You read in a magazine that economic theory suggests the price of gold should be the same in every country. Describe the theory from international finance that links prices across countries. Explain three reasons why you might not expect this theory to hold in practice.

Here are some historical data on the risk characteristics of Bank of America and Starbucks.

                                                 Bank of America                                  Starbucks

β (beta)                                                 1.23                                                .76

Yearly standard deviation of return (%) 32.6                                              15.9

Assume the standard deviation of the return on the market was 17%. (Use decimals, not percents, in your calculations.)

a. The correlation coefficient of Bank of America's return versus Starbucks is .26. What is the standard deviation of a portfolio invested half in each stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation %

b. What is the standard deviation of a portfolio invested one-third in Bank of America, one-third in Starbucks, and one-third in risk-free Treasury bills? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation %

c. What is the standard deviation if the portfolio is split evenly between Bank of America and Starbucks and is financed at 50% margin, that is, the investor puts up only 50% of the total amount and borrows the balance from the broker? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation %

d-1. What is the approximate standard deviation of a portfolio comprised of 100 stocks with betas of 1.23 like Bank of America? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation %

d-2. What is the approximate standard deviation of a portfolio comprised of 100 stocks with betas of .76 like Starbucks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation %

That is everything from the question.

Here are some historical data on the risk characteristics of Bank of America and Starbucks.

Assume the standard deviation of the return on the market was 18%. (Use decimals, not percents, in your calculations.)

a. The correlation coefficient of Bank of America's return versus Starbucks is .38. What is the standard deviation of a portfolio invested half in each stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation             %

b. What is the standard deviation of a portfolio invested one-third in Bank of America, one-third in Starbucks, and one-third in risk-free Treasury bills? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation             %

c. What is the standard deviation if the portfolio is split evenly between Bank of America and Starbucks and is financed at 50% margin, that is, the investor puts up only 50% of the total amount and borrows the balance from the broker? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation             %

d-1. What is the approximate standard deviation of a portfolio comprised of 100 stocks with betas of 1.51 like Bank of America? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation             %

d-2. What is the approximate standard deviation of a portfolio comprised of 100 stocks with betas of .90 like Starbucks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation             %

Music Teachers, Inc., is an educational association for music teachers that has 19,700 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association’s magazine, Teachers’ Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association’s statement of revenues and expenses for the current year is presented below.

The board of directors of Music Teachers, Inc., has requested that a segmented income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division, Magazine Subscriptions Division, Books and Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsibility for preparing the segmented income statement, and he has gathered the following data:

a. The 19,700 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the Teachers’ Forum. Other benefits include membership in the association and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to the Magazine Subscriptions Division.

b. A total of 2,600 one-year subscriptions to Teachers’ Forum were also sold last year to nonmembers and libraries at $30 per subscription. In addition to subscriptions, the journal generated $102,000 in advertising revenues.

c. The costs to produce the Teachers’ Forum magazine included $8 per subscription for printing and paper and $4 per subscription for postage and shipping.

d. A total of 28,400 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for printing and paper and $2 for postage and shipping.

e. The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tuition cost of $75 each and were attended by 2,500 students. A total of 1,860 students took two-day courses at a tuition cost of $125 for each student. Outside instructors were paid to teach some courses.

f. Salary costs and space occupied by division follow:

Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $203,000 in occupancy costs includes $57,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated.

g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division.

h. General and administrative expenses include costs relating to overall administration of the association as a whole. The company’s corporate staff does some mailing of materials for general administrative purposes.

The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments, will be treated as common costs. It is not necessary to distinguish between variable and fixed costs.

Required:

1. Prepare a segmented income statement for Music Teachers, Inc. This statement should show the segment margin for each division as well as results for the association as a whole.

