1)Mkt. for farm workers. Many farm workers working on US farms are seasonal migrants. The government imposes stricter immigration rules that make it make difficult to travel between countries. The new rules affect supply/demand (choose one). Show the effect of new immigration rules on the US labor market for farm workers. Equilibrium wage___, equilibrium employment____ 2)Typical US farm. Consider a perfectly competitive American farm before the introduction of the new immigration rules. These are the long‐run marginal and average cost curves and the demand. Show the effect of the new immigration rules on the farm’s profit maximizing decision.   The rules affects the cost functions/demand (choose one).   On the graph, (1) label the cost functions; (2) Indicate the new profit maximizing level of output q*; 3) Show the profit/loss.   Indicate whether the farm make a profit/loss (choose one) Mkt. for American farm products. Aggregating individuals farms’ responses, the change in labor market for farm workers affects supply/demand of American farm products because ______________________________.   Show the effect of the change immigration rules. Equilibrium price___, equilibrium quantity____ 4)Mkt. for imported farm products. The change in the price of American farm products affect supply/demand of imported farm products because_________________  . Show the effect of the change in the price of American farm products. Equilibrium price___, equilibrium quantity__  

After thoroughly reading this article: “Deater-Deckard, K., Dodge, K. A., Bates, J. E., & Pettit, G. S. (1996). Physical discipline among African American and European American mothers: Links to children's externalizing behaviors. Developmental Psychology, 32, 1065-1072.”

Please, identify and critique the following:

The research design

The sampling technique

The threats to validity

The measurements

The ethical issues

Abstract

The aim of this study was to test whether the relation between physical discipline and child aggression was moderated by ethnic-group status. A sample of 466 European American and 100 African American children from a broad range of socioeconomic levels were followed from kindergarten through 3rd grade. Mothers reported their use of physical discipline in interviews and questionnaires, and mothers, teachers, and peers rated children's externalizing problems annually. The interaction between ethnic status and discipline was significant for teacher- and peer-rated externalizing scores; physical discipline was associated with higher externalizing scores, but only among European American children. These findings provide evidence that the link between physical punishment and child aggression may be culturally specific. (PsycINFO Database Record (c) 2016 APA, all rights reserved)

Link; http://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=auo&turl=http://search.proquest.com/docview/218060199

The following tables list the numbers of home runs hit by the leaders in the National and American Leagues. (A graphing calculator is recommended.) Home Run Leaders National League 70 42 72 35 52 64 45 55 46 63 59 61 63 62 35 66 36 62 36 54 71 31 33 54 58 65 69 52 35 62 71 38 58 52 American League 57 44 41 57 38 56 42 41 50 56 41 23 54 40 53 28 53 27 22 38 48 40 25 35 39 38 40 44 42 41 29 30 30 31 (a) Find the mean and the population standard deviation of the number of home runs hit by the leaders in the National League. Round each result to the nearest tenth. mean home runs population standard deviation home runs (b) Find the mean and the population standard deviation of the number of home runs hit by the leaders in the American League. Round each result to the nearest tenth. mean home runs population standard deviation home runs (c) Which of the two data sets has the larger mean? National League American League Which of the two data sets has the larger standard deviation? National League American League

3a.

The supply curve of dollars in the foreign exchange market reflects the activities of American _________ and ________ investors.

-importers; Mexican

-importers; American

-exporters; Mexican

-exporters; American

b.

A nation whose interest rate is rising relatively fast will see its securities become ________ attractive to foreigners. Its currency will __________.

-more; depreciate

-more; appreciate

-less; depreciate

-less; appreciate

c.

The curve representing the demand for dollars in the foreign exchange market is downward sloping because, when the price of a dollar (the exchange rate) decreases, _________ because they have become relatively ____________.

-Americans demand more foreign goods; less expensive

-foreigners demand fewer American goods; more expensive

-Americans demand fewer foreign goods; more expensive

-foreigners demand more American goods; less expensive

d.

The Japanese yen depreciates relative to the US dollar. What should we expect?

