total function from A to B and prove that it is injective, we also get a proof that |A| ≤ |B| . 11.2.2 Relations on a Set A We have seen many examples of relations where the domain and the codomain are equal. We now introduce some properties such relations can have. We use some of the relations from Example 11.2 to give examples of relations with those properties. A summary of relations and their properties is in Table 11.1 at the end of this section. Definition 11.8. A relation R on set A is reflexive if (∀a ∈ A) aRa. It is antireflexive if (∀a ∈ A) ¬aRa. Example 11.7: Any set is a subset of itself, so ≤ is reflexive. The relation
Course Syllabus PLS 21-Application of Computers in Technology Winter 2025 Plant Sciences, CATALOG DESCRIPTION: Computer skills for the classroom and workplace. Hands-on application of computer software: spreadsheets, database management, web design, word processors, presentation, photo/video editing, data analysis. Considerations for identifying and selecting appropriate software, hardware, networks, and information security practices in businesses applications. COURSE OVERVIEW: This course is designed to teach important computer skills that you need as an undergraduate student as well as later in your career, especially if you will be working in a field that involves technology. The lectures focus on providing context such that you will be able to make educated decisions regarding when and why to use particular hardware or software, whereas the labs will focus on teaching you how to use one example piece of software for each topic. In various instances, examples will be provided regarding how the information can be used in agriculture and business applications. COURSE HISTORY: Why is this a Plant Science course (given the fact that there is very little Plant Science contained in the course material)? The answer lies in the fact that many years ago we taught a course on the use of microcomputers specifically for agricultural applications. Over the years many students who were not in any of the Plant Sciences majors began taking the course because of its reputation as being extremely useful for any sort of college work that involves computers. The professors teaching the course gradually shifted the course to be more general-purpose as students from many majors began enrolling. Soon we had a course that hundreds of students wanted to take each quarter. Many majors realized that this course was a lot easier for their students than to have them sign up for a heavy-duty computer science class, so many majors now list PLS21 as a degree requirement. One thing to be aware of is that EVERY student already has some significant amount of computer-use background. This is now a requirement for being admitted to UC Davis. Our greatest challenge as instructors is that our clients (you students) consist of many individuals who have only rudimentary knowledge while others are experienced computer users. We aim to make this course useful for everyone. TEXTBOOK & SUPPLIES: Textbook: Rainer, R.K., & Prince, B.: Introduction to Information Systems. 9th Ed. Wiley. Nordell, Stewart, Wood, Easton & Graves. Microsoft Office 365: In Practice, 2019 Edition: McGraw-Hill. ISBN:1260079902 The e-textbook is optional and available through the Bookshelf or Module tab in our Canvas page. It has a link to Wiley's vital source online book distribution page. The book contains text pertaining to the lecture material and outlines (with images and some text) the lab workshops. The textbook provides an additional source of information should you choose to use it. If you don’t care about having the book, then feel free to opt-out. The instructors do not receive any “perks” when students purchase the textbook, it is purely for your benefit. Lab sessions are held in IET computer labs on campus. Make sure you use the lab you were scheduled to use (i.e., Mac or PC). If you were enrolled in PLS 21 V, you will need to either use your own computer (Mac or PC) and install the software covered in the course, or remotely log on to the campus computers using your own computer. IET Virtual Labs: Students can access computer labs remotely via virtuallab.ucdavis.edu (http://virtuallab.ucdavis.edu) . Note that this is only available for PC/Windows computers, and virtual lab access is only available during certain time periods of the day. During the school day there are a very small number of spare computers that allow remote connections on a first-come, first-served basis. However, these computers are often in use. So you might need to try again later. There are more stations available after 8pm (Mon-Thu), after 6pm (Fri), and on weekends. LEARNING OUTCOMES: Upon completion of this course, students will be able to: · Discuss software and hardware requirements for a small business · Create spreadsheets for basic data analyses, data presentation and developing reports · Develop a database, manipulate data and generate reports · Edit images and videos for communicating content with the public · Use a programming language to analyze data Equity Statement This course is designed to be facilitated through an equity lens. We acknowledge that students enrolled in this course come from diverse academic, cultural, and economic backgrounds. Our goal is to provide the highest quality of instruction by embracing diversity while addressing equity gaps in this class. To this end, assignments and activities in this course are intentionally structured to provide clear linkages between students’ lived experiences and their educational goals. We acknowledge that we do not know the best way to serve all students in our course. Hence, we invite you to help us build a learning environment that best serves your learning goals and preferences. To accomplish our goal, we invite all students to work with us to create a positive and supportive learning environment that is based on open and timely communication with your TAs and your instructor. CLASS FORMAT: The PLS21 is a lecture/lab course, and the curriculum consists of 10 weeks of content. HOWEVER, commensurate with the number of units of the