Heidi is 17 years old and a dependent of her parents. She receives $8,700 of wages from a part-time job and $9,200 of taxable interest from bonds she inherited.

FIND OUT

-taxable income and

-tax.

STANDARD DEDUCTION

Filing Status

Married individuals filing joint returns and surviving spouses

$24,400

Heads of households

$18,350

Unmarried individuals (other than surviving spouses and heads of households)

$12,200

Married individuals filing separate returns

$12,200

Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses

$1,300*

Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse

$1,650*

Taxpayer claimed as dependent on another taxpayer’s return: Greater of (1) earned income plus $350 or (2) $1,100.

* These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind.

Child's tax rate brackets:

10% tax rate: Portion of taxable income not over ETI plus $2,600

24% tax rate: Portion of taxable income over ETI plus $2,600 but not over ETI plus $9,300

35% tax rate: Portion of taxable come over ETI plus $9,300 but not over ETI plus $12,750

37% tax rate: Portion of taxable income over ETI plus $12,750

Single

If taxable income is:

The tax is:

Not over $9,700. . . . . . . . . . . . . . . . . . .

10% of taxable income.

Over $9,700 but not over $39,475. . . .

$970.00 + 12% of the excess over $9,700.

Over $39,475 but not over $84,200. . .

$4,543.00 + 22% of the excess over $39,475.

Over $84,200 but not over $160,725. .

$14,382.50 + 24% of the excess over $84,200.

Over $160,725 but not over $204,100

$32,748.50 + 32% of the excess over $160,725.

Over $204,100 but not over $510,300

$46,628.50 + 35% of the excess over $204,100.

Over $510,300. . . . . . . . . . . . . . . . . .

$153,798.50 + 37% of the excess over $510,300.

Individual A just turned 30 years old, have just received your MBA, and have accepted your first job. He must decide how much money to put into its retirement plan. The plan works as follows: Every dollar in the plan earns 7% per year. You cannot make withdrawals until he retires on his sixty-fifth birthday. After that point, individual A can make withdrawals as he sees fit.

Individual A decides that he will plan to live to 100 and work until hi turns 65. He estimates that to live comfortably in retirement, he'll need $100,000 per year starting at the end of the first year of retirement and ending on his one-hundredth birthday.

Individual A will contribute the same amount to the plan at the end of every year that you work.

(a) How much does Individual A need to contribute each year to fund his retirement? The situation above is not very realistic because most retirement plans do not allow you to specify a fixed amount to contribute every year. Instead, you are required to specify a fixed percentage of your salary that you want to contribute. Assume that your starting salary is $75,000 per year and it will grow 2% per year until you retire.

(b) Assuming everything else stays the same as in the previous question, what percentage of his income does he need to contribute to the plan every year to fund the same retirement income?

At a very large university, the mean weight of male students is 197.3 pounds with a standard deviation of 15.2 pounds. Let us assume that the weight of any student is independent from the weight of any other student. Suppose, we randomly select 256 male students from the university and look at the weight of each student in pounds. Let M be the random variable representing the mean weight of the selected students in pounds. Let T = the random variable representing the sum of the weights of the selected students in pounds.

a) What theorem will let us treat T and M as normal random variables?

Central Limit Theorem

Monte Carlo Theorem

Chebychev's Theorem

Law of Large Numbers

Convolution Theorem

b) What is the expected value of T?

c) What is the standard deviation of T?

d) If TK is T measured in kilograms (use 1kg = 2.2 pounds), then what is the standard deviation of TK?

e) What is the approximate probability that T is greater than 51,200?

f) What is the standard deviation of M?

g) What is the approximate probability M is between 197 and 198?

h) What is the approximate probability that T is within 2 standard deviations of its expected value?

