Oishi and Shigehiro (2010) report that people who move from home to home frequently as children tend to have lower than average levels of well-being as adults. To further examine this relationship, a psychologist obtains a sample of n = 12 young adults who each experienced 5 or more different homes before they were 16 years old. These participants were given a standardized well-being questionnaire for which the general population has an average score of μ = 40. The well-being scores for this sample are as follows: 38, 37, 41, 35, 42, 40, 33, 33, 36, 38, 32, 39.

1. On the basis of this sample, is well-being for frequent movers significantly different from well-being in the general population? Use a two-tailed test with α = .05.  (1 pt)
2. Compute the estimated Cohen’s d to measure the size of the difference. Be sure to interpret your findings. (1 pt)
3. Write a sentence showing how the outcome of the hypothesis test and the measure of effect size would appear in a research report. (1 pt)

Please show work ( how SS, s, and p-value were found)

Suppose an individual’s weekly labour supply is given by L = -10 + w, where L is labour supply in hours and w is the hourly after-tax wage. Assume that firms are willing to pay a before-tax wage of $40/hr.

1. In the absence of taxation, how many hours per week will the individual work? What are weekly earnings? Illustrate the choice in a diagram. [4]

2. Suppose the government institutes a 25% tax on labour income. What is the after tax wage under this tax system? How many hours per week will the individual work? How much does the individual earn before-tax? Calculate and illustrate the direct burden (tax revenue) from the tax. Calculate and illustrate the indirect burden (deadweight loss) from the tax. [4]

3. Imagine that there are many different individuals with different labour supply curves, all of whom face the before-tax wage of $40. Do they all face the same marginal tax rate on labour income? What about the average tax rate on labour income? Is the tax regressive, proportional, or progressive? [Hint: Write out a tax function, taxes as a function of income, ie. T(Y).] [4]

4. Now suppose that the government changes the tax so that under the new system, the first $600 of labour income/week is tax free, but income above this level is subject to the 25% tax. What is the after-tax wage under this tax system? How many hours per week will the individual work? How much does the individual earn before-tax? Calculate and illustrate the direct burden (tax revenue) from the tax. Calculate and illustrate the indirect burden (deadweight loss) from the tax. [4]

5. As in part (c), imagine that there are many different individuals with different labour supply curves, all of whom face the before-tax wage of $40. Under the new system, do all face the same marginal tax rate on labour income? What about the average tax rate on labour income? Is the tax regressive, proportional, or progressive? [Hint: Think about the tax function for incomes above $600] [4]

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.

You’ve been able to retrieve the following information so far:

The company declared a 3% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25.00 on December 1, and is $32.00 on the actual distribution date of the stock, December 31.

Total paid-in capital before the stock dividend =       ?

Total retained earnings before the stock dividend = 33,500,000

Total stockholders’ equity before the stock dividend =         ?

Total paid-in capital after the stock dividend =        ?

Total retained earnings after the stock dividend =     ?

Total stockholders’ equity after the stock dividend =      ?

Please Help?

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.

You’ve been able to retrieve the following information so far:

The company declared a 3% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25.00 on December 1, and is $32.00 on the actual distribution date of the stock, December 31.

Total paid-in capital before the stock dividend =      

Total retained earnings before the stock dividend =

Total stockholders’ equity before the stock dividend =        

Total paid-in capital after the stock dividend =

Total retained earnings after the stock dividend =    

Total stockholders’ equity after the stock dividend =

How do I calculate these totals? Please help!

Exercise 20-04

The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Plan assets, January 1, 2020 $528,000 Projected benefit obligation, January 1, 2020 528,000 Settlement rate 8 % Service cost 43,400 Contributions (funding) 26,600 Actual and expected return on plan assets 51,600 Benefits paid to retirees 35,600 Using the preceding data, compute pension expense for the year 2020.

As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)

Spritz Company owns 15% of the stock of Turner Corporation. The investment was purchased for $200,000. At the beginning of 2020, it had a fair value of $230,000. At the end of 2020, its fair value is $250,000. Turner reported net income of $100,000 for 2020, and declared and paid cash dividends of $60,000. Spritz sells products to Turner at a markup of 20% on cost. Turner’s ending inventory for 2020 included a balance of $10,800 for products purchased from Spritz.

Required

Prepare the journal entries Spritz makes in 2020 to record the above facts, assuming that Spritz treats its investment as having significant influence and uses the equity method.

Exercise 1 Use the money market and foreign exchange (FX) diagrams to answer the following questions. This question considers the relationship between the euro and the U.S. dollar ($). The exchange rate is in U.S. dollars per euro, E$/e. Suppose that with financial innovation in theUnited States, real money demand in the United States decreases. On all graphs, label the initial equilibrium point A.

(a) Assume this change in U.S. real money demand is temporary. Using the FX and money market diagrams, illustrate and explain how this change affects the money and FX markets. Label your short-run equilibrium point B and your long-run equilibrium point C. (Due to the temporary nature of the shock, assume that the reversal of real money demand occurs before the price level adjusts in the long run.)

(b) Assume this change in U.S. real money demand is permanent. Using a new diagram, illustrate and explain how this change affects the money and FX markets. Label your short-run equilibrium point B and your long-run equilibrium point C.

(c) Illustrate and explain how each of the following variables changes over time in response to a permanent reduction in real money demand: nominal money supply M_US, price level P_US, real money supply M_US/P_US, U.S. interest rate i_$, and the exchange rate E$/e.

Key words and Definitions

Payout policy – the firm’s typical method of distributing cash to shareholders.

Dividend signaling – the theory that a firm’s dividend policy provides information to stakeholders.

SEC – the Securities and Exchange Commission is the federal government entity charged with protecting investors and with financial oversight of public firms and the financial markets.

Summary: Key Points in the Article.

Kraft Heinz shares were down by as much as 20% after the market closed. The firm wrote down the value of both Kraft and Oscar Mayer brands.by $15 billion after posting a $12.6 billion loss. In addition, the firm slashed dividends from 62.5 cents a share to 40 cents a share.

The dividend cut will allow the firm to “cut debt faster, improve the balance sheet” and allow Kraft Heinz to sell some business units. The company also announced the Securities and Exchange Commission was investigating various vendor relationships. Kraft Heinz stated it was fully cooperating with the investigation and the company launched an internal review of its procurement procedures.

Thinking Critically Questions:

1. What signal does a dividend cut send?

2. Why did Kraft Heinz cut dividends?

3. Why is Kraft Heinz selling some business units?

Carl applies for fire insurance for his house. Before the application is processed, Carl’s house burns down. Carl will have coverage if the insurance company Doesn’t find out about the fire until after the policy issues Chooses to accept the application Issued a binder Makes coverage retroactive