course, there will be fewer than 10 weeks of instruction in PLS 21 (if we used every class period and every lab period to its fullest, then this course would be a 4- unit course). One significant benefit that you will see from this approach is that we will be finished with PLS21 before the end of the quarter. There are two lecture sessions and one lab session each week (except when there is a holiday). The lecture sessions are led primarily by your instructor and supported by the TAs. The lab sessions are led primarily by your section TAs and supported by undergraduate interns. For PLS 21V there are no in-class lecture or lab sessions. Students are expected to read lecture materials (slide decks, handouts etc.), watch video lectures and complete their lecture activities in a virtual setting. Lab sessions for PLS 21V will be led by section TAs and students are expected use UC Davis virtual computer labs or their personal laptops (if they have the appropriate software) to complete their assignments. Lecture: Lectures will take place twice a week (except for holidays) in the assigned classroom. These lectures will be led by your instructor and supported by your Head TAs. Slide decks for each lecture will be published on canvas at the beginning of each class. Lecture exams (midterms) will be administered during class time. Please see the class schedule and plan accordingly. If you have any questions about the lecture content or exams, please contact your instructor via email (g[email protected] (mailto:[email protected])). Please schedule some time to meet with your instructor during office hours (See first page of syllabus). Lab: Lab sections meet once a week during your scheduled lab time, during which TAs provide instruction on how to use a specific piece of software to complete lab homework. Your TAs have scheduled office hours during which you could meet and discuss any questions you may have related to the lab material. A group of 20 to 30 students (the exact number changes each quarter) are involved in helping you learn the hands-on course material. About ten of these students are graduate Teaching Assistants (TAs) hired specifically to give you instruction during the lab period. The others are student interns who enjoyed the course so much in a prior quarter that they wanted to be involved in teaching the lab sections. During your lab, if you have questions, you can chat with an intern to help answer your questions. Note also that your TAs and interns provide extensive office hours outside class time to help you understand the course material and complete your lab homework. Communication: Communication for the class will usually occur through Canvas. Please take a minute to learn how to set up Canvas notifications (link here: https://community.canvaslms.com/t5/Student-Guide/How-do-I-set-my-Canvas-notification-preferences-as-a-student/ta-p/434), and make sure you have them set appropriately. It is critically important that you carefully read all Canvas announcements for the course. Please contact your instructor, Dr. Sellu for all lecture related questions (no need to copy the TAs) and contact your section TA for all lab related questions. You can contact the instructor through email ([email protected]). Please use a subject line starting with “PLS21” . If you do not receive a reply within 24 hours, please follow-up again in case the email was missed or went to junk. If you find that you need to contact someone other than the TA that is responsible for your lab session about PLS21, and if it is about lab, then contact one of the head TAs (with CC to your regular TA - unless you feel that you need to correspond in confidence). You may also email Dr. Sellu ([email protected]) as needed. The Head TA responsibilities include (i) oversight of overall grading in lab, including lab grading appeals, grade book finalization, etc. (ii) overall attendance and scheduling issues (i.e., lab switching, making up a missed lab etc.). Grading: 20% Lab Homework 15% Weekly Lab Quizzes 15% Lab Autotutorials (5% each) 20% Lab Final Exam 30% Lecture Midterms 100% Total Letter grades: A+ (100-97.0%), A (96.9-93.0%),A-(92.9-90.0%), B+(89.9-87.0%), B (86.9-83.0%), B-(82.9-80.0%), C+ (79.9-77.0%), C (76.9-73.0%), C- (72.9-70.0%), D+(69.9-67.0), D (66.9-63.0%), D-(62.9-60.0%), F (59.9-0.0%) The grading scale is the default UC Davis scale. The UC Davis Canvas gradebook will be used, and it will calculate averages and course grades consistent with the percentages above. Please note that we make every effort to assure accuracy of grading. But sometimes mistakes are made; so, we need your help. Please look at your scores each week and verify that the numbers are correct. If you feel that a mistake has been made, then please bring this to the attention of the person who did the grading within two weeks of the when the grades were assigned. Also, at the end of the quarter please verify all your grades prior to the final lab exam and be sure to initiate any appeals prior to the last day of instruction. Grades are not curved. In rare instances there may be issues that require adjustment of student grades on a particular assignment or exam, but in this case your grade would only be increased and never decreased. MAJOR ASSIGNMENTS Lecture Midterms: During the quarter there will be two lecture exams, the first will be roughly halfway through the quarter and it covers all lecture material and reading material covered to-date. The second exam will cover all material taught in the course after the first exam. Be sure to attend lecture to learn the exact dates. These exams will be based explicitly on the lecture material covered by your instructor and the assigned readings. You are strongly encouraged to review the weekly ungraded lecture study guides to prepare for these midterms. Your lecture exams will be administered in person (for PLS 21) and online for PLS 21 V students. For PLS 21 V students, please ensure that you have reliable internet connection and a computer with access to the requisite software before you begin each exam. You are encouraged to give yourselves enough time to complete