Part 3 5. (TCO H) Your management team identifies a security software firm, DigiVault, that has developed a 256-bit data encryption key that is licensed by Fortune 100 companies and governments to protect sensitive database information from prying eyes. The firm’s founders are out of money and want to sell their technology. Because you and your team don’t have enough money to acquire the firm outright on your own, you turn to outside sources of funding. A venture bank is willing to put up a $3.5 million, five-year loan at 11% per year, which only has interest payments due during its life; the principal balance will be paid off at the liquidity event. Your team puts up $750,000 of its own capital. One of your friends from the MBA program is

a venture capitalist, and his firm agrees to invest $3.5 million at an expected 60% annual return for five years, at which time they expect a liquidity event in order to obtain their money and the return back. Include all your calculations to support each answer in order to earn full credit. Answers must be completed in sequence. Required:

(a) Assume that in five years, DigiVault will have an expected exit enterprise value of $48 million, based on an EBITDA multiple of 5.0 from similar exit transactions. What does this indicate the firm’s expected EBITDA will be at that time?

(b) Given the future value calculated in (a), what will be the equity value at that time?

(c) Because the VC firm expects a 60% compound return on its investment, what would be the dollar value of its portion of the equity value you calculated in (b)?

(d) Based on your answer in (c), what would be the amount of the equity up front that you would have to give up in order to obtain DigiVault’s original venture capital investment?

(e) What will be the dollar value of the management team’s original $750,000 equity investment at the time of the liquidity event? (Points : 50)

1. (TCO7) Desiree is reluctant to take a promotion because it involves moving. She knows little about the area she would be living in. According to the text, the most likely reason for such employee resistance to change is (Points : 2) 
uncertainty.
threatened self-interests.
different perceptions.
feelings of loss.
facilitation.
2. (TCO8) Ana is a police detective in a metropolitan police force. She believes that she is just as good a detective as her male counterparts. Because she is female, many of her counterparts assume that she will type up their reports as well as her own. She has been doing this typing for a while and is increasingly feeling under rewarded for her efforts. In terms of ____, she will more than likely decrease her inputs by refusing to do typing for other detectives. (Points : 2) 
the expectancy theory
the hierarchy of needs
Herzberg’s theory
the equity theory
the human relations approach to motivation
3. (TCO8) Chris Childers opened Macon Christian Bookstore in the 1980s. He quickly found that he needed help running the operation, so he hired his parents, his brother, and his girlfriend. Childers was pleased when his mother suggested having a section of the store devoted to decorative items. He encouraged his brother’s idea about selling choir robes. He treats his employees like equals, asks their advice, and often implements their suggestions. According to the path-goal theory, Childers is a(n) ____ leader. (Points : 2) 
directive
supportive
participative
achievement-oriented
relationship-oriented
4. (TCO9) You are a manager who has been assigned to a work team that is composed of various functional managers. Which of the following forms of communication would your work team tend to use? 
Horizontal communication
Professional jargon
Downward communication
Effective communication
A managerial grapevine

7)Due to the population change, the Goose Creek School District has decided to close one of its high schools. Since it has no further need of the property, the school is listed for sale. The two bids it receives are as follows:
united Methodist Church $1,700,000
Planet GMC Motors$1,600,000 
The United Methodist Church would use the property to establish a sectarian middle school. Planet, a well-known car dealership, would revamp the property and operate it as a branch location.
If you were a member of the school district board, what factors would you consider in evaluating the two bids?

8)Chris spends $800,000 to build a qualified low-income housing project, which is placed in service on January 1, 2012. He financed the project using his personal funds. What is the amount of the low-income housing credit that Chris may claim in 2012 (assuming a rate of 7.96%)? What is the total amount of the credit that Chris may claim as a result of the $800,000 expenditure?

9)Margaret is trying to decide whether or not to place funds in a qualified tuition program. Her son will be attending college in 4 years. She is in the 35% marginal tax bracket and she believes she can earn 7% before tax return on alternative investments. Thus $10,000 will accumulate to $11,948 (after-tax) in 4 years. Margaret expects tuition to increase at the rate of 5% each year to $12,155 in 4 years. Her son will be in the 15% marginal tax bracket in all relevant years. Given these assumptions, should Margaret participate in the qualified tuition program?

