A labor contract provides a first year (nominal) wage of $50,000 per year, and specifies that the real wage will increase by 4% each year. The CPI is 2.0 in the first year, 2.1 in the second year, and 2.15 in the third year.

Please enter your answers as numeric responses rounded to the nearest dollar (ie. 32,900 or $32,900 not 32,900.00 or "Thirty-two thousand nine hundred dollars").

What is the real wage for the first year of this contract?

What is the real wage for the second year of this contract?

What is the real wage for the third year of this contract?

What is the nominal wage for the second year of this contract?

What is the nominal wage for the third year of this contract?

Listed below is a company’s sales in Year 1 through Year 12 along with the national income of the country, where the business is set up.

a. Develop a scatter chart for the above data. What does this chart indicate about the relationship between the national income and the company's sales in Year 1 through Year 12?
b. Use the data to develop an estimated regression equation that could be used to estimate the company’s sales based on the national income. What is the estimated regression model?

Sunshine Company is a calendar year accrual-basis taxpayer and is in its first year of operations. Sunshine Company had the following income, expense, and loss items for the current year:

Furthermore, Sunshine’s liabilities (all recourse) increased from $0 on 1/1 to $300,000 on 12/31 of the current year.

1. Assume that Sunshine Company is owned by Alvin as a sole proprietorship. Alvin received $2,400 per month ($28,800 in total) from Sunshine Company as an owner’s draw. Additionally, Alvin took $55,000 out of Sunshine Company near the end of the year as a partial distribution of profits. (11 points)
   1. Calculate the net business income of Sunshine Company/Alvin that would be reported on Schedule C of Alvin’s Form 1040.
   2. How much of the $2,400 per month ($28,800 total) and the $55,000 distribution would Alvin include as taxable income on his Form 1040?
   3. What amount of Alvin’s income will be subject to self-employment tax?
   4. Note that you do not need to complete Schedule C or other forms, but these form will be a useful guide in completing this portion of the assignment.                       

What is the annual capital gains yield expected over the next year for a 12 year bond with 6.9% coupon rate paying the coupons every six months and selling at $1,045

Taylor is a 1 year old male at the doctor for his first-year wellness visit and necessary immunizations.

Taylor's mother approaches the pharmacist abour concerning regarding the link between autism and immunizations. How would you respond to the concerns of his mother? Write an ethical response to her question (500 words roughly).

Show work in Red and Explain answers.

Suppose CPI is as follows in each year:

Suppose in the year 2007 you are considering a job offer that pays $50,000 in 2007, plus a 10% (compounding) raise in each of the next three years.

Suppose in the year 2007 you are considering a job offer that pays $50,000 in 2007, plus a 10% (compounding) raise in each of the next three years.

1. What nominalsalary will you make in each year?

2. What will your real salary be in each year, using a 2007 base year?

3. What will your real salary be in each year, using a 2009 base year?

4. In what year was your real salary highest?                                 _________
5. Does your answer to 4 depend on the base year selected?        _________
6. Suppose instead your contract gave you $50,000 in 2007, plus a cost of living adjustment equal to the percentage change in CPI. Compute the nominal wage in each year.

7. In what years is this contract better than the original one?       _________

XYZhas the following financial information:

Inventory is recorded at FIFO

Required:

1. Calculate the value of the Ending Inventory under Absorption Costing and Variable costing for the prior year and current year
2. Prepare an income statement under Absorption Costing for the current year
3. Reconcile the difference in Operating Income between Variable costing and Absorption Costing for the current year

(a) Assume that one-year T-bills are currently yielding at 2.8%. It is forecasted that the one-year T-bills in the next few years are 3.1, 2.5%, 3.7%, 4.4% and 5.1% respectively. If the 5-year T-note is yielding at 4.1%, what is its liquidity premium (assuming arithmetic average)?

(b) Before the financial crisis, many corporations have been using CP market as an important funding source to support their daily operations. Explain briefly how this has affected the yield curve based on Market Segmentation Theory.

(c) The 1-year, 2-year, 3-year, 4-year, 5-year, 6-year spot rates are 3.5%, 4

(a) Assume that one-year T-bills are currently yielding at 2.8%. It is forecasted that the one-year T-bills in the next few years are 3.1, 2.5%, 3.7%, 4.4% and 5.1% respectively. If the 5-year T-note is yielding at 4.1%, what is its liquidity premium (assuming arithmetic average)?  

(b) Before the financial crisis, many corporations have been using CP market as an important funding source to support their daily operations. Explain briefly how this has affected the yield curve based on Market Segmentation Theory.  

(c) The 1-year, 2-year, 3-year, 4-year, 5-year, 6-year spot rates are 3.5%, 4.5%, 5.2%, 6.7%, 7.2% and 7.8% respectively. According to Expectations Theory with geometric average, what is the 3-year implied rate at Year 1?  

.5%, 5.2%, 6.7%, 7.2% and 7.8% respectively. According to Expectations Theory with geometric average, what is the 3-year implied rate at Year 1?

The distribution of room and board expenses per year at a four-year college is normally distributed with a mean of $5850 and standard deviation of $1125. Random samples of size 20 are drawn from this population and the mean of each sample is determined. Which of the following mean expenses would be considered unusual?