This comes from the Columbia University website: “As an equal opportunity and affirmative action employer, the University does not discriminate against or permit harassment of employees or applicants for employment on the basis of race, color, sex, gender (including gender identity and expression), pregnancy, religion, creed, national origin, age, alienage and citizenship, status as a perceived or actual victim of domestic violence, disability, marital status, sexual orientation, military status, partnership status, genetic predisposition or carrier status, arrest record, or any other legally protected status.”

1. Are there any characteristics that really shouldn’t be on the list? Which ones? Why?
   
2. Hypothetically, John Smith has applied for a maintenance post at Columbia. The job entails routine and emergency plumbing and fixing of general problems, everything from burned-out light bulbs to graffiti. More or less, the job is to walk around and make sure things are in working order. He’d be working the night shift from 11 p.m. to 7 a.m. His assigned buildings would be a classroom and three coed dorms. He has been arrested three times for attempted rape of young women, but there was never enough evidence to convict.
   • Susan Rieger heads the Columbia University employment office. It’s part of her job to defend the school’s policies. In ethical terms, how do you suppose she might defend Columbia’s refusal to discriminate on the basis of arrest record?

Consider this hypothetical example. Facebook is becoming fashionable as a social medium among people, including university faculty and students. Assume the (market equilibrium) annual subscription for facebook per year is $1,200. Many faculty and students are now using it.

a) What are the private benefit to you for using facebook? (Hint: what skills will students acquire from using facebook?)

b) What are the social benefit to the faculty and student community of using facebook?

c) What are the private costs to you for using facebook?

d) What are the social costs to the faculty and student community for using facebook?

e) In your own opinion, do you think facebook would generate positive or negative externalities in the university community? Explain!

f) Should the university subsidize or tax the faculty and student use of facebook?

2. The Dean of Students at the University of Waterloo wanted to estimate the proportion of students who are willing to report cheating by fellow students. So, her staff surveyed the 172 students currently enrolled in the introduction to biology class. The students were asked, “Imagine that you witness two students cheating on a quiz. Would you tell the professor?” 19 of the surveyed students responded “yes.” (11 points total)
a. Using these data, calculate the 90% confidence interval for the proportion of all students at the University of Waterloo that would report cheating. (4 points)
b. Interpret the confidence interval from part “a” in a sentence. Interpret in terms of percentages, rather than proportions. (4 points)
c. Is it appropriate to use these data to estimate the proportion of all students at the university that would report cheating? Why or why not? (3 points)

Problem 3 MGMT 61000 Final Exam; Lynn Turner- PUID-00311127131 Pricing stock for Initial Public Offering Ten years ago, Video Toys began manufacturing and selling coin-operated arcade games. The company has done well in that dividends have been growing at a 15% compounded annual rate for the past five years. The last Dividend paid, which was just yesterday, was $1.50 per share. The annual growth rate of 15% is expected to be maintained for the next 3 years, after which dividends are expected to grow at half the rate for 1 year. Beyond that time, Video Toys' dividends are expected to grow at 5% per year. A. If the company was going to go public today, what would be the price per share that you think the public offer price should be if your required rate of return on equity is 18%? B. The company has a total of 10,000,000 shares. 5 million shares will be sold in the IPO and 5 million shares will remain in the possession of the founder, Mr. Strong. What is the total value of the company's equity after the IPO?

Starware Software was founded last year to develop software for gaming applications. The founder initially invested $ 800,000 and received 8 million shares of stock. Starware now needs to raise a second round of​ capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $ 1.00 million and wants to own 20 % of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with 20 % of the​ company? What is the implied price per share of this funding​ round?

b. What will the value of the whole firm be after this investment​ (the post-money​ valuation)?

a. How many shares must the venture capitalist receive to end up with 20 % of the​ company? What is the implied price per share of this funding​ round?

The venture capitalist will receive _____ million shares. ​ (Round to three decimal​ places.)

