As a pension fund manager in 2020, you are given $67,556,416.88 to manage so that the fund will have at least $100,000,000 available in 2030, 10 years from now. The yield curve is flat, and the current interest rate for all maturities is 4%. The only bonds that you can buy are annual coupon Treasury bonds with 1-year maturities and bonds issued in 2020 that mature in 2040 (currently a maturity of 20 years). All bonds are issued at par. 1. How many of each Treasury bond should you buy today?

$_________________1-Year

$_________________20-Year

2. If all interest rates increase by 1% (to 5%) in year (2021) and then remain at 5%, how much will the fund have in 2030? Reinvest all coupon payments in one-year bonds. (The answer should be fairly close to the goal amount if you selected the portfolio correctly. If you set up the Excel spreadsheet right, you can see that you will have the goal amount regardless of the new interest rate.)

$_______________________

3. Very briefly, why was the amount not equal to exactly $100,000,000? (I’m looking for a key word.)

Prepare the adjusted trial balance on December 31, 20X6. Attach your response in an excel or word file.

Questions 4 through 10 are based on the following December 31, 20X6 year-end account balances for XYZ Co. after adjusting entries had been prepared but before the books were closed for the year.                                                 

                Cash……………..…………………………….250,000

                Accounts receivable…………………….……..680,000

                Marketable securities…………………………...60,000

                Prepaid insurance……………………………….35,000

                Prepaid rent….………………………………….30,000

                Office equipment…………………………….....620,000

                Accumulated depreciation: equipment………...200,000

                Land……………………………………………750,000

                Accounts payable………………………………306,000

                Dividends payable……………………………… 50,000

                Interest payable…………………………………... 8,750

                Income tax payable……………………………...30,000

                Unearned client service revenue………………..180,000

                Notes payable (long-term).……………………..350,000

                Common stock………………………………….750,000

                Retained earnings….…………………………....315,200

                Dividends…………………………………….......75,000

                Client service revenue………………………...1,200,000

                Travel expense………………………………..…..28,000

                Office supplies expense…………………………..20,000

                Advertising expense………………………………45,000

                Salary expense…………………………………...400,000

                Utility expense………………………………….....40,000

                Depreciation expense: equipment…………………25,000

                Interest expense……………………………….…...17,500

                Insurance expense……………………………….....52,000

                Rent expense……………………………………..175,000

                Income tax expense………………………………..87,450

A. what type of test should be used and why?

B. Compose a null hypothesis to accompany the test. Record both a generic version (through the use symbols) and an English version (using words) – for the generic version, it may be easier to insert an equation box into the word document and type via equation

C. Compose an alternative hypothesis to accompany the test. Record both a generic version (through the use of symbols) and an English version (using words) – for the generic version

D. Compose and type the results of the test. Do you “Reject” or “Fail to Reject” the null hypothesis?

Collect data on one response (dependent or y) variable and two different explanatory (independent or x) variables. This will require a survey with three questions. For example: To predict a student’s GPA (y), you might collect data on two x variables: SAT score and age. So we would be trying to determine if there was a linear correlation between someone’s SAT score and their GPA, as well as their age and their GPA. (Note: students may not choose GPA as their dependent variable, must pick a different topic.)

• This data must be quantitative, not qualitative.

• Collect data from at least 15 people. Each person must answer all three questions for their data to count.

• Prepare a brief report that shares the questions used, as to why they are important to be studied.

• Present data in table form and as a scatter plot. You can create your tables and graphs in Excel, but they will need to be copy and pasted into your Word document. Do NOT submit an Excel file as it will not be graded.

• Model the data with two linear regressions (one for each x & y pair.)

• Interpret each linear model.

• Use each of your models to make a prediction.

Collect data on one response (dependent or y) variable and two different explanatory (independent or x) variables. This will require a survey with three questions. For example: To predict a student’s GPA (y), you might collect data on two x variables: SAT score and age. So we would be trying to determine if there was a linear correlation between someone’s SAT score and their GPA, as well as their age and their GPA. (Note: students may not choose GPA as their dependent variable, must pick a different topic.)

• This data must be quantitative, not qualitative.

• Collect data from at least 15 people. Each person must answer all three questions for their data to count.

• Prepare a brief report that shares the questions used, as to why they are important to be studied.

• Present data in table form and as a scatter plot. You can create your tables and graphs in Excel, but they will need to be copy and pasted into your Word document. Do NOT submit an Excel file as it will not be graded.

• Model the data with two linear regressions (one for each x & y pair.)

• Interpret each linear model.

• Use each of your models to make a prediction.