the exams. Autotutorials: There are three Autotutorials in this course. These autotutorials are based on concepts introduced in lecture but there are no associated labs to help students practice these concepts. The autotutorials provide an opportunity for students to practice these concepts on their own using online tutorials. Since these are self-paced/self-taught activities, students will be given 11 days to complete each of these autotutorials instead of the 4 days usually assigned for lab homework. Lab Homework: Lab homework will be assigned to you on the day of your lab. You have 4 days to complete the homework with the final deadline before the next lab for which you are registered. Your homework will be due 4 days after your lab time at 11:55 PM for full credit. (Example: If your labis on Tuesday, your lab homework is due Saturday 11:55PM) Lab Quizzes: Lab quizzes are based on the lab materials covered by your TA, the lecture and assigned textbook reading from the previous week. These are short quizzes administered during each lab section meeting (starting with the second week); on each quiz you will find a few questions related to the previous week’s lecture material and most of the questions will be from the previous week’s lab material. In the event you cannot attend the quiz, please obtain permission from your TA to make up the time. You must email your TA, 24 hours prior to the scheduled quiz time if you want to make it up. If you have questions regarding this policy, you may contact your TA or one of the head TAs Lab Final Exam: There will be a final hands-on lab exam administered during the last week of the course. Your lab exam will be administered in class except if you are enrolled in PLS 21V. Students enrolled in PLS 21 (In- person class) will take their lab finals during their normal lab time. For PLS21 V students, your lab final will be scheduled at different times in collaboration with your TA. This exam will cover all the lab instruction. To be successful on the lab final, students are encouraged to review the study guide and all lab homework and quizzes for the entire course before attempting the final lab exam. If you are enrolled in PLS 21V please ensure that you have reliable internet connection and a computer with access to the requisite software before you begin the exam. You are encouraged to give yourselves enough time to complete the exam.
BUSI4567-E1 A LEVEL 4 MODULE, AUTUMN SEMESTER 2023-2024 BUSI4567 CORPORATE FINANCIAL MAMAGEMENG Question 1 a. The students should firstly define the concepts of the NPV, IRR and Payback rules, then discuss the advantages and disadvantages of them. They need further justify the NPV is superior rule in maximising firm value. 10 marks b. it is acceptable to take a project with zero NPV as the actual return to investors are from the required rate of return, through positive NPV increases the market value of the firm. 10 marks c. As it will lead to the rejection/acceptance of the projects – a wrong rate will either accept a wrong project or reject a right project. 8 marks d. It depends on whether the project is riskier or safer than the company’s overall risk. The cost of the capital of the project will be higher when it is riskier than the company’s existing business. Lower when it is safer than company. 6 marks e. Darby Mining Corporation’s assets consist of three projects. The Project one’s asset is £10 million, project two £20 million and project three £30 million. The Betas of three projects are 1.5, 1.2 and 0.7 respectively. The risk free rate is 2%, market premium is 3%. Assume the CAPM holds. i. What are the required rates of return on each of the projects? According to the CAPM, ri = rf + bi (rm – rf) Then: rA = rf + βA (rm – rf) = 2% + 1.5 x 3% = 6.5% rB = rf + βB (rm – rf) = 2% + 1.2 x 3% = 5.6% rC = rf + βC (rm – rf) = 2% + 0.7 x 3% = 4.1% 7 marks ii. What is the required rate of return on the whole company? The total asset of the company = 10 + 20 + 30 = £60 million r = 6.5x10/60 + 5.6 x 20/60 + 4.1x30/60 = 5% 4 marks iii. Justify whether the below statement is true or not? The company cost of capital is the correct discount rate for all projects. Because the high risks of some projects are offset by the low risk of other projects. Not true – each project should use own discount rate due to various levels of risks. 5 marks Total 50 marks Question 2 a. What are the yield spreads between bonds? How credit ratings affect the yields of the bonds and yield spreads between bonds? Illustrate when necessary. 12 marks b. You are required to price a treasury bond with a coupon rate 7% paid annually. The par value of the bond is $1,000. The maturity of the bond is 3 years. i. State the principles of bond valuation. Students need to realise the bond price should be the intrinsic value of the bond, (2 mark), which is the present value of the expected cash flows from the bond. (2 mark) 8 marks ii. What is the price of the bond when YTM is 9% annually? Coupon payments at 7% coupon rate = face value x rC = $1,000 x 7% = $70 6 marks iii. What is the price of the bond when YTM is 5% annually? Coupon payments at 7% coupon rate = face value x rC = $1,000 x 7% = $70 4 marks iv. Use a diagram to illustrate the relation between bond price and interest rate. 4 marks v. Explain that at which situation a bond is priced at a discount, premium or at par value? Holding coupon rate and maturity constant, higher interest rate, lower bond price: (1 marks) When coupon rate > r, market price P0 > par value B (1 marks) When coupon rate < r, market price P0 < par value B (1 marks) When coupon rate = r, market price P0 = par value B (1 marks) 4 marks c. A company is to raise 100 million debt capital for 3 years from bond markets. The corporate bond offers an annual coupon rate of 5%. The coupon payments are to be paid semi-annually. How many bonds with face value of $1,000 should be issued in order to meet the capital need? Ignore the commission fees for issuing the bond and taxes. The yield to maturity for this bond is 10% annually. Question 3 a. Discuss Modigliani & Miller’s capital structure theory and optimal capital structure under 1) the no- taxes case; 2) the tax without bankruptcy costs case and 3) the tax with bankruptcy costs case. Students need to define and discuss MM theories in cases 1, 2, 3. Using diagrams to help. Good marks are offered to answers showing clear understanding of the issue and logic presented in good manner. 