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Assist in writing a brief, but thorough document addressing the following from Case Study.
1. What data would illustrate whether these underlying problems are occurring? Which method of data gathering would you use and why?
2. What are the advantages and disadvantages of that method?
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Data that would illustrate whether these underlying problems are occurring
The underlying problems in the AeroTech's are: the laser systems engineering group is not producing products within its own projections of cycle time and budget, the team has the lowest productivity as compared to other similar teams in the division. Possible interpretations of these problems are that either Todd is making inaccurate unrealistic projections or the team is not able to work cohesively to attain the set goals within set time and budget. In the second problem the possible interpretation for the problem is that Todd's team come up with fewer product developments in a given time period or that the number of product delays experienced in the team are higher than in other teams, or that the team is not working together cohesively to meet the team objectives within the set constraints (Case study, n.d.).
From the first problem where the laser systems engineering group is not producing products within its own projections of cycle time and budget, the data needed to analyze whether this underlying problem is occurring are gathering data on the groups quarterly plans on budget and delivery times projections initially drawn by Todd and data on the actual budget and delivery time used by the group over the past four quarters, and gather information from the team members on how they work within the team, communicate, assign tasks, reach decisions and resolve conflicts within the team.
From the second problem where the team has the lowest productivity as compared to other similar teams in the division, the data needed to analyze whether this underlying problem is occurring are gathering data on the number of product developments that each of the groups in the company has come up with over the past four quarters, gathering data on the number of product delays per group in the company over ...
The solution assists with writing a brief document addressing the AeroTech case study.
Finance: What do you expect will happen to Aerotech's stock?
1. Aerotech, an aerospace-technology research firm, announced this morning that it has hired the world's most knowledgeable and prolific space researchers. Before today, Arotech's stock had been selling for $100. Assuming that no other information is received over the next week and the stock market as a whole does not move.
a. What do you expect will happen to Aerotech's stock?
b. Consider the following scenarios:
1. The stock price jumps to $118 on the day of the announcement. In subsequent
days it floats up to $123, then falls back to $116.
2. The stock price jumps to $116 and remains at that level.
3. The stock price gradually climbs to $116 over the next week.
Which scenario(s) indicate market efficiency? Which do not? Why?
2. The Pan Fries Company just announced a new model of their cooker which will reduce cooking time and fat absorption. The price reaction of their stock is listed below. Calculate the abnormal return behavior and explain the behavior.
Day Rpf E(Rpf )
-3 .005 .006
-2 .002 .002
-1 -.003 -.004
0 .015 .005
1 .001 -.001
2 -.003 -.004
3 .000 .002
3. Advanced Engineering is currently unlevered with 2,000 shares outstanding and assets valued at $50,000. The company expects operating income in the current period to be $6,000. Suppose that the company can exchange 400 shares of stock for $10,000 in debt paying 10% interest. From the standpoint of EPS, show that the exchange will be wise.Assume no taxes.
5. Asquith and Mullins studied a sample of firms that either paid their first ever cash dividend or initiated a dividend after a 10 year period of no dividends. Healey, Palepu and Michaely, and Thaler and Womack found stock prices to fall when dividends are. Explain how these positive and negative stock price results fit with the dividend irrelevance argument of MM and the opposing effects of taxes and current income needs on stock price if future earnings are held constant.
7. Cap Henderson owns Neotech stock because its price has been steadily rising over the past few years and he expects its performance to continue. Cap is trying to convince Widow Jones to purchase some Neotech stock, but she is reluctant because Neotech has never paid a dividend. She depends on steady dividends to provide her with income.View Full Posting Details