The first step for Markus Braun to create the plan to ensure that Wirecard is worth 5 billion euros by the end of 2022 is to create a <u>strategic plan</u>.
<h3>What is strategic planning?</h3>
Strategic planning is a process that enables organizational leaders to specify their vision for the future, goals, and objectives for the organization.
The process of strategic planning establishes the sequence in which goals should be achieved, including the roles that will be played by each department of the organization.
Thus, the first step in creating the plan to make Wirecard be worth 5 billion euros by the end of 2022 is to create a <u>strategic plan</u>.
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Answer:
a) Determination of whether the client's financial statement assertions are fairly stated in accordance with GAAP.
Explanation:
The essential purpose of the external audit function is that the financial statement of the client does not contain any mislead statements, give true and fair value of assurance to the external auditor, follow accounting principles called GAAP.
It checks that client business run in a smooth manner or not which represents legal compliance, industry compliance, etc. Moreover, it also detects the error or fraud, if any.
Answer: 18%
Explanation:
Assume sales is $100.
Profit is 15% of sales so profit is:
= 15% * 100
= $15
Cost is 50%:
= 50% * 100
= $50
If costs were reduced to 47%, it would become:
= 47% * 100
= $47
This means that $3 has been freed up.
This $3 will go to the profit because the other costs are not dependent on production and so are considered fixed.
With $3 going to profit, the profit becomes:
= 3 + 15
= $18
Profit percentage:
= 18 / 100
= 18%
Answer:
Bond Contract:
1. Call provision allows the issuer to redeem bonds under specified terms prior to maturity.
2. To operationalize the sinking fund provision of an indenture, issuers can (2) call the bonds if they contain a call provision.
3. A firm is more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures "When interest rates are lower than they were when the bonds were issued."
Explanation:
a) Call provisions: When a bond contains a provision that enables the issuer to buy the bond back from the bondholder at a pre-specified price prior to maturity, the bond is said to be callable. Issuers use this provision to reduce their interest if rates fall after a bond is issued. This is because existing bonds can then be replaced with lower-yielding bonds.
A call provision is not to the advantage of the bondholder, hence, the bond will offer a higher yield than an otherwise identical bond with no call provision. A call provision cannot be bought or sold separately from the bond, therefore, it is called an embedded option.
b) Sinking Fund: Bonds issued with a provision that requires the issuer to repurchase a fixed percentage of the outstanding bonds each year, regardless of the level of interest rates is said to be issued with a sinking fund provision. This reduces the possibility of default, that is, when a bond issuer is unable to make promised payments in a timely manner. A sinking fund reduces credit risk to bondholders and is offered with a lower yield than an otherwise identical bond with no sinking fund.
c) Bonds, generally, are debt securities issued by an entity to the public with a promise to repay the borrowed funds with fixed period interest. They can be issued at par, a discount, or a premium.
