...2006 CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions. Table of Contents Page Case: Name and Number, Bruner 5e Note Number I. C12- Best Practices—WACC No Questions II. C2- Bill Miller & Value Trust 2 III. C5- Financial Detective, 2005 Contained in Case IV. C7- Body Shop Intl* Contained in Case, but see page 3 V. C6- Krispy Kreme Doughnuts, Inc. 4 VI. C17- The Investment Detective* Contained in Case VII. C28- Intro. to Debt Policy & Value* No Questions, but review M & M Theory on debt and value of the firm. VIII. HBS Case- “Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel Spreadsheets containing some of the exhibits from the case are available for this case at www.mhhe.com/bruner5e FIN 620, CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions Case 2- Bill Miller & Value Trust Suggested Questions for Your Preparation of the Case. ...
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...Reading Section Directions: These sample questions in the Reading section measure your ability to understand academic passages in English. You will read one passage and answer questions about it. In a real test, you would have 20 minutes to read the passage and answer the questions. Candidates with disabilities may request a time extension. Meteorite Impact and Dinosaur Extinction There is increasing evidence that the impacts of meteorites have had important effects on Earth, particularly in the field of biological evolution. Such impacts continue to pose a natural hazard to life on Earth. Twice in the twentieth century, large meteorite objects are known to have collided with Earth. 5 If an impact is large enough, it can disturb the environment of the entire Earth and cause an ecological catastrophe. The best-documented such impact took place 65 million years ago at the end of the Cretaceous period of geological history. This break in Earth’s history is marked by a mass extinction, when as many as half the species on the planet became extinct. While there are a dozen or more mass extinctions in the geological record, the Cretaceous mass extinction has always intrigued paleontologists because it marks the end of the age of the dinosaurs. For tens of millions of years, those great creatures had flourished. Then, suddenly, they disappeared. The body that impacted Earth at the end of the Cretaceous period was a meteorite with a mass of more than a trillion tons and a diameter of...
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...Reading Section Directions: These sample questions in the Reading section measure your ability to understand academic passages in English. You will read one passage and answer questions about it. In a real test, you would have 20 minutes to read the passage and answer the questions. Candidates with disabilities may request a time extension. Meteorite Impact and Dinosaur Extinction There is increasing evidence that the impacts of meteorites have had important effects on Earth, particularly in the field of biological evolution. Such impacts continue to pose a natural hazard to life on Earth. Twice in the twentieth century, large meteorite objects are known to have collided with Earth. 5 If an impact is large enough, it can disturb the environment of the entire Earth and cause an ecological catastrophe. The best-documented such impact took place 65 million years ago at the end of the Cretaceous period of geological history. This break in Earth’s history is marked by a mass extinction, when as many as half the species on the planet became extinct. While there are a dozen or more mass extinctions in the geological record, the Cretaceous mass extinction has always intrigued paleontologists because it marks the end of the age of the dinosaurs. For tens of millions of years, those great creatures had flourished. Then, suddenly, they disappeared. The body that impacted Earth at the end of the Cretaceous period was a meteorite with a mass of more than a trillion tons and a diameter of...
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...Bank Frauds “Lapses in system make easy the job of offenders to dupe banks” Fraud is any dishonest act and behaviour by which one person gains or intends to gain advantage over another person. Fraud causes loss to the victim directly or indirectly. Fraud has not been described or discussed clearly in The Indian Penal Code but sections dealing with cheating. concealment, forgery counterfeiting and breach of trust has been discusses which leads to the act of fraud. In Contractual term as described in the Indian Contract Act, Sec 17 suggests that a fraud means and includes any of the acts by a party to a contract or with his connivance or by his agents with the intention to deceive another party or his agent or to induce him to enter in to a contract. Banking Frauds constitute a considerable percentage of white-collar offences being probed by the police. Unlike ordinary thefts and robberies, the amount misappropriated in these crimes runs into lakhs and crores of rupees. Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. It is sometimes considered a white collar crime. The number of bank frauds in India is substantial. It in increasing with the passage of time. All the major operational areas in banking represent a good opportunity for fraudsters with growing incidence being reported under deposit, loan and inter-branch accounting transactions, including remittances...
