Identify one quality problem that a bank can be currently facing and discuss the procedures that can adopted

to solve it using appropriate quality tools

Describe the relation between the yield curve of spot rates and the yield curve of forward rates. Besides providing the basic relation (increasing, decreasing, independent), please provide the economic reasoning. You are greatly encouraged to provide any graphical representation that might help convey the idea. Maximum 200 words. Please write as clear as possible.

You own a 25 acre strawberry farm. You currently lease the land to a strawberry farmer for $14,000 per year. Your annual administrative (or fixed) costs from owning the farm are approximately $2,000 per year.

1. You could sell the land for $160,000 today and currently have an investment opportunity for the $160,000 from which you expect to make a return of 8% per year.

a.        What are your accounting profits for the year?

b.       What are your economic profits for the year?

c.       Should you sell the land today? Explain why.

2. Now, suppose that price of the land is expected to decrease from its current value of $160,000 to $155,000 next year. Should you lease the land for $14, 000 for one year and wait to sell the land at the end of the year for $155,000? Or should you forget leasing and just sell the land for $160,000 today at its current value? Explain why. (ignore the time value of money, for now).

Your client is 28 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $14,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future.

1. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

2. How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

3. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent.

   Annual withdrawals if she retires at 65: $

   Annual withdrawals if she retires at 70: $

Select 3 companies from the same industry that currently trade on the ASX, Describe what they do and the competitive position they are in.

1. Complete an amortization schedule for a $17,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 6% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent.

   	Beginning			Repayment	Remaining
   Year	Balance	Payment	Interest	of Principal	Balance
   1	$	$	$	$	$
   2
   3

2. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places.

   	% Interest	% Principal
   Year 1:	%	%
   Year 2:	%	%
   Year 3:	%	%

   Why do these percentages change over time?

   1. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines.
   2. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance declines.
   3. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance increases.
   4. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance increases.
   5. These percentages do not change over time; interest and principal are each a constant percentage of the total payment.
   -Select-IIIIIIIVV

Problem 2-36 Income Statement (LG2-1)

You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:

1. Net sales = $38,900,000.

2. Cost of goods sold = $22,220,000.

3. Other operating expenses = $6,400,000.

4. Addition to retained earnings = $1,210,500.

5. Dividends paid to preferred and common stockholders = $1,943,000.

6. Interest expense = $1,850,000.

7. The firm’s tax rate is 30 percent.

In 2019:

8. Net sales are expected to increase by $9.90 million.

9. Cost of goods sold is expected to be 60 percent of net sales.

10. Depreciation and other operating expenses are expected to be the same as in 2018.

11. Interest expense is expected to be $2,125,000.

12. The tax rate is expected to be 30 percent of EBT.

13. Dividends paid to preferred and common stockholders will not change.

Calculate the addition to retained earnings expected in 2019. (Enter your answer in dollars, not millions.)

Discuss your understanding of determining value for a real estate property using the Sale Comparison Approach, the Cost Approach and the Income Approach from both the residential (personal home) perspective and the commercial investment property perspective.

Company H&R BLOCK

Be sure to provide a link to the financial statements. You must use the annual report, from the H &R Block website, or from the SEC database. Quarterly financial statements should not be used to do ratios because (1) many companies are seasonal and quarterly numbers may not be representative of annual performance and (2) quarterly numbers are not audited, whereas annual financials are. Financial information provided by third parties like Yahoo Finance or Google Finance are not acceptable, as these numbers are not necessarily accurate. You must use H & R Blocks official annual report. If you go to H& R Blocks website, and select investor section, annual reports, or SEC filings and you should get the correct information (which also might be in the form of a 10K report)

Show the ratio calculation for each year, the calculation result, and the interpretation of the numbers. I suggest you put it in tabular format and cut and paste into discussion to maintain formatting Do not post as an attachment.

What do you note in the changes of ratios from year to year? Explain what the ratios mean. Do these ratios correlate with what you know about these companies? Be sure to provide the raw data so we can see how you calculated these ratios. Do not use calculated ratios you might find on financial websites. They are often incorrect or use old data.

1. Gross Profit margin

2. Profit Margin

3. Debt Ratio ( Liabilities/Assets)

4. Quick Ratio

Please be sure to use H&R Block as the company!

