A company has $10,000 to invest , to be divided into fixed interest, equities and property. For surety of return the client requires at least 50% to be placed in fixed interest and for liquidity he specifies that no more than 30% be invested in property. The projected return over the coming year is forecast to be 5% on the fixed interest investments, 7% on equities and 8% on property. How should the £10,000 be split between the three types of investment in order to maximise the return over the coming year? Hint: To formulate the linear programming problem use x as the amount invested in fixed interests, y as the amount invested in equities and then 10,000 - x - y will be the amount invested in property.
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- Forrester and Cohen is a small accounting firm, managedby Joseph Cohen since the retirement in December of hispartner Brad Forrester. Cohen and his three CPAs can togetherbill 640 hours per month. When Cohen or another accountantbills more than 160 hours per month, he or she gets an additional"overtime" pay of$62.50 for each of the extra hours: this is aboveand beyond the $5,000 salary each draws during the month.(Cohen draws the same base pay as his employees.) Cohenstrongly discourages any CPA from working (billing) more than240 hours in any given month. The demand for billable hours forthe firm over the next 6 months is estimated below: Cohen has an agreement with Forrester, his former partner,to help out during the busy tax season, if needed, for an hourly feeof $125. Cohen will not even consider laying off one of his colleaguesin the case of a slow economy. He could, however,…I have a accounting firm and someone from real estate wants to invest and give my firm all her accounts but in return wants equal ownership of my firm, but i dont want to giver her equal ownership but wants her to invest in my firm , what are alternatives that i can offer her without giving her half ownership. ElaborateKatie Mcdermott is a retired entrepreneur. She holds a significant number of shares in Nimble Technologies Pty Ltd. Katie has been quite unhappy about the management of the company, particularly as it seems that directors have had pay increases each year, and seem to have significant benefits in the form of cars, trips and various other expenses paid on their behalf. Katie suspects that the directors are acting generally for their own benefit, and not in the interests of all shareholders. She is particularly interested in how certain shareholders have increased their holdings, and whether the company has been assisting a particular group of shareholders at the expense of the shareholders in general. While Katie has asked various questions at company meetings, she is not satisfied with the answers she has received. She believes there may be a case for bringing an action against the directors under some part of the Corporations Act. Katie needs to gather some information so that she can…
- CASE JOVINA BUENAARTE PLASTIC PRODUCTS: LET ME TRY AGAIN Miss Jovina Buenaarte was thirty-six years old way back in 2003 when she first started plastic products. She made up her mind to operate this business when her friend, a plastic maker, complained about the unavailability of plastic products in the area which is of standard quality. Those that are locally máde do not conform to the requirements set by various users. With a P50,000 starting capital, Ms. Buenaarte proceeded to produce plastic products like bags and kitchen utensils. She personally supervised the mixing of the necessary materials for production. Because of good quality control, her products surpassed the requirements of buyers. Her sales increased considerably even if her selling prices are a little higher than those of competitors. The firm soon grew into a multi-million peso operation. The number of her employees increased to about a hundred with five assigned to administration and the rest either as drivers or…Audrey Sanborn has just arranged to purchase a $550,000vacation home in the Bahamas with a 20 percent down payment. The mortgage hasa 6.1 percent stated annual interest rate, compounded monthly, and calls for equalmonthly payments over the next 30 years. Her first payment will be due one monthfrom now. However, the mortgage has an eight-year balloon payment, meaning thatthe balance of the loan must be paid off at the end of Year 8. There were no othertransaction costs or finance charges. How much will Audrey’s balloon payment bein eight years?Dave is the owner of Fine Pool and Spa. He just discovered that his that his trusted friend Chris, who has been his accountant for over 20 years, has been skimming money from Fine’s bank account. Dave has to decide whether to ignore his Chris’s actions in order to avoid conflict and bad publicity, or to have Chris arrested for embezzlement. What is Dave facing? a. whistle – blower b. a synergy factor c. a social audit d. an ethical dilemma e. an issue of corporate governance
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- The Carlson Department Store suffered heavy damage when a hurricane struck on August 31, 2013. The store was closed for four months (Sept – Dec 2013) and Carlson is now involved in a dispute with its insurance company concerning the amount of lost sales during the time the store was closed. Two key issues must be resolved: The amount of sales Carlson would have made if the hurricane had not struck; and Whether Carlson is entitled to any compensation for excess sales from increased business activity after the storm More than $8 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses. The table below shows the sales data for the 48 months preceding the storm. The following table reports total sales for the 48 months preceding the storm for all department stores in the county, as well as the total sales in the county for the four months the Carlson Department Store was closed. Management…The Carlson Department Store suffered heavy damage when a hurricane struck on August 31, 2013. The store was closed for four months (Sept – Dec 2013) and Carlson is now involved in a dispute with its insurance company concerning the amount of lost sales during the time the store was closed. Two key issues must be resolved: The amount of sales Carlson would have made if the hurricane had not struck; and Whether Carlson is entitled to any compensation for excess sales from increased business activity after the storm More than $8 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses. The table below shows the sales data for the 48 months preceding the storm. The following table reports total sales for the 48 months preceding the storm for all department stores in the county, as well as the total sales in the county for the four months the Carlson Department Store was closed. Management…Sonia wich to esatablish a trust fund from which her son can withdraw $6,000 every six months for 15 years, when he reach 16 years old. At the end of which time he wil recevie the remaining money in the trust, which you would like to be $25,000. The trust will be invested at 6% per annum componded semi-annually. How large should the trust be?