Juan (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.)

c. What is Juan’s overall net gain or loss from these transactions?

Net capital gain or loss: ?

Determine if the data on petroleum imports provided in Assignment 1 follows a normal distribution.

Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.

c. What is Grayson’s overall net gain or loss from these transactions?

d. What amount of the gain, if any, is subject to the preferential rate for certain capital gains?

NYNEX, the phone utility for the New York City area, has approached you for advice on its capital structure. In 1995, NYNEX had debt outstanding of $12.14 billion and equity outstanding of $1.7 billion and faced a corporate tax rate of 36%. The beta for the stock is 0.84, and the bonds are rated A - (with a market interest rate of 7.5%). The probability of default for A-rated bonds is 1.41%, and the bankruptcy cost is estimated to be 30% of the firm.

a) estimate the unlevered value of the firm

b)value the firm, if it increases its leverage to 50%. At that debt ratio, its bond rating would be BBB and the probability of default would be 2.30%.

c)Assume now that NYNEX is considering a move into entertainment, which is likely to be both more profitable and riskier than the phone business. What changes would you respect in the optimal leverage?

justify the position in your own words.

Pro: The Government Should Balance Its Budget. Government debt places a burden on future generations of taxpayers who must choose to pay higher taxes, cut government spending, or both. Current taxpayers pass the bill for current spending to future taxpayers. Moreover, the macroeconomic effect of a deficit is to reduce national saving by making public saving negative. This increases interest rates, reduces capital investment, reduces productivity and real wages, and thus, reduces future output and income. As a result, deficits raise future taxes and lower future incomes. While deficits are justified during wars and recessions, the increase in the deficit from 1980 through 1995 occurred during peace and prosperity. The most recent deficits may be due to the recession of 2001 and the war on terrorism.

It appears that over the past 50 years, the number of farms in the United States declined while the average size of farms increased. The following data provided by the U.S. Department of Agriculture show five-year interval data for U.S. farms. Use these data to develop the equation of a regression line to predict the average size of a farm by the number of farms Discuss the slope and y-intercept of the model. Year Number of Farms (millions) Average Size (acres) 1950 5.70 209 1955 4.63 262 1960 3.91 296 1965 3.35 336 1970 2.95 374 1975 2.51 421 1980 2.45 425 1985 2.32 441 1990 2.15 459 1995 2.07 469 2000 2.17 433 2005 2.11 444 2010 2.19 420

Select the correct CGT consequence, meaning will the event give rise to CGT even or not? Alisha is a client of yours who sold some of her art collection by some artists. It consisted of the following artistic works:

A painting purchased in December 1995 for $55,000. She sold the painting on 10 December of the current tax year for $45,000. An antique purchased in June 1989 for $20,000. She sold it on 1 January of the current tax year for $25,000. A sculpture purchased in April 1983 for $17,000. She sold the sculpture on 1 July of the current tax year for $29,000. A stamp collection purchased in June 1977 for $300. She sold it on 10 December of current tax year for $3,000. An antique purchased in 15 September 1985 for $600. She sold it on 23 May of the current tax year for $25,000.

A study entitled "Antidepressant Medication and Breast Cancer Risk" (Amer. J. of Epi, late 1990's) stated in the methods section of the paper that "Cases were an age-stratified (< 50 and ≥ 50 years of age) random sample of women aged 25-74 years diagnosed with primary breast cancer during 1995 and 1996 (pathology report confirmed) and recorded in the population-based Ontario Cancer Registry. As the 1-year survival for breast cancer is 90%, surrogate respondents were not used. Population controls, aged 25-74 years, were randomly sampled from the property assessment rolls of the Ontario Ministry of Finance; this database includes all home owners and tenants and lists age, sex, and address."

Question: Discuss the authors' approach to the identification of cases with respect to the potential for selection bias.

A farmer's marketing cooperative recorded the volume of wheat harvested by its members from 1991-2004. The cooperative is interested in detecting the long-term trend of the amount of wheat harvested. The data collected is shown in the table.

                                     Wheat Harvested by Coop. Member

            Year      Time          (y, in thousands of bushels)    

            1991         1                               75

            1992         2                               78

            1993         3                               82

            1994         4                               82

            1995         5                               84

            1996         6                               85

            1997         7                               87

            1998         8                               91

            1999         9                               92

            2000        10                              92

            2001        11                              93

            2002        12                              96

            2003        13                            101

            2004        14                            102                       

Find the least squares prediction equation for the model. Use excel to conduct data analysis. Provide detailed interpretation of the results.

It appears that over the past 50 years, the number of farms in the United States declined while the average size of farms increased. The following data provided by the U.S. Department of Agriculture show five-year interval data for U.S. farms. Use these data to develop the equation of a regression line to predict the average size of a farm by the number of farms Discuss the slope and y-intercept of the model.