Double your wealth. Kant Miss Company is promising its investors that it will double their money every 3

years. What annual rate is Kant Miss​ promising? Is this investment a good​ deal? If you invest ​$300

now and Kant Miss is able to deliver on its​ promise, how long will it take your investment to reach

​$34,000​?

Using the Rule of​ 72, what annual rate is Kant Miss​ promising?

24​% ​(Round to the nearest whole​ percentage.)

Using the time value of money​ equation, what annual rate is Kant Miss​ promising?

​(Round to two decimal​ places.)

Is this a good investment?

How long will it take to reach the goal of $34,000?

1. Future values for various compounding frequencies Delia Martin has $10,000 that she can deposit in any of three savings accounts for a 3-year period. Bank A compounds interest on an annual basis, bank B compounds interest twice each year, and bank C compounds interest each quarter. All three banks have a stated annual interest rate of 4%.

   1. What amount would Ms. Martin have after 3 years, leaving all interest paid on deposit, in each bank?

   2. What effective annual rate (EAR) would she earn in each of the banks?

   3. On the basis of your findings in parts a and b, which bank should Ms. Martin deal with? Why?

   4. If a fourth bank (bank D), also with a 4% stated interest rate, compounds interest continuously, how much would Ms. Martin have after 3 years? Does this alternative change your recommendation in part c? Explain why or why not.

Bob Tate is the director of strategy for a small truck delivery company. The company operates a fleet of 100 trucks. Of these, 36 trucks will need to be replaced this year. Bob has two choices, either diesel or green trucks. The following are the facts for each possibility:

For EACH diesel truck: Cost = $175K; life, 3 years (the trucks lose value quickly after 3 years of operations as the mileage reaches 200K); salvage value at end of three years, $50K; annual operating costs, $90K.

For EACH green truck: Cost = $220K; life, 4 years; salvage value at end of four years, $100K; annual operating costs, $75K.

Which choice should Bob make, diesel or green if the cost of capital is 10%; you may assume that the time period covered by this decision is 12 years IF you wish, and you can ignore the other 64 of the 100 trucks in the fleet? (Ignore taxes, depreciation, and ignore diversification.)

Ann and Suzan are classmates who graduated with business degrees from Athabasca University. Ann inherited $50,000 from her father. She considers forming a 10-year business partnership with Suzan. To join the partnership, Ann needs to invest $50,000. She believes her portion of the partnership will generate the following profits at a discount rate of 4%.

a) Calculate the Net Present Value (NPV).

b) Instead of forming a partnership with Suzan, Ann has the option to buy a government bond. Ann expects to receive $150 per year for each of the next ten years, and then receive a principle repayment of $50,000. What is the value of a coupon bond that pays $150 per year for each of the next ten years? Assume the rate is 5%.

c) Suppose Ann has the option to buy a new motor home for $25,000 and sell it for $15,000 after six years. Alternatively, she can lease the motor home for $250 per month for six years and return it at the end of the six years. For simplification, assume that lease payments are made yearly instead of monthly and pay at the beginning of each year. If the interest rate, r, is 3.5%, is it better to lease or buy the motor home?

(PLEASE MAKE ANSWER CLEAR) Permian Partners (PP) produces from aging oil fields in west Texas. Production is 1.82 million barrels per year in 2016, but production is declining at 9% per year for the foreseeable future. Costs of production, transportation, and administration add up to $25.20 per barrel. The average oil price was $65.20 per barrel in 2016.

PP has 7.2 million shares outstanding. The cost of capital is 11%. All of PP’s net income is distributed as dividends. For simplicity, assume that the company will stay in business forever and that costs per barrel are constant at $25.20. Also, ignore taxes.

a. Assume that oil prices are expected to fall to $60.20 per barrel in 2017, $55.20 per barrel in 2018, and $50.20 per barrel in 2019. After 2019, assume a long-term trend of oil-price increases at 7% per year. What is the ending 2016 value of one PP share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Share value₂₀₁₆ = ?

b-1. What is PP’s EPS/P ratio? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

EPS/P ratio = ?

b-2. Is it equal to the 11% cost of capital?