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It has been argued that shareholder wealth maximization is not a realistic norma- tive goal for the firm, given the social responsibility activities that the firm is “expected” to engage in (such as contributing to the arts, education, etc.). Explain why these social responsibility activities are not inconsistent with shareholder wealth maximization.

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Collen Von
Collen VonLv2
5 Jan 2019

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Tesford plc has estimated net cash flows from operations (after interest and taxation) for the next five years as follows:

Year Cashflow
1 £ 3,000,000
2 £ 12,000,000
3 £ 5,000,000
4 £ 6,000,000
5

£ 5,000,000

The cash flows have been calculated before the deduction of additional investment in fixed capital and working capital.
This amounts to £2m in each of the first two years and £3m for each year thereafter. The firm currently has a cash balance of £500,000 which
it intends to maintain to cope with unexpected events. There are 24 million shares in issue. The directors are committed to shareholder wealth maximisation.

A. Calculate the annual cash flow available for dividend payments and the dividend per share is the residual dividend policy was strictly adhered to.

B. If the directors chose to have a smooth dividend policy based on the maintainable regular dividend what would you suggest the dividends in each year should be?
Include in your consideration the possibility of a special dividend or share repurchase.

C. Explain why companies tent to follow the policy in B rather than A.

You are a fourth-year associate at a mid-level accounting firm in the metropolitan Atlanta area. One of the first things you did as a new associate four years ago was to help long-time firm client John Doe form ABC, Inc. Pursuant to Mr. Doe’s instructions, you filed an election for ABC to be taxed as an S corporation. Mr. Doe was ABC’s sole shareholder. ABC develops business ties to China, and to strengthen these ties, Mr. Doe sells 25% of ABC stock to Bi Bin Rui, a citizen and resident of China, on February 1, 2010. Mr. Doe continued to operate ABC as an S corporation throughout 2010. When he meets with you to begin preparation of ABC’s 2010 annual tax return, he excitedly tells you about the sale, and happily reports that business is booming in China. With genteel frankness, you explain to Mr. Doe that Mr. Rui, not being a citizen of the US, is ineligible to be a shareholder of an S corporation, and has caused ABC to lose its S election. With sullen face, Mr. Doe leaves your office. One week later, Mr. Doe calls to inform you that he has repurchased Mr. Rui’s shares in ABC, and is once again the sole shareholder of ABC. “The IRS doesn’t need to know about this,” said Mr. Doe. “Just handle the return as if I never sold the shares.” WHAT WOULD YOU DO, AND WHY?

the full case is below. i need help answering "How would you evaluate whether the sample size for the survey was appropriate in this case?" please. Thanks

Mastering Teacher Leadership

>Abstract

This case is about a multistage, communication study of teachers by Wittenberg University’s Department of Education to determine the viability of starting a Master of Education program for Ohio-certified teachers working within school districts serving a five-county area. www.wittenberg.edu

>Background

Ohio legislators recently implemented new standards for those wishing to teach within Ohio’s public and private schools. Teachers certified to teach in Ohio in 2002 or later will need to complete a master’s degree before obtaining their second licensure renewal. New teachers, therefore, will have a five- to seven-year window to complete the master’s degree after their initial licensure to teach. Historically, teachers have looked to graduate level courses to fulfill their professional development requirements. According to the newly passed Ohio Department of Education Teacher Certification Standards, for the first time all professional development activities must be tied to professional development plans customized by local school district goals. All such plans will be approved and monitored by Local Professional Development Committees. These LPDCs will look favorably on courses that fit local goals, which are increasingly motivated by student performance variances on standardized tests. Wittenberg University is primarily a resident campus of 2,000 students affiliated with the Lutheran Church in America. Located in central Ohio, Wittenberg is a comprehensive liberal arts institution with professional programs in education, business management, pre-med, and pre-law. It has been training teachers for more than 150 years and has earned a reputation for producing exceptional teachers for K–12 programs. This high quality, as perceived by local teachers who supervise Wittenberg undergraduate field teaching experiences, is expected to be Wittenberg’s greatest asset in pursuing the development of a master’s program. Wittenberg, historically, has not offered a graduate degree in education, but it has offered graduate degrees in its nationally recognized music program and, until the mid-1980s, in its theology program. Wittenberg sees the change in Ohio Teacher Certification Standards as an opportunity for its Center for Professional Development (WittCPD), a program of professional development courses designed to fulfill the continuing education requirements of teachers in the area. Central Ohio is rich with high quality universities. Within a 30-minute drive of Wittenberg’s campus, undergraduate teacher education programs can be found at Wright State University (WSU), the University of Dayton (UD), Urbana College, Cedarville College, Wilberforce University, and Central State University. WSU and UD currently offer Master of Arts degrees in teaching. WSU offers continuing education programs that fulfill professional development programs. Increased turnover is also expected to be a motivating factor contributing to increased enrollment in university development programs. Ohio’s schoolteacher turnover is expected to increase due to the aging of the teacher population, incentive buyout programs designed to encourage aging teachers to retire, and the need to hire experienced teachers in the hard-to-fill math and science areas. With an average 15 years teaching experience, Clark County schools have more than 900 certified staff and hire 50–60 new teachers each year. Springfield City schools have more than 800 certified staff and hired 119 teachers in 1997, 99 in 1998, and 118 in 1999.

>Research

The faculty of the education department, in concert with university administrators, conducted a brainstorming session in early fall 1998 to identify university resources that might contribute to a master’s program in education. This was followed by a retreat with an Ohio Department of Education consultant, who reiterated the advantages of a liberal arts-based program in the ongoing preparation of K–12 teachers. To further explore the opportunity for offering a Master of Arts degree in Classroom Leadership, WittCPD conducted three focus groups: two with Springfield City district teachers and one with local school superintendents. Both groups were positive about the likelihood of a program customized to the needs of the various local school districts. Additionally, they provided direction for the desired content and orientation of an effective program. Such a program would need to: • Deal with the diverse cognitive and social needs of students. • Emphasize technological literacy for both teachers and students. • Emphasize both program and classroom assessment by providing a sound research foundation for both curriculum and instruction. • Address classroom management issues of student social skills, moral education, and discipline. • Provide a framework for teachers to learn to collaborate with other teachers and with community professionals. In the spring of 1999, Education faculty associated with the WittCPD drafted a market survey and mailed it to 2,000 practicing teachers in a four-county area. Each of the 1,600 teachers in Clark County, Wittenberg’s home county, received a questionnaire, with the remaining 400 surveys delivered to a systematic sample teaching in the outlying counties of Green, Montgomery, and Champaign. By September 1, 1999, 763 teachers had returned their surveys (31.8 percent response), of which 53.8 percent of respondents had completed or were enrolled in degree programs beyond the bachelor’s level.

>Initial Results

Out of 763 teachers, 21.2 percent said they definitely would enroll, with an additional 57.7 percent who might enroll, citing professional requirements, professional advancement, or keeping their certification as the three primary reasons for enrolling. Those who expressed a lack of interest in a Master of Arts program at Wittenberg claimed as three obstacles the anticipated high cost, their holding a current master’s degree, or family responsibilities. In order for the Wittenberg Board of Directors to approve offering of the new degree program, the program needs to continue the liberal arts tradition and strengthen the undergraduate teacher education program, as high quality undergraduate education is seen as part of Wittenberg’s primary mission. Additionally, new academic initiatives such as the one proposed are increasingly asked by the board to reach break-even within their first operating year.

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