20 marks b. XYZ Company has long-term debt of £233 million and book value of shareholders’ equity of £292 million. The debt has been financed at an annual interest rate of 7%. The estimate beta of the stock is currently 1.5 and the expected annual return on the market is 9%. The annual Treasury bill rate is 3%. There are 8.5 million shares outstanding, and the shares are trading at £42. The tax rate is 35%. Assume the unit of measurement is in £,000 i. Calculate the weighted-average cost of capital (WACC) of XYZ. Market value of Shareholders’ equity = 8,500 X 42=£357,000 Long-term debt 233,000 Shareholders’ equity 357,000 Total £590,000 D/V=233,000/590,000=0.39 E/V=357,000/590,000 =0.61 10 marks ii. If long-term debt increases 283,000-233,000=£50,000 The corporate tax rate is 35%, so firm value increases by: 0.35 ´ £50,000 = £17,500 The market value of the firm is now: 590,000 + 17,500 = 607,500 The market value of shareholders’ equity is now: 607,500-283,000=324,500 New capital structure Long-term debt 283,000 Shareholders’ equity 324,500 Total £607,500 D/V=283,000/607500=0. 47 E/V=324,500/607500=0.53 D/E =283,000/324,500=0.87 c. Students should explain the pecking order theory and the logic of the theory. Good marks for answers showing clear understanding and presentation is well constructed. 12 marks Question 4 a. Explain MM Theory of Dividend Irrelevance (1961) and discuss the considerations of payout policies in real world. Students should explain the MM theory of dividend irrelevance and the logic of the theory. Good marks for answers showing clear understanding and presentation is well constructed. 20 marks b. US Steel Co. has been paying a regular cash dividend of $4 per share each year for over a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 100,000 shares outstanding selling for $80 per share. The company has sufficient cash on hand to pay the next annual dividend. Suppose that Bao Steel decides to cut its cash dividend to zero and announces that it will repurchase shares instead. i. What is the immediate stock price reaction? Ignore taxes, and assume that the repurchase conveys no information about operating profitability or business risk. If no taxes, and repurchase conveys no information about operating profitability or business risk, then stock repurchase will not impacted on stock price. So the stock price will stay at $80. 3 marks ii. How many shares will Bao Steel purchase? There are 100,000 shares and $4 per share. So total earnings will be 100,000 x $4 = $400,000. So $400,000/80 = 50,000 shares can be repurchased 5 marks (a) The stock of Golden Eagle Corporation is currently selling for $10 per share. Earnings per share in the coming year are expected to be $1. The company has a policy of paying out 50% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 12% rate of return per year. This situation is expected to continue indefinitely. i. Assuming the current market price of the stock reflects its intrinsic value as computed using the constant-growth DDM (i.e., the Gordon’s model), for what a rate of return do Golden Eagle’s investors require? according to Gordon’s moduel: P0 = Div1/(r – g), and g = b x ROE = 50%x12% = 6%; Div1 = (1-b)xE1 = (1-0.5) x $1 = $0.5 r = Div1/P + g = 0.5/10 + 6% = 11% 7 marks ii. If Golden Eagle were to cut its dividend payout ratio to 25%, what would happen to its stock price? When b = 75, Div1 = 25%x$1 = $0.25, g = b x ROE = 0.75 x 12% = 9.% So P0 = Div1/(r-g) = 0.25/(11%-9) = $12.5 8 marks iii. From the above results, discuss how the financial manager could increase the firm value? 7 marks Total 50 marks Question 5 a. An investment of £500 will generate one of two outcomes: £400 in one year and £500 in two years OR £350 in one year and £300 in two years. Each outcome has a 50% probability. The discount rate is 15%. i. What is the expected NPV of the investment? Marking scheme: First, draw a decision tree: Year 1 Year 2 (4 marks for drawing) The NPV of the investment = -500 + [(400/(1+15%) + 500/(1+15%)2]x0.5 + + [350/(1+15%) + 300/(1+15%)2]x0.5 = -500 + 628.54 = £128.54 (5 marks) The NPV of the project is greater than zero, therefore, it is a good project (1 mark) 10 marks ii. Assume you have an option to abandon in one year for £300. If you abandon, you keep that as the year one cash flow and give up the year two cash flow. Is the abandonment rational for either outcome? What is the NPV of the investment assuming rational abandonment and the value of the abandonment option? Marking scheme: When this is a real option to abandon, the new decision tree will be like: (4 marks for drawing) The NPV of the investment with the real option of abandonment = -500 + [(400/(1+15%) + 500/(1+15%)2]x0.5 + + [(350+300)/(1+15%) ]x0.5 = -500 + 645.56 = £145.56 The value of the real option to abandonment = NPV with real option – NPV without real ption = 145.56 – 128.54 = £17.02 (5 marks) The above results from question (i) and (ii) indicate the investment with real option is more valuable than those without. (1 mark) 8 marks b. Describe four types of real options often encountered in investment opportunities. Marking scheme: · The option to expand –the opportunity to expand and make follow-up investments. · Time option –the opportunity to “wait and see” and invest later when more information is received. · The option to abandon –the opportunity to shrink or abandon a project. · Flexible production option –the opportunity to vary the mix of the firm’s output or production methods. 12 marks c. Identify the problems of the discounted cash flow (DCF) analysis for valuing a project and explain the reasons that managers might use real options analysis. Marking scheme: The students is expected to elaborate how “traditional” NPV through DCF analysis misses a very important issue in investment evaluations, that is, the opportunities of “wait and see” at later stage of a project. This ignorance of the opportunity underestimates the value of a project. Good marks for clearly understanding of the issue and elaboration of the key points with concise and logic presentation. 20 marks Total 50 marks Question 6 (a) What is corporate governance? Why it is important for modern corporations? Corporate governance is a system that enables shareholders to get proper rate of return according to the definition by Shleifer (1997). There are many other definitions like OECD, etc. A sound corporate governance can minimise the agency problem. It is evident that a good corporate governance will increase the return to shareholders. 12 marks (b) Give some examples of corporate governance mechanisms and explain how they work Internal mechanism: corporate charter, general shareholders’ meeting, the board of directors, the board of supervision, information disclosure etc. External mechanism: laws and regulations, unions in some countries, financial markets, publicity, history, etc. 10 marks (c) Horizon Electronic Corporation is contemplating the acquisition of Potterton High-tech Co. The values of the two companies as separate entities are $150 million and $90 million, respectively. Horizon estimates that by combining the two companies, it will reduce marketing and administrative costs by $1,500,000 per year in perpetuity. Horizon can pay $95 million cash for Potterton. The opportunity cost of the capital is 5%. i. What is the concept “synergy” and where the synergy comes from? 8 marks ii. What is the synergy from the merger? PV of the saving = $1,500,000/0.05 = $30,000,000 (We assume that the $1,500,000 saving is an after-tax figure.) 10 marks iii. What is the cost of the cash offer? $95 – 90 = 5 million 5 marks iv. What is the NPV of the acquisition under the cash offer? 30 million - 5 million = $25 million 5 marks Total 50 marks
ISOM 5745 Business and Operations Transformation in a nutshell Instructor: Xin Huang (McKinsey Global Partner and HKUST Adjunct Professor) ● Xin Huang is the lead partner of McKinsey Great China Manufacturing & Supply Chain Service line and Asia Growth Transformation Service line. TA: Edmond Ho Description: The course introduces the business and operations transformation approach by discussing the challenges and learning from real-life business cases. It helps students bridge the gaps between academic knowledge and real-life transformation experiences. Sharing and discussing the differences and similarities of transformation across different industry sectors will be covered. ● 1 Credit. ● Grade: 50% attendance and 50% final report. ● Tentative topics: — January 10th, 2025, Morning › Introduction to transformation. › Day-1 Hypothesis and conduct cross-operations diagnostics. › Future state design and transformation roadmap. — January 10th, 2025, Afternoon. › Future state design and transformation roadmap. (Cont.) › Building commitment with a change story › Transformation office and employee-led transformation — January 13nd, 2025, Morning › Tailoring the transformation approach › Introduction to the problem-solving technique › Introduction to influencing technique. — January 13nd, 2025, Afternoon › Introduction to performance dialog. › Selective business and operations transformation topics: digital, channel growth, etc. › Putting it together: Case sharing. ● Final report: Prepare and submit a 15-20 pages PPT on a business/ operations transformation that has the following component — Case background and problem statement (what is the transformation goal and why). — A framework that guides the transformation. — Issues hypothesis mapped to the framework — Key analysis can be conducted to verify the hypothesis and data needed to conduct the analysis. — A potential governance structure and transformation approach. — What are the critical success factors for this transformation, and any levers you would like to include to support the transformation? You can choose a company you are familiar with (cases you have studied in other classes, companies you worked at before, or a company from an industry you are familiar with). We are not looking for completeness of the levers and analysis but your understanding of how to conduct and structure an at-scale transformation.
ADA600 Dissertation Module Brief | 2024/25 Table of Contents Overview 1 Aims 2 Learning Outcomes 2 Delivery 2 Working Process 4 Subject Matter 5 Initial Research 6 Submission Requirements 6 Relationship with Module Staff 7 Support for your writing 8 Further Support and University Services 9 Learning Development 9 International Students 9 Overview This is 20-credit module provides the opportunity to choose and research a topic in depth, using both primary and secondary sources. You are encouraged to develop methodologies in researching, collating and synthesizing data and concepts in order to present your findings and arguments clearly and persuasively. There are three formats this may take: 1. ‘Standard Dissertation’: An essay of 6000 words (not including bibliography and footnotes), on a topic negotiated with your tutor. 2. ‘Situated Practice’: Portfolio Refinement of 3-5 of your own existing projects, together with before/after documentation and 4000 words that contextualise, analyse and critique the work and refinements. 