Could somebody help please. I need help with these problems

Rasmussen College - F490c - Module 06 Assignment Problem 1 1. Imagine Paul's Pizza and Pizza Paulina are considering a merger. The owners get together and analyze the proje cash flows as the following: Years 0 $ 1 150,000 $ 2 200,000 $ 3 300,000 $ 4 500,000 After the 4th year, they expect the cash flows to grow at a constant rate of 5%. The post merger beta is estimat market risk premium is 4%. What is the value of the combined pizzeria? Should the merger proceed? Explanation: gether and analyze the project. They find that the incremental net post merger beta is estimated to be 1.5. The risk-free rate is 6%. The merger proceed? Rasmussen College - F490c - Module 06 Assignment Problem 2 2. Calculate the NPV of a project that your company is considering. Use the assumptions in yellow. Project description: The project is expected to generate revenue over 7 years (no sales in year 8). The tax rate is 35%. The project requires an initial investment of $10,826. It is depreciated using the straight-line method over 7 years. The salvage value is $1,210. The inflation rate is as shown below. The sales revenue per unit, variable cost per unit, and cash fixed costs are all expected to grow with inflation. DCF Analysis NPV (in $1000's) 2013 2014 2015 Key Assumptions Unit Sales Inflation Rate Cost of Capital Tax Rate 2000 2.0% 9.0% 35.0% 4000 2.5% 9.2% 35.0% Discounting Discount Rate = Cost of Capital Cumulative Discount Factor 11.2% 11.2% 11.2% Price or Cost / Unit Sales / Unit Variable Cost / Unit Cash Fixed Costs Cash Flow Forecasts Sales Variable Costs Gross Margin Cash Fixed Costs Depreciation Total Fixed Costs Operating Profit Taxes Net Profit $9.69 $7.86 $5,320 2016 5700 3.0% 9.4% 35.0% 2017 6700 3.5% 9.6% 35.0% Add Back Depreciation Operating Cash Flow Investment in Plant & Equipmen Cash Flows PV of Annual Cash Flow Net Present Value ($10,826) ns in yellow. ne method over 7 years. d cash fixed costs are all 2018 7450 4.0% 9.8% 35.0% 2019 3712 4.0% 10.0% 35.0% 2020 1816 4.0% 10.2% 35.0% $1,210 Rasmussen College - F490c - Module 06 Assignment Problem 3 For Problems 3 and 4 in the assignment, use Harley-Davidson's financial statements included in separate tabs. 3. Using the income statement, calculate the percent change using horizontal analysis (2011 to 2012) for the reve Change: Evaluation: ded in separate tabs. 1 to 2012) for the revenue and evaluate the results. Rasmussen College - F490c - Module 06 Assignment Problem 4 4. Using the income statement, calculate the percent change using vertical analysis (2011 to 2012) for the revenu EBIT, and evaluate the results. Revenue: Gross profit: OE: EBIT: Evaluation: to 2012) for the revenue, COGS, gross profit, operating expenses and Rasmussen College - F490c - Module 06 Assignment Problem 5 5. Imagine you work for a small business owner. Your boss operates Harry's Hot Dogs. He wants to determine the data on advertising dollars spent as well as sales revenue from the restaurant. It certainly seems reasonable th measure the strength of that relationship and then use the information to help forecast sales revenue for futur calculations. Interpret the results. Weekly Week Advertising 1 $125 2 $150 3 $125 4 $175 5 $200 6 $100 7 $250 8 $125 9 $175 10 $175 11 $250 12 $300 13 $200 14 $250 15 $125 16 $175 17 $200 18 $225 19 $250 20 $300 Weekly Sales Revenue $24,006 $27,695 $26,798 $29,049 $31,204 $24,302 $29,679 $25,403 $27,001 $30,004 $29,454 $32,405 $28,330 $31,044 $24,560 $30,059 $30,495 $29,405 $31,003 $30,348 Interpretation: SUMMARY OUTPUT Regression Statistics Multiple R 0.8363387015 R Square 0.6994624236 Adjusted R Square 0.6827658915 Standard Error 1411.3987716 Observations 20 ANOVA df Regression Residual Total Intercept Weekly Advertising SS 1 83452160.33411 18 35856836.86589 19 119308997.2 Coefficients Standard Error 21791.768445 1100.008196288 35.202227378 5.4387749304 wants to determine the effect on sales revenue of advertising strategies. You collected weekly y seems reasonable that advertising, at least in part, drives sales revenue, but you need to sales revenue for future periods. You run regression analysis and see the following Interpretation: MS F Significance F 83452160.334 41.892677026 