1. Muna Hsu is an assistant hospitality manager at the Icehouse Arena, home to the Springfield Sharks (the town’s amateur hockey team.) Muna is summarizing two years of sales data from her food vendors. Since each stand supports a different section of the arena, Muna will need to coordinate and consolidate sales data on multiple worksheets. Break the external link that exists in the worksheet, so that the formulas in cells B4, B5, B6, and B7 of the Vendor Information worksheet are replaced with static values. Then switch to the Vendor Information worksheet. 2. Muna wants to update the links in her workbook, so that she’ll be able to quickly pull up the Vendor pricing plans for the 2019-2020 season. In cell B9, create a hyperlink to the Icehouse Arena Vendor Refreshment Price listing for 2019-2020 season as described below: a. The hyperlink should link to the Support_NP_EX16_6a_VendorPrices1920.docx file, available on the SAM website. b. The hyperlink should use 2019-2020 Vendor Refreshment Prices as the text to display. c. The hyperlink should use Click here to view the Vendor Refreshment Price listing for the 2019-2020 season. as the ScreenTip text. 3. Edit the hyperlink Icehouse Arena website in cell B10 as described below: a. The hyperlink should use Icehouse Arena Vendor Website as the display text. b. The hyperlink should use Click here to access the Icehouse Arena Vendor website. as the ScreenTip text. 4. Muna now wishes to give a consistent look and feel to the worksheets submitted by each of the vendor stands. Group the North, East, and South worksheets together and then make the following formatting updates: a. Change the font size in the merged range A1:I1 to 28 pt. b. Apply the Heading 3 cell style to the merged range A2:I2. c. Bold the values in the range A5:A10. d. Apply the Accounting number format with zero decimal places and $ as the symbol to the range B5:I10. (Hint: Depending how you complete this step, the number format for this range may display as Custom.) Do not ungroup the worksheets. 5. With the North, East, and South worksheets still grouped, update the worksheet as described below: a. In cell A7, edit the text to read Shark Bites (instead of Pepperoni Bite). b. In cell A9, edit the text to read Pizza Frenzy (instead of Pizza). Do not ungroup the worksheets. 6. With the North, East, and South worksheets still grouped, select the range B11:H11. Using the AutoSum button, enter a formula using the SUM function that totals the sales for each month of the hockey season (shown in the range B5:H10). Ungroup the worksheets and then check to confirm that the formatting and formulas from steps 4-6 are present in all three worksheets. 7. Muna wants to create a copy of the formatted South worksheet to use for the West section of the arena’s sales data. Create a copy of the South worksheet between the South worksheet and the Consolidated Sales worksheet then update the worksheet as described below: a. Rename the copied worksheet using West as the name. b. In the merged range A2:I2, edit the text to read Feeding Frenzy (instead of Shark Tooth). c. Clear the contents of the range B5:H10. 8. Muna now wishes to consolidate the data from each of the vendor stands. Switch to the Consolidated Sales worksheet. In cell A5, enter a formula without using a function that references cell A5 in the North worksheet. Copy the formula from cell A5 to the range A6:A10 without copying the formatting. 9. In cell B5, enter a formula using the SUM function, 3-D references, and grouped worksheets that totals the values from cell B5 in the North:West worksheets. Copy the formula from cell B5 to the range B6:B10 without copying the formatting. Then copy the formulas and the formatting from the range B5:B10 to the range C5:H10. 10. Muna wants to compare the sales from the 2019-2020 season to the 2018-2019 season and needs to include the missing data. Open the support file Support_NP_EX16_6a_1819VendorSales.xlsx. Switch back to the NP_EX16_6a_FirstLastName_2.xlsx workbook and go to the Consolidated Sales worksheet. Create external references in the Consolidated Sales worksheet to the sales information found in the Support_NP_EX16_6a_1819VendorSales.xlsx workbook as described below: a. Using external cell references, link cell J5 in the Consolidated Sales worksheet to cell H5 in the Consolidated Sales 2018-2019 worksheet in the Support_NP_EX16_6a_1819VendorSales.xlsx workbook. b. Using external cell references, link cell J6 in the Consolidated Sales worksheet to cell H6 in the Consolidated Sales 2018-2019 worksheet in the Support_NP_EX16_6a_1819VendorSales.xlsx workbook. c. Using external cell references, link cell J7 in the Consolidated Sales worksheet to cell H7 in the Consolidated Sales 2018-2019 worksheet in the Support_NP_EX16_6a_1819VendorSales.xlsx workbook. d. Using external cell references, link cell J8 in the Consolidated Sales worksheet to cell H8 in the Consolidated Sales 2018-2019 worksheet in the Support_NP_EX16_6a_1819VendorSales.xlsx workbook. e. Using external cell references, link cell J9 in the Consolidated Sales worksheet to cell H9 in the Consolidated Sales 2018-2019 worksheet in the Support_NP_EX16_6a_1819VendorSales.xlsx workbook. f. Using external cell references, link cell J10 in the Consolidated Sales worksheet to cell H10 in the Consolidated Sales 2018-2019 worksheet in the Support_NP_EX16_6a_1819VendorSales.xlsx workbook. g. Do not break the links.

