Glo Bus Quiz 2 Formulas ● ROE = Profit Average Equity of current year and past year (in my hometown, RoE is just profitequity) Which of the following is NOT an action company comanagers can take to help meet or beat the investorexpected increases in the companys stock price in upcoming years?A.Making it company practice to issue additional shares of stock each year and use the proceeds to pay down the debt outstanding until the companys debtequity percentages reach 20% or lower for debt and 80% or more for equity Which one of the following is NOT a way to improve the PQ rating of a companys brand of actioncapture cameras? A.Increasing the number of models in the companys lineup of multifeatured cameras If a company adds 60 new workstations at a cost of 75,000 each and also spends 20 million for addition space in its cameradrone assembly facilities to accommodate more workstations, then its annual depreciation costs will rise by A.1,225,000.
Trang 1Glo-Bus Quiz 2 Formulas:
● ROE = Profit / Average Equity of current year and past year (in my
hometown, RoE is just profit/equity)
● EPS = Earnings/ Common Shares
● Free Cash Flow = Net income + depreciation – dividends
● Times Interest Earned=Interest Coverage Ratio = Operating Profit of
last 4 quarters/ Net Interest of last 4 quarters
● Debt to Equity = Long term debt /Equity
● Dividend Payout Ratio = Dividend Per Share/ EPS
● Dividend Yield = Dividend Per Share / Stock Price
● Current Ratio = Current Assets / Current Liabilities (this one should be
easy for most people)
● The percentage of total production costs to net sales revenues =
Production Cost/ Revenue
● The percentage of delivery costs for cameras to net sales revenues =
Delivery Cost / Revenue
● The percentage of total marketing costs for cameras to net sales revenues = Marketing Cost / Revenue
● The percentage of total administrative costs for cameras to net sales revenues = Admin Costs /Revenue
● Net Profit Margin = net profit ÷ net sales revenues
● Operating Profit Margin = operating profit ÷ net sales revenues
● Return on Average Equity = After-Tax Profit/((Beginning Equity +
Ending Equity) ÷ 2)
● Lợi nhuận giữ lại = thu nhập ròng – cổ tức
● Lợi nhuận giữ lại sẽ khiến đầu tư cổ phần của các cổ đông tăng thêm
● Số năm trả hết nợ= LT Debt / (Net income + depreciation – dividends)
Trang 2Which of the following is NOT an action company co-managers can take to help meet
or beat the investor-expected increases in the company's stock price in upcoming years?
A Making it company practice to issue additional shares of stock each year and use the proceeds to pay down the debt outstanding until the company's debt-equity percentages reach 20% or lower for debt and 80% or more for equity
B When the company's stock price drops because of unexpectedly weak company performance in the prior year but is expected to recover and rise in the next several decision rounds, opting to borrow money preferably in the form of 1-year loans from the Global Community Bank (but not so much as to impair the company's credit rating) and using the borrowed funds to repurchase outstanding shares of common stock
C Making it a frequent management practice to allocate a portion of internal cash flows from operations to repurchasing shares of the company's
common stock
D Increasing annual dividend payments to shareholders most every year
E Putting increased attention on boosting operating profits in all four geographic regions the resulting growth in operating profits companywide will act to increase total net profits and EPS;
Which one of the following is NEITHER an advantage or disadvantage of shifting to robotics assisted camera assembly methods?
A The capital cost of converting to robot-assisted camera assembly can
increase a company's interest costs, to the extent that a portion of the
capital costs are financed by bank loans Robot-assisted assembly reduces total annual compensation costs per PAT and also reduces the overtime cost of assembling a camera
B Installing robots at each camera workstation enables the size of PATs to be cut from 4 members to 3 members
C Robot-assisted camera assembly boosts the annual productivity of camera PATs by 500 cameras per year
D Robot-assisted camera assembly increases annual workstation maintenance
costs
Which one of the following is NOT a way to improve the P/Q rating of a company's
Trang 3brand of action-capture cameras?