3. ‘Critical Practice’: A new Research and Development Project involving 2-3 original test pieces (e.g. code, 3D models, sound design) and with 3000 words contextualizing, analysing and critiquing these. It’s best to try to align this research with your plans for Final Project. Whichever of these outcomes you choose to take, your work should focus on a topic closely related to the discipline in which you work: for example, games, interaction, web, etc. All outcomes require desk research, identification of relevant methods, and clear analysis and critique. You are encouraged to use images, diagrams, statistics and appendices where appropriate – and even conduct interviews, focus groups or questionnaires. However, if your project includes participants in this way, you will need to complete an ethics form. (available on the ADA600 DLE). Module Aims • To conduct an extended enquiry into a chosen topic • To consult and make use of a representative range of texts and other appropriate sources using proper and appropriate research techniques • To analyse and interpret bodies of knowledge • To present findings clearly and in accordance with established research techniques • To articulate findings effectively Learning Outcomes At the end of the module students should be able to: • Collect and record data, to explore and make connections between disparate materials, ideas and issues in order to interpret contemporary culture and technologies. • Communicate these findings and ideas in a clearly articulated form. and in an appropriate linguistic style. • Apply, refer and use, where appropriate, referencing and academic procedures. • Select appropriate material and present in a sustained and coherent argument, interpreting materials imaginatively and speculatively. Delivery You will receive regular guidance in the form. individual tutorials including electronic communication and support. Tutorials are most useful when you provide examples of your research and writing, or come with specific questions in mind. Guidance may be sought on research methodologies, writing techniques and styles including referencing. The ideas, findings and conclusion of the research that you undertake will be of primary importance, but it must also be presented in a fully documented and scholarly fashion. A number of interim deadlines have been set, and if followed, you can expect feedback and support towards the completion of your work. Working on a dissertation is a recognised way in which you can develop essential skills for research and self-directed learning. In addition to the general aims (above), and rather than merely supporting technical and creative work, written work can be seen in itself as a technical and creative practice, as well as allowing for critical reflection on a student's practice and future aspirations. In this way, the written style. and format is expected to reflect the chosen emphasis of your chosen degree award. For instance, a dissertation for a Bachelor of Arts will be expected to emphasise cultural over technical matters. A dissertation for the Bachelor of Science will be expected to emphasis technical over cultural issues. The distinction can be clarified in tutorials but dissertations for all programmes are expected to pay attention to the interaction of the cultural and technical aspects that underpin the programme as a whole. Most importantly the approach should be negotiated in close contact with the allocated tutor. The whole process of producing the work should be planned out logically, with the aims and objectives of each section, statement or chapter clearly defined. In general terms, it should begin with an introduction that establishes the context of the research, and end with a conclusion that explains and assesses the nature of the findings. It should also contain an explanation of the research methodology employed, such as looking at particular texts or materials, and the reasons for its selection. Written work is intended to reveal your abilities in developing ideas and in articulating clearly and effectively a coherent and progressive argument. In other words, it enables you to become more critical of your work and articulate yourself more clearly and effectively. These skills are both essential for the workplace as well as future research activity. Please bear in mind that we are looking for an indication of your understanding of, and response to, the issues you are dealing with - not a collage of the arguments of others. Good practice in written work as part of the course will undoubtedly inform. all your other work and help your express yourself both verbally, in writing and through your practice. Working Process You will need to keep a record of your progress on this module. We would recommend the use of a research diary, in which ideas, progress and milestones can be recorded, it is a great aid to planning and collecting important ideas. Be careful to keep notes on all references from the beginning of the research process as otherwise this can be a painstaking activity at a later date. A process of ‘interactive reading’ is highly recommended, there is little point reading a text if you are not going to take notes on it. If you are using your own books or printouts, or digital texts, underline or annotate the text with your comments or ideas as you go. Then when finished you can copy out key quotes with page numbers, key ideas etc. to a notes file that will allow you to organise and write without looking back through the text. Make sure that your notes are clear, and that you differentiate clearly between the thoughts and words of the author that you are reading and your own, to avoid problems with plagiarism. It is also good practice not to make notes until you have read the whole of a chapter or paper, as doing so during the process often results in laboriously overlong notes, and broken up and distracted reading time, when a much quicker overview can be arrived at if you have considered the text with your full attention, and just marked up the text simply to show where you should return to as you put your notes on paper. Importantly, you cannot write if you have nothing to write about, and so the early stages of the process should be used to survey materials and make high quality notes that will then support you in writing. As such, we have put in place several milestones to assist in the research process. All milestones should be uploaded to the DLE via a series of eSubmission points. The milestones are: • 3pm on Friday 04/10/2024 - Initial Proposal. Submit to DLE 'Feedback' tool. • 3pm on Friday 18/10/2024 - Notes & Quotes • 3pm on Friday 01/11/2024 - Chapter Outline / Project Structure • 3pm on Friday 15/11/2024 - Draft Chapter • 3pm on Friday 06/12/2024 - Full Draft • 3pm on Friday 10/01/2025 - Final Submission Subject Matter In selecting a topic, begin with some general ideas, interests