Mid term paper Essay Example

Mid term paper Essay Example Mid term paper Essay Mid term paper Essay PEPS to be bubbled means increase in PEPS required is 100%. DC = 2 means, 1% change in Sales brings 2% change in PEPS. Hence, to bring 100% increase in PEPS, sales need to increase by I. E. By RSI 215,000. C. By how much the Sales should be increased, if BIT is to be tripled ? Measure of leverage that links BIT with Sales is DOLL. DOLL is 1. 869 in this case. BIT change in Sales brings 1. 869 % change in PEPS. Hence, to bring 200% increase in PEPS, sales need to increase by 107% I. E. By RSI 890100. D. What would be the impact of increasing fixed cost proportion in cost structure of the firm on the operating leverage ? Show demonstration. And also show what would be the percentage increased required in sales to double the PEPS. [2+3] Fixed cost proportion in cost structure is linked with operating leverage. Higher the fixed cost proportion in cost structure, higher will be the operating leverage. Show one example of it. 9. Answer the followings: a) What are the factors to be taken into consideration by Finance Manager in order to maximize the wealth of shareholders ? Explain with examples. B) What is agency problem and agency cost ? What can be the ways to prevent agency costs in a profit making company ? Section C The question carries 25 marks. 10. As an investment advisor, you have been approached by a client called Peter for advice on his investment plan. He is 30 years old and has RSI. 300,OHO in his bank. He plans to work for 20 years and retire at the age of 50, so that he can pursue his hobbies and travel widely in his post-retirement period. His present salary is RSI. 600,000 per year. He expects his salary to increase at the rate of 12 percent per year until his retirement. Peter has decided to invest his bank balance and future savings in a balanced mutual fund scheme which he believes will provide a return of 10 percent per year. You concur with his assessment. Peter seeks your help in answering several questions given below. In answering these questions, ignore the tax factor. (I) Once he retires at the age of 50, he would like to withdraw RSI. 1,000,000 per year for his consumption needs for the following 30 years (His life expectancy is 80 years). Each annual withdrawal will be made at the beginning of the year. How much should be the value of his investments be when he turns 50, to meet his retirement need? Withdraw RSI. 1,OHO, 000 per year from the beginning of the 21st year for a period of 30 years? Assume that the savings will occur at the end of each year. Remember that he already has some bank balance. ( Approximate it to the nearest 000) [10] Peter needs 10,369,700 when he reaches the age of 50. His bank balance of RSI 300,000 will grow to: 300,000 (1 . 10)20 = (ill) Suppose Peter wants to donate RSI. 800,OHO per year in the last 10 years of his life to a charitable cause. Each donation would be made at the beginning of the year. Further, he wants to bequeath RSI. 3,000,000 to his son at the end of his life. How much should he have in his investment account when he reaches the age of 50 to meet this need for donation and bequeathing? (Approximate it to the nearest 000. 10] One more question: Peter wants to find out the present value of his lifetime salary income. For the sake of simplicity, assume that his current salary of RSI 600,000 will be paid exactly a year from now, and his salary is paid annually. What is the present value of his lifetime salary income, if the discount rate applicable to the same is 8 percent? Remember that P eter expects his salary to increase at the rate of 12 percent per year until retirement. [This is the case of Growing Annuity Finite Time. The formula and example of such case can be seen in the lecture slide of time value of money]