A Increasing the number of models in the company's lineup of
multi-featured cameras
B Adding one or two more extra performance features
C Increasing expenditures for camera R&D
D Spending several more dollars on the camera housing and on included
accessories
E Increasing the image sensor size and the resolution of the LCD display screen
Actions that can lead to higher labor productivity in assembling cameras/drones do NOT include
A increasing annual expenditures to train camera/drone PATs in best practice assembly methods and ways to improve productivity from $2,000 per PAT to
$2,250 per PAT increasing the annual bonus for perfect attendance paid to camera/drone PAT members from $800 to $875
B reducing the number of camera/drone models being assembled
C increasing total annual compensation per camera/drone PAT member by a minimum of 2% and a maximum of 5% annually
D boosting the minimum number of cameras/drones that camera/drone PATs are expected to assemble each week such failure to achieve the weekly quota in as many as 4 weeks a year constitutes automatic disqualification for year-end perfect attendance bonus~
Which one of the following represent the MOST important/helpful results from the latest decision round that company managers need to review/study in order to guide their strategic moves and decisions to improve their company's competitiveness and overall company performance in the upcoming decision round?
A Each company's performance on EPS, ROE, stock price, credit rating and image rating displayed on pages 2 and 3 of the Camera & Drone Journal
B The Industry Overview information on p 4 of the Camera & Drone Journal
C The Industry Scoreboard data on p.1 of the Camera & Drone Journal
D The company's Income Statement on p 4 of the Company Operating Report
E The comparative competitive efforts of rival companies in each
geographic region that are found in Competitive Intelligence Report
Trang 4Which of the following is NOT an action that can help boost a company's credit rating?
In answering this question, you may wish to consult the Help section for page 5 of the Camera & Drone Journal and read the discussion pertaining to "The Credit Rating Measures."
A Temporarily reduce dividend payments to shareholders and use the cash saved from lower dividend payments to pay down 5-year and 10-year loans
B Put increased attention on boosting operating profits and operating profit margins in all four geographic regions the resulting growth in operating profits companywide will increase the company's interest coverage ratio
C Pay off any 1-year loans (and temporarily avoid the use of 1-year loans) because 1-year loans are considered a current liability and thus reduce the company's current ratio
D Issue additional shares of stock and use the proceeds to pay down 5-year and 10-year loans
E Repurchase shares of the company's common stock to enhance the company's debt to-equity percentages
If a company adds 60 new workstations at a cost of $75,000 each and also spends
$20 million for addition space in its camera/drone assembly facilities to accommodate more workstations, then its annual depreciation costs will rise by
A $1,225,000
B $980,000
C $3,500,000
D $1,750,000
mức giảm xuống chiếm 5%
(75000*60+20tr)*5%
After each decision round, company managers should make a point of examining the information on p 2 of the Company Operating Report that concerns the company's profitability in the action camera segment in each geographic region because
A this report provides superb guidance about how much the company needs to raise/lower its average wholesale camera prices in each geographic region
B the information in this report allows managers to see in which regions the company was most competitively successful and least competitively successful, competitive factor by competitive factor
C this report provides the company's management team with convincing
Trang 5documentation of the precise reasons why the company's camera-related operating profits and operating profit margins were bigger in some regions than in others
D total operating profits and operating profit margins are very likely to be lower in some regions than others and because management needs to take actions to boost its profitability in the underperforming regions in the upcoming decision round
E this report provides superb documentation about whether the company spent too much or too little in each region on advertising, retailer support, and
website product displays/info in the just-completed decision round
If a company pays each camera PAT member a base wage of $21,000, thereby resulting in base wages of $84,000 per 4-person PAT, and if camera PATs work an average of 2,000 hours per year to assemble 3,000 cameras annually, it follows that
A the hourly base wage cost for a PAT to assemble a camera would be $10.50 and that the labor cost of assembling a camera at overtime would be $15.75 per PAT
and that the labor cost of assembling a camera at overtime would be $36.00 per PAT
C the hourly base wage cost for a PAT to assemble a camera would be $30.00 and that the labor cost of assembling a camera at overtime would be $60.00 per PAT
D the hourly base wage cost of assembling a camera would be $28.00 and that the labor cost of assembling a camera at overtime cannot be determined from
the available information due to the lack of information about compensation payments for assembly quality incentives, perfect attendance bonuses, and
the cost of fringe benefit packages
E the hourly base wage cost for a PAT to assemble a camera would be
$28.00 and that the labor cost of assembling a camera at overtime
would be $42.00 per PAT