-A decrease in the number of U.S. tourists visiting Japan

-An increase in the Japanese demand for U.S. goods

-An increase in the U.S. demand for Japanese goods

-An increase in the number of Japanese tourists visiting the United States

e.

A situation in which goods cost the same in one country as in another when prices are compared using the market exchange rate is referred to as ___________.

-cost equivalence

-a currency union

-exchange rate neutrality

-purchasing power parity

Problem 11-10

Skysong Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Skysong has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company’s records and personnel.

Complete the schedule below. (Round answers to 0 decimal places, e.g. 45,892.)

SKYSONG CORPORATION

Fixed-Asset and Depreciation Schedule

For Fiscal Years Ended September 30, 2017, and September 30, 2018

Duchamp plc is a company that publishes regional newspapers. Each newspaper contains news relevant to a specific town or city.

On 1^st July 2019 Duchamp plc purchased the ‘Winchester Weekly Bulletin’ title from a competitor. This title was launched in 1934 and is still popular. The title cost Duchamp £350,000.

The CEO of Duchamp plc felt it was inconsistent to have one title recognised on the Statement of financial position when other titles that were created ‘in-house’ by Duchamp were not capitalised. He has requested the Finance Director work out the expenditure on these in-house titles and capitalise it along with the Winchester Weekly Bulletin.

The only other title purchased by Duchamp plc is the ‘Cambridge Evening Mercury’ for which it paid £100,000 five years ago. Since then circulation has doubled and the CEO feels the magazine must consequently be worth at least twice as much. He has suggested the title is revalued to reflect this.

On 1^st October 2019 the company began developing some new software that, if successful, would reduce the cost of producing the newspapers. The initial design work proceeded quickly but building the new software has proved difficult due to lack of compatibility between the different systems. Development costs at 30^th June 2020 had reached £65,000 and the board are questioning whether it is worth investing further in what might be a failing project when similar packages could be bought ‘off the shelf’.

Requirement

1. Discuss how the purchase of the Winchester Weekly Bulletin should be treated in the financial statements including how it should be measured subsequently.  (3 marks)

2. Explain whether the CEO’s ideas with respect to the in-house titles and the Cambridge Evening Mercury are acceptable.  (3 marks)

3. Explain whether the costs incurred in the process of developing the new software can be capitalised as at 30^th June 2020. (You are not required to repeat all the PIRATE criteria).  (4 marks)

Suppose that you are part of the Management team at Porsche. Suppose that it is the end of December 2019 and

You (as part of the management team) are reviewing Porsche’s hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year 2020. Assume that Porsche’s management entertains three scenarios:

Scenario 1 (Expected): The expected volume of North American sales in 2020 is 35,000 vehicles. Scenario 2 (Pandemic): The low-sales scenario is 50% lower than the expected sales volume. Scenario 3 (High Growth): The high-sales scenario is 20% higher than the expected sales volume.

Assume, in each scenario, that the average sales price per vehicle is $85,000 and that all sales are realised at the end of December 2020. All variable costs incurred by producing an additional vehicle to be sold in North America in 2020 are billed in euros (€) and amount to €55,000 per vehicle. Shipping an additional vehicle to be sold in North America in 2020 are billed in € and amount to €3,000 per vehicle.

The current spot exchange rate is (bid-ask) $1.11/€ - $1.12/€ and forward bid-ask is $1.18/€ - $1.185/€. The option premium is €0.025, and option strike price is €0.922. Your finance team made the following forecasts about the exchange rates at the end of December 2020:

• bid-ask will be $1.45/€ - $1.465/€ if the investors (and speculators) consider the euro (€) a safe haven currency during the pandemic.

• bid-ask will be $0.88/€-$0.90/€ if the investors (and speculators) consider the U.S. dollar ($) a safe haven currency during the pandemic

1. You decided not to hedge Porsche’s currency exposure. If the expected final sales volume is 35,000, what are your total revenues
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€? Let’s call this the baseline scenario.

   b) if the investors consider the euro a safe haven currency during the pandemic? How does this compare to the baseline case?
   c) if the investors consider the U.S. dollar a safe haven currency during the pandemic? How does this compare to the baseline case?