11)Shaquille operates a drug-running operation and incurred the following expenses:
Salaries $200,000
Illegal kickbacks $32,000
Bribes to border guards $24,000
Cost of goods sold $300,000
Rent $12,000
Interest $18,000

1. (TCO1) These facilities are phone company links that run from one switch to another and provide a connection from the central office switch to a PBX switch. (Points : 5) 
Lines
Trunks
Copper loop
External telephone line
Question 2. 2. (TCO2) In regards ***** ***** Applications terminology, TDM is ____; VoIP is ____. (Points : 5) 
de facto; de jure
Monolithic; Programmable
Traditional instruments; IP phone
Packet; Circuit 
Question 3. 3. (TCO3) It is the common American PSTN’s public safety protocol for emergency situation. It is required for wireless voice carriers to provide emergency service as well as accurate location information. However, this service is not handled by VoIP protocols. (Points : 5) 
Operational feasibility service
E911
Dispatch service
Asterisk Emergency Portal (AEP)
Question 4. 4. (TCO4) These are facility connections from the phone company switch to the residential analog telephones; or the term used for delivering dial-tone to a group of phones. (Points : 5) 
Tip-ring
Lines
Trunks
Call links
Question 5. 5. (TCO5) This standard was formed by ITU-T to reinforce the management and deployment of telecom services. It stabilizes the interconnectivity of LANs that have different telecom equipment from multiple vendors, which performs network tasks and communication from one end of the network to another. (Points : 5) 
Call Manager Standard (CMS)
Integrated Network Manager (INM)
Telecommunications Management Network (TMN)
Element Node Management System (EMNS)
Question 6. 6. (TCO6) VoIP packets are almost always UDP and its IP header may include a flag that allows router and switches to treat it with a certain priority based on sensitivity to delay. What is this flag called? (Points : 5) 
TCP Push Flag
DLCI
Type of Service Flag
MPLS Priority Routing Flag
Question 7. 7. (TCO7) Along with CTI and ACD, this is a PBX supported application where multiple phones, telephony processes, phone operators, IVR, complex dial-plan, and hunt groups, run in a confined space and take information from customers, then, facilitate a response over the phone. (Points : 5) 
Call Center
Auto Attendant
Intercom calling
Conferencing
Question 8. 8. (TCO10) It is a VoIP encoding technique, where a 64kbps voice call can be reduced to 44 kbps without a noticeable degradation in sound quality, and also reduces storage requirements by eliminating redundancy when using multiple T1 circuits, sending large data files and information over the network. (Points : 5) 
Error control
Multiplexing
Compression
Traffic Shaping
Question 9. 9. (TCO11) This layer organizes and synchronizes dialogues between presentation entities in the OSI 7-Layer Communications Model, (Points : 5) 
Data Link Layer
Transport Layer
Session Layer
Address of Destination
Question 10. 10. (TCO12) These infrastructure links use digitized voice IP packets to connect two PBX servers and can replace legacy trunks when two PBXs being linked are VoIP enabled. (Points : 5) 
High speed T1 trunks
Private Digital trunks
T1 trunks
VoIP trunks

1. Jackie told a group of her friends that she plans to sell her home one day. Meg asked how much she hoped to get for the house, and Jackie replied, Meg said, I accept your offer to purchase your house for $50,000. No contract exists because 

A. the terms of the offer were not reasonably certain. 

B. Jackie didn’t objectively intend to enter a contract.

C. the offer wasn’t properly communicated.

D. Jackie’s statements were merely preliminary negotiations.

2. Josey is a seventeen-year-old who lives on her own in the city. Josey’s parents are deceased, and she once lived with her grandmother, although her grandmother doesn’t have legal custody of Josey. She signs a lease to rent an apartment with Syd Landlord. Josey violates the terms of the lease, and moves out six months early. Syd sues Josey for breach of contract. The most likely result will be that 

A. Josey may disaffirm the contract, but will have to pay for the reasonable value of the rent. 

B. Josey may disaffirm and avoid the contract.

C. Syd may disaffirm and avoid the contract.

D. Josey’s grandmother may be forced to uphold the contract.

3. Joe made Mandie an offer of employment. Joe gave Mandie a copy of the employment contract, and stated, If you accept, I must receive your acceptance by December 1 at 5:00 P.M. The written contract stated the same requirement. Mandie lived 30 miles from Joe’s office. Mandie signed the employment contract, and placed it in a correctly addressed, stamped envelope, and deposited it in the mail on December 1 at 12:00 P.M. Joe receives the acceptance on December 3. The result is that a contract 

A. was formed because of the mailbox rule. 

B. wasn’t formed because mailing the acceptance wasn’t authorized.

C. wasn’t formed because Joe specifically conditioned his offer on acceptance by a certain time. 

D. was formed because Mandie unequivocally accepted the terms of the contract.

4. Tom contracts with Jerry to purchase an oil painting. Tom and Jerry mistakenly think that the oil painting was painted by Monet, the famous artist, and that it’s worth hundreds of thousands of dollars. When Tom discovers the mistake, he seeks to rescind the contract. The most likely result will be that the contract will 

A. not be rescinded because the mistake was one of value. 

B. be rescinded because the mistake was one of fact.

C. be rescinded due to fraudulent misrepresentation.

D. be rescinded due to undue influence.