A financial weakness of the Utah Symphony is its performance and contribution revenues. These revenues total 66.9% of their total revenues, while the norm is 82% for U.S. arts organizations. Program expenses are another financial weakness for the symphony, which include the orchestra salaries, related benefits, and payroll taxes. These expenses represent 85% of their total expenses and are 84% of their total income. This is mainly due to the exorbitant contract agreements with the musicians that must be paid regardless of the number of performances.
Bill Bailey One concern expressed by opera trustees was the financial strength of the opera vis-à-vis the symphony. The opera had a reserve fund and was financially stable and because of the business model could be flexible and adjust the size of the opera or eliminate projects that had not reached their fund-raising goal. The symphony, on the other hand, was a 52-week orchestra that did not have that flexibility. Another concern was that even though the opera could become a tier-one arts organization through the merger, the opera would lose its identity. (DeLong, & Ager, 2005) Bill Bailey’s concerns regarding the merger indicate that he feels that the merger would financially benefit the orchestra much more than it would benefit the opera.
The estate tax began in 1916 with the gift tax following in 1924. Another tax was eventually added, a generation-skipping tax, where all together these taxes represent “one way of reducing the potential wealth society’s richest families might accumulate over several generations” (Spilker, Ayers, Robinson, Outslay & Worsham, 2013, pg. 25-2). It even seems like the government has debated over the ‘fairness’ of these taxes because in 2010, the estate tax was optional. In light of the direction our country is headed, taxes seem to be a priority and to some, a solution, to the debt problem we currently face.
The U.S. carpet and rug industry recorded sales of $11.69 billion at manufacturer’s prices in 1999. Carpet and rug retail sales were estimated to be $17.9 billion. Industry sales are divided between “contract,” or commercial, sales for institutions and businesses and residential sales for household replacement carpets (Kerin & Peterson, 2004). Competitors: The U.S. carpet and rug industry is undergoing a period of consolidation begun in the mid-1980s. Mergers, acquisitions, and bankruptcies among manufacturers brought about by declining demand for carpet and rugs, excess manufacturing capacity, and dwindling profit margins reduced the number of carpet and rug manufacturers from more than 300 in the mid-1980s to about 100 companies in early 2000.
The Home Depot Company wants to expand their business in a global arrange. Actually, this situation is not able to happening every year; therefore, I considered it as a extraordinary item. 2. As we know from the fiscal 2007, the value of treasury stock was negative $16,383 million, but when it comes in the fiscal the value of treasury stock was negative $314 million, which means The Home Depot Company may sell their treasury stock for some money, the factor is that the sales of Home Depot Company decreased $13,488 million, therefore, they need money to run the company, so they sell some of the treasury stock for some money. This is the second extraordinary item.
I would make an investment in the company’s 5% convertible bonds. Sepracor’s ROA and ROE is above the average and showing that it is profitable; however, the company’s debt to asset ratio is above 1, which means that most of its assets are financed through debt instead of equity. Sepracor would be in trouble if its creditors were to start demanding repayment. C.) To make valid comparisons between Sepracor and Bayer, you would have to compare the rules for fair value under the U.S GAAP and iGAAP. Under IFRS, convertible bonds are separately recorded as liabilities and stockholder’s equities.
However, it will increase Johnson's current tax liability. There is usually no advantage to an S-corporation for a wealthy individual who is already in the top tax bracket. S-Corporation income tends to favor start-up businesses and taxpayers with little income, because the corporation is taxed at the individual's lower personal income tax rate. Should Mr. Jones merge Johnson Services with Smithon? What
No, because the yields for treasury instruments are very low at the time, so the premium the company will add to their rate is very low, and the investors will get less money for the same level of riskiness, so the paper is not really cheap. YTMs for these 4 issues are the following: 2013 notes: 0.93% 2015 notes: 1.72% 2020 notes: 3.06% 2040 notes: 4.56% c. The YTM is differing from the coupon rate because these notes are selling at a discount price. The YTMs should be compared with the coupon rate. d. Microsoft issued 4 papers instead of one is because risk diverse, with only 1 paper there is a great risk for them, what if people do not want to buy the type of paper they issued, with the 4 papers people can get different options, some people want long term paper and some people want short term paper. Microsoft can decrease the risk of losing with 4 papers.
Case write- up of Costco Corporation Company Case Study Costco Corporation Company Overview Costco Company Costco Wholesale Corporation is the 5th largest retailer in the United States. This company buys the large quantities of consumer products from manufacturers or suppliers and sells them back in smaller quantities to the end users. Costco was founded in 1983 by James Sinegal and Jeffrey Brotman in Seattle, Washington (Costco website). According to Costco 2008 Annual Report, Costco is the largest membership warehouse club chain in the world based on sales volume. With 142,000 employees and more than 500 branches worldwide, Costco focus on providing inexpensive product in big box.
Figure 3 shows the changes of global economic power over time. There are many reasons for the shifts in economic power such as the Second World War and the collapse of the British Empire. In 1913, Britain had a GDP almost twice the size of The USA's and made up 37% of the world's economy. By 1950, Britain's economic influence had decreased, its GDP now making up only 7% of the global economy. During this period The USA had become the world's largest economic power, making up 27% of the world's economy compared to the 19% in 1913.