问答题

问答题

问答题

问答题

问答题

问答题

问答题Discuss the benefits and disadvantages of PMU entering into a joint venture instead of setting up independently in Kantaka.As part of your discussion,consider how the disadvantages can be mitigated and the additional information PMU needs in order to make its decision. (20 marks)

问答题4.ForanumberofyearsDaikonCohasbeenusingforwardrateagreementstomanageitsexposuretointerestratefluctuations.Recentlyitschiefexecutiveofficer(CEO)attendedatalkonusingexchange-tradedderivativeproductstomanagerisks.Shewantstofindoutbyhowmuchtheextracostoftheborrowingdetailedbelowcanbereduced,whenusinginterestratefutures,optionsoninterestratefutures,andacollarontheoptions,tomanagetheinterestraterisk.Sheasksthatdetailedcalculationsforeachofthethreederivativeproductsbeprovidedandareasonedrecommendationtobemade.DaikonCoisexpectingtoborrow$34,000,000infivemonths’time.Itexpectstomakeafullrepaymentoftheborrowedamountin11months’time.Assumeitis1June2015today.DaikonCocanborrowfundsatLIBORplus70basispoints.LIBORiscurrently3·6%,butDaikonCoexpectsthatinterestratesmayincreasebyasmuchas80basispointsinfivemonthstime.ThefollowinginformationandquotesfromanappropriateexchangeareprovidedonLIBOR-based$futuresandoptions.Three-month$Decemberfuturesarecurrentlyquotedat95·84.Thecontractsizeis$1,000,000,theticksizeis0·01%andthetickvalueis$25.Optionsonthree-month$futures,$1,000,000contract,ticksize0·01%andtickvalue$25.Optionpremiumsareinannual%.InitialassumptionsItcanbeassumedthatsettlementforboththefuturesandoptionscontractsisattheendofthemonth;thatbasisdiminishestozeroataconstantrateuntilthecontractmaturesandtimeintervalscanbecountedinmonths;thatmarginrequirementsmaybeignored;andthatiftheoptionsarein-the-money,theywillexercisedattheendofthehedgeinsteadofbeingsold.FurtherissuesInthetalk,theCEOwasinformedofthefollowingissues:(i)Futurescontractswillbemarked-to-marketdaily.TheCEOwonderedwhattheimpactofthiswouldbeif50futurescontractswereboughtat95·84on1Juneand30futurescontractsweresoldat95·61on3June,basedonthe$Decemberfuturescontractgivenabove.Theclosingsettlementpricesaregivenbelowforfourdays(ii)DaikonCowillneedtodepositfundsintoamarginaccountwithabrokerforeachcontracttheyhaveopened,andthismarginwillneedtobeadjustedwhenthecontractsaremarked-to-marketdaily.(iii)Itisunlikelythatoptioncontractswillbeexercisedattheendofthehedgeperiodunlesstheyhavereachedexpiry.Instead,theymorelikelytobesoldandthepositionsclosed.Required:

案例分析题Zones: Company information Zones is an overnight parcel delivery business. Since it was founded by the current CEO, it has grown rapidly due to a boom in online shopping. It now operates 1,000 delivery vehicles of various sizes. Recently, financial performance and market share have deteriorated. Zones has had no clear corporate vision, an excessive focus on financial objectives and inadequate systems to measure and manage performance of the underlying processes driving its financial performance. Business model Zones collection and delivery service uses delivery vehicles to transport parcels to and from local depots and individual addresses. Vehicles may also pick up parcels from the addresses to which they deliver. Each time the vehicle calls to pick up or deliver parcels is known as a stop, and the time of day for each stop is booked in advance. At the end of each day, vehicles, along with any parcels not delivered, return to the depot. Regardless of who pays for the service, Zones regards anyone to whom it delivers, or from whom it picks up parcels, as a customer. In the long term, the requirements of both of these groups for a competitively priced, reliable and flexible service will be similar. Performance improvement proposals The CEO believes that reductions in customer satisfaction and flexibility, caused by a decline in operational performance, may have led to the recent deterioration in financial performance and market share. It has been suggested that Zones use the Lynch and Cross performance pyramid (Appendix 1) to reverse this deterioration, and three new measures for operational performance have been suggested in Appendix 2. The CEO has stated that Zones corporate vision should be: To increase shareholder wealth by becoming the leading overnight parcel delivery business, providing quality, reliability and value for customers. It is also proposed to use the DMAIC (define, measure, analyse, improve and control) method to implement the six sigma methodology to improve the quality of delivery. Two measures have been defined in Appendix 3 which may help improve Zones delivery performance. Appendix 1 Lynch and Cross performance pyramid Appendix 2 Suggested new measures for operational performance Measure Description Vehicle utilisation Average utilisation of all vehicle capacity. This is measured by taking the average of vehicle load as a percentage of capacity when the vehicle leaves the depot at the beginning of each day and the vehicle load as a percentage of capacity when the vehicle returns to the depot at the end of each day. Capacity is measured either according to the internal volume or the length of the vehicle, depending on the type of vehicle being used. Fuel consumption Average litres of fuel per kilometre travelled for all vehicles. On-time stops Percentage of stops made within 30 minutes* of the booked time. * Zones receives complaints from customers relating to deliveries not made on time. Of these, less than 00001% relate to deliveries made within 30 minutes of the booked time. Appendix 3 Suggested new measures for improving quality of delivery using the DMAIC methodology Measure Description On-time stops Percentage of stops made within 10 minutes of the booked time. Failed deliveries Percentage of deliveries which cannot be made due to the customer being unavailable to take the delivery, or by parcels being incorrectly addressed. Currently, 5% of deliveries are failed and have to be returned to the depot. Required:

案例分析题Company information Achilty Retail (Achilty) is a stock exchange listed business which sells a range of clothes from a website to consumers in Beeland

案例分析题Perkin manufactures electronic components for export worldwide, from factories in Ceeland, for use in smartphones and hand held gaming devices

案例分析题Posie is a large business which manufactures furniture