The industry-low, industry-average, and industry-high cost benchmarks on pp 6-7
of each issue of the Camera & Drone Journal
A are particularly valuable to company managers who are actively considering undertaking robotics upgrades in their camera and drone assembly facilities
Trang 6in the upcoming decision round
B have the greatest value to the managers of companies whose camera costs per unit and drone costs per unit are above the industry averages
C are worth careful scrutiny by the managers of all companies because they help managers determine if corrective actions are needed in the event their company's camera/drone costs for the benchmarked cost categories do NOT appear to be competitive (or "in line") with those of rival companies
D are of considerable value to the managers of companies selling low-cost/low-price action cameras and/or UAV drones but are of very limited value to the managers of all other companies
E are of little value to company managers in making decisions to improve company performance in the upcoming decision round, except in those cases when a company is losing money in one or more geographic regions
If your company earns an ROE of 20% at a time when the investor-expected ROE target is 25% and if the instructor-determined weight for achieving the ROE target is worth 20 points, then your company's ROE score on the Investor Expectations scoring standard will be
A 15 points (75% of the 20 points awarded for meeting the ROE target)
B 17 points
C 20 points (1 point for each 1 % the company earned on total
shareholders' equity)
D 18 points
E 16 points (80% of the 20 points awarded for meeting
the ROE target)
Which of the following is NOT an action company co-managers can take that has good potential for increasing the company's average ROE and helping the company meet or beat the investor-expected ROE targets in upcoming years?
A Paying a small annual dividend to shareholders (less than $0.50 per share) which is increased annually by about $0.05 per shares; a small but growing dividend provides the company with more cash to fund capital expenditures and/or pay down bank borrowings ahead of schedule
B Pursuing efforts to boost total operating profits in all four geographic regions
the resulting growth in operating profits companywide will increase total net
Trang 7profits (a company's net profits are the numerator in calculating the company's ROE)
not paid out as dividends are treated as retained earnings and because bigger retained earnings have the effect of increasing shareholders equity)
D Using a portion of the company's internal cash flows from operations for the next several years to repurchase shares of common stock
E Borrowing money from the Global Community Bank (preferably in the form of
a 1-year loan that can be fully or mostly repaid the following year) and using the proceeds to repurchase outstanding shares of common stock; such action makes considerable financial sense when the company's stock price is expected to rise substantially in future years and/or when unexpectedly weak company performance in the prior year causes a drop in its stock price
Which one of the following actions helps increase a company's EPS?
A Cutting the company's selling prices for both action cameras and UAV drones
in all four regions to levels at least 5% below those being charged by any company; the resulting increases in sales volumes and revenues will boost the company's EPS
B Striving to be the dominant seller of action cameras and UAV drones in all four geographic regions every year by having the highest P/Q ratings and out-marketing rivals; the added profits on large volume sales will drive increases
of 10% or more in EPS
C Issuing enough additional shares of stock to raise sufficient cash to pay off all
of the company's outstanding loans; cutting interest costs to zero can always
be counted on to boost the company's EPS
D Minimizing the company's dividend payments so as to boost retained
earnings higher retained earnings divided by the number of shares
outstanding result in higher EPS
E Allocating a portion of the company's net income each year to
repurchasing shares of the company's common stock
The website prices virtually all companies in the industry charge Asia-Pacific buyers for UAV drones are likely to be higher than the website prices they charge UAV drone buyers in North America
A because unfavorable exchange rate adjustments are consistently $10 to $30
Trang 8higher on sales to buyers in the Asia-Pacific region than for buyers in North America
B because the production/assembly costs per drone that companies incur on UAV drones shipped to the Asia-Pacific region are many dollars higher than production/assembly costs per drone shipped to North America
C when the import duties on shipments of UAV drones to buyers in the Asia-Pacific region are significantly bigger than the import duties on shipments of UAV drones to buyers in North America
D because the administrative costs per drone sold that companies incur on sales
to buyers in the Asia-Pacific region are over $10 higher than those incurred
on sales to buyers in North America
E because the corporate profits taxes that all companies have to pay to governments in the Asia-Pacific region are 35% higher on average than the corporate profits companies have to pay governments in North America
Which of the following combinations of actions will likely provide the LEAST competitive benefits in helping a company catch the eye of action camera shoppers, significantly boost overall buyer appeal for its cameras versus rival brands, and cause more camera shoppers to purchase its brand instead of rival brands in each
of the four geographic regions?