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...service industries (AC 1.1) * An evaluation of the contribution made by various methods of generating income for a large chain restaurant. (AC 1.2) You are in a small business as a sole trader. You wish to purchase some new machinery costing £50,000. Capital expenditure may be financed by a variety of external sources (as well as internal). Capital investment appraisal is an important decision-making function. The selection of a particular project and the most appropriate means of financial it is difficult decisions to make. As a senior manager you will receive some expert advice on what you can do. Ultimately, the final decision will be one for you * Review of the sources of funding available to business and service industries (1.1.) * Evaluation of the contribution made by various methods of generating income for a large chain of restaurants. (1.2) Unit 2: Finance in the Hospitality Industry AB205H2 Mont Rose College TASK 2 AC2.1 discuss elements of cost, gross profit percentage and selling prices for products and services AC2.2 evaluate methods of controlling stock and cash in a business and services environment CASE STUDY: Monitoring and controlling performance at Marks & Spencer Marks & Spencer is Europe’s most profitable retailer with a global brand and global recognition. Its achievement largely depends on the effective use of people. An organization may have the latest technology and the best physical resources, but it will never thrive if it does...
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...Corporate Strategy Case Study Analysis WHAT IS CASE STUDY ANALYSIS? A case study presents an account of what happened to a business or industry over a number of years. It chronicles the events that managers had to deal with, such as changes in the competitive environment, and charts the managers' response, which usually involved changing the business- or corporate-level strategy. Cases prove valuable in a course for several reasons. First, cases provide you, the student, with experience of organizational problems that you probably have not had the opportunity to experience firsthand. In a relatively short period of time, you will have the chance to appreciate and analyze the problems faced by many different companies and to understand how managers tried to deal with them. Second, cases illustrate what you have learned. The meaning and implication of this information are made clearer when they are applied to case studies. The theory and concepts help reveal what is going on in the companies studied and allow you to evaluate the solutions that specify companies adopted to deal with their problems. Consequently, when you analyze cases, you will be like a detective who, with a set of conceptual tools, probes what happened and what or who was responsible and then marshals the evidence that provides the solution. Top managers enjoy the thrill of testing their problem-solving abilities in the real world. It is important to remember, after all, that no one knows what the right...
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...Daniels Fund Ethics Initiative University of New Mexico http://danielsethics.mgt.unm.edu WorldCom’s Bankruptcy Crisis INTRODUCTION The story of WorldCom began in 1983 when businessmen Murray Waldron and William Rector sketched out a plan to create a long-distance telephone service provider on a napkin in a coffee shop in Hattiesburg, Miss. Their new company, Long Distance Discount Service (LDDS), began operating as a long distance reseller in 1984. Early investor Bernard Ebbers was named CEO the following year. Through acquisitions and mergers, LDDS grew quickly over the next 15 years. The company changed its name to WorldCom, achieved a worldwide presence, acquired telecommunications giant MCI, and eventually expanded beyond long distance service to offer the whole range of telecommunications services. WorldCom became the second-largest long-distance telephone company in America, and the firm seemed poised to become one of the largest telecommunications corporations in the world. Instead, it became the largest bankruptcy filing in U.S. history at the time and another name on a long list of those disgraced by the accounting scandals of the early 21st century. ACCOUNTING FRAUD AND ITS CONSEQUENCES Unfortunately for thousands of employees and shareholders, WorldCom used questionable accounting practices and improperly recorded $3.8 billion in capital expenditures, which boosted cash flows and profit over all four quarters in 2001 as well as the first quarter of 2002. This disguised...
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...Term |a) A bank lockbox system | |Which of the following controls would most likely reduce the risk of | |diversion of customer receipts by a client's employees? | |a) A bank lockbox system | |b) Prenumbered remittance advices | |c) Monthly bank reconciliations | |d) Daily deposit of cash receipts | Term |b) Stamped "paid" by the check signer | |To provide assurance that each voucher is submitted and paid only once, the | |auditors most likely would examine a sample of paid vouchers and determine | |whether each voucher is: | |a) Supported by a vendor's invoice | |b) Stamped "paid" by the check signer | |c) Prenumbered and accounted for | |d) Approved for authorized purchases | Term |d) Is responsible for mailing the checks | |In testing controls over cash disbursements, the auditors most likely would | |determine that the person who signs checks also: | |a) Reviews...