and ambitions – don’t worry too much about whether you’ve identified the “perfect” question. As you find out more about the area, and start analysing it, viable questions or areas of research will become more clearly focused. A submission shouldn’t be a collection of everything you have found out about a topic but should develop a point of view and argument (and not merely the assertion of prejudice or dogma) leading to a conclusion and evaluation in a broader context. Ideas may reflect something previously encountered on the course, the work of a particular practitioner or group, cultural theorist or theory, a contemporary cultural or media debate, and so on. It is also possible to investigate technical issues but only if this is supported by appropriate theoretical debate. Once an initial investigation of a topic has been conducted, important issues and debates should be identified towards more precise aims, focus and point of view. Your aims should outline what it is that your dissertation seeks to establish and argue. It’s essential that the dissertation carries an argument that is based on thorough research and analysis, such that all opinions are substantiated (established as valid with evidence). In this way, an argument needs to be based on previous research, with other people's ideas becoming the basis for the development of subsequent ideas. You can only begin to develop a sense of what you think and an argument by informing yourself about the field you think you are interested in. Make sure you are knowledgeable about your area of research before you develop your own opinions. Check out key web sites and mail lists, go and see exhibitions/events and of course, use the library resources (Wikipedia may be useful but has its limitations)! Initial Research Students are required to register the provisional title of their dissertation, together with a brief synopsis (overview) of content, aims and method in the first month of the module (see schedule). This synopsis should contain a clear account of the aims of the research project, what you wish to investigate, how you will go about this, and what you think you wish to argue. It should not be less than 300 words and should indicate a preliminary set of reference materials. Once a topic has been chosen, you will need to undertake a literature search in the library and by using online resources. This will include references to journals as well as books – and not merely rely on the internet. The Library Research Skills session will help you with this and introduce resources such as databases and journal. Your reading should also help to demonstrate methods of analysis that you can then apply to make sense of that information, and equip you with contextual information (e.g., social, cultural, economic, political, historical, geographical, scientific, technological, etc.) that will help you to understand and evaluate the significance of that information. If you need to conduct an interview, make sure you are fully prepared with good questions and background reading to get the most from any opportunity. Submission Requirements The correct word count (6000 for Standard, 4000 for Situated Practice, and 3000 for Critical Practice) excluding bibliography and appendices. The font should be 12pt, sanserif and legible. It should be word-processed, one-and-a-half line-spaced (1.5). The deadline for the ADA600 Dissertation module is 3pm on Thursday 10/01/2025. If you're submitting either a Situated- or Critical- Practice project (i.e. a submission that includes a practical element), please make sure: 1. That the written submission contains a clearly signposted hyperlink to a Onedrive folder that contains the practical work 2. That the Onedrive folder sharing permissions are set to: "This link works for People in the University of Plymouth" (this will allow external examiners to access the work later) 3. That the folder itself is clearly organised, using sensible filenames and folder names if necessary (for example "CaseStudy1") that are referenced in the Dissertation so that the reader/marking tutor can easily navigate the practical submission 4. That you do not update (either add or change) any items in the folder after the submission deadline, as this will invalidate the submission. The ideas, findings and conclusion of the dissertation are of primary importance, but it must also be presented in a fully documented and scholarly fashion. A significantly poor standard of spelling, grammar and punctuation will be penalised. Quotations and citations should be correctly formatted using the Harvard style. Dissertations are to be submitted via Turnitin to scan for plagiarism. Any evidence of contract cheating, or plagiarism could result in failure of the module, failure of the year or the whole degree. Therefore, it is vital that you clearly indicate the source any ideas, text and quotations that are not your own. Relationship with Module Staff You are to arrange your tutorials directly with your assigned supervisor via their university email address. It is advised you arrange these following your submission of each milestone. You can also email your advisor to ask for further advice, and they may be able to find a time to meet you. It is imperative that you respond to meeting requests and remember to attend: your advisors have other teaching, research and administrative responsibilities which may limit their ability to reschedule appointments once opportunities are missed. It is your responsibility to agree tutorial times with your supervisor, for which you should be well prepared, although other inputs and deadlines will be set and must be met. Students are also expected to organise peer group meetings to support progress. It is vitally important that you meet all deadlines. The role and responsibility of staff is to read draft sections of the work in progress, and comment on methods of argument and of interpretation of sources and texts, and on the style. of presentation and format. Overall responsibility for the supervision of written work will be taken by your advisor, but you are also expected to seek