Allocation Of The Lump Sum Purchase Price

1. Discuss whether the structure of the executive compensation program is consistent with the corporate strategy for each company. At a minimum, consider the mix of compensation (i.e., fixed vs. contingent, short-term vs. long-term, accounting or stock price-based vs. non-financial-based). In your opinion, does the compensation program motivate executives to achieve strategic success?

6. Although you are basically satisfied with the analysis thus far, you are concerned about the

1.3 Evaluate a model of managerial style in which the manager can apply skills to identify, study and

2.1 Evaluate the decision making models which are used to support decision making 2.2 Identify those to be involved in analysing information and decision making 2.3 Evaluate methods of presenting decisions made

4. Conduct a feasibility analysis on the company, being sure to consider its market potential, industry attractiveness, and

Question 2. Build a financial model to determine if MBUSA should invest in eLearning. Should MBUSA make the investment? What are the key drivers of value?

4. Ben believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement?

Auditing financial statements whose items are based on fair values are difficult because these values are often determined using assumptions which are subjective.

Part 1. Using the sample data, perform the hypothesis test for each of the above situations in order to see if there is evidence to support your manager’s belief in each case a.-d. In each case use the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book with α =

c. What is the best evidence of fair value? Describe alternate methods of estimating fair value.

Discuss the audit risk model, and ascertain which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Justify your response.

6. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

➢ Be prepared to defend your specific assumptions about the various inputs adopted into equations. For example, the team is expected to suggest the proposed market risk premium.

4. Assess the value of Amtelecom Communications using available valuation methods including DCF and multiples. Which valuation method is most suitable for each sales alternative? What are the expected net proceeds for each sales alternative?

The use of fair value measurement attribute to enterprise's development has a profound impact. However, the use of fair value is faced with many challenges. Mainly embodied in the following aspects: