In an important 1992 paper, Card and Krueger used difference-in-differences to examine the effects of a New Jersey wage law on employment. They got data on fast-food employment in New Jersey and Pennsylvania, which did not increase its minimum wage.

a) What is the treatment here? What are the treatment and control groups?

b) Card and Krueger focused on restaurants near the border between NJ and PA. Why?

c) Suppose that there are only two time periods. Pennsylvania had employment of 23.33 before and 21.17 after, and New Jersey had 20.44 before and 21.03 after. What is the ‘difference-in-differences’ number showing the effect of the minimum wage law on employment?

d) Now suppose you have data for more than two time periods. Write the regression equation.

e) Your teacher (and your conscience) say you should check trends in the outcome variable for treatment and control groups before the treatment happens. Why?

The U.S. government has decided to decrease the corporate tax rate from 35% to 20% (for the record, I originally wrote this problem long before this actually happened). You have been tasked with re-estimating the remaining PV of a project’s cash flows. The project will operate for the next 4 years before shutting down. It will produce yearly revenue of $40k with yearly operating costs of $20k. The project utilizes some heavy machinery which has a current book value of $80k and is being depreciated on a straight-line basis by $15k per year for the remainder of the project. (IMPORTANT: This does not mean that you purchase the machine today for $80k. You bought the machine in the past when you started the project). The machinery will have a resell value of $30k at the completion of the project. The firm’s discount rate is 10%.

2. Compute the after-tax salvage both before and after the tax change.

Question 2 Active PLC is a leading investment company in Australia and you the below details relating to the capital structure of the company. Information concerning raising new capital Bonds $1,000 Face value 13% Coupon Rate (Annual Payments) 20 Term (Years) $25 Discount offered (required) to sell new bonds $10 Flotation Cost per bond Preference Shares 11% Required rate to sell new preference shares $100 Face Value $3 Flotation cost per share Ordinary Shares $83.33 Current Market Price $4.00 Discount on share price to sell new shares $5.40 Flotation Cost per bond $5.00 2019 - Proposed Dividend Dividend History $4.63 2019 $4.29 2018 $3.97 2017 $3.68 2016 $3.40 2015 Current Capital Structure Extract from Balance Sheet $1,000,000 Long-Term Debt $800,000 Preference Shares $2,000,000 Ordinary Shares Current Market Values $2,000,000 Long-Term Debt $750,000 Preference Shares $4,000,000 Ordinary Shares Tax Rate 33% Risk Free Rate 5% 3 a) Calculate the cost associated with each new source of finance. The firm has no retained earnings available. b) Calculate the WACC given the existing weights The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm’s cost of capital in the medium term and believes they should be as follows Long-term debt 40% Preference Shares 15% Ordinary Shares 45% c) What impact do these new weights have on the WACC? The firm is considering the following investment opportunity. (2020-2027) Data is as follows Initial Outlay $1,600,000 Upgrade $700,000 End of Year 4 Upgrade - 350,000 Increased sales units per annum - (Year 5-8) Working Capital $45,000 Increase required Estimated Life 8 Years Salvage Value $60,000 Depreciation Rate 0.125 For tax purposes The machine is fully depreciated by the end of its useful life Other Cash Expenses $60,000.00 Per annum (Years 1-4) Other Cash Expenses $76,000.00 Per annum (Years 5-8) Production Costs $0.15 Per Unit Sales price $0.75 Per Unit (Years 1-4) Sales price $1.02 Per Unit (Years 5-8) 4 Prior sales estimates Year Sales 2010 520000 2011 530000 2012 540000 2013 560000 2014 565000 2015 590000 2016 600000 2017 610000 2018 615559 2019 659000 2020 680000 d) Calculate the Net Present Value, Internal Rate of Return and Payback Period The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent. Year Stock Market Share Index Price 2010 2000 $15.00 2011 2400 $25.00 2012 2900 $33.00 2013 3500 $40.00 2014 4200 $45.00 2015 5000 $55.00 2016 5900 $62.00 2017 6000 $68.00 2018 6100 $74.00 2019 6200 $80.00 2020 6300 $83.33 e) Calculate the CAPM f) Explain why this figure may differ from that calculated above (i.e. Cost of equity – Ordinary Shares)

Accounts receivable has a balance of $16,000 and the allowance for uncollectible accounts has a credit balance of $1,600. What is net accounts receivable before and after a $60 account receivable is written off?

1. Your patient is in active labor. An epidural anesthetic is ordered. Describe the care for the patient before, during and after administration of an epidural and the complications associated with them. Are there any contraindications that the nurse should be aware of?

The carrying amount of the Accounts Receivable is $19,000 before the write off of a $2,500 account. What is the carrying amount after the write off?

Question 28 options:

The growth of the railroads in the period after the Civil War to the 1890s is a very important factor in the growth of the nation's economy, industry, and business. Why? What did the railroads enable that was not present before their rise?

Researchers are interested in comparing the depression scores (measured on a scale of 1-100) of patients diagnosed with clinical depression before and after they have participated in a new exercise regimen. They take a random sample of 5 people who report low levels of exercise and measure their depression scores. They then have these 5 patients complete a 4-week exercise regimen and measure their depression scores after the 4 weeks. Results of analysis are presented in the table below.

Your research question of interest is:

Is there a difference in the mean depression score of patients before and after they participate in the 4- week exercise regimen?

You are informed the estimated standard error of the mean differences (s) is 1.74

You will use the information above to complete the question parts below for a two related samples t-test.

Part A: Which of the following represents the appropriate null hypothesis (H₀), given this research question of interest?

Part B: Which of the following represents the appropriate alternative hypothesis (H₁), given this research question of interest?

Part C: Which of the following represents the appropriate critical value(s), testing at an alpha level (α) of 0.05?

Part D: What is the t-statistic associated with your test? (rounded to the nearest hundredth) - see note above for the value of the standard error of the mean differences.

Part E: Given your test results, what is your decision about the null hypothesis?

Part F: The best interpretation of the appropriate decision regarding the null hypothesis would be: "Based on our study, we (Have/Have not)

enough evidence to conclude that there appears to be a difference in the population mean depression score before and after a 4 week exercise regimen."

java True or False. no need to explain

6. Class member variables should be declared as private because the objectoriented programming principle of encapsulation.

7. The method public char getChar(); will return a character data. Page 2

8. Assume that there is a Class named Stock and the class has a constructor private Stock(String symbol, double price); So a programmer can create a Stock object by doing the following in the main method: Stock stock = new Stock(“Google Inc”, 578.45);

9. A breakpoint is a marker that you can set to specify where execution should pause when you are running your Java application in Eclipse.

10. We use int [] numbers to create a number of integer values in the heap