1. Profitability Index tells us which project will give the organization the best bang for its buck when the company has to choose between two projects that show a positive NPV. What do you think? 75 words 1 quote
2. Do you believe companies should use the Profitability Index all the time or only when capital rationing has been placed? 75 words 1 quote.
Reference: Cutler, C. (n.d.). Profitability index vs net present value: which one is better? Innovation Properties Group. https://ipgsf.com/profitability-index-vs-net-present-value/#:~:text=The%20profitability%20index%20method%20can,twice%20as%20much%20as%20another.
Watch the following video Efficient Frontier prior to completing the EF exercise:
Markowitz EF Assignment
The following video illustrates instructions for getting started with this assignment. PLEASE NOTE: I modified the Excel spreadsheet so you no longer need to sort and before copying and pasting the data. Please enter dates in same order as supplied on Excel template below which matches the order originally provided in Yahoo Finance. (Video provided in file section).
Complete the EF Exercise in Excel by using the following instructions and Excel model: (Provided in file section)
Read the below and complete the following: 1. Determine the amount of net income allocated to each partner for 2019. 2. Determine the balance in both capital accounts at the end of 2019. 3 Determine the amount of net income allocated to each partner for 2020. (Round all calculations to the nearest whole dollar). 4. Determine the balance in both capital accounts at the end of 2020 to the nearest dollar Norr and Caylor established a partnership on January 1, 2019. Norr invested cash of $100,000 and Caylor invested $30,000 in cash and equipment with a book value of $40,000 and fair value of $50,000. For both partners, the beginning capital balance was to equal the initial investment. Norr and Caylor agreed to the following procedure for sharing profits and losses: o 12% interest on the yearly beginning capital balance o $10 per hour of work that can be billed to the partnership’s clients o the remainder divided in a 3:2 ratio The Articles of Partnership specified that each partner should withdraw no more than $1,000 per month, which is accounted as direct reduction of that partner’s capital balance. For 2019, the partnership’s income was $70,000. Norr had 1,000 billable hours, and Caylor worked 1,400 billable hours. In 2020, the partnership’s income was $24,000, and Norr and Caylor worked 800 and 1,200 billable hours respectively. Each partner withdrew $1,000 per month throughout 2019 and 2020.
Answer each of the following 4 questions or provide explanations/discussions with approximately 200 words each response (total of 800 words).
(1) Determine how accounting for a partnership is different from accounting for a corporation. (2) For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.
(3) How does a recipient not-for-profit entity record the receipt of a gift that will be transferred without restriction to another charitable entity? What if the donor retains the right to revoke or redirect the gift?
(4) Explain the choices an executor of an estate has in determining the values of assets included in the estate for tax purposes.
Prepare a one-page memo that monitors and summarizes your performance for the first five weeks. (50 Points)
Briefly discuss changes that you have incorporated or should incorporate to enhance the performance for the remainder of the game. Briefly identify key concepts covered in the course to this point and relate how this knowledge can be incorporated into the game. However, you do not need to change your strategy. (Recommended only if you are losing to the benchmark.) Discuss how well your particular style of investing performed over the past five weeks given the current market environment. Compare your performance to S&P 500 benchmark. Summarize your major reasons for buying and selling the stock over the past five weeks. Discuss changes in strategy (if any).
Calculation is required! Please take a look carefully at the grading rubric and follow these steps. My portfolio and the lessons modules are provided in the file section as well.
1- John M. Reed is 10 years old and may be claimed as a dependent on his parent’s return. In 2023, John received taxable interest of $5,000.00. He had no earned income. John’s parents are James Reed, whose social security is 801-77-5432, and Elaine Reed (SS#125-84-7799) John’s social security number is 759-42-1134. For 2023, James and Elaine file a joint return and elect to report John’s income on their return. Prepare a Form 8814 for Mr. and Mrs. Reed along with the appropriate lines of the 1040 and Schedule 1. Go to www.irs.gov to download Form 8814, Form 1040 with Schedule 1. 2- Bob (Social security #321-77-8888) and Mary Brown have one child, Kevin, age 15. For 2023, Kevin (Social security #143-44-7777) has $4,300 of interest income and $1,500 of earned income. He does not itemize deductions on the tax return that he is required to file. Bob and Mary(parents) have taxable income of $190,000 and had $32,415 total tax on line 16 of their 1040. Use the above information to complete Form 8615 and Form 1040 for Kevin. Go to www.irs.com and download Form 8615 and Form 1040.
select four companies and purchase 100 shares for each of the three portfolios. The purchase prices are recorded on the attached Stock Tracker Spreadsheet. Please include the reason you selected each company. Additionally, did you create and use an investment policy statement? If so, what is your investment philosophy? Here are a few examples: (1) an actively selected portfolio (P1) – Stocks from Kiplinger’s List of Best Performing Stocks (2) a randomly selected portfolio (P2) – Stocks from consumer-oriented companies that produce the products I use (Apple, Amazon, ATT &T, Bank of America, etc.) (3) a passive portfolio (P3) – Russell 2000 stocks with high dividends Below you find an example of the Stock Tracker Spreadsheet.
Choose the options of an asset that you expect it to go up (or down).
You can find options contarcts for any company from YahooFinance.
Just go a company’s profile on YahooFinance and go to its options page from there.
For Example, for Microsoft options the link is
Microsoft Corporation (MSFT) Options Chain – Yahoo Finance
Use three strategies consistent with your expectations. Justify your choice.
Establish your positions and monitor them on a daily and weekly basis. (what is the net?)
What is the net for each strategy if you hold the positions till expiration
The cost for trading one contract is $ 0.65 and the fee per contract is $0.05
Give a summary of your observations and conclusions.
Lecture notes are attached for help
For this final discussion, I found two very different articles discussing new trends in the mergers & acquisitions market. From Bloomberg there is an article discussing changes in the M&A market as smaller, boutique investment banks are making headway in a market formerly controlled by smaller group of “big name” investment banks (think Goldman Sachs, JP Morgan, etc.). The second article is a summary of a survey of 200 big corporate and private equity M&A decision makers done by KPMG (one of the big four accounting firms). The key findings are interesting, particularly the barriers, strategies, impact of changes in credit markets and tax policies, and the use of generative AI in M&A deals and analysis.
You have a choice on how to go with this week’s discussion. Either take on the topic of boutique vs. “old-line” investment banks, how the M&A market has changed (based on one or more of the topics highlighted in the KPMG summary) or discuss a particular M&A deal that has closed in the last 6 months or is currently in progress.
If you go with either the boutique vs. old-line investment bank or new trends in M&A, you will need to be specific in your discussion and have appropriate supporting facts from a news article, company press release, etc. If you happen to work in an industry this is directly involved, that’s great, but you still need a public outside source to cite in your post.
If you go with a specific M&A deal: What is the company and what type of deal was completed or in the works? Discuss the industry and background on the firm. What changes might have happened to the firm or the deal in the months immediately before or after the deal? What is interesting about the company or the deal? What was (or might be) the synergies/motivation for the acquisition? As with all of the discussions in this course, I am not expecting a quantitative analysis!! If specifics of the deal are available and help support your discussion, go for it.
This is a wide-open discussion, but as always, you need solid supporting evidence from at least one outside article or company press releases.
You will be making a tax analysis portion of a comprehensive financial plan. It needs to be 7-8 pages long, on each example there are “Tax Analysis.” sections. You can look at these to make sure you’re doing it the right way. The video tells you what to put on it, so please follow the instructions of the video. Sources to be used is all the information given. You don’t have to fill the pages up just make sure it looks neat. Please add everything to the end of “my draft”. Thank you in advance for doing this for me.