Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 20-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below:

Real rate of return 3 %

Inflation premium 5

Risk premium 5

Total return 13 %

Assume that five years later the inflation premium is only 2 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 15 years remaining until maturity. Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 12 percent. This return was in line with the required returns by bondholders at that point as described below:

Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 20 years remaining until maturity.

Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

New Price of bond ___________

Question 1

Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry for 500 million yen payable in one year. The current spot rate is ¥124/$ and the one-year forward rate is 110¥/$. The annual interest rate is in Japan is 5% for lending and 6% for borrowing; and in the United States it is 7% for lending and 8% for borrowing. The WACC is 7%. PCC can also buy a one-year call option on yen at the strike price of $0.0081 per yen for a premium of 0.00014$/¥.

a. Compute the future dollar costs of meeting this obligation using a forward hedge.

b. Compute the future dollar costs of meeting this obligation using a money market hedge. Explain step by step using both numbers and a written explanation the money market strategy.

c. Assuming that the forward exchange rate is the best predictor of the future spot rate, compute the expected future dollar cost of meeting this obligation when the option hedge is used.

d. At what future spot rate do you think PC may be indifferent between the option and the forward hedge?

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Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry for 500 million yen payable in one year. The current spot rate is ¥124/$ and the one-year forward rate is 110¥/$. The annual interest rate is in Japan is 5% for lending and 6% for borrowing; and in the United States it is 7% for lending and 8% for borrowing. The WACC is 7%. PCC can also buy a one-year call option on yen at the strike price of $0.0081 per yen for a premium of 0.00014$/¥.

a. Compute the future dollar costs of meeting this obligation using a forward hedge.

b. Compute the future dollar costs of meeting this obligation using a money market hedge. Explain step by step using both numbers and a written explanation the money market strategy.

c. Assuming that the forward exchange rate is the best predictor of the future spot rate, compute the expected future dollar cost of meeting this obligation when the option hedge is used.

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 15 percent. This return was in line with the required returns by bondholders at that point as described below:
  

Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 25 years remaining until maturity.
  
Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below:

Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 25 years remaining until maturity.
  
Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

New Price of Bond _____

In recent years, plant-based meats have grown in popularity in the United States. In early 2020, Gallup published the findings of a survey on plant-based meat consumption based on a random sample of American adults. The results are summarized by age group in the table below.

Does this provide evidence that the proportion of American adults who have tried plant-based meats differs across age groups?

Q1

Which of the following inference procedures should be used here?

a.) z procedure for a proportion

b.) two sample t procedure for two means

c.) chi-square for two-way tables

d.) one sample or matched-pairs t procedure for a mean

e.) ANOVA for several means

Q2

(Please answer very detail and clear)

The test statistic and P-value for the corresponding hypothesis test are 72.97 and 1E-16. Assuming for now that the conditions are met, use this information to conclude in context. Be sure to be very specific.

[This question will be graded manually]

Q3

What are the conditions for this inference procedure?

a.) Normal data AND large enough expected counts.

b.) Independent random samples AND normal data AND large enough total sample size.

c.) One random sample AND normal data or large enough sample size.

d.) One random sample AND normal data AND large enough sample size.

e.) Independent random samples AND normal data or large enough total sample size AND similar sample standard deviations.

f.) Random selection without repeated measures AND large enough expected counts.

g.) Independent random samples AND normal data AND large enough total sample size AND similar sample standard deviations.

h.) One random sample AND large enough counts of successes and failures in the sample.

i.) Independent random samples AND normal data or large enough total sample size.