advice from other supervisors (especially those working with you on the Project). This will help ensure the productive relationship to the Project module, and to their mutually supportive development. If you have any concerns or issues regarding supervision, they should be directed in the first instance to Andrew Prior as module leader, or your program leader [as appropriate]. Support for your writing Writing is best developed slowly and carefully and clearly not left until the last minute. One of the main reasons for poor performance in written work is that the student fails to seek advice and don’t give themselves sufficient and regular enough time to develop their work. It is the student's responsibility to seek help and organise tutorials with the supervisor. Students must turn up for tutorials promptly and well-prepared. Writing takes time, and the more you do it the better you become. To make the best use of our resources, the module interim deadlines have been set—and must be kept—to ensure progression towards successful completion of the work. PLEASE KEEP TO THESE DATES – even if you are having problems maintaining contact with your tutors. It is really very helpful to submit something at each of the milestones, even if you feel it is not sufficiently well-developed or you feel confused or lacking in confidence. It is only through this process and mutual support that we can realistically help. If you are having problems of any kind, contact your supervisor first and then module leader if necessary, in the early stages of the problem - DO NOT LEAVE IT AND DO KEEP IN CONTACT - ESPECIALLY IF THERE IS A PROBLEM. Further Support and University Services Art and Media Library Subject Guides and Subject Librarian. Our subject library guide can be found here, lots of information on referencing, endnote and using databases and other library systems. https://plymouth.libguides.com/ada Learning Development Learning Development offer tutorials, drop-ins and workshops to help you develop your writing, critical thinking and research skills. These resources are available for all students. For more information see their website: https://liveplymouthac.sharepoint.com/sites/x77 You can also get sections of writing reviewed in the Writing Cafe: https://www.plymouth.ac.uk/services/the-writing-cafe International Students The English Language Centre provides tutorial support for international students to help with their assignments. Details can be found on the intranet here under “English Language Help”. https://www.plymouth.ac.uk/business-partners/partnerships/academic-partnerships/international-students-study-guide
125.811 Advanced Risk Analytics Summer semester, 2024 - 2025 Individual Assignment: Market Risk and Credit Risk Modelling (30 marks) Please prepare your modelling report with related tables, figures, interpretations, and explanations based on the following tasks. You need to submit one word or PDF file for your report. Please copy and paste your Eviews result tables into your report. Part I - Market Risk Modelling (21 marks) GARCH and EWMA models (Review Week 4 Practice Notes 1) 1. Goto https://www.nasdaq.com and download five-year historical daily closing prices of a stock of your choice. 2. (3 marks) Calculate the logarithm returns for the stock. Analyse and discuss the stock return characteristics, including return mean, median, minimum, maximum, skewness, kurtosis, serial correlation, and volatility clustering. 3. (4 marks) Based on analyses in Step 2, build an appropriate GARCH model for the return volatility and explain why the model specification is appropriate. (Note that: you need to capture the serial correlation of the return level using ARMA model) . 4. (3 marks) Based on the analyses in Step 2, establish an appropriate EWMA return volatility model. 5. (3 marks) Forecast one day volatility using GARCHand EWMA model based on above steps 3 and 4. Dynamic Conditional Correlation - Bivariate GARCH model (Review Week 4 Practice Notes 2) 1. Using one pair of data (including the spot and futures prices) from the givendata file on stream (file name: Data for assessment 2) . Look at the first tab of the file for the assigned data for your group (students in one group would use the same data, but the assignment is individual assignment) . 2. (4 marks) Estimate their dynamic conditional correlation using the DCC-MGARCH(1,1) model. 3. (4 marks) Based on the estimated dynamic conditional correlation ( pt) and estimated standard deviation of the spot (σs,t) and futures (σF,t), calculate the dynamic optimal hedge ratio as follows: Part II - Credit Risk Modelling (9 marks) 1. Employ the Mortgage.csv and lgd.csv datasets downloaded from http://www.creditriskanalytics.net/datasets.html 2. (5 marks) Build the best Probability of Default model you could and assess its performance. 3. (4 marks) Find a relevant literature on probability of default model. Explain and discuss the probability of default model in that paper and compare that model with your model (no more than one page of writing) .
CIV2235—STRUCTURAL MATERIALS Week 9 Practice Class Actions and Action Assume that you are designing an office building of 10 stories. The floor plan is given in Fig 1 and the cross sections are shown in Fig 2. The data for the problem is: n Density of concrete: 2500 kg/m3 n Superimposed dead load: 1.5 kPa n g = 9.8 m/s2 n The distance from top of slab to top of slab is 4 meters n The floors and roofs thickness is 130 mm n Column C1 is a circle of diameter of 900 mm . Fig 1. Floor plan . Fig 2. Cross sections at AA, BB and CC. Question 1. Determine the dead load and live load in the slab (10 marks) . Question 2. Determine the dead load and live load in the joist (secondary beam) B1 (20 marks) . Question 3. Determine the dead load and live load in the girder (primary beam) B2 ((30 marks) . Question 4. Determine the maximum bending moment and shear force in B2 for permanent action (20 marks) . Assume the supports are simple supports . Question 5. Determine the maximum bending moment and shear force in B2 for imposed action (20 marks) . Assume the supports are simple supports .
