MGT201 GDB Solution

Answers

The expected Rate of Return = 39.7% ?

The standard deviation of the returns=23.5989 %

The coefficient of variation of the returns =0.5944

Comment about the riskiness of the new investment = New project with CV=0.5 is less riskier than the CV =0.5944, so new investment should be preferred





Solution:

a) Expected rate of return

Expected ROR = < r > = pi ri

= p1 (r1) + p2 (r2) + p3 (r3) + p4(r4) + p5(r5)

= 0.010 ( -10%) + 0.450 ( 20%) + 0.320 ( 45%) + 0.140(60%) + 0.080 (100%)

= - 0.1% + 9% + 14.4% + 8.4% + 8 %

= 39.7%

b) The standard deviation of the returns

Risk = Std Dev = ( r i - < r i > )2 p i

= Std Dev = δ = √ Σ (r i - < r i >)2 p i.

= √{[(-10-39.7)2 (0.010)] + [(20-39.7)2 (0.0.450)] + [(45-39.7)2 (0.320)] + [(60-39.7)2(0.140) + [(100-39.7)2(.080) }

=√ (24.7009 + 174.6405 + 8.9888 + 57.6926 + 290.8872)

= √ (556.91)

=√557

Standard Deviation, δ = 23.5989

c) Coefficient of variation , CV = Standard Deviation = 23.5989 / 39.7

Expected Return

= 0.5944

d) Coefficient of Variation tells us about the Risk per unit Return. The project which offers lowest per unit risk is the best investment. 0.5944 > 0.5. The new investment offer the CV of 0.50 which is lower than calculated CV in part (iii) is 0.5944. Choose the Project with the Lowest CV i-e CV=0.5. As it carries the lowest Risk per unit Return than 0.5944

MGMT628/HRM628 GDB 2 Idea Solution

LEADING AND MANAGING CHANGE

Introduction:
“Lay-off” is one of the most intricate ways an organization deals with financial, political and/or structural changes. The management has to face resistance, low quality work, concerned employees, rumors, employee dissatisfaction and, the most serious of all, loss of skilled workers. Following are some statements of troubled employees that management generally comes across:
1. “Top management thinks they can run the company alone. We keep asking them the reason of laying-off such talented people, who were once considered the threshold of the organization. All they provide us is with diplomatic and politically correct statements. Some people are saying they want to kick us out and hire their own family and friends, others are saying the company is closing down. We don’t understand the reason and we don’t know what will happen in the future.”
2. “We should have at least been consulted. We have given a large part of our lives to this company and we deserve to be a part of every decision that involves us and our future. The company’s values have been high-level employee participation and time and again our management has also empowered us to make decisions; they should have at least kept that spirit alive.”
3. “My manager never listened to me in the first place. I came to her office one day to confront her on the decision and she gave me 100 reasons why I was wrong and she was right. We are dedicated and experienced people and we know this business more than our management. The least they can do is listen to us and respect our opinion.” Address

Question:
Consider yourself an OD Practitioner and analyze these three statements depicting resistance to change. Identify which strategy you would use to deal with each situation.

Ans:
For 1st situation strategy is Communication
For 2nd situation strategy is Participation and Involvement
For 3rd situation strategy is Empathy and Support

HRM627 (GDB # 02) Idea Solution

Discussion Question

There are different sectors in economy i.e. public, private and voluntary sectors. And in public sector, there are numerous types of organizations. Following are some commercial criteria for the public sector organizations. You are required to identify the subtype of the organization along with who takes the decisions in each subtype. Fill the empty boxes by specific answers relevant to those particular criteria.

S No.	Commercial Criteria	Sector Subtype	Decision Taken By
1	Commercial criteria depends upon the type of business and nature of task	Partial Outsourcing	Government/Management
2	Expected to operate according to commercial criteria	Publicly owned Corporations	Management/Themselves
3	No specific requirement to meet commercial success criteria	Direct Administration	Government

ECO 403_GDB Solution

Unemployment is an economic problem as well as a social issue. It affects the living of all the people in a society whether they are young or old, educated or uneducated, skilled or unskilled. Why unemployment is increasing day by day in Pakistan? Write down at least one reason.

Answer:

Unemployment is increasing day by day in Pakistan due to many reasons. Reasons are job search and wage rigidity in the country.

• Job search:

1. Workers have different abilities and preferences.

2. Jobs have different skill requirements.

3. Geographic mobility of workers.

4. Flow of information is imperfect.

· Wage rigidity:

1. Minimum wage laws.

2. Labor unions.

3. Efficiency wages.

· Sectoral shifts.

· Unemployment insurance (This is for European countries)

FIN623 2nd GDB IDEA SOLUTION

Samsung has a branch office in Pakistan. Mr. Kim, who is the employee of head office, is dedicated to perform services for the Pakistan branch office. What will be the tax treatment of salary received by Mr. Kim according to Income Tax Ordinance

2001?

Answer:

Treatment of Salary through employment Exercised in Pakistan:

Salary received by Mr. Kim will be Taxable under (Section 101) "Pakistan

Source Income" of the Income Tax Ordinance 2001.

Additional Explanation:

As Samsung which is a foreign company but has a branch office in

Pakistan its means that Samsung is working in Pakistan through Permanent

Establishment in Pakistan so it will be a resident company here and any salary paid by a resident company is Pakistan Source income and also any salary which can be earn through employment exercised in Pakistan will be chargeable to tax under Pakistan Source Income