^{Exporting Used Batteries to Mexico
Lead is a highly toxic metal. Elevated levels of lead in the human body have been associated with damage to many organs and tissues, including the heart, bones,however, do not prohibit companies from exporting used batteries to other nations where standards are lower and enforcement is lax.}

^{Ethics in International Business   Chapter 4   141
A study conducted by reporters from The New York Times found that about 20 percent of used vehicle and industrial batteries in the United States were exported to Mexico in 2011, up from 6 percent in 2007. The lead is then extracted from these batteries and resold on commodities markets. It's a booming business. Lead scrap prices
typically a Mexican company. Some large companies are also in this business, although they mostly try to adhere to higher standards. One large U.S. battery company, Exide, has five recycling plants in the United States, but it does no recycling in Mexico. According to an Exide official, it was not in the company's.}

^{stood at $0.42 a pound in January 2012, up frolT1 $0.05 a pound a decade earlier. Recycling in Mexico is also a dirty business. While Mexico does have some regulation for smelting and recycling lead, the laws are weak by American standards, allowing plants to release about 20 times as much as their American equivalents. To make matters worse, enforcement is lax due to a lack of funds. A recent government study in Mexico found that 19 out of 20 recycling plants did not have proper authorization for importing dangerous waste, including lead batteries.
At some plants in Mexico, batteries are dismantled by men wielding hammers and their lead smelted in furnaces whose smokestacks vent into the air. A sample of soil collected from a schoolyard next to one such recycling plant showed a lead level of 2,000 parts per million, five times the limit for children's play areas in the United States, as set by the EPA. The New York Times reporters documented several cases of children living close to this plant and who had elevated levels of lead in their bodies. One 4-monthold had 24.8 micrograms of lead per deciliter of blood, almost two and a half times as much as the level typically associated with serious mental retardation.
Much of the exporting of lead batteries to Mexico is done by middle people in the United States who buy up old batteries and then ship them over the border to the cheapest processor,Mexican standards and that its recycling operations in Mexico are well below current U.S. standards for employee blood levels and substantially better than average. 50}

^{Notes
1.   E. Kurtenbach, "The Foreign Factory Factor," Seattle Times, August 31, 2006, pp. Cl, C3; E. Kurtenbach, "Apple Says It's Trying to Resolve Disputc over Labor Conditions at
Chinese iPod Factory," Associated Press Financial Wire, August 30, 2006; and Anonymous, "Chinese iPod Supplier Pù s Suit," Associated Press Financial Wire, September 3, 200 .
2.   S. Greenhouse, "Nike Shoe Plant in Victnam Is Called Unsafc for Workers," The New York Times, November 8, 1997; and V. Dobnik, "Chinese Workers Abused Making Nikes, Rccboks," Seattle Times, September 21, 1997, p. A4.
3.   T. Donaldson, ''Valucs in Tension: Ethics Away from Home, Harvard Business Review, September—October 1996.
4.   R. K. Massie, Loosing the Bonds: The United States and South Africa in the Apartheid Years (New York: Doubleday, 1997).
5.   Not everyone agrees that the divestment trend had much
influence on the South African economy. For a counterview see S. H. Teoh, I. Welch, and C. P. Wazzan, "The Effect of Socially Activist Investment Policies on rhc Financial
interests to skirt regulations. Another large U.S. battery manufacturer, Johnson Controls, does ship a significant number of batteries to Mexico, but it has its own recycling plant there and will open another in 2013. Johnson Controls states that its Mexican facilities abide by the stricter U.S. regulations, rather than Ken Saro Wiwa's Oroniland in Nigeria," The Guardian, November 8, 1995, p. 6.
8.   P. Singer, One World: The Ethics of Globalization (New Haven, CT: Yale University Press, 2002).
9.   G. Hardin, "The Tragedy of the Common," Science 162, 1, pp. 243—48.}

^{Case Discussion Questions
1.   Mexico's weaker environmental regulations and lax legal enforcement allow for higher levels of lead pollution than would be permissible in the United States. Is it ethical for U.S. companies to therefore engage in practices that result in higher levels of lead pollution?
2.   As seen in the case, Exide refuses to export used batteries to Mexico. What ethical principles do you think the company follows?
3.   Johnson Controls, on the other hand, chooses to recycle in Mexico but only under the stringent conditions of its own plants. Which of these two companies (Johnson Controls and Exide) is acting in an ethical manner?}

compare and contrast the different methods for remineralization of early carious lesions in primary teeth

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