Fascinating Tufted Titmouse Facts

Fascinating Tufted Titmouse Facts The tufted titmouse (Baeolophus bicolor) is a small, gray-plumed songbird, easily recognized for the crest of gray feathers atop its head, its big black eyes, black forehead, and its rust-colored flanks. They are quite common throughout the eastern part of North America, so if youre in that geographical region and want to catch a glimpse of a tufted titmouse, it may not be that difficult to find. Fast Facts: Tufted Titmouse Scientific Name: Baeolophus bicolorCommon Names: Tufted titmouseBasic Animal Group: BirdSize: 5.9–6.7 inchesWeight: 0.6–0.9 ounce  Lifespan: 2.1–13 yearsDiet: OmnivoreHabitat: Southeastern, eastern, and midwestern United States, southern Ontario (Canada)Population: Hundreds of thousands or millionsConservation Status:  Least Concern Description Male and female titmice have similar plumage, which makes identification a little bit easier, and titmice can be tempted to backyard bird feeders, so you may not have to go far at all to see one. Tufted titmice exhibit some distinct physical characteristics that make them easy to identify; these traits are easily spotted under most conditions and are not shared by too many other species within their range. The key physical characteristics to watch for when trying to identify a tufted titmouse include: Gray crestBlack forehead and billLarge, black eyesRusty-orange flanks The characteristics listed above are most useful in confirming that the bird youre looking at is a tufted titmouse. But you can also look for other field marks characteristic of the species, which include: Overall gray color, with darker gray upperparts and lighter gray on breast and bellyLight gray legs and feetMedium-length, gray tail (about one third its entire length, head to tail) Habitat and Distribution Populations of tufted titmice stretch from the East Coast of the United States westward to the Plains of central Texas, Oklahoma, Nebraska, Kansas, and Iowa. The highest population densities of tufted titmice occur along the Ohio, Cumberland, Arkansas, and Mississippi rivers. Within their range, there are certain habitats that tufted titmice prefer- they are most common in deciduous and mixed-deciduous forests, especially those with a dense canopy or tall vegetation. Tufted titmice also occur to a lesser extent in suburban areas, orchards, and wetlands and can be spotted at backyard bird feeders on occasion, during the fall and winter months. Diet and Behavior Tufted titmice feed on insects and seeds. They forage on trees and can be seen on trunks and limbs looking for insects in the crevices of the bark. They also forage on the ground. Throughout the year, their preferred foraging locations can change. In summer months they spend more time foraging in the canopy of a tall tree, while in winter they can be spotted on trunks and in shorter trees more often. When cracking open nuts and seeds, tufted titmice hold the seed in their feet and hammer them with their bill. tufted titmice feed on a variety of invertebrates including caterpillars, beetles, ants, wasps, bees, treehoppers, spiders and snails. When feeding at backyard bird feeders, tufted titmice have a fondness for sunflower seeds, nuts, suet, and mealworms. Tufted titmice move along branches and over the ground by jumping and hopping. When flying, their flight path is direct and not undulating. The song of the tufted titmouse is usually a clear, two-syllable whistle: peter peter peter peter. Their call is nasal and consists of a series of sharp notes: ti ti ti sii sii zhree zhree zhree. Reproduction and Offspring Tufted titmice breed between March and May. The female generally lays between five and eight brown-speckled eggs in nests that are 3 to 90 feet high. They line their nests with soft materials such as wool, moss, cotton, leaves, bark, fur, or grass. The female incubates the eggs for 13 to 17 days. Tufted titmice typically have one or two broods each season. The young of the first brood usually help care for the nestlings of the second brood. Most of the hatchlings die shortly after birth, but if they survive, they can live for more than two years. The oldest tufted titmouse on record lived to be 13 years old. The tufted titmouse is fully mature and ready for reproduction by age 1. vandervelden  / Getty Images Conservation Status The IUCN classifies the tufted titmouses conservation status as least concern.  Researchers place the number of tufted titmice in the hundreds of thousands or millions. Their numbers have increased slightly in the past few decades, about 1 percent, and they have moved northward, from the southeastern U.S. to the New England region and Ontario, Canada. Since they are among the larger species of birds, competition is not thought to be a factor, but they may be moving northward to areas where there are more dense populations of trees due to climate change. Sources Tufted Titmouse.†Ã‚  Animal Spot.â€Å"Tufted Titmouse.†Ã‚  Tufted Titmouse - Introduction | Birds of North America Online.Watt DJ. 1972. Comparison of the foraging behaviors of the Carolina Chickadee and Tufted Titmouse in northwestern Arkansas. M.Sc. thesis, Univ. Arkansas, Fayetteville.