After reading the case, you are expected to submit a preliminary case analysis report (progress report). In 5-4 Final Project: Milestone One: Progress Report, you will submit a progress report. The report should contain the identification and the analysis of the main issues/problems in the case. It should be 4–5 pages long and reflect a clear and deep understanding of the main issues. Spreadsheets for analysis should also be incorporated into the progress report. Note that while these questions are helpful, your reports should not be written to answer these questions but to provide a full analysis of the case.Suggested Questions 1. What kind of capital structure would you propose to Hutchison Whampoa in light of its future needs and why? 2. What bond rating do you think Hutchison Whampoa will be able to obtain from Standard and Poor’s? 3. What are the debt financing options? Why you are for/against the Yankee bond option? 4. Assume Hutchison Whampoa will require $1 million USD of financing in 1996. Assume that new equity can be raised at $48.8 a share and that a long-term debt issue will carry an interest cost of HIBOR plus 70 basis points (bps). How would an equity or debt issue impact Hutchison’s financial position and performance?

•YOU SOLVE THE DEFICIT PROBLEM •FOR THE BASIS OF THIS PAPER YOU ARE THE PRESIDENT, CONGRESS AND THE FEDERAL RESERVE ALL ROLLED INTO ONE. THE TOTAL COUNTRY DEPENDS ON YOU TO SOLVE THE BUDGET DEFICIT PROBLEM, IF YOU CAN. THERE ARE NO RIGHT OR WRONG ANSWERS; THERE ARE ONLY PRIORITIES. •TASKS •(YOU ARE TO DO THIS INDIVIDUALLY AND NOT AS A TEAM). •YOU ARE TO SUBMIT THE PAPER ELECTRONICALLY via email to the instructor, and post your entry in the discussion section. •UTILIZE THE SPREADSHEET THAT IS PROVIDED (Budget Deficit Spreadsheet) AND THE DESCRIPTION OF THE CATEGORIES IN THE SUPPORT FILE. •MAKE A COPY OF YOUR OWN SPREADSHEET. •FILL IN THE SPREADSHEET: IF YOU PICK A LINE ITEM CATEGORY, THEN FILL IN THE APPROPRIATE SAVINGS FOR 2020 AND 2030. YOU MUST USE THE TOTAL NUMBER FOR THE YEAR CATEGORY. FOR EXAMPLE, IF BY CUTTING FOREIGN AID IN 2020 YIELDS A SAVINGS OF $17 BILLION, THEN YOU MUST USE THE TOTAL NUMBER. •THE SPREADSHEET WILL AUTOMATICALLY CALCULATE YOUR PERCENTAGES AND SAVINGS VARIANCE. •SEE EXAMPLE IN THIS PACKAGE

Discussion: The response to the facilitator’s original post should be a minimum of 250 words. The student’s initial post must be supported by at least 3 scholarly reference(s). A minimum of two responses to other learners’ responses should be posted and should be no less than 100 words each. Every post should make use of sources (this includes response posts [at least 2 of them]).Choose one of the top firms on this list. Try to choose something no other student has already chosen.http://www.forbes.com/global2000/list/Do a little research into the company that you choose. Discuss the likely sources of economies of scale that are the foundation of their larger size. (The two sources can be found on pages 343 and 344 in your text).In your response to other classmates, help them think of additional sources or expand on their descriptions. It is also fine to disagree with sources that a classmate has pointed out.Hint: Do not confuse economies of scale with economies of SCOPE. We are only talking about economies of scale for this exercise.Katelynn Economies of scale are what makes businesses more efficient (Economies of Scale, 2015). I chose to take a look at the Walt Disney Company who is known for being one of the world’s most premier entertainment companies (Hanson, 2013). Disney dabbles in many different areas ranging from film to theme parks. Disney is a larger company and as such they have the greater opportunities for specialization and division of labor. The specialization aspect allows workers at Disney, from the top to the bottom, to focus on specialized tasks within the production process just like division of labor allows workers to focus on single tasks (Thomas, 2020). Specialization of labor allows them to hire people that are best qualified and