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write my assignment 28582

ASSIGNMENTWrite a memorandum addressing each of the three issues listed below. The memorandum should be no less than one page and no more than three pages in length. FACTSMr. Kim is the sole shareholder and CEO of KimTech, Inc., a technology company valued at approximately $5,000,000. KimTech is a C corporation for federal tax purposes. In 2007, KimTech had net pretax profits–before deducting Kim’s compensation–of $1,000,000. After deducting Kim’s base salary of $100,000 and bonus of $800,000, the company was left with a small after-tax profit, which was retained by KimTech (i.e., no dividends were paid to Kim). KimTech has two other officers, a CFO and a VP of Sales and Marketing, each of whom received salaries of $100,000 and no bonuses. Kim’s bonus was awarded by the board of directors, which consists of three directors: Kim, who serves as Chairman, the CFO and the VP of Sales and Marketing. In determining Kim’s bonus, the board multiplied pretax profits, before Kim’s compensation, by 80% (i.e., $1,000,000 x .8 = $800,000 bonus). In recent years, KimTech’s value has been appreciating at 7% per year. Assume that the average compensation for CEOs of similar-sized companies in the same industry is $500,000 (salary and bonus combined).APPLICABLE LAWUse the typical tax resources both primary and secondary which include statutes, regulations, and court decisions to formulate your advice regarding each of the three issues listed below:ISSUES1. Assuming that 2007 is a typical year for KimTech, in terms of profitability and compensation practices, evaluate the reasonableness of Kim’s compensation package in light of the five factors enumerated in the Elliotts case. If audited by the IRS, will Kim’s compensation be deemed reasonable? Why or why not? What can KimTech do to show that Kim’s compensation is reasonable?2. Assuming that 2007 is a typical year for KimTech, in terms of profitability and compensation practices, evaluate the reasonableness of Kim’s compensation using the independent investor/return on equity approach. Is Kim’s compensation package reasonable under this test? Why or why not?3. Is contingent compensation (e.g., a compensation package involving a significant bonus) more likely to result in a determination that compensation is unreasonable than a compensation package that is all, or primarily, a fixed salary? FORMATUse the following heading and other specifics:MEMORANDUMTO: Mr. KimFROM: Your NameDATE: Today’s DateRE: Tax Memo #2-Executive CompensationFor each issue, begin by restating the issue. Then, explain and discuss the tax rules that apply to the issue, which you gleaned from the sources listed in the Applicable Law section above. Then, conclude with a definitive answer to the issue, supported by citations to the sources used. So, for each issue, you should:State the issue, Explain and discuss the applicable law (IRC sections, regulations, court decision, etc.), and Present your answer in the form of a concluding paragraph that refers to specific language from the IRC sections, regulations, court decisions, and other sources (if applicable) to support the conclusion.CITATIONSCitations are required. You must provide cites whenever you refer to the sources of tax law used in this memorandum. You may cite your sources in numbered footnotes, numbered endnotes, or in parentheses immediately after the sentence mentioning the cited source.

 

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write my assignment 17732

Part 1

SportsMax sells sporting goods equipment at 100 stores throughout North America. Robert Manning is the manager of one SportsMax retail store in Chicago. The company is in the planning phase of establishing its operating budget for this coming year and has asked that all store managers submit their estimates of sales revenue, costs, and resulting profit. During the control phase, each store manager is evaluated by comparing budgeted profit with actual profit. Store managers who exceed budgeted profit are given a bonus equal to 10 percent of actual profit in excess of budgeted profit.

Required:a. Describe the ethical conflict that Robert Manning is facing.b. As the president and CEO of SportsMax, how might you motivate Robert Manning to provide an accurate operating budget?

Part 2

Net Present Value Analysis. Architect Services, Inc., would like to purchase a blueprint machine for $50,000. The machine is expected to have a life of 4 years, and a salvage value of $10,000. Annual maintenance costs will total $14,000. Annual savings are predicted to be $30,000. The company’s required rate of return is 11 percent.

Required:a. Ignoring the time value of money, calculate the net cash inflow or outflow resulting from this investment opportunity.b. Find the net present value of this investment using the format presented in Figure 8.2. c. Should the company purchase the blueprint machine? Explain.

Part 3

For this week’s reflection, please describe the components of an operating budget and how the different components contribute to the overall budget. Minimum words is 250. Cite any references used in apa format.

 

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write my assignment 22592

Code a new method to be exported from ArrayStringLog called howMany() , with the following signature:

public int howMany (String element)

The method returns a integer value indicating how many times element occurs in the log

****Here is the ArrayStringLog:

public class ArrayStringLog implements StringLogInterface

{

protected String name; // name of this StringLog

protected String[] log; // array that holds strings

protected int lastIndex = -1; // index of last string in array

public ArrayStringLog(String name, int maxSize)

// Precondition: maxSize > 0

//

// Instantiates and returns a reference to an empty ArrayStringLog

// object with name “name” and room for maxSize strings.

{

log = new String[maxSize];

this.name = name;

}

public ArrayStringLog(String name)

// Instantiates and returns a reference to an empty ArrayStringLog

// object with name “name” and room for 100 strings.

{

log = new String[100];

this.name = name;

}

public void insert(String element)

// Precondition: This StringLog is not full.

//

// Places element into this StringLog.

{

lastIndex++;

log[lastIndex] = element;

}

public boolean isFull()

// Returns true if this StringLog is full, otherwise returns false.

{

if (lastIndex == (log.length – 1))

return true;

else

return false;

}

public int size()

// Returns the number of Strings in this StringLog.

{

return (lastIndex + 1);

}

public boolean contains(String element)

// Returns true if element is in this StringLog,

// otherwise returns false.

// Ignores case differences when doing string comparison.

{

int location = 0;

while (location <= lastIndex)

{

if (element.equalsIgnoreCase(log[location])) // if they match

return true;

else

location++;

}

return false;

}

 

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write my assignment 12764

4. Suppose that you’re given the following information of rates of return for the stock market as assessed by your financial analyst in mutual fund. Answer the following questions:

a)What are the means, standard deviations for each fund? Why do you need to specify the means and the standard deviations? 

b)What are the co-variances for these funds? Are these funds mutually “diversifiable”? Why or why not? (Hint: apply correlation coefficients to tell)

c)Explain the assumption(s) and reason(s) why the expected rate of return of investor can be represented by the expected value of the rate of return.

d)Suppose that Fund A represents the Market Index Portfolio. What are the “beta’s” for Fund B and Fund C? What is the difference in concept between standard deviation and beta for Fund B and Fund C? 

e)Suppose the risk-free rate is 2% and Fund A represents the Market Index Portfolio. What are the expected rates for Fund B and Fund C now according to CAPM? Are they different from the “means” you calculated in a)? Why? 

States of the worldProbability  Fund A   Fund B   Fund C

Boom    1/416%   12%    8%

Recovery   1/224%   36%    8%

Recession    1/4  -32%   -20%    4%

 

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