A house is rented with the rental price paid at the end of the first year

of Rp.13,000,000. The rental price in subsequent years decreased by

Rp.500,000 per year for the 15-year economic life of the house. The cost of

building the house is IDR 80,000,000. The cost of building a house is

incurred in year 0 and revenue from rent is received at the end of each

year. Determine the advantages or disadvantages of this scheme if the bank interest rate is

5% per year.

A husband and wife are planning for retirement and they believe that a comparison over a five- year period would be appropriate. They are given the following information about one mutual fund that they are considering. Assume that all remaining assets under management are withdrawn by the family at the end of 5 years.

Year Beginning Assets Under Management

1. 30.000.000

2. 35.000.000

3. 25.000.000

4. 15.000.000

5. 20.000.000

Net Return (%)

1.   6%

2. 2%

3. -17%

4. -3%

5. 6%

a. Compute the arithmetic and geometric mean annual return for the fund. Write the formulas. (without excel)

b. What is the money-weighted annual return for the fund? You can calculate the annual cash flow (either additional investment or withdrawal by the couple) at year t as the difference between the beginning assets under management at year t and ending assets under management at year t-1.

let x be the number of smokers in a family composed of a husband and a wife. X is a random variable which takes values 0,1,2, with respective probabilities po, p1, p2. The average number of smokers per family is 0.63. 40% of families contain at least one smoker. find the probabilities po, p1, p2.

Note: this question is related to binomial distribution lesson  

A husband and wife are planning for retirement and they believe that a comparison over a five- year period would be appropriate. They are given the following information about one mutual fund that they are considering. Assume that all remaining assets under management are withdrawn by the family at the end of 5 years.

Year Beginning Assets Under Management

1. 30.000.000

2. 35.000.000

3. 25.000.000

4. 15.000.000

5. 20.000.000

Net Return (%)

16%

12%

-17%

-3%

6%

a. Compute the arithmetic and geometric mean annual return for the fund.

b. What is the money-weighted annual return for the fund? You can calculate the annual cash flow (either additional investment or withdrawal by the couple) at year t as the difference between the beginning assets under management at year t and ending assets under management at year t-1.

A Contingent Consideration Problem

Parent Company acquires 100 % of Sub Company for by exchanging 100,000 shares of its $1 par value common stock with a current market value of $35 per share. The agreement contains a provision that:

If the subsidiary earns a net income of more than $500,000 during the first year following the acquisition, an additional cash payment for 30% of the excess over $500,000 will be paid at that time, and

If the price per share of Parent Company’s stock is below $35 on the first anniversary date of the acquisition, an additional 10,000 shares will be handed over.

On the acquisition date the parent company calculates the probability-adjusted present values at $20,000 for the cash contingency and $50,000 for the contingency related to its share price. Prepare the Parent Company journal entry to record the acquisition.

A year later, the subsidiary reported net income of $700,000 for the first year after the acquisition and Parent Company’s share price was $30. Prepare the Parent Company journal entry for the settlement of the contingencies.

If instead of the facts in (b) the subsidiary reported net income of $400,000 and the Parent Co.’s share price was $36 what would Parent Company’s journal entry for the settlement of the contingencies have been?

-------------

PLEASE SHOW YOUR WORK***

KEY facts :

100 retail price-per unit-

50 sell price to the retailer -per unit-

25 cost to manufacturer - per unit-

12 million IMC advertising Budget

Question1- What is the profit per unit for the manufacturer?

question 2- what is the profit margin % per unit for the manufacturer?

Question 3- where are your profits $'s at the end of year 1?

a) estimate that you will sell 533,000 units in 2019 as result of your IMC campaign

b)Mutiply that # times the profit margin per unit

question 4- What is your ROi%?

question 5- was this worth the 12,000.000 investment ?

USE 3 reasons to support your reccomendation to senior management and finance ?

A Country Economic Activities were recorded as follows:

a. Find 2014 and2015 nominal GDP？

b. Find 2014 and 2015 real GDP (based year=2014)？

c. Find the GDP deflator (based year=2014) from 2014 to 2015？

d. Based on CPI calculation (PC & Rice are in the basket), find the inflation rate from

2014 to2015 (basket year=2014)？

A Country Economic Activities were recorded as follows:

a. Find 2014 and2015 nominal GDP？

b. Find 2014 and 2015 real GDP (based year=2014)？

c. Find the GDP deflator (based year=2014) from 2014 to 2015？

d. Based on CPI calculation (PC & Rice are in the basket), find the inflation rate from

2014 to2015 (basket year=2014)？

Part 1:

Suppose the mean score on the first exam is a 60 out of 100. I would like to curve the exam to force the mean score to be an 80 out of 100. If I added 20 to everyone’s score, would the SD of the exam scores change? How about if I multiplied 4/3 to everyone’s score? Explain.

Part 2: Continuing from Part 1, fill out the formulas put below that will always be true. Let a = constant (- or +) and X = random variable.

EV (a + X) =

SD (a + X) =

SD (aX) =

EV (aX) =

Variance (a + X) =

Variance (a + X) =