Promoting international trade is not a zero-sum game. It is a win-win proposition; both parties gain from trade.

Consider the following:

• Tariffs are paid by the citizens of the country imposing tariffs, not by the citizens of the country producing the products upon which the tariffs are levied.
• The term “trade deficits” is a misnomer. Every country’s trade is always in balance.
• Trade deficits do not mean the US no longer produces anything to export. The US is the world’s second largest manufacturer and the world’s second largest exporter of manufactured goods.
• Trade deficits reflect a strong economy. Trade deficits rise during economic expansions and fall during economic contractions. Unemployment falls as trade deficits rise and rises as trade deficits fall.
• Imports and exports are complements, not competitors. Both are necessary and both contribute to economic growth.
• Roughly one-third of all US imports and exports is trade between US multinational companies and their overseas subsidiaries.
• Foreign-owned companies operating in the US number in the thousands and provide directly or indirectly jobs for more than 13 million US workers (roughly, 10% of the US workforce).
• US trade deficit in goods in 2018 (as a % of GDP) was the same as it was 5, 10 and 15 years earlier.
• The rise in US goods trade deficit with China has not increased the US total goods trade deficit. It has been offset by reduced goods imports from other trading partners.
• There is a strong correlation between the rise in world trade and:
• The rise in world GDP
• The dramatic fall in the world’s extreme poverty rate
• The rise in world life expectancy
• For every US manufacturing job lost to trade between 2000 and 2010, seven US jobs were lost to domestic productivity improvements. Those seven jobs cannot be brought back from overseas because they never left the US.

Write an evaluation of credible economists’ unbiased opinions on the benefits, costs, and results of current US trade and tariff policies. Complete the following in your evaluation:

• Evaluate how US trade policy changes in the last 2 years affect global trade activities by multinational corporations.
• Discuss credible economists’ opinions on the long-term effects of trade and tariff policies changes in the last 2 years.
• Explain the effect of recent changes to trade and tariff policies have had on your employer, you, or someone you know.

A newly issued bond pays its coupons once a year. Its coupon rate is 6%, its maturity is 15 years, and its yield to maturity is 9%.

a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 8% by the end of the year.

b. If you sell the bond after one year when its yield is 8%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the after-tax holding-period return on the bond?

d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 8% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 4% interest rate.

e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules.

Two types of flaws may occur during the fabrication of steel beams: (1) the inclusions of small quantity of foreign matter “slag”; and (2) the existence of microscopic cracks. It has been found by careful laboratory investigation that for a certain size I-beam from a given fabricator, the mean distance between microscopic cracks is 40 feet along the beam, whereas the slag inclusions exist with an average rate of four (4) per 100 ft. of the beam. Each of these types of flaws follow a Poisson process.

a) For a 20-ft I-beam, what is the chance of finding exactly two microscopic cracks in the beam?

b) For the beam in a, what is the probability of finding one or more slag inclusions?

c) If a 20-ft beam contained more than two flaws, it would be rejected. What is the probability of rejecting a 20-ft beam?

d) Four 20-ft beams were supplied to a contractor by this fabricator last year. Assume that the flaw conditions among the four beams are statistically independent. What is the probability that only one beam had been rejected?

Please give numerical measures not percentage and round to the three decimal places. Thank you.

The data from data349.dat contains information on 78 seventh-grade students. We want to know how well each of IQ score and self-concept score predicts GPA using least-squares regression. We also want to know which of these explanatory variables predicts GPA better. Give numerical measures that answer these questions. (Round your answers to three decimal places.) (Regressor: IQ) R 2 Incorrect: (Regressor: Self-Concept) R 2 29% IWhich variable is the better predictor? IQ

Self Concept

obs     gpa     iq      gender  concept
1       7.94    112     2       50
2       8.292   101     2       44
3       4.643   95      2       46
4       7.47    102     2       51
5       8.882   94      1       60
6       7.585   108     2       61
7       7.65    106     2       51
8       2.412   79      2       47
9       6       117     1       64
10      8.833   113     2       34
11      7.47    104     1       57
12      5.528   105     1       44
13      7.167   90      2       45
14      7.571   98      1       61
15      4.7     121     1       48
16      8.167   114     1       70
17      7.822   114     1       64
18      7.598   117     1       63
19      4       105     2       44
20      6.231   113     1       34
21      7.643   113     2       62
22      1.76    94      2       18
24      6.419   103     1       49
26      9.648   111     2       70
27      10.7    137     1       72
28      10.58   125     2       41
29      9.429   110     2       77
30      8       101     2       58
31      9.585   124     2       72
32      9.571   133     1       58
33      8.998   109     1       49
34      8.333   110     1       50
35      8.175   108     2       29
36      8       105     2       82
37      9.333   124     1       42
38      9.5     84      2       72
39      9.167   119     2       55
40      10.14   101     1       62
41      9.999   107     1       53
43      10.76   119     2       73
44      9.763   134     2       65
45      9.41    123     2       62
46      9.167   125     2       89
47      9.348   101     2       82
48      8.167   97      2       67
50      3.647   102     2       54
51      3.408   77      1       31
52      3.936   98      2       56
53      7.167   101     2       38
54      7.647   103     2       70
55      .53     73      2       35
56      6.173   101     2       34
57      7.295   104     2       54
58      7.295   122     1       58
59      8.938   110     1       83
60      7.882   106     1       48
61      8.353   118     2       58
62      5.062   99      2       48
63      8.175   112     2       35
64      8.235   100     2       67
65      7.588   102     2       57
68      7.647   94      2       62
69      5.237   97      1       44
71      7.825   119     2       61
72      7.333   116     1       54
74      9.167   126     2       44
76      7.996   105     2       53
77      8.714   116     1       48
78      7.833   105     1       45
79      4.885   90      2       55
80      7.998   118     1       60
83      3.82    104     2       22
84      5.936   107     1       52
85      9       121     1       59
86      9.5     102     1       75
87      6.057   89      2       46
88      6.057   113     1       44
89      6.938   111     2       58