The implied price per share is ​$____per share.  ​(Round to the nearest​ cent.)

b. What will the value of the whole firm be after this investment​ (the post-money​ valuation)? The value of the firm will be ​$____million. ​ (Round to three decimal​ places.)

Enrique lives in rural Ecuador and is finishing his high school. As an outstanding student, he was accepted by the leading private university, University de Quito to study in a two year program on comparative literature and linguistics to become a college teacher. If he goes to university, he will pay a tuition fee of $1000 ($1 = 1 peso) per year (for 2 years). Suppose also that there is a “psychological” cost of $400 associated with moving to the city of Quito, which represents the money equivalent (paid only once in the first period) of leaving his family / girlfriend.

In the first year, Enrique can work in the library of the university and earn $1000 per year, while during the summer of the second year he can do an internship and earn $2000. At the third year, he may start working as a college teacher, where he will earn $4000 per year for the first 2 years of his career. For the sake of this exercise, suppose that we only have 4 periods.

If Enrique refuses to go to University, he will work on the family farm and will earn $1000 per year for the first two years. His father promises him a salary equal of $3000 from the third year. Consider a discount factor of 10%.

1. a) Calculate the expected present value benefits of studying.[7points]

2. b) Calculate the expected present value costs of studying (direct and indirect costs) [7

   points]

3. c) Should Enrique go to the University? [1 points]

Tesla Corporation (TSLA) stock has been in demand over the past year, tripling in value between July 2019 and January 2020, despite reporting losses in two of the last four quarters. Autonomous vehicle technology is poised for introduction in urban and long haul applications by companies such as Plus.ai. In an interview with Quartz, Bill Gates suggested that taxing robot output could help cover the shortfall in social services due to lost jobs and help pay for the increase in social services and support needed by displaced workers. An article in The Atlantic Magazine (A World Without Work) lays out the impact of automation on jobs and eventually on the default social contract in most capitalist societies. A review of a book with the same name provides additional insight.
Please research the topic of automation and its impact on an individual’s ability to monetize their human capital. Given the idea that humans need to contribute to society to feel fulfilled and happy, please respond to the following:

What is your personal philosophy about firms using automation without regard to its impact on society?

Required information

[The following information applies to the questions displayed below.]

Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars):

Required:

1. Classify the cost items in the table into cost-of-quality (COQ) categories.

2. Calculate the ratio of each COQ category to revenues in each of the 2 years.

3. Calculate the percentage change in each COQ category and total COQ and comment on the results:

a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020;

b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars;

c. Percentage change in total prevention costs, 2019 to 2020;

d. Percentage change in total appraisal costs, 2019 to 2020;

e. Percentage change in total internal failure costs, 2019 to 2020;

f. Percentage change in total external failure costs, 2019 to 2020.

[The following information applies to the questions displayed below.] Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars): 2019 2020 Sales $ 15,900 $ 19,900 Materials inspection 290 59 In-process (production) inspection 159 124 Finished product inspection 240 69 Preventive equipment maintenance 19 59 Scrap (net) 490 290 Warranty repairs 690 440 Product design engineering 149 260 Vendor certification 21 59 Direct costs of returned goods 265 79 Training of factory workers 39 139 Product testing—equipment maintenance 59 59 Product testing labor 200 89 Field repairs 69 39 Rework before shipment 230 199 Product-liability settlement 350 59 Emergency repair and maintenance 190 74 Required: 1. Classify the cost items in the table into cost-of-quality (COQ) categories. 2. Calculate the ratio of each COQ category to revenues in each of the 2 years. 3. Calculate the percentage change in each COQ category and total COQ and comment on the results: a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020; b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars; c. Percentage change in total prevention costs, 2019 to 2020; d. Percentage change in total appraisal costs, 2019 to 2020; e. Percentage change in total internal failure costs, 2019 to 2020; f. Percentage change in total external failure costs, 2019 to 2020.