(Solution) Alternative Fuels Our vehicles have come a long way from the Model T in the early 1900s. Each year the car industry comes out with new styles and...
Alternative FuelsOur vehicles have come a long way from the Model T in the early 1900s. Each year the car industry comes out with new styles and incorporates new technologies. In recent history, the focus of the automotive world has shifted to fuel efficiency and even the possibility of using different fuel sources. As the world tries to reduce the dependence on fossil fuels societies all over the world are looking towards a future with a totally new kind of car. There are already hybrid cars on the roads today. What will the cars of the future run on?This unit, you are going to do a little role-playing. Here is the scenario: Congratulations! You have been elected to the Kaplanville Town Council's Steering Committee on Infrastructure and Energy. Kaplanville wants to make a name for itself as a premier city for renewable and alternative energy choices. As a member of this committee, you are responsible for researching the exciting new world of alternative fuel for vehicles. Through this exploratory committee, you will decide on your top choice for an alternative fuel station to construct in Kaplanville. Do some research to learn more about alternative fuels:Source: Fuel economy. (2012). Retrieved from http://www.fueleconomy.gov/feg/current.shtmlSource: Alternative fuels data center. (2012). Retrieved from http://www.afdc.energy.gov/fuels/Use your research to complete the following three components to this unit's discussion:Post at least one pro and one con forat least threeof the following alternative fuel sources: (Note: to maximize your learning, please try not to repeat the information that was previously shared by your classmates). Ethanol Biodiesel Natural gas Propane Hydrogen During the unit, you should interact with your classmates and debate how suitable you think these alternative fuel sources might be for the future of vehicle transportation and Kaplanville. Later in the unit week, make a post that contains your vote for which alternative fuel source you believe Kaplanville should create a station for. Be sure to give a clear explanation for your choice. Be sure to review the Discussion Board Grading Rubric provided in the Course Syllabus.For help with citations, refer to the APA Quick Reference Guide.Use this reference when referring to your text:Trefil, J., & Hazen, R.M. (2013). The sciences: An integrated approach. Hoboken, NJ: John Wiley & Sons, IncWrite a 350 word summary regarding the above questions, make sure you answer all questions.
https://www.coursehero.com/tutors-problems/Business/8791335 8791335 I'm having trouble with question 3, 4, and 5. I have no idea what I'm doing wrong but everytime I insert my answers into my homework I get it wrong. I'm having trouble with question 3, 4, and 5. I have no idea what I'm doing wrong but everytime I insert my answers into my homework I get it wrong. Can you please help.
https://www.coursehero.com/tutors-problems/Business/8791337 8791337 Should Americans expect to give up some civil liberties to allow law enforcement officers to pursue terrorism? Should Americans expect to give up some civil liberties to allow law enforcement officers to pursue terrorism?
https://www.coursehero.com/tutors-problems/Business/8791339 8791339 Waltham, Inc., a publicly traded firm, is considering the acquisition of a private company, Artforever. Waltham, Inc., a publicly traded firm, is considering the acquisition of a private company, Artforever.com, which specializes in restoring damaged artwork and vintage photographs for high net worth individuals. Waltham’s CEO and chairman of the board, Willie Ray, described the motivation for the acquisition as follows: “We are running out of profitable investment opportunities in our core vintage shoe restoration business, and our shareholders expect us to continue to grow. Therefore, we must look to acquisitions to expand into growing markets.”Waltham, Inc.’s common stock is currently trading at $50 per share, and the firm has 100,000 shares outstanding. The book value of the common stock is $20 per share. However, as mentioned by Mr. Ray, sales had been slowing recently and the board was concerned that soon the share price would also begin to flag as investors figured out that the firm was running out of positive NPV investments. The firm has $2,000,000 market value of bonds trading at a yield to maturity of 6.2%.You have been hired as a consultant to Waltham to evaluate the proposed acquisition of Artforever.com. There is considerable dissension among senior management and the board about whether the acquisition should be undertaken. Your job is to perform a thorough analysis of the merits of the proposed acquisition and make a recommendation to senior management.After several meetings with Waltham management and a review of Artforever’s financial performance and industry structure, you gathered the data shown in Table 1 below.Forecast Data for Artforever.com (in $’000) 2017 2018 2019 2020 2021 Sales