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...Case Study 1: And the Fraud Continues Forensic Accounting July 22, 2012 Abstract This case represents features of organized crime, occupational fraud and abuse. Most of these crimes involve many individuals and organizations as well as management and/or co-workers that are in a lot of social and financial pressures. Some of the crimes related with organize crime will be money laundering, mail and wire fraud, conspiracy and racketeering. With an internal control weakness employees would always look for opportunities to commit fraud or use company assets without permission. Within this case, we will see multiples internal control weaknesses that allowed Pavlo to perpetrate the fraud and how he used the tricks to mask the whole scam. We also are going to think on what was Wanserski position when Pavlo was performing the fraud. We will explore the investigation process and what type of procedures the auditor/investigator needs to follow in order to gather all the evidence. We will have the opportunity as readers to determine if MCI also had a fault by permitting or putting the pressure on his employees to comply with some guidelines instead of looking for ways to help employees to improve their work areas. Internal control is the method intended to ensure dependable financial reporting, effective and efficient department operations, and business compliance with related laws and regulations. Not having an effective internal control process will allow fraudsters like...
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...Chapter 1 Auditing and Internal Control Review Questions 1. What is the purpose of an IT audit? Response: The purpose of an IT audit is to provide an independent assessment of some technology- or systems-related object, such as proper IT implementation, or controls over computer resources. Because most modern accounting information systems use IT, IT plays a significant role in a financial (external audit), where the purpose is to determine the fairness and accuracy of the financial statements. 2. Discuss the concept of independence within the context of a financial audit. How is independence different for internal auditors? Response: The auditor cannot be an advocate of the client, but must independently attest to whether GAAP and other appropriate guidelines have been adequately met. Independence for internal auditors is different because they are employed by the organization, and cannot be as independent as the external auditor. Thus internal auditors must use professional judgment and independent minds in performing IA activities. 3. What are the conceptual phases of an audit? How do they differ between general auditing and IT auditing? Response: The three conceptual phases of auditing are: i. Audit planning, ii. Tests of internal controls, and iii. Substantive...
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...WorldCom Case Study1 By Dennis Moberg (Santa Clara University) and Edward Romar (University of Massachusetts-Boston) (The original of this document can be found at the Santa http://www.scu.edu/ethics/dialogue/candc/cases/worldcom.html#one. Clara University website at An update for this case is available at http://www.scu.edu/ethics/dialogue/candc/cases/worldcomupdate.html . Note that this update is not part of the syllabus for the PRM or Associate PRM exam. It is included for reference and explanation only.) 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. But none of these other companies had senior executives as colorful and likable as Bernie Ebbers. A Canadian by birth, the 6 foot, 3 inch former basketball coach and Sunday School teacher emerged from the collapse of WorldCom not only broke but with a personal net worth as a negative nine-digit number.2 No palace in a gated community, no stable of racehorses or multi-million dollar yacht to show for the telecommunications giant he created; only debts and red ink--results some consider inevitable given his unflagging enthusiasm and entrepreneurial flair. There is no question that he did some pretty bad stuff, but he really wasn't like the corporate villains of his day: Andy Fastow of Enron, Dennis Koslowski of Tyco, or Gary Winnick of Global Crossing.3 Personally, Bernie...
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...WorldCom Case Study1 By Dennis Moberg (Santa Clara University) and Edward Romar (University of Massachusetts-Boston) (The original of this document can be found at the Santa http://www.scu.edu/ethics/dialogue/candc/cases/worldcom.html#one. Clara University website at An update for this case is available at http://www.scu.edu/ethics/dialogue/candc/cases/worldcomupdate.html . Note that this update is not part of the syllabus for the PRM or Associate PRM exam. It is included for reference and explanation only.) 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. But none of these other companies had senior executives as colorful and likable as Bernie Ebbers. A Canadian by birth, the 6 foot, 3 inch former basketball coach and Sunday School teacher emerged from the collapse of WorldCom not only broke but with a personal net worth as a negative nine-digit number.2 No palace in a gated community, no stable of racehorses or multi-million dollar yacht to show for the telecommunications giant he created; only debts and red ink--results some consider inevitable given his unflagging enthusiasm and entrepreneurial flair. There is no question that he did some pretty bad stuff, but he really wasn't like the corporate villains of his day: Andy Fastow of Enron, Dennis Koslowski of Tyco, or Gary Winnick of Global Crossing.3 Personally, Bernie...