At the end of the year, a company offered to buy 4,690 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $19.00 each. The following information relates to the 67,200 units of the product that X Company made and sold to its regular customers during the year:

Fixed cost of goods sold for the year were $130,368, and fixed period costs were $73,920. Variable period costs include selling commissions equal to 2% of revenue.

6. Profit on the special order is

7. Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.90 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?

8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 500 units. As a result of these lost sales, X Company's profits would fall by

At the end of the year, a company offered to buy 4,520 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $17.00 each. The following information relates to the 66,200 units of the product that X Company made and sold to its regular customers during the year:

Fixed cost of goods sold for the year were $141,668, and fixed period costs were $69,510. Variable period costs include selling commissions equal to 2% of revenue.

6. Profit on the special order is

7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.84 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?

8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 600 units. As a result of these lost sales, X Company's profits would fall by

1.

Value the following scenario, assuming there is no end to the timeline and the following data:

Cost of equity = 17.75%

Cost of debt = 6.83%

Debt = $583MM

Equity = $1237MM

Tax rate = 40%

Long-term growth expectations = 3.6%

Future dividends are forecast as follows:

Year 0: n/a

Year 1: 128

Year 2: 149

Year 3: 162

Year 4: 175

Year 5: 182

(Round your answer to the nearest cent)

2.

Use the data below to compute 2014 EBIT:

3.

Use the data below to compute 2014 NOPAT:

(Round to the nearest whole dollar)

4.

Use the data below to compute 2014 OCF (Operating Cash Flow):

(Round to the nearest whole dollar)

5.

Use the data below to compute the change in NOWC (Net Operating Working Capital)

(Round to the nearest whole dollar)

6.

Use the data below to compute 2014 FCF (Free Cash Flow):

(Round to the nearest whole dollar)

Part 3: Ball rolling down ramp: Loss of energy due to (you figure out what)

  In the projectile motion lab, a ball was placed at the top of a ramp. In one case, its initial height was 12.0 cm above the table top, and it rolled off the table with velocity v =  1.12 m/s.  Compute the initial potential energy relative to the height of the table top, final kinetic energy as it leaves the table top, and % energy lost.  

Mass of ball: 100 g ± 50 g  (We did not measure its mass. Mass divides out and doesn’t affect calculation of % energy lost.)

% energy lost:

Conclusions: Think about how the ball moved down the ramp and across the table, and explain where the missing energy went.  I can think of three specific mechanisms that would have transferred significant energy from the ball to the environment. You might need to try it again at home to see: roll a hard ball down a rigid homemade ramp and across a table top.  

Extra Credit, up to 5%:  Upload a picture of your homemade ramp setup.  You can see a couple of things happening as it goes down the ramp and across the table that take energy from the ball.  You may have extra credit if you both upload a picture and correctly identify at least two things happening that would dissipate energy.

Table 2:

Question 3: Table 2 list various accounts from a bank's balance sheet ($'s in millions). In year 2 the bank's total net income was $5 million. What was the bank's Return on Assets (ROA) in year 2? Show you answer as a percentage to two decimal places in the following format x.xx%

Question 4: Using the same information in table 2 and keeping constant the assumption that the bank made $5 million of net income in year 2, what was the bank's Return on Equity (ROE) in year 2? Show you answer as a percentage to two decimal places in the following format x.xx%

Question 5: Using the data from table 2 and the following four new pieces of information:

1. Assume that the interest rate that the bank charges on its Commercial Loans is 7.5%,
2. Assume the bank receives interest income of 2.5% on all of its financial security holdings.
3. Assume that the bank pays an average interest rate of 2% on all of its customer deposit accounts
4. And also assume that the bank pays 5% interest rate on the bonds that it has issued.

Calculate the bank's Net Interest Margin (NIM).   Show you answer as a percentage to two decimal places in the following format x.xx%

The correct answers are already bolded, but please show your work/explain how you get the answer.

1. Rick can cut 6 pieces of wood or catch 6 fish per day. Timmy can cut 9 pieces of wood or catch 18 fish per day. Which one of the following points is not on the Timmy’s production possibility frontier fish is on the horizontal axis and pieces of wood is on the vertical axis?

a. (0, 9)

b. (18, 0)

c. (8, 5)

d. (10, 3)

2. Suppose that the banking system currently has $500 billion in reserves, the reserve requirement is 9% and the excess reserves are $5 billion. What is the level of loans?

a. $5,500 billion

b. $5,495 billion

c. $5,000 billion

d. $4,955 billion

3. Suppose interest of 5% for two years can be earned on $1,000 saved today with no risk. What is the least amount a person would need to have a 50% chance of winning to be willing to face a 50% chance of losing $1,000 today and be considered risk averse?

a. $907.03 to be paid in two years

b. $1,000.01 to be paid in two years

c. $1,100.01 to be paid in two years

d. $1,102.51 to be paid in two years