Answer the two questions below in Excel using the WAAC Model.
1. You are considering a pair of GICs (guaranteed investment contracts) o§ered by two di§erent life insurance companies. Each promises a single payment 10 years from now.
(a) US Life Insurance Companyís GIC promises to pay 6.5% per annum and can be purchased today for $100,000.
(b) Met Lifeís GIC promises to pay 5.7% per annum compounded monthly and can be purchased today for $95,000.
Which would you buy?
2. The Board of Administrators of Tulane University has decided to o§er an early retirement program to University faculty. The typical 55-year old faculty member would receive a small cash severance payment and a pension of $50,000 per year for the next 30 years, to begin one year from now. As CFO, you plan to set aside now enough money to fully fund the pension. Youíve been assured by your insurance company that they will pay you a 7% annual return on fund deposited with them. The American Association of University Professors objects to this program, however, because, they say, it fails to account for ináation. They propose an alternative plan in which payments would begin at $40,000 for the Örst year and grow thereafter at a Öxed rate of 5% to accommodate expected increases in the cost of living. They argue that this plan should be good for the University too because it involves lower initial payments. How much will it cost you up front to fund each of these plans?
In: Finance
Who is a stakeholder and why are they, and their voices, important?
As a stakeholder in Post University, next week in all your courses you are going to be asked to complete your student survey. Big deal… Why should your instructors care about what you have to say? Why should Post care about what you have to say? What difference can you, or any stakeholder make by conveying your thoughts to the company you’re a stakeholder in? Is there a better way to reach for a result or action from the company?
If you own the company, why should you listen to feedback regarding improvement for the company you have poured you heart, soul, and monies into?
In: Operations Management
One class has 30 students. Ten are women (F) and US citizens (U); 12 are male (M) and US citizens; 6 are women who are not US citizens (N); 2 are men who are not US citizens. A name is selected at random from the class list and it is female. Determine the following probabilities:
In: Statistics and Probability
1- As a leader, how specifically would you demonstrate your newly developed ethics to others who may doubt you?
Understanding how others perceive us can assist in helping us to become stronger leaders. However, getting others to provide us with an honest opinion of their perception of us, may be a difficult task. How specifically would you go about gathering this information, particularly from those who work for you?
leadership management 7th edition
In: Operations Management
When a US citizen or resident and his nonresident alien spouse have not elected to be taxed as if both had been citizens or residents for the entire year, which of the following statements is false?
A. Earned income is treated as the income of the spouse rendering the service.
B. Income derived from separate property of one spouse is attributed to that spouse.
C. Other community income is allocated by the community property laws of the domicile.
D. The couple may file separatety and split the total earned and other income,
In: Accounting
2-3 paragraph response. Describe two distinct reasons why someone who has never used a drug in his or her life might refuse a test at work. Convert those reasons into well-founded ethical arguments.
In: Finance
Catherine is a U.S. citizen who is employed by DSC, Inc., a global company. Beginning on August 1, 2018, Catherine began working in Augsburg, Germany. She worked for 153 days of 2018. She worked there until March 31, 2019, when she transferred to Kamnik, Slovenia. She worked in Kamnik for the remainder of 2019. Her salary for the first seven months of 2018 was $225,000, and it was earned in the United States. Her salary for the remainder of 2018 was $165,000, and it was earned in Augsburg. Catherine's 2019 salary from DSC was $425,000, with part being earned in Augsburg and part being earned in Kamnik.
Assume the 2019 indexed statutory amount is the same as the 2018 indexed amount. Assume a 365-day year.
When required, round any fractions out to four decimal places. Round final answers to the nearest dollar.
a. Is Catherine eligible for the foreign income exclusion for 2018? Yes
b. Catherine may exclude $ ? from her gross income for 2018.
c. Is Catherine eligible for the foreign income exclusion for 2019? Yes
d. Catherine may exclude $ 103,900 from her gross income for 2019.
In: Accounting
Please let us know if Facebook has any long-term debt on its balance sheet. Please give us some information about that long-term debt. You will have to look in the notes to the financial statements for this information. Also please calculate the times interest earned ratio for this corporation and let us know what this ratio indicates about its financial condition.
Part 2
What are unsecured notes? Why would they carry a relatively high interest rate? What are convertible securities? Why are they good for the investor and for the company? Why would they carry a relatively low interest rate? What does callable mean? What advantage does this feature give a company?
Responses to Instructor
Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.
Responses to Classmates
Please select one of the following bond issues and provide the journal entry when responding to your classmates this week:
1. Jan 1. ABC Corp issued $1,000,000 in bonds for a $75,000 discount.
2. Jan 1. ABC Corp issued $1,000,000 in bonds for a $50,000 premium.
In: Accounting
We are interested in estimating the proportion of graduates from Lancaster University who found a job within one year of completing their undergraduate degree. Suppose we conduct a survey and find out that 354 of the 400 randomly sampled graduates found jobs. The number of students graduating that year was over 4000.
(a) State the central limit theorem.
(b) Why is the central limit theorem useful?
(c) What is the population parameter of interest? What is the point estimate of this parameter?
(d) What are the assumptions for constructing a confidence interval based on these data? Are they met?
(e) Calculate a 95% confidence interval for the proportion of graduates who found a job within one year of completing their undergraduate degree. Interpret this within the context of the data.
(f) Without doing any calculations, describe what would happen to the confidence interval if we decided to use a higher confidence level, e.g., 99%.
(g) Without doing any calculations, describe what would happen to the confidence interval if we used a larger sample.
In: Statistics and Probability
A student who expects to graduate from Wichita State University in May of 2019 is considering whether to go on to graduate school. Which three (3) of the following are opportunity costs that the student must consider in deciding whether to go to graduate school?
The $250 the student spend last year on books while working on her undergraduate degree?
The $35,000 per year that she would make if she accepts a job that will be available to her after graduating with her undergraduate degree.
The $350 she plans to spend to fix the brakes on the car she is currently using to get to the Wichita State campus.
The $6,000 per year in tuition for her graduate degree.
The value of the time she would like to spend with her family on weekends instead of studying while working on her graduate degree.
The $900 she plans to spend on a trip to New York City with friends to celebrate after she graduates in May of 2019.
The $150 per month she spends on dog care for the dog she plans to keep regardless of whether she goes to graduate school or works next year.
In: Economics