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What are some of the issues the host foreign country could face as a result of the expansion?
Explain what cultural barriers and diversity issues are commonly encountered by international/multinational (MNC) and global organizations.
Why has diversity become such an important topic in the international arena?
What can occur when issues related to multiculturalism and diversity are ignored in an international company?
Describe at least 2 political and 2 economic issues that may arise during global expansion and proposed methods of addressing them.
Explain the importance of and the implications of each of these items in PPQ Parts s expansion plans to Germany and Japan.

For the 12 months ended December 31, 2005 Quintero Corporation posted the following financial results: Sales of $96.8 million, cost of goods sold of $72.0 million, overhead expenses of $5.5 million, depreciation of $2.3 million, and interest expense of $7.0 million. During the fiscal year, capital spending totaled $97.8 Million, and the company borrowed $55.0 million via bonds due in 2035. It paid a common dividend of $1.00/share on 1.1 million shares. Its average assets during the year were $207.3 million, and net working capital increased $5 million from the prior year. The balance at the reporting date for long term debt is $169.4 million, and owner s equity is 68.1 million. Quintero is subject to a combined federal and state tax rate of 35%
What is Quintero s net income?
What is the net profit margin?
What is ROA?
What is ROE?
What is the times interest earned ratio?
What is the total amount that should be reported as cash flow from operating activities on the cash flow statement?
What is the total amount that should be reported as cash flow from investing activities on the cash flow statement?
What is the total amount that should be reported as cash flow from financing activities on the cash flow statement?
If Quintero decides next year to issue $30 million of long term debt, and it does not issue additional common stock, what will be the impact to ROE if net income grows by 11%, assuming Quintero s plowback ratio is 0%?

El Gato s Motors is considering the purchase of a new production machine for $1 million. The purchase of this machine will result in an increase in earnings before interest and taxes of $400,000 per year. To operate this machine properly, workers would have to go through a brief training session that would cost $100,000 after tax. In addition, it would cost $50,000 after tax to install this machine properly. Also, because this machine is extremely efficient, its purchase would necessitate an increase in inventory of $150,000. This machine has an expected life of 10 years, after which it will have no salvage value. Assume simplified straight line depreciation and that this machine is being depreciated down to zero, a 34 percent marginal tax rate, and a required rate of return of 12 percent.
What is the initial outlay associated with this project?
What are the annual after tax cash flows associated with this project for years 1 through 9?
What is the terminal cash flow in year 10 (what is the annual after tax cash flow in year 10 plus any additional cash flows associated with termination of the project)?
Should this machine be purchased?

Bantam Pharmaceutical corporation posted net income of $36 million on sales of $200 million (11 million units) in fiscal year ended March 31,2007. It posted net income of $2 million on sales of $120 million (6 million units) in the fiscal year ended March 31, 2006. Cost for each year were as follows: Interest expense= $11 million; fixed cost=$50 million; and variable costs=$9.40/unit. Bantam is subject to a combined federal, state, and local tax rate of 35%.
What is Bantam s degree of operating leverage?
What is Bantam s degree of financial leverage in 2007?