Prepare a memo answering the clients' concerns:

Our clients purchased 100 Bitcoins for a total of $50,000 in 2013. Bitcoins are now worth $7,500 each, after reaching a peak of over $17,000. The husband thinks they should consider selling now, before the Bitcoin market bottoms out. The wife is concerned with paying capital gains tax on so much money and wonders about making a significant charitable contribution but agrees that they should sell the Bitcoin.

Our client is comfortable gifting $250,000 to charity but cannot agree on where to make the contribution. The husband doesn’t think it will save them that much in taxes and worries about making significant donations in one year. He’s heard good things about setting up a private/non-operating family foundation and wonders if that is a good way to spread out the contributions over several years. The wife wishes to donate it to their high school alma maters, public schools in Ohio.

Please prepare a memo making a recommendation on how our clients should structure their contribution in order to receive the best tax advantage, including a projected tax liability assuming the Bitcoins are sold in 2019. You can find their 2018 tax return in their permanent file, and assume future income, deductions, withholdings – except for the sale of the Bitcoin – will remain the same.

14. Suppose that short- term municipal bonds currently offer yields of 4%, while comparable taxable bonds pay 5%. Which gives you the higher after- tax yield if your tax bracket is: ( LO 2- 1)

a. Zero

b. 10%

c. 20%

d. 30%

19. Consider the three stocks in the following table. P_t represents price at time t, and Q t represents shares outstanding at time t. Stock C splits two- for- one in the last period. ( LO 2- 2)

a. Calculate the rate of return on a price- weighted index of the three stocks for the first period ( t = 0 to t = 1).

b. What must happen to the divisor for the price- weighted index in year 2?

c. Calculate the rate of return of the price- weighted index for the second period ( t= 1 to t=2)

20. Using the data in the previous problem, calculate the first- period rates of return on the following indexes of the three stocks: ( LO 2- 2)

a. A market value– weighted index

b. An equally weighted index

32. Find the after-tax return to a corporation that buys a share of preferred stock at $40, sells it at year-end at $40, and receives a $4 year-end dividend. The firm is in the 30% tax bracket. (LO 2-1)

CFA Problems
1. Preferred stock yields often are lower than yields on bonds of the same quality because of: ( LO 2- 1)

a. Marketability

b. Risk

c. Taxation

d. Call protection

You are given the following information. What is the arbitrage profit if you have £1,000,000 to use? (£ = British Pound; ZAR = South Africa Rand; DKK = Danish Krone)

Assume that you are hashing key K to a hash table of n slots (indexed from 0 to n - 1). For each of the following functions h(K), answer the following question(s):

1) Is the function acceptable as a hash function (i.e., would the has program work correctly for both insertions and searches),

2) and if so, is it a good hash function?

Function rand(n) returns a random integer between 0 and n - 1. Also assume k is a an integer values that is >> (potentially much larger than) n.

(a) h(k) = k / n where k and n are integers, k >> n

(b) h(k) = 1

(c) h(k) = (k + rand(n)) mod n

(d) h(k) = k mod n where n is a prime number and k is an integer k >> n

Can someone fill in the blanks?

using namespace std;

double approxPi;

// define the signal handler function
______
______
______
______
______

int main(int argc, char* argv[])
{
pid_t childPid;
double inside = 0;
double total = 0;
double oldPi = 0.0;
switch (childPid = fork()) { // fork the process
case -1:
cerr << "forking error";
exit(0);
case 0: // child process
// register SIGUSR1 handler
______
______
______

while (1) {
// calculate the approximate value of pi using the Monte Carlo method
for (int i = 0; i < 10000; ++i) {
double x = (double)rand() / RAND_MAX;
double y = (double)rand() / RAND_MAX;
if (x * x + y * y <= 1) {
inside++;
}
total++;
}
approxPi = 4.0 * inside / total;
}
default: // parent process
sleep(5);
______; // send the SIGUSR1 signal to the child
}
return 0;
}

Consider the three stocks in the following table. P_t represents price at time t, and Q_t represents shares outstanding at time t. Stock C splits two-for-one in the last period.

Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. A market value–weighted index

b. An equally weighted index

The number of "destination weddings" has skyrocketed in recent years. For example, many couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently advertised in Bride Magazine that the cost of a Caribbean wedding was less than $30,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the 0.05 significance level, is it reasonable to conclude the mean wedding cost is less than $30,000 as advertised? 28.5 29.5 29.9 30.2 29.2 30.4 29.0 28.9 How can I calculate in excel?

a.) State the null hypothesis and the alternate hypothesis.

b.) State the decision rule for 0.05 significance level.

c.) Compute the value of the test statistic.

d.) What is the conclusion regarding the null hypothesis.( Do not reject-reject) H0. The cost is (less/not less) than $30,000.

Two accountants, Yuan Tsui and Sergio Aragon, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format. The discussion involves the following 2020 information for P. Bride Company (in thousands):

Common shares outstanding for 2020 total 30,000 (in thousands). Income tax for the year was $18,130.

Prepare an income statement for the year ended December 31, 2020, using the multiple-step format, showing expenses by function. Include calculation of EPS.

Are the following statements true or false? Provide a short justification for your answer. (You are evaluated on your justification.) Remember that a statement is false if any part of the statement is false.

e) A 10-year coupon bond always has lower duration than a 10-year zero-coupon bond, regardless of the size of the coupons.

f) The stocks of Merck and Google are traded at the same price of $37 a share. The historical returns of Merck are more volatile than those of Google and exhibit higher systematic risk. In addition, given the coming health reform proposal, it is generally believed that Merck may have a negative alpha in the future. It is known that neither Merck nor Google will pay dividends in a month. Consider now forward contracts on these two stocks with one month to maturity. The forward price of 100 shares of Merck should be lower than the forward price of 100 shares of Google.

g) Consider two European call options for stock A, with the same expiration date. The strike price on the first option, K1, is lower than the strike price on the second, K2. The price of the K1-strike option should be at least as high as the price of the K2-strike option.