Georges Hotel has the following sales procedures: The hotel uses duplicated and pre-numbered guest checks to record customers’ orders; the manager is in charge of monitoring the guest checks. She stores them in a storage container which is kept locked until she is ready to issue them to the servers. At the beginning of each shift, the manager issues the guest checks to the servers and records the amount given to each person on a blank sheet of paper. The server takes the order from the customers and records the information on the guest checks. She then presents the kitchen with one copy of the guest check for them to prepare the order and she keeps the other copy to be handed in at the end of the shift. The server informs the cashier of the order by word of mouth. In the event that there were any errors during the shift, servers are allowed to destroy the guest checks.

1. Identify three problems in the sales procedure of the Hotel, explain how they could be detrimental and suggest a control procedure that could be used to address each problem

2. Name three key personnel normally involved in a Hotel’s front office accounting functions. Of the three, chose one and briefly describe their role.

Question 6

Alphabet Company (ABC) is an electronic manufacturer in Hong Kong. The firm has grown rapidly in recent years, causing a need for short-term financing. Regarding its sales, a majority are for credit although the rest of them are for cash. The credit sales are financed with short-term borrowings.

As a financial manager of ABC,

(a)





(b)




(c)




You are told that ABC has a $900,000 line of credit with a 10% compensating balance requirement with ICBC Bank. It means that 10% of the amount borrowed must be left in a non-interest-bearing account. The quoted interest rate is 8%. It is reported that ABC needs $270,000 to purchase inventory. What interest rate is ABC effectively paying?

You are also told that ABC had an average of $70,000 in accounts receivable last year. Credit sales were $700,000 per year. ABC factors its receivables by discounting them at 2.5%. Assume 365 days a year. What is the effective interest rate on this source of short-term financing?

Critically discuss two decision criteria for determining short-term financing policy of the firm. (word limit: 150 words)

Select a real company of your choice and write an article titled as ‘Strategic Management in XYZ company’( Word Limit: Not more than 1000 words)

( I chose Apple company)

You should try to include the following components in the write-up:

• A brief introduction about the company and the industry

• External Analysis

• Internal Analysis

• Current Strategy and

• Conclusion

Learning Outcome: Students will:

- Recognize aspects of an organization’s environment that can influence its long-term decisions

-Identify the aspects of an organization’s environment that are most strategically important

-Apply the resource-based view of the firm to determine core and distinctive competencies

-Use the VRIO framework and the value chain to assess an organization’s competitive advantage and how it can be sustained

-Understand the competitive and cooperative strategies available to corporations

-Understand the three aspects of corporate strategy

-Identify a variety of functional strategies that can be used to achieve organizational goals and objectives

-Gain insights into the strategy-making processes of organization

-Understand the contribution of various functional areas e.g. production, marketing, purchasing and supply management to the overall well-being of the organization

-Understand the relationship between social responsibility and corporate performance

In excell

• t-Test Assuming Equal Variances
• t-Test With Paired Two Samples for Means
• Analysis of Variance
• Correlation Coefficient
• Simple Regression

Skills and self-esteem are believed to influence job performance. To investigate this, an experimenter split 14 recent parolees into "high skill and self-esteem" and "low skill and self-esteem" groups. Three months later, employers were asked to rate each parolee’s job performance on a standard test that gives ratings from 1 to 10, with 10 being the highest. The following ratings were obtained for the individuals in the two groups:

a. Run descriptive statistics on the data. Please provide measures of central tendency and variability for the entire sample and also by groups.

b. Are there differences in job performance between the two groups? In your response, provide the answers to the following:

(i) The test you will run.

(ii) The null and research hypothesis.

(iii) The test results (copy the results to the word doc).

(iv) Your interpretation of the results.

The director of finance has discovered an error in his WACC calculation. He did not factor in the tax rate when determining the cost of debt. UPC has a line of credit at 4% interest, and the company is taxed at 30%. Further, assume that UPC’s required rate of return on equity is 14%, and its capital structure is 40% debt and 60% equity. Additionally, the budget committee question and answer session revealed that UPC has discovered a technology that will increase its product life span by 1 year. The new technology will add $120,000 and $130,000 to projects A and B’s initial capital outlay, respectively. Further, the finance department has determined that cash flows for years 1, 2, and 3 will be unchanged. However, net cash flows for year 4 will be $300,000 and $150,000 for projects A and B, respectively. • In an Excel spreadsheet, using the UPC scenario, and the new information above, calculate the NPV, IRR, MIRR, and payback periods from projects A and B. You must input all of your data into an Excel spreadsheet and show all formulas. • Using MS Word, explain any risk factors inherent in the budgeting for the 2 projects.