4.345737E-006 1992046.4925 t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 19.810550975 1.13516E-013 19480.7369814 24102.79991 19480.736981 24102.79991 6.4724552549 4.34574E-006 23.7757852551 46.628669501 23.775785255 46.628669501 Document And Entity Information (USD $) 12 Months Ended Dec. 31, 2012 Jan. 31, 2013 Jul. 01, 2012 Document and Entity Information [Abstract] Entity Registrant Name HARLEY DAVIDSON INC. Entity Central Index Key 793952 Current Fiscal Year End Date -19 Entity Filer Category Large Accelerated Filer Document Type 10-K Document Period End Date 31-Dec-12 Document Fiscal Year Focus 2012 Document Fiscal Period Focus FY Amendment Flag 0 Entity Common Stock, Shares Outstanding 226,249,774 Entity Well-known Seasoned Issuer Yes Entity Voluntary Filers No Entity Current Reporting Status Yes Entity Public Float $10,329,347,573 Consolidated Statements Of Operations (USD $) Revenue: Motorcycles and related products Financial services Total revenue Costs and expenses: Motorcycles and related products cost of goods sold Financial services interest expense Financial services provision for credit losses Selling, administrative and engineering expense Restructuring expense and asset impairment Total costs and expenses Operating income Investment income Interest expense Loss on debt extinguishment Income before provision for income taxes Provision for income taxes Income from continuing operations Income (loss) from discontinued operations, net of tax Net income (loss) Earnings per common share from continuing operations: Basic Diluted Earnings (loss) per common share from discontinued operations: Basic Diluted Earnings (loss) per common share: Basic Diluted Cash dividends per common share Dec. 31, 2012 12 Months Ended Dec. 31, 2011 $4,942,582,000 $4,662,264,000 637,924,000 649,449,000 5,580,506,000 5,311,713,000 3,222,394,000 195,990,000 22,239,000 1,111,232,000 28,475,000 4,580,330,000 1,000,176,000 7,369,000 46,033,000 0 961,512,000 337,587,000 623,925,000 0 $623,925,000 3,106,288,000 229,492,000 17,031,000 1,060,943,000 67,992,000 4,481,746,000 829,967,000 7,963,000 45,266,000 0 792,664,000 244,586,000 548,078,000 51,036,000 $599,114,000 $2.75 $2.72 $2.35 $2.33 $0 $0 $0.22 $0.22 $2.75 $2.72 $0.62 $2.57 $2.55 $0.48 onths Ended Dec. 31, 2010 $4,176,627,000 682,709,000 4,859,336,000 2,749,224,000 272,484,000 93,118,000 1,020,371,000 163,508,000 4,298,705,000 560,631,000 5,442,000 90,357,000 85,247,000 390,469,000 130,800,000 259,669,000 -113,124,000 $146,545,000 $1.11 $1.11 ($0.48) ($0.48) $0.63 $0.62 $0.40 Consolidated Statements Of Comprehensive Income (USD $) Net income Other comprehensive income, net of tax Foreign currency translation adjustment Derivative financial instruments: Unrealized net gains (losses) arising during the period Net losses (gains) reclassified into net income Total derivative financial instruments Marketable securities: Unrealized gains (losses) on marketable securities Net (gains) losses reclassified into net income Total marketable securities Pension and postretirement benefit plans: Amortization of net prior service (credit) cost Amortization of actuarial loss Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax Actuarial loss reclassified into net income due to settlement Prior service credit (cost) reclassified into net income due to net curtailment loss Total pension and postretirement benefit plans Total other comprehensive (loss) income, net of tax Comprehensive income 12 Months End Dec. 31, 2012 $623,925,000 1,400,000 -513,000 -9,631,000 -10,144,000 350,000 0 350,000 -563,000 32,295,000 -158,213,000 3,930,000 0 122,551,000 -130,945,000 $492,980,000 12 Months Ended Dec. 31, 2011 Dec. 31, 2010 $599,114,000 $146,545,000 -5,616,000 9,449,000 -966,000 19,185,000 18,219,000 -7,852,000 4,880,000 -2,972,000 460,000 0 460,000 -133,000 0 -133,000 -564,000 23,584,000 925,000 20,944,000 -146,768,000 18,431,000 173,000 2,942,000 1,000 -1,393,000 123,574,000 -41,849,000 -110,511,000 48,193,000 $488,603,000 $194,738,000 Consolidated Balance Sheets (USD $) Dec. 31, 2012 Dec. 31, 2011 In Thousands, unless otherwise specified Current assets: Cash and cash equivalents $1,068,138 $1,526,950 Marketable securities 135,634 153,380 Accounts receivable, net 230,079 219,039 Finance