Revenue 1,000.0 1,250.0 1,875.0 2,100.0 3,750.0 Investment in CapEx and NWC 25.0 55.0 170.0 80.0 80.0 Depreciation 15.0 30.0 50.0 72.0 80.0 Interest payments 94.4 101.4 108.6 115.9 122.4 Artforever.com currently has $1,475,000 (market value) in long-term debt, with a coupon rate of 7%. Its cost of goods sold (COGS) is expected to be 42% of sales revenues, and selling, general and administrative (SG&A) expenses are expected to be 15 percent of revenues. The depreciation numbers listed above are already included in COGS percentage estimates. The firm’s corporate tax rate is 40% and its current cost of borrowing is 6.2%.Your research indicates that Artforever has a target debt to value ratio of 15%, based on its assessment of the probability and costs of financial distress. You note that this is different from the capital structure of Waltham and wonder how this would factor into your analysis.Although Artforever.com is a rapidly growing company, your analysis of industry structure suggests that competition in the art restoration market is likely to increase in the next few years. Thus, you forecast that the perpetual growth rate for free cash flows beyond 2021 will be a more modest 2.0% per year.Your analysis of market data yielded the information in Table 2 below.Market Data Current yield to maturity on 30 year treasury bonds 2.50% Current yield to maturity on 3 month treasury bills 2.0% Most recent 1-year return on the S&P 500 5.3% Estimate of expected average return on the S&P 500 over the next 30 years 8.0% Your analysis of Artforever.com’s industry reveals that most of the firms in the industry, like Artforever, are private firms. However, you find a close competitor, ArtToday.net, that is in the same line of business and is publicly traded. ArtToday has a long-term target debt to equity ratio of 0.75, and has been historically quite close to that target. Your analysis of ArtToday’s historical returns against the market returns yields an equity beta of 1.5. ArtToday currently has 50,000 common shares outstanding trading at $12 per share.Guidelines for Case AnalysisThe following aids are permitted for this analysis: You may use internet sources, books, all posted materials (including Discussion Board Q&A), and your notes. Any other aids are unauthorized and their use constitutes a violation of academic integrity. This includes face-to-face or electronic correspondence concerning the specific details of the case with any other person that is not a member of your assigned group, whether or not they have current or past affiliation with Washington State University.The case is due on the date indicated on the course schedule. Late papers may be accepted with a reasonable excuse, but will be assessed a 20% grade reduction penalty. Cases should be typed in 12-point font, double-spaced, with a minimum of 1 inch margins.The case report should be written according to the following format:Introduction Analysis ConclusionThe introduction sets the stage for the work to follow and should consist of a short paragraph of the key problem(s) or issue(s) that your analysis addresses. The analysis will constitute the bulk of the written presentation and will be a direct response to the questions below. Use clear, concise, and complete sentences. Do not use bullet points or numbered paragraphs. The conclusion should be a short paragraph that summarizes the key points of the analysis.Your report should not exceed five pages of double-spaced text with 1 inch margins at the sides, top, and bottom of the page. This does not include exhibits of your computations. You may submit one Excel spreadsheet that contains all your exhibits, clearly labeled, and appropriately referenced in the text of your report.Your analysis of “Waltham, Inc.” should include answers to the questions below. Do not write the questions verbatim in your report. Instead, write a brief introductory statement that summarizes the question before you proceed with your analysis.What discount rate is appropriate for finding the value of Artforever.com?Write a few paragraphs giving your answer and clearly explaining your reasoning and computations; show detailed computations in your Excel spreadsheet labeled Exhibit 1. What are the relevant cash flows for valuing Artforever.com? Assume that your valuation is performed at the end of 2016, and that the values shown in Table 1 are end-of-year forecasts.Write a few paragraphs giving your answer and clearly explaining your reasoning and computations; show detailed computations in your Excel spreadsheet labeled Exhibit 2. Based on your answers to questions (1) and (2) above, what is the maximum price that Waltham should pay toequity shareholders for Artforever.com?Write a few paragraphs giving your answer and clearly explaining your reasoning and computations; show detailed computations in your Excel spreadsheet labeled Exhibit 3. Under what conditions might you consider recommending that management make a higher offer than your recommended price in (3) above?
This question was answered on: Sep 21, 2023
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