Part A: Quantitative Problems

1. Suppose QuickCharge Corporation manufactures phone chargers. They sell their chargers for $20. Their fixed operating costs are $100,000 and their variable operating costs are $10 per charger. Currently they are selling 30,000 chargers per year.
   1. What is QuickCharge’s EBIT (earnings before interest and taxes) at current sales of 30,000?
   2. What is QuickCharge’s breakeven point?
   3. Calculate the EBIT if QuickCharge’s sales increase 50% to 45,000 chargers. What is the percent of change in EBIT under this increase in sales? Also, calculate the EBIT if the company’s sales decrease 50% to 15,000 chargers. What is the percent of change in EBIT under this decrease in sales?
   4. What is QuickCharge’s degree of operating leverage? Based on your computation, what does its operating leverage say about QuickCharge’s business risk?
2. The StayDry Umbrella Corporation will have an EBIT of $100,000 if there is a normal amount of rain this year. But if there is a drought, they will have an EBIT of only $50,000. The interest rate on debt is 10%, and the tax rate is 35%. The company does not pay any preferred dividends.
   1. If StayDry has zero debt and 50,000 outstanding shares, what will its EPS (earnings per share) be if there is normal rain? What will its EPS be if there is a drought? What is its DFL (degree of financial leverage)?
   2. Now suppose StayDry has decided to take on $300,000 in debt and has used these funds to buy back half of the outstanding shares so now there are only 25,000 outstanding shares. What is the new EPS and DFL for both normal rain and drought?
   3. Based on your answers to a) and b) above, what are the trade-offs management has to make between zero debt or $300,000 in debt? What are the benefits and disadvantages of taking on this debt?

Part B: Conceptual Questions

1. For each of the following scenarios, explain whether the situation describes financial riskor business risk. Explain your answers to each scenario using at least one of the references from the background readings:
   1. A pharmaceutical company has developed a new cancer treatment drug that has a much higher success rate than other drugs currently in the market. It has the potential to triple the company’s profits. However, the FDA has expressed concern about some side effects, and it is not clear if the FDA will approve the drug.
   2. An airline has an EBIT of $100 million per year. However, it also has a huge amount of debt and pays $97 million per year in interest. Its EBIT is relatively stable but tends to go up or down by $5 million or so each year depending on the economy.
   3. A basketball franchise earns an EBIT of $50 million a year when its team has a winning year. However, it earns only $10 million when its team has a losing year.
2. Explain what capital structure theory (or theories) best describes the following situations. Make sure to cite at least one of the required textbook chapters for each answer, and to cite at least two references for this section:
   1. A CEO decides to borrow $50,000 in new debt, and the share prices rise dramatically. He then decides to sell half of his own personal shares, and when this is reported in the Wall Street Journal, the share prices drop dramatically in value.
   2. The corporate tax rate rises from 35% to 45%, and the XYZ Corporation decides to issue more debt. A year later, bankruptcy laws are changed to become much stricter and costlier. XYZ then decides to pay back half of its debt.
   3. A CEO named Joe Bigwig is known for living large with very expensive cars and a huge mansion. Joe is seeking a large loan from a bank to finance some new projects for his corporation. However, the bank becomes concerned when they find out that he recently used company funds to buy a brand-new company jet and also schedules numerous business trips to Hawaii and stays in five-star hotels. The bank tells Joe he will receive the loan only if he agrees to scale back on his personal expenses and not give himself or any other executives a raise until the loan is paid back.

ASSIGNMENT EXPECTATIONS

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials.
• For computational problems, make sure to show your work and explain your steps.
• For short answer/short essay questions, make sure to reference your sources of information with both a bibliography and in-text citations.· For short answer/short essay questions, make sure to reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper,(See Attached) including pages 11-14 on in-text citations. · APA FORMAT · NO Plagiarism ( will check on Turnitin) Reference credible sources only The following resources are notacceptable for this course, keep in mind, there are many others:
  • Wikipedia.com
  • Ehow.com
  • About.com
  • Smallbusiness.chron.com
  • Diffen.com
  • Yourbusiness.azcentral.com

Prompt: Submit a draft of your implementation section. You will give a detailed description of the activities leading to achieving the objectives, including your rationale behind their selection, their sequence, and your reasoning behind why these methods may work.

Specifically, the following critical elements must be addressed:

V. Implementation
Provide a detailed description of the activities leading to achieving the objectives identified, including your rationale behind their selection, their sequence, and your reasoning behind why these methods may work.

Guidelines for Submission: The draft of your implementation section should be submitted as a 3- to 4-page Microsoft Word document with double spacing, 12- point Times New Roman font, and one-inch margins. Any references should be cited in APA format.

Proposal Topic : Patient Safety and Quality

Health Insurance and Economy

When dealing with public health policy and laws, we need to consider various aspects of the economy. Concepts of efficiency can be utilized when deciding which goods and services should be produced and who should receive them.

The three types of efficiencies are allocative, production, and technical. The two types of health economics are positive and normative. Positive Economics deals with “what is” or the current status that is linked to a clear standard of measurement. Normative economics deals with “what ought to be” and is subject to interpretation with the moral or ethical aspects of a policy. Your lecture has more details.

Using South University Online Library or the Internet, search the article, “The Interplay of Public Health Law and Industry Self-Regulation: The Case of Sugar-Sweetened Beverage Sales in Schools.”

On the basis of the article and your understanding on the topic, write a 3- to 4-page essay in a Microsoft Word document on the three types of economic efficiencies and both positive and normative economics as it relates to regulating sugar-sweetened beverage sales in schools.

Support your statements with at least two other scholarly sources, correctly formatted in APA style. This assignment requires a title page, an introduction, a body, a conclusion, and a separate reference page.

Submission Details:

• Support your responses with reasoning and examples.
• Cite any sources in APA format.

In this assignment, you will be exploring actual and potential health problems in the childhood years using a functional health assessment and Erickson’s Stages of Child Development. To complete this assignment, do the following:

1. Using the textbook, complete the “Children’s Functional Health Pattern Assessment.” Follow the instructions in the resource for completing the assignment.

1. Cite and reference any outside sources used in your answers. Include in your assessment a thorough discussion of Erickson’s Stages of Child Development as it pertains to the development age of the child.

While APA format is not required for the body of this assignment, solid academic writing is expected and in-text citations and references should be presented using APA documentation guidelines, which can be found in the APA Style Guide, located in the Student Success Center.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are not required to submit this assignment to Turnitin.

• How does “minimum staffing” impact your ability to meet your budgeted numbers?
• This chapter deals with specific units of service for nursing workload requirements. What role should the nurse leader play and how should the leader interact with the finance department for a standard definition of measurement?
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• How should a nurse leader use a patient classification (acuity) system to justify nursing hours per day/staffing mix/nurse-to-patient ratios for budget purposes that would be understood by the finance department?