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...WorldCom By Dennis Moberg (Santa Clara University) and Edward Romar (University of Massachusetts-Boston) 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. But none of these other companies had senior executives as colorful and likable as Bernie Ebbers. A Canadian by birth, the 6 foot, 3 inch former basketball coach and Sunday School teacher emerged from the collapse of WorldCom not only broke but with a personal net worth as a negative nine-digit number.2 No palace in a gated community, no stable of racehorses or multi-million dollar yacht to show for the telecommunications giant he created. Only debts and red ink--results some consider inevitable given his unflagging enthusiasm and entrepreneurial flair. There is no question that he did some pretty bad stuff, but he really wasn't like the corporate villains of his day: Andy Fastow of Enron, Dennis Koslowski of Tyco, or Gary Winnick of Global Crossing.3 Personally, Bernie is a hard guy not to like. In 1998 when Bernie was in the midst of acquiring the telecommunications firm MCI, Reverend Jesse Jackson, speaking at an all-black college near WorldCom's Mississippi headquarters, asked how Ebbers could afford $35 billion for MCI but hadn't donated funds to local black students. Businessman LeRoy Walker Jr., was in the audience at Jackson's speech, and afterwards set him straight...
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...music do you like dancing to? | Ride | | I ride my bicycle to work. | Mine | | a coal/salt/gold mine | Exchange | | We had a friendly exchange of views. | Persuade | | Clever salesmanship can persuade you to buy things you don't really want. | Printing Press | | Printing Press : a machine that prints books, newspapers or magazines | Infinite | | an infinite number/variety | Export | | Japan exports a huge quantity of cars around the world. | Occupation | | the Italian occupation of Ethiopia | Sofa | | I sat down on the sofa next to Barbara | Apartment | | I'll give you the keys to my apartment. | Foreign | | The government wanted an inflow of foreign investment. | Miserable | | She's miserable living on her own. | Excitement | | The children were jumping up and down with excitement. | Corner | | Click the icon in the bottom right-hand corner of the screen. | Regularly | | Accidents regularly occur on this bend. | Antique | | My mother collects antiques. | Knife | | I prefer to use a knife and fork . | Fortunately | | Fortunately, we had come prepared. | Tutor | | During my illness I was taught by a series of home tutors. | Perhaps | | I'd guess that she's in her forties - forty-five perhaps. | Examined | | The research examined the effects of alcohol on long-term memory. | Towards | | The country seems to be drifting towards war. | Obviously | | She's obviously very intelligent, but her lectures are...
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...becoming blurred * New art forms appear besides traditionally recognized art forms. ex: installation art, process art, video art, digital and experimental forms *diverse and eclectic. No single medium or ideology dominates *Medium categories are broadening, boundaries are getting blurred and redefined. *referencing and sampling from contemporary popular/consumer culture. * Art becomes interdisciplinary and cross-disciplinary (artist as scientists, cultural anthropologists, journalists, reports, etc.) continuation *Technologies -> new way of producing and conceptualizing art (digital culture, Internet, virtual reality) *New media potentials: video, robotics, transgenic art, etc. * new technologies create new paradigms *up until the late 1800s, what was the way to send a picture? <- painting. *what changed that? <- photography Art world goes global ( global production, reproduction, art market: global economy, dissemination) - Paris and NY ** *”About-ness” artist as social and cultural observer, critic *Artwork functions as a “window through which to view and deepen our understanding of the world.” *audience has much more of a role Modern art- 1930s. refers to specific time period ( (ex. Picasso: Les Demoiselles d’ Avignon, 1907. Marcel Duchamp: Nude descending a staircase, 1912. Matisse: Music, 1910. David Smith: Cubi XVIII, Cubi XVII, Cubi XIX ; Tank Totem. ) ß Talking about art (step by step...
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