2. Assume that you and the Porsche’s management team decided to hedge using forward contracts. Assume that the expected final sales volume is 35,000. What are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€?

   b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

3. As the CFO, you decided to hedge using option contracts. Assuming expected final sales volume is 35,000, what are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)
a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€?

b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

4. Assume that the Scenario 2 (Pandemic) took place in 2020 and the euro became a safe haven currency during the pandemic. What are your cash flows if you did not hedge, hedged using forward contracts, and hedged using option contracts?

5. Assume that the Scenario 2 (Pandemic) took place in 2020 and the U.S. dollar became a safe haven currency during the pandemic. What are your cash flows if you did not hedge, hedged using forward contracts, and hedged using option contracts?

6. Based on the calculations in Part B, do you believe that it is a good policy to hedge Porsche’s currency exposure? Why?

Suppose that you are part of the Management team at Porsche. Suppose that it is the end of December 2019 and a novel coronavirus that causes a respiratory illness was identified in wuhan city, China.

You (as part of the management team) are reviewing Porsche’s hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year 2020. Assume that Porsche’s management entertains three scenarios:

Scenario 1 (Expected): The expected volume of North American sales in 2020 is 35,000 vehicles. Scenario 2 (Pandemic): The low-sales scenario is 50% lower than the expected sales volume. Scenario 3 (High Growth): The high-sales scenario is 20% higher than the expected sales volume.

Assume, in each scenario, that the average sales price per vehicle is $85,000 and that all sales are realised at the end of December 2020. All variable costs incurred by producing an additional vehicle to be sold in North America in 2020 are billed in euros (€) and amount to €55,000 per vehicle. Shipping an additional vehicle to be sold in North America in 2020 are billed in € and amount to €3,000 per vehicle.

The current spot exchange rate is (bid-ask) $1.11/€ - $1.12/€ and forward bid-ask is $1.18/€ - $1.185/€. The option premium is 2.5% of US$ strike price, and option strike price is $1.085/€. Your finance team made the following forecasts about the exchange rates at the end of December 2020:

• bid-ask will be $1.45/€ - $1.465/€ if the investors (and speculators) consider the euro (€) a safe haven currency during the pandemic.

• bid-ask will be $0.88/€-$0.90/€ if the investors (and speculators) consider the U.S. dollar ($) a safe haven currency during the pandemic

1. You decided not to hedge Porsche’s currency exposure. Assuming that the expected final sales volume is 35,000, what are your total costs
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€? Let’s call this the baseline scenario.

   b) if the investors consider the euro a safe haven currency during the pandemic? How does this compare to the baseline case?
   c) if the investors consider the U.S. dollar a safe haven currency during the pandemic? How does this compare to the baseline case?

2. Assume that you and the Porsche’s management team decided to hedge using forward contracts. Assume that the expected final sales volume is 35,000. What are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€?

   b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

3. As the CFO, you decided to hedge using option contracts. Assuming expected final sales volume is 35,000, what are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€?

   b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

4. Assume that the Scenario 2 (Pandemic) took place in 2020 and the euro became a safe haven currency during the pandemic. What are your euro cash flows if you did not hedge, hedged using forward contracts, and hedged using option contracts?

5. Assume that the Scenario 2 (Pandemic) took place in 2020 and the U.S. dollar became a safe haven currency during the pandemic. What are your euro cash flows if you did not hedge, hedged using forward contracts, and hedged using option contracts?

6. Based on the calculations in Part B, do you believe that it is a good policy to hedge Porsche’s currency exposure? Why?

5. Discuss the pros and cons of American business being excluded by American law (Pres Kennedy issued an Executive Order) from conducting any form of business activity on the island of Cuba. Express your perspectives of the European Union and other first world nations (like Canada) steadfastly generating billion of euros (and other currencies) from trade with Cuba.

Consider the reaction: CO(g)+H2O(g)⇌CO2(g)+H2(g) Kc=102 at 500 K A reaction mixture initially contains 0.135 M CO and 0.135 M H2O. What is the equilibrium concentration of [CO], [H2O], [CO2], and [H2]