Between 2000 and 2009, real output per person in the emerging world grew at an average annual rate of 7.6%, 4.5 percentage points higher than the rate seen in rich countries. As a result, the gap between the developed and developing worlds narrowed quickly over the period. Since 2009, growth rates in the developing world have dropped and were only 1.1 percentage points higher than developed countries in 2013. Projections for 2014 put growth in developing countries just 0.39 percentage points above those in developed countries. a) Use the economic growth model to explain the convergence hypothesis. Include a diagram in your response. b) Discuss what factors could have driven the rapid growth in the developing world from 2000- 2009. c) What factors are important to sustain long run growth in these developing economies? Explain. d) In 2009, per capita GDP in developed economies was on average 3.6 times as large as in developing economies. If per capita growth maintained the same rates as between 2000 and 2009, it would take about 30 years for developing countries to catch up to the developed world. If per capita growth slows to 4.2% in developing countries and remains at 3.1% in developed countries, how many years would it take developing economies to catch up to developed economies? (Round to the nearest year)

A business journal investigation of the performance and timing of corporate acquisitions discovered that in a random sample of 2 ,767 ​firms, 705 announced one or more acquisitions during the year 2000. Does the sample provide sufficient evidence to indicate that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 27​%?

Use α=0.10 to make your decision. What are the hypotheses for this​ test?

A. H0​: p<0.27

Ha​: p=0.27

B. H0​: p≠0.27

Ha​: p=0.27

C. H0: p=0.27

Ha: p<0.27

D. H0​: p=0.27

Ha​: p>0.27

E. H0​: p>0.27

Ha​: ≤0.27

F. H0​: p=0.27

Ha​: p≠0.27

What is the rejection​ region? Select the correct choice below and fill in the answer​ box(es) to complete your choice.

​(Round to two decimal places as​ needed.)

A. z<_________ orz>_________

B. z<___________

C.z>___________

Calculate the value of the​ z-statistic for this test.

z=_________ (Round to two decimal places as​ needed.)

What is the conclusion of the​ test?

▼

Reject

Do not reject

the null hypothesis because the test statistic

▼

is

is not

in the rejection region.​Therefore, there is

▼

insufficient

sufficient

evidence at the 0.10

level of significance to indicate that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 27​%.

Universal Technologies, Inc. has identified two qualified vendors with the capability to supply some of its electronic components. For the coming year, Universal has estimated its volume requirements for these components and obtained price-break schedules from each vendor. (These are summarized as “all-units” discounts in the table below.) Universal’s engineers have also estimated each vendor’s maximum capacity for producing these components, based on available information about equipment in use and labor policies in effect. Finally, because of its limited history with Vendor A, Universal has adopted a policy that permits no more than 60% of its total unit purchases on these components to come from Vendor A.

*For example, if 1400 units are purchased from Vendor A, they cost $56 each, for a total of $78,400.

What is the minimum-cost purchase plan for Universal?

Sherrod, Inc., reported pretax accounting income of $84 million for 2018. The following information relates to differences between pretax accounting income and taxable income:

Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $3 million. The installment receivable account at year-end had a balance of $4 million (representing portions of 2017 and 2018 installment sales), expected to be collected equally in 2019 and 2020.

Sherrod was assessed a penalty of $4 million by the Environmental Protection Agency for violation of a federal law in 2018. The fine is to be paid in equal amounts in 2018 and 2019.

Sherrod rents its operating facilities but owns one asset acquired in 2017 at a cost of $88 million. Depreciation is reported by the straight-line method assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

Warranty expense of $3 million is reported in 2018. For tax purposes, the expense is deducted when costs are incurred, $2 million in 2018. At December 31, 2018, the warranty liability was $2 million (after adjusting entries). The balance was $1 million at the end of 2017.

In 2018, Sherrod accrued an expense and related liability for estimated paid future absences of $8 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($5 million in 2019; $3 million in 2020).

During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss is paid in 2018 at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2018, were $2.0 million and $3.2 million, respectively. The enacted tax rate is 40% each year.

1. Determine the amounts necessary to record income taxes for 2018 and prepare the appropriate journal entry.

2. Show how any deferred tax amounts should be classified and reported in the 2018 balance sheet.​

Question 2. Go to the Blackboard and download the MS excel file, ‘stock_return.xlsx’. It contains a year of monthly stock price data of Amazon, Pfizer, and S&P 500 (Market Index). Using the data, answer the following questions. (50 points)

(1) Compute the monthly return of Amazon and Pfizer. You should get 12 monthly returns for each. To get a monthly return, you need to use previous month’s stock price. For example, Amazon’s stock return of 2018-01 will be [(Stock price of 2018-01) - (Stock price of 2017-12)] / (Stock price of 2017-12) (5 points)

(2) Compute the average stock return (arithmetic average), standard deviation, and holding period return for Amazon and Pfizer. Use Excel function of =AVERAGE() for average return, =STDEV.S() for standard deviation, and =PRODUCT() for holding period return. (10 points)

(3) Form a portfolio investing 50% of your money into Amazon and 50% into Pfizer.

Calculate the monthly return for each month of the portfolio. Then, provide arithmetic average and standard deviation of the portfolio return. Check and report whether the linear combination (weighted average) of standard deviation of two companies is smaller than portfolio’s standard deviation or not. (15 points)

(4) Calculate the monthly market return, average market return, and market variance using S&P500 Index. Using the variance of market return and covariance between market return and Amazon’s return, calculate the Amazon’s beta. Use =VAR.S() for variance and =COVARIANCE.S() function to get covariance (15 points)

(5) Suppose risk free rate is 1% and expected market return is 5%. Compute the expected return of Amazon using CAPM. You would get the beta in (4) (5 points)

QUESTION 6 Define the following terms

a. Current assets

b. Non current assets

c. Current liabilities

d. Non current liabilities

e. Share capital

In reviewing the data in the Performance Lawn Equipment Database, Elizabeth Burke noticed that defects received from suppliers have decreased (worksheet Defects After Delivery). Upon investigation, she learned that in 2014, PLE experienced some quality problems due to an increasing number of defects in materials received from suppliers. The company instituted an initiative in August 2015 to work with suppliers to reduce these defects, to more closely coordinate deliveries, and to improve materials quality through reengineering supplier production policies. Ms. Burke noted that the program appeared to reverse an increasing trend in defects; she would like to predict what might have happened had the supplier initiative not been implemented and how the number of defects might further be reduced in the near future. Use trendlines and regression analysis to assist her in evaluating the data in this worksheet and to reach useful conclusions. Summarize your work in a formal report with all appropriate results and analyses.

Roger graduated with an accounting degree in December of 2017. He began working for Big Bank on January 1, 2018. He is classified as an independent contractor. The bank paid him $50,000 for 2018. How much self‐employment tax will Roger pay for 2018 (rounded)?

QUESTION 1

Why is non-GMO (negative control) necessary for this experiment? Choose all that apply: