corporate entrepreneurship

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  • Discuss whether the term “corporate entrepreneurship” an oxymoron? Can corporations—especially large ones—be innovative? Support your answer with examples.

  • Use the Internet to find an example of two corporate innovations—one brought about through autonomous strategic behavior and one developed through induced strategic behavior. Which innovation seems to hold the most promise for commercial success and why?

Banc-Zero

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What are Banc-Zero’s credit policies?

efficient market

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In a discreet, two-period, perfectly efficient market, a stock is selling for $1 per share. In each

of the two one-year periods in this economy, the stock’s price will either double or drop in price

by 40%. All riskless bonds will yield 10% each year; that is, the yield curve is flat. You may

assume that markets are efficient and allow for no-arbitrage pricing. What is the time-zero (now)

no-arbitrage market value of a 2-year call in this economy if its exercise price equals 2? (please show the steps by diagram)

Wombat Ltd

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Wombat Ltd’s balance sheet and statement of financial position shows an item of machinery that cost $150,000 and that has accumulated depreciation of $40,000. For taxation purposes the asset has a net value of $90,000. Wombat Ltd also has interest receivable of $15,000 which will not be taxed by the ATO until it is received. Wombat has a provision for warranty expenses with a balance of $100,000. All of the provision was created in the current financial year, and no amounts have been paid. The warranty expense is not deductible until such time as the costs associated with the warranty are actually paid. The tax rate is 30 percent.

Required:

Calculate any deferred tax assets and liabilities for Wombat Ltd and provide the relevant journal entries.

Pinot Ltd

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Pinot Ltd acquired some machinery at a cost of $1 million, which it accounts for using the cost method. As at 30 June 2020 the machinery had accumulated depreciation of $200,000. On 30 June 2020 it was determined that the machinery could be sold at a price of $650,000 and the costs to sell would be $20,000. Alternatively, the machinery is expected to have a useful life of 5 years and the net cash flows expected to be generated from the machine would be $180,000 over each year. At 40 June 2020 it is expected that the market would require a rate of return of 7 per cent on this type of asset.

Required:

Determine whether an impairment loss needs to be recognised for this asset and also provide the journal entry.

Angola United Theaters

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 Angola United Theaters, Inc. is considering opening a new movie theater in Angola, Indiana. The relevant cost of capital is 8%. The purchase, renovation, and modification of a downtown building would require an initial investment of $1.5 million. The theater is expected to be operational for 25 years. After 25 years, the property would be sold for $1 million. The annual operating cost is equal to $100,000 plus $2 per customer. The annual revenues are estimated at $15 per customer. Determine the minimum number of customers per year that would result in accepting the project. (Hint: use annualized worth and solve for the number of customers. Do not use Goal Seek or Solver; perform all of the necessary calculations directly in the Excel cells.)

Thailand

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What is the “current” (1997) situation in Thailand?

IMF

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What are the highlights of the IMF’s bailout of Thailand?

Asia Pacific network

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What are RBC’s four major business lines in its Asia Pacific network?

pretax profit

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 How large is the initial staff for the office and what is the estimated pretax profit?