fit for specific tasks as well. Specialization and division of labor increases production and reduces unit costs substantially for Disney. Another source of economies of scale for Disney is technology. As a larger company, Disney is always looking to expand and reduce costs. Disney uses technology, machines, etc to make their business more efficient and reduce unit costs. They use machines to enhance their park experience for customers, make movies, and make their business overall more efficient. Like most businesses, Disney seeks to maximize the amount of unit produced throughout the production process. This expanse of production allows them to reduce costs in the long run. It also seems nearly impossible to compete with such a large company that can afford the opportunities specialization and division of labor as well as investing in larger more efficient technology and machinery.ReferencesEconomies of Scale. (2015). In T. Riggs (Ed.), Gale Encyclopedia of U.S. Economic History (2nd ed., Vol. 1, p. 364). Gale. https://link.gale.com/apps/doc/CX3611000266/GVRL?u...Hanson, S. (2013). Disney (Walt Disney Company). In T. Riggs (Ed.), St. James Encyclopedia of Popular Culture (2nd ed., Vol. 2, pp. 126-129). St. James Press. https://link.gale.com/apps/doc/CX2735800758/GVRL?u=tel_a_bethelc&sid=GVRL&xid=15cb00b5Thomas, C. R. (2020). Managerial Economics Foundations of Business Analysis and Strategy (13th ed.). New York, NY: McGraw-Hill Education.Peggy Economies of scales happen when the “long-run average cost (LAC) falls as output increases” (Thomas, & Maurice, 2020, p.340). I choose Procter & Gamble to do my research on because I use many of their products.Procter & Gamble headquarters is in Cincinnati, Ohio U.S.A. Procter & Gamble markets and sells name brand products “in 180 countries and territories and manages on-the-ground operations in approximately 70 countries” (MarketLine Company Profile: The Procter & Gamble Co., 2020, p.4). They sell products in beauty, health care, baby items, fabric plus home care, and family care products.Ways that Procter & Gamble Co. grew externally is by introducing new products, in July 2020 they created a product called Align, it reliefs newborn babies from colic (MarketLine Company Profile: The Procter & Gamble Co., 2020). I believe the best product they have introduced last year (2020), was Microban 24. This is a kind of antibacterial cleaner that protects surfaces from germs for 24 hours. They created Microban 24 to help fight against COVID-19, it works much better than the competitors Lysol.Procter & Gamble have a huge scale of operations (MarketLine Company Profile: The Procter & Gamble Co., 2020). They have high returns for the stakeholders, plus they attract investments. Procter & Gamble had a growth of 4.8% in 2020, their revenue was $70,950; the year before 2019 they had a revenue of $67,684. The net earnings grew to $9.1 billion, that comes to 230% this happened in 2020.Procter & Gamble made a deal with Russia years ago to buy 14 percent stake within Novomoskovskbythim, they are the biggest producer of detergent in Russia. Procter & Gamble promised to invest $50 million in “the plant over the next five years in exchange for even more shares” (Moskowitz, 1994, p. 72). The other shares of the company will be owned by workers, the management, the public, plus the government.The economies of scale for Procter & Gamble includes having many manufacturing companies in other countries (MarketLine Company Profile: The Procter & Gamble Co., 2020). They have many products and create more products yearly. Plus, they invest in their companies, and they make sure the employees have a share of profits, by them owning shares.Reference:MarketLine Company Profile: The Procter & Gamble Co. (2020). In Procter & Gamble Co MarketLine Company Profile (pp. 1–84).Moskowitz, M. R. (1994). Procter & Gamble. Business & Society Review (00453609), 88, 72.Thomas, C. R., & Maurice, S. C. (2020). Managerial economics: Foundations of business analysis and strategy (13th ed.). McGraw-Hill/Irwin.