vendor information

North file

East file

South

Consolidated sales

Suppoort NPX16 6A 1819VENDORSALES.xls

Consolidated Sales 2018 2019

support NP EX16 vendorprices1920.docx

When Ashley was asked to round 345 to the nearest 100, she rounded 345 to 350 and then rounded 350 to 400. Billie claimed the answer was 300. How would you respond to these students?

Suppose the heights of males on campus are normally distributed with a mean of 69 inches and standard deviation of 2.5 inches. You plan to choose a random sample of 14 males from the student directory.

a. What is the probability the mean height for your sample will be greater than 70.5 inches?

b. The sample size you used was fairly small. Does this affect the validity of the probability you calculated in (a)?

UNIX treats file directories in the same fashion as files; that is, both are defined by the same type of data structure, called an inode. As with files, directories include a nine-bit protection string. If care is not taken, this can create access control problems. For example, consider a file with protection mode 644 (octal) contained in a directory with protection mode 730. How might the file be compromised in this case?

The following information relates to Husk Corn Co. for the year ended December 31, 2018:

The company tells you that Income from Continuing Operations PRE Taxes is $ 300,000. However, this amount was computed before the company considered these items: (i.e. none of the items listed below are factored into the $300,000)

• Restructuring Costs incurred in 2018 were $25,000
• When recording depreciation expense for the previous year (2017), they mistakenly recorded depreciation twice for the same asset. The amount of the error was $15,000 after taxes. The error had no effect on the amount of depreciation expense recorded in 2018.
• As a result of some stronger credit policies put in place in 2018, Husk Corn Co. decided to reduce the percentage used in the calculation of bad debts expense from 2% of net sales to 1.5% of net sales. These new percentages resulted in bad debt expense of $8,000 for the year-ended 2018. (Again, this change in estimate information is not included as part of the $300,000 above. i.e. there is no bad debt expense included as part of the $300,000 amount.)
• On October 1, 2018, the company sold Division B, a major component of the business which had been unprofitable for the past several years. Husk Corn Co. reported a loss of $20,000 on Division B during the first 9 months of the year while it was still in operations. They were able to sell the assets of the division before the end of 2018. However, the sale resulted in a loss of $40,000.
• Husk Corn Co. incurred a loss from a write-down of obsolete inventory of $10,000 during 2018.
• Gains on foreign currency exchange during 2018 were $20,000, which affects comprehensive income only.  

1. What is the correct amount that should appear on the Husk Corn Co. income statement as "Income from Continuing Operations before Taxes"?

2. Prepare the 2018 partial income statement for Husk Corn Co. beginning with "Income from Continuing Operations before Taxes".  Assume that your answer in part 1 above was $250,000 for purposes of this question. Assume an income tax rate of 25%. Do not complete the comprehensive income portion.

3. Assuming there are $50,000 shares of common stock outstanding at year-end, what is Husk Corn Co's net income per share (EPS)?

Show all work please.