Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:

Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $812,000.

What are Shimmer's taxable income and tax liability for the year? (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change.)

The 3-year spot interest rate is 4.15%, the 3-year forward rate expected 3 years from now has been estimated to be 4.15%. What is the other spot rate you need to know to find the forward rate given above using the pure expectations theory? Round to the nearest 0.01%. E.g., if your answer is 5.783%, record it as 5.78.

The 8-year spot interest rate is 5.44%, the 2-year spot rate is 3.96%. What is the forward rate you can find using the pure expectations theory? Round to the nearest 0.01%. E.g., if your answer is 5.78%, enter it as 5.78.
   

Two random samples are taken, one from among first-year students and the other from among fourth-year students at a public university. Both samples are asked if they favor modifying the student Honor Code. A summary of the sample sizes and number of each group answering yes'' are given below:

First-Years (Pop. 1):Fourth-Years (Pop. 2):n1=84,n2=88,x1=43x2=38

Is there evidence, at an ?=0.08 level of significance, to conclude that there is a difference in proportions between first-years and fourth-years? Carry out an appropriate hypothesis test, filling in the information requested.

A. The value of the standardized test statistic:

Note: For the next part, your answer should use interval notation. An answer of the form (??,a) is expressed (-infty, a), an answer of the form (b,?) is expressed (b, infty), and an answer of the form (??,a)?(b,?) is expressed (-infty, a)U(b, infty).

B. The rejection region for the standardized test statistic:

C. The p-value is

D. Your decision for the hypothesis test:

A. Do Not Reject H0.
B. Reject H1.
C. Reject H0.
D. Do Not Reject H1.

2) 1. In a study of red/green color blindness,

550 men and 2150 women are randomly selected and tested. Among the men, 50have red/green color blindness. Among the women, 4 have red/green color blindness. Test the claim that men have a higher rate of red/green color blindness.
The test statistic is  
The p-value is  
Is there sufficient evidence to support the claim that men have a higher rate of red/green color blindness than women using the 0.05% significance level?

A. No
B. Yes

2. Construct the 95% confidence interval for the difference between the color blindness rates of men and women.
<(p1?p2)<  

Which of the following is the correct interpretation for your answer in part 2?
A. There is a 95% chance that that the difference between the rates of red/green color blindness for men and women lies in the interval
B. We can be 95% confident that the difference between the rates of red/green color blindness for men and women lies in the interval
C. We can be 95% confident that that the difference between the rates of red/green color blindness for men and women in the sample lies in the interval
D. None of the above

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2,and Table 5.)

*The delivery truck is not a luxury automobile.

In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $600,000.

Problem 10-54 Part a

a. What is the allowable MACRS depreciation on Convers’s property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)

Consider the following time series data.

Covan has 6 million shares outstanding, $4 million in excess cash, and it has no debt. If its cost of capital is 10 % ,

what should be its stock price? b. Covan reinvests all its FCF and has no plans to add debt or change its cash holdings (it does not invest its cash holdings). If you plan to sell Covan at the beginning of year 2, what is its expected price? c. Assume you bought Covan stock at the beginning of year 1. What is your expected return from holding Covan stock until year 2?

Assume the following information:

Is covered interest rate possible for US investors? New Zealand investors? Explain why covered interest rate arbitrage is or is not feasible.

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2,and Table 5.)

*the delivery truck is not a luxury automobile

In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $700,000

a. What is the allowable MACRS depreciation on Convers’s property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation? (Round you intermediate calculations to the nearest whole dollar amount)

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If you invest $2,000 per year starting one year from today, how much will you have:

a. After 10 years at 8 percent annual return

b. After 30 years at 10 percent annual return