receivables, net 1,743,045 1,760,467 Inventories 393,524 418,006 Restricted Cash and Cash Equivalents 188,008 229,655 Deferred income taxes 110,853 132,331 Other current assets 181,655 102,378 Total current assets 4,050,936 4,542,206 Finance receivables, net 4,038,807 4,026,214 Property, plant and equipment, net 815,464 809,459 Goodwill 29,530 29,081 Deferred income taxes 171,845 202,439 Other long-term assets 64,191 64,765 Total assets 9,170,773 9,674,164 Current liabilities: Accounts payable 257,386 255,713 Accrued liabilities 513,591 564,172 Short-term debt 294,943 838,486 Current portion of long-term debt 437,162 1,040,247 Total current liabilities 1,503,082 2,698,618 Long-term debt 4,370,544 3,843,886 Pension liability 330,294 302,483 Postretirement healthcare liability 278,062 268,582 Other long-term liabilities 131,167 140,339 Commitments and contingencies (Note 17) Shareholders' equity: Series A Junior participating preferred stock, none issued 0 0 Common stock, 341,265,838 and 339,107,230 shares issued in 2012 and 2011, respectively 3,413 3,391 Additional paid-in-capital 1,066,069 968,392 Retained earnings 7,306,424 6,824,180 Accumulated other comprehensive loss -607,678 -476,733 Stockholders equity before treasury stock 7,768,228 7,319,230 Less: Treasury stock (115,165,744 and 108,566,699 shares in 2012 and 2011, -5,210,604 -4,898,974 respectively), at cost Total shareholders' equity 2,557,624 2,420,256 Total liabilities and shareholders' equity 9,170,773 9,674,164 Variable Interest Entity, Primary Beneficiary [Member] Current assets: Finance receivables, net Restricted Cash and Cash Equivalents Other current assets Finance receivables, net 470,134 176,290 5,288 1,631,435 591,864 229,655 7,221 2,271,773 Current liabilities: Current portion of long-term debt Long-term debt 399,477 $1,048,299 640,331 $1,447,015 Consolidated Balance Sheets (Parenthetical) Dec. 31, 2012 Dec. 31, 2011 Statement of Financial Position [Abstract] Preferred stock, shares issued 0 0 Common stock, shares issued 341,265,838 339,107,230 Treasury stock, shares 115,165,744 108,566,699 Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified Statement of Cash Flows [Abstract] Net cash provided by operating activities of continuing operations (Note 2) Cash flows from investing activities of continuing operations: Capital expenditures Origination of finance receivables Collections on finance receivables Purchases of marketable securities Sales and redemptions of marketable securities Net cash (used by) provided by investing activities of continuing operations Cash flows from financing activities of continuing operations: Proceeds from issuance of medium term notes Repayment of medium term notes Repayment of senior unsecured notes Proceeds from securitization debt Repayments of securitization debt Net borrowings of asset-backed commercial paper Net repayments in asset-backed commercial paper Net increase (decrease) in credit facilities and unsecured commercial paper Net change in restricted cash Dividends Purchase of common stock for treasury, net of issuances Excess tax benefits from share-based payments Issuance of common stock under employee stock option plans Net cash (used by) provided by financing activities of continuing operations Effect of exchange rate changes on cash and cash equivalents of continuing operations Net increase (decrease) in cash and cash equivalents of continuing operations Cash flows from discontinued operations: Cash flows from operating activities of discontinued operations Cash flows from investing activities of discontinued operations Effect of exchange rate changes on cash and cash equivalents of discontinued operations Net cash used by discontinued operations, total Net increase (decrease) in cash and cash equivalents Cash and cash equivalents: Cash and cash equivalents - beginning of period Cash and cash equivalents of discontinued operations - beginning of period Net increase (decrease) in cash and cash equivalents Less: Cash and cash equivalents of discontinued operations - end of period Cash and cash equivalents - end of period 12 Months Ended Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010 $801,458 $885,291 $1,163,418 -189,002 -2,858,701 2,768,089 -4,993 23,296 -261,311 -189,035 -2,622,024 2,760,049 -142,653 130,121 -63,542 -170,845 -2,252,532 2,668,962 -184,365 84,217 145,437 993,737 420,870 0 763,895 1,405,599 200,417 24,301 -744,724 41,647 141,681 -311,632 13,065 45,973 -990,073 -8,886 -458,812 447,076 59,211 0 1,082,599 1,754,568 0 483 237,827 59,232 111,011 -224,548 6,303 7,840 -308,944 -7,788 505,017 0 200,000 -380,757 598,187 1,896,665 0 845 30,575 77,654 94,145 -1,706 3,767 7,845 -1,856,090 4,940 -542,295 0 0 0 0 -458,812 0 0 0 0 505,017 -71,073 0 -1,195 -72,268 -614,563 1,526,950 0 -458,812 0 $1,068,138 1,021,933 0 505,017 0 $1,526,950 1,630,433 6,063 -614,563 0 $1,021,933 Consolidated Statements Of Shareholders' Equity (USD $) Beginning Balance at Dec. 31, 2009 Beginning Balance, shares at Dec. 31, 2009 Other comprehensive income, net of tax Net income (loss) Amortization of net prior service cost, net of taxes Amortization of actuarial loss, net of taxes Change in net unrealized gains (losses): Other Comprehensive Income (Loss), Net of Tax Adjustment for consolidation of QSPEs under ASC Topics 810 and 860 Dividends Repurchase of common stock Share-based compensation and 401(k) match made with Treasury shares Issuance of nonvested stock (in shares) Issuance of nonvested stock Exercise of stock options Exercise of stock options (in shares) Tax benefit of stock options and nonvested stock Ending Balance at Dec. 31, 2010 Ending Balance, shares at Dec. 31, 2010 Other comprehensive income, net of tax Net income (loss) Amortization of net prior service cost, net of taxes Amortization of actuarial loss, net of taxes Change in net unrealized gains (losses): Other Comprehensive Income (Loss), Net of Tax Dividends Repurchase of common stock Share-based compensation and 401(k) match made with Treasury shares Issuance of nonvested stock (in shares) Issuance of nonvested stock Exercise of stock options Exercise of stock options (in shares) Tax benefit of stock options and nonvested stock Ending Balance at Dec. 31, 2011 Ending Balance, shares at Dec. 31, 2011 Other comprehensive income, net of tax Net income (loss) Amortization of net prior service cost, net of taxes Amortization of actuarial loss, net of taxes Change in net unrealized gains (losses): Other Comprehensive Income (Loss), Net of Tax Dividends Repurchase of common stock Share-based compensation and 401(k) match made with Treasury shares Issuance of nonvested stock (in shares) Issuance of nonvested stock Exercise of stock options Total $2,108,118,000 146,545,000 -925,000 20,944,000 48,193,000 -37,108,000 94,145,000 1,706,000 26,961,000 0 7,845,000 2,163,000 2,206,866,000 599,114,000 564,000 23,584,000 -110,511,000 111,011,000 224,551,000 49,996,000 0 7,840,000 2,513,000 2,420,256,000 623,925,000 563,000 32,295,000 -130,945,000 141,681,000 311,632,000 42,058,000 0 45,973,000 Exercise of stock options (in shares) Tax benefit of stock options and nonvested stock Ending Balance at Dec. 31, 2012 Ending Balance, shares at Dec. 31, 2012 -1,666,000 9,670,000 $2,557,624,000 Common Stock [Member] Additional Paid-In Capital [Member] Retained Earnings [Member] $3,368,000 336,800,970 $871,100,000 $6,324,268,000 0 0 146,545,000 0 0 0 0 0 823,594 8,000 6,000 635,892 0 3,382,000 338,260,456 0 0 0 0 26,961,000 -8,000 0 -40,591,000 94,145,000 0 0 0 7,839,000 0 2,163,000 908,055,000 0 6,336,077,000 0 0 599,114,000 0 0 0 0 473,240 5,000 4,000 373,534 0 3,391,000 339,107,230 0 0 0 49,993,000 -5,000 0 111,011,000 0 0 0 7,836,000 0 2,513,000 968,392,000 0 6,824,180,000 0 0 623,925,000 0 0 0 0 535,807 6,000 16,000 0 0 0 42,056,000 -6,000 0 141,681,000 0 0 0 45,957,000 0 1,622,801 0 $3,413,000 341,265,838 9,670,000 $1,066,069,000 0 $7,306,424,000 Accumulated Other Comprehensive Income Treasury Balance [Member] (Loss) [Member] ($417,898,000) ($4,672,720,000) 0 0 48,193,000 3,483,000 0 0 0 0 0 0 0 1,706,000 0 0 0 0 0 -366,222,000 0 -4,674,426,000 0 0 -110,511,000 0 0 0 0 0 0 224,551,000 3,000 0 0 0 0 -476,733,000 0 -4,898,974,000 0 0 -130,945,000 0 0 0 0 0 0 311,632,000 2,000 0 0 0 0 ($607,678,000) 0 ($5,210,604,000) Consolidated Statements Of Shareholders' 12 Months Ended Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010 Statement of Stockholders' Equity [Abstract] Derivative financial instruments, tax (expense) benefit $513 $966 $7,852