A Boosting the number of weekly sales promotion from 4 to 7 in all four regions and also increasing the percentage discounts to camera retailers during these
promotions from 11 % to 15%
advertising from levels that are $1 ,000,000 above the prior-year regional averages to levels about $3,000,000 above the prior-year regional averages
in all four geographic regions
C Boosting spending for retailer support by $500,000 in all four geographic regions and instituting $7 reductions in the average wholesale prices charged
to camera retailers in each geographic region
each region and increasing the number of camera models from 4 to 6
E Increasing expenditures for website product displays/info $100,000 in all four regions and increasing advertising expenditures by $250,000 in all four regions
If a company earns net income of $40 million in Year 8, has 10 million shares of common stock outstanding, pays a dividend of $1.00 per share, and has annual interest costs of $10 million, then
Trang 9A the company would have Year 8 earnings per share of $3.00 and retained
earnings of $20 million
would equal 25% of net income, and its cash flow from operations would be
$20 million (net income of $40 million less dividend payments of $10 million
less interest costs of $10 million)
C the company's EPS for Year 8 would be $4.00 and its retained earnings
for Year 8 would be $30 million (net income of $40 million less dividend
payments of $10 million); the $30 million addition to retained earnings
would cause shareholders' equity investment to increase by $30 million
in Year 8
D the company's retained earnings for the year would be $30 million; the $30
million in retained earnings would be shown on the company's balance sheet
as a reduction in equity investment by stockholders in Year 9
of $40 million less dividend payments of $10 million less interest costs of $10
million) and its earnings per share would be $2.00
The benefits of pursuing a strategy of social responsibility and corporate citizenship
include
A the enhanced profitability that results when a company opts to spend money
on socially responsible activities
B the positive impact that such a strategy can have on the company's
image rating if the company spends a meaningful amount on socially
responsible activities over a multi year period
C the boost such a strategy gives to increasing the company's global sales
volume and global market share for both action cameras and UAV drones
D the positive impact that such a strategy has on the company's P/Q ratings for
both action cameras and UAV drones
E the boost such a strategy gives to the company's stock price
Which one of the following actions helps boost a company's image rating/brand reputation?
A Charging camera retailers an average wholesale price that is typically 10%
Trang 10or more below the highest price being charged in the region
B Making it standard practice for the company to offer all buyers of its camera and drones a full 1-year warranty
C Increasing the P/Q rating of the company's UAV drones
for manuals and packaging for the company's action cameras
compensation packages, thereby enabling them to enjoy a standard of living well above the Taiwan average
Which one of the following is NOT an attractive way to reduce the design, assembly, marketing, and other costs per action-capture camera sold in an effort to achieve a sizable low-cost competitive advantage over rivals?
A Spending aggressively (but also taking care not to overspend) on camera product R&D
B Striving to keeping marketing costs per camera sold in all 4 geographic
regions sold to levels that are below the industry-average benchmark and, better still close to the industry low benchmark (as reported on p 6 of the Camera & Drone Journal)
C Doing whatever it takes to entirely avoid any use of overtime in assembling cameras because paying PAT members 1.5 times the hourly base wage to assemble cameras at overtime is much too expensive
D Paying PAT members an attractive assembly quality incentive to help reduce warranty claims on cameras sold and also boost PAT productivity
E Trying different combinations of components, product enhancements, and extra performance features to be used in action cameras in order to discover the lowest cost combination for achieving a competitively appealing P/Q rating