Problem 1: Endowment losses. An American university endowment has experienced severe losses over the past year. The value of the university's endowment is $1B as of today (t=0). The interest rate (i.e. the expected annual investment return on the endowment) is r = 7%. (a) What amount can the university spend from the endowment at t=1 if it would like the amount spent to grow by g=4% per year from then on and has no other resources than the endowment? (b) The planned spending is, however, much larger. Back when things looked better, the university set up plans to spend $40M at t=1, with future spending growing by 4% per year. What is the PV of the planned spending? How large is the shortfall between the PV of the planned spending and the value of the endowment? (c) The university president approaches the university's business school for innovative ideas for how to cover the shortfall to avoid having to cut spending. The business school 1 suggests that the university sets up a campus in Abu Dhabi and negotiates the following deal: Abu Dhabi will pay the university $200M today (t=0) for the right to name the campus after the famed university for the next 12 years (i.e. up to t=12) and have classes taught by professors from the university. The new campus would be ready to open two years from now (t=2). At the end of each of the following 10 years (t=3, 4, 5, 6, ...,12) Abu Dhabi would pay the university $24M (Abu Dhabi would also cover the cost of hiring extra faculty and travel cost for US faculty to go teach on the new campus, so the $24M is the university's per year profit). The deal would end at t=12. What is the PV of the deal with Abu Dhabi? Is it sufficient to cover the shortfall? (d) The university president is impressed with the PV calculations but would also like to know exactly how the endowment will develop over the years, assuming the deal with Abu Dhabi is accepted. At t=0 after the initial payment from Abu Dhabi, the value of the endowment is $1.2B. What is the value of the endowment at t=1 (after interest is received and after paying for the university's t=1 spending)? What is the value of the endowment at t=12 (after interest is received, after the last payment from Abu Dhabi and after paying for the university's t=12 spending)? At what time will the endowment equal zero if the deal with Abu Dhabi is not accepted (please report the time at which the endowment rest goes negative)? Hint: Do not bother with Excel functions here, just calculate the value of the endowment in a spreadsheet year by year for the different cases.

1 Lehman Brothers is a very well-known financial firm that has filed for Chapter 11 bankruptcy protection during 2008/2009 financial crisis. Then the economic situation was so bad the 135 years old firm that survived during 1930 great depression was unable to survive and ceased the operation and never return to market. In your ECON 200 class, you learnt the conditions at which the firms enter and exit from the market. Using a graph describes how and when in a perfectly competitive market the firms that are experiencing economic losses exit from the market. In the graph you may use costs and revenue curves

2 On the other hand, the General Motors went on a different direction. General Motors was founded in 1908 and one hundred years old company. Following the financial crisis in 2008/2009, General Motors filed for chapter 11 bankruptcy protection. After support from the US government and restructuring, the business operation was able to re-enter the market. In your ECON 200 class you learnt the conditions at which the firms enter and exit from the market. Using a graph describes how and when in a perfectly competitive market the firms that are experiencing economic losses close the operation and reenter to the market. In the graph you may use costs and revenue curves.

Women athletes at the University of Colorado – Boulder have a long-term graduation rate of 62% (Source: The Chronicle of Higher Education). Over the past several years, a simple random sample of 42 women athletes at the school showed that 22 eventually graduated. Does this indicate that the population proportion of women athletes who graduate from the University of Colorado – Boulder is now less than 62%? Use a 5% significance level and the Traditional method.

check the requirements

Establish H0 and H1.

Is this a 2-tailed test, left-tailed, or right-tailed?

Calculate the value of the test statistic. Round to three figures after the decimal point. Use correct sign.

Determine the critical value. Use correct sign.

Is there sufficient evidence to reject the claim that the population proportion of women athletes who graduate from UC equals to 0.62?

Group of answer choices

The XYZ Tax Return Firm prepares tax returns for individual, partnership, and corporate clients. It competes and plans to grow by preparing returns faster than other firms and to charge its clients lower fees than competitors charge. There are many other tax preparation firms in the industry capable of preparing tax returns for its target market. XYZ believes it needs to have satisfied employees who have earned their CPA or Enrolled Agent (EA) license are critical to its long-term success.

List, describe, and justify eight metrics (2 in each of the Balanced Scorecard perspectives) that you believe XYZ should include in its Balanced Scorecard.

2. Is an individual who is perceived as having a disability, but in fact has recovered from the disability or is not disabled, covered by the ADA? Provide an example to support your answer.

What are some of the learning's and/or takeaways from studying "Networking Essentials and Security"? Why do you think this subject is important from an Executive MBA perspective? Give examples if any as necessary.