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Homework answers / question archive / 1)How should the ethical problems presented by Computer Technology, Information Technology, Information Networks and the Internet be approached? 2) In early 2016, the following information was true about Abercrombie and Fitch (ANF) and The Gap (GPS), both clothing retailers
1)How should the ethical problems presented by Computer Technology, Information Technology, Information Networks and the Internet be approached?
2) In early 2016, the following information was true about Abercrombie and Fitch (ANF) and The Gap (GPS), both clothing retailers. Values (except price per share) are in millions of dollars. ANF GPS Book Equity $1,287 $2,545 Price Per Share $18.73 $24.81 Number of Shares 67.21 million 393.32 million a. What is the market-to-book ratio of each company? b. What conclusion do you draw from comparing the two ratios? a. What is the market-to-book ratio of each company?
3) Local Co. has sales of $10.3 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $540,000 and its research and development is $1.1 million. It has annual depreciation charges of $1.3 million and a tax rate of 35%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? a. What is Local's gross margin? Local's gross margin is %.
1)
Robbery and cheating in order to obtain personal data and the lack of security on the Internet is a controversial subject nowadays, as it is difficult to control it without taking away the freedom of speech. What is the balance between control and freedom? Additionally, the number of incidents related to the data robbery is growing and growing; thus, some kind of control is needed and it should be international.
The problems related to this subject might affect us in three different ways:
Aside from that, regarding the illegal use of music or movies, the protection of intellectual rights on the Internet is really difficult, although there are various techniques (Digital Rights Management, Fingerprinting…). In fact, in Spain some money is paid to artists through what is called the Digital Canon to help them. This payment is made by everyone who buys a CD, DVD or something related to electronics, since they have to pay a fee for those things and no matter if they are making an illegal use of them or not.
In general, it is difficult to fight against these problems, as sometimes guilty parties are from other countries and the state which is interested in solving the problem does not have jurisdiction there. This is the case of some Spanish web sites which have links to other web sites in which movies or songs can be downloaded.
CONCLUSION
In my opinion, the Internet has to be controlled, we should know what companies or countries are doing with our information and make sure that our rights are protected everywhere. Therefore, an international law or an international institution should be created. Perhaps, we might use what we have learnt in Montego Bay, where an international agreement to rule the sea was reached. I believe that, given the international scope of both, the Internet and the international waters, the Internet could be controlled by using the same foundations which were created in the Montego Bay Convention.
2)
Formula for Market to book(MB) ratio = Market capitalization divided by total book value
Market capitalization of ANF is no. of shares multiply price/share = 67.21 million shares * 18.73 = 1258.84 million dollars.
MB ratio of ANF will be = 1258.84/1287 = 0.98.
3)
saless | 10300000 |
Cost Of sales | 6200000 |
Gross Profit | 4100000 |
Selling, Genearl and Admin Exp. | 540000 |
Researh and Devlopment Exp. | 1100000 |
Depriciation | 1300000 |
Operating Profit | 1160000 |
Tax (35%) | 406000 |
Net Proft |
754000 |
Gross Profit Nargib= Gross Profi/sales
=4100000/10300000
= 39.81%
Opearting Margin = Operating Profit/sales
=1160000/10300000
= 11.26%
Net Profit Margin = Net Profit/Sale
= 754000/10300000
= 7.32%