1. Highlight, with examples, the difference between the ‘Customs Union’ and ‘Economic Union’.

2. What is countertrade? Explain how switch trading works.

3. Making or buying decisions are of great strategic importance to firms in international trade. What are the advantages and disadvantages of such decisions?

4. What are Incoterms? Why do businesses use Incoterms? Highlight the differences in 2 categories of Incoterms 2010.

a) How much heat is required to change a 31.3 g ice cube from ice at -10.6°C to water at 47°C? (if necessary, use cice=2090 J/kg°C and csteam= 2010 J/kg°C) b)How much heat is required to change a 31.3 g ice cube from ice at -10.6°C to steam at 110°C?

1. From the table above, calculate the inflation rate from 2015 to 2016 (5 points)

2. Use the table above to answer:  If you were earning $40,000/year in 2012, how much would you need to be earning in 2019 to have the same purchasing power?. (5 points)

3. Use the table above to answer:  If average college tuition was $10,000 per year in 2010, what would that be equivalent to in 2019? (5 points)

4. Price inflation in 2021 is expected to be 3%, but because of an economic slowdown as the result of COVID shutdowns, inflation in 2021 was actually only 1%.  

Hourly-wage worker agrees on January 1, 2021, to a three-year union contract at a local factory. A fixed cost-of-living adjustment (COLA) of 3 percent per year is built into the contract.

Is the worker a winner or a loser? (4 points)

As of December 31, 2009, a company’s assets consisted of $60,000 of cash, $120,000 of marketable securities, $200,000 of accounts receivable, $300,000 of inventory, and $1,200,000 of net plant and equipment. Its liabilities consisted of $50,000 of accounts payable, $20,000 of accruals, $70,000 of notes payable, and $600,000 of long-term debt. As of December 31, 2010, the company’s assets consisted of $70,000 of cash, $140,000 of marketable securities, $250,000 of accounts receivable, $400,000 of inventory, and $1,300,000 of net plant and equipment. Its liabilities consisted of $65,000 of accounts payable, $15,000 of accruals, $75,000 of notes payable, and $600,000 of long-term debt. In 2010, the company’s annual sales were $4,700,000, earnings before interest and taxes were $800,000, it paid $60,000 of interest, and its tax rate was 30%. The company’s weighted average cost of capital is 11% per year and it has 500,000 shares of common stock outstanding. The company expects its free cash flow to grow forever at a rate of 6% per year. Estimate the value per share of the company’s common stock.

Question 2

Suppose that the annual returns on two shares are perfectly negatively correlated and that ?=0.07, ?

?= 0.20,?= 0.12 , and ?= 0.5. Assuming that there are no arbitrage opportunities, by using ???

the Goal Seek function (excel) calculate the weight (proportion) of the two assets that produce the lowest portfolio variance? (Use the Goal Seek function)

MAYBANK

PETRONAS

1. A random sample of 64 second graders in a certain school district are given a standardized mathematics skills test. The sample mean score is 51.58. Assume the standard deviation for the population of test scores is 15. The nationwide average score on this test us 50. The school superintendent wants to know whether the second graders in her school district have greater math skills than the nationwide average. Perform the hypothesis test and compute the P value. Based on your P value, what is the conclusion if we test at 0.05 level of significance?

2. Suppose that the mean price of a home in Denver, Colorado in 2008 was 225.3 thousand dollars. A random sample of 49 homes sold in 2010 had a mean price of 200.1 thousand dollars. A real estate firm wants to test to see if the mean price of 2010 differs from the mean price in 2008. Assume that the population standard deviation is 140. Perform the hypothesis test and compute the P value. Based on your P value, what is the conclusion if we test at the 0.05 level of significance?

Assume that the following are independent situations recently reported in the Wall Street Journal.

1. General Electric (GE) 7% bonds (interest payable annually on January 1), maturing January 1, 2030, were issued at 112 on January 1, 2010.

2. Sears 7% bonds (interest payable annually on December 31), maturing January 1, 2028 were issued at 90 on January 1, 2018. Instructions

(a) Were GE and Sears bonds issued at a premium or a discount?

(b) Explain how bonds, both paying the same contractual interest rate, could be issued at different prices.

(c) Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $500,000 of bonds in total.

(d) Prepare the adjusting entries to record the accrued interest and the amortization of the premium on the bonds for GE, on December 31, 2010 using straight-line amortization.

(e) Prepare the entries to record the interest payment and the amortization of the discount on the bonds for Sears, on December 31, 2018 using straight-line amortization.

6. ​Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. The data table linked below shows the​ 30-year fixed average mortgage rate for the month of December every year between 1987 and 2010.

Year   Rate_(%)
1987   11.09
1988   11.04
1989   10.17
1990   9.93
1991   8.57
1992   8.3
1993   7.25
1994   9.04
1995   7.21
1996   7.06
1997   7.07
1998   6.84
1999   7.65
2000   7.74
2001   7.07
2002   6.84
2003   6.94
2004   6.79
2005   7.02
2006   6.82
2007   6.63
2008   5.88
2009   5.64
2010   5.4

b. Forecast the average December mortgage rate in 2011 using a trend projection ​(Round to two decimal places as​ needed.)

c. Calculate the MAD for this forecast. ​(Round to two decimal places as​ needed.)

d. Determine the Durbin–Watson statistic (Round to two decimal places as​ needed.)

e. Identify the critical values. ​(Round to two decimal places as​ needed.)

Read/review the articles and websites posted in Module 2 prior to responding to the two questions below.

They are important and will help you in this course and your journey to become a professional nurse.

1) The differentiating factors between occupations and professions are education, theory and research, and a professional framework or model. There have been debates on whether nursing is a "profession" or a skill-based "occupation" has been ongoing for decades. Explain why nursing should or should not be considered a profession. Support your response with reliable, valid sources.

2) Compare and contrast the "nursing model" vs the "medical model". As a future professional nurse, why is it important to understand the differences between these two models/professions? Additionally, discuss why it is best to describe nursing as part of "healthcare system/health professions" rather than the "medical field/medicine".

Articles are

BaccEssentials08-2.pdfPreview the document Nursing Education 2010 Brief-2.pdfPreview the document Institute of Medicine of the National Academies (2010).

The future of nursing: Focus on education report. (Links to an external site.)Links to an external site.

Portfolio analysis You have been given the return data shown in the first table on three assets—F, G, and H—over the period 2010–2013.

Expected return

Year Asset F Asset G Asset H

2010 16% 17% 14%

2011 17% 16% 15%

2012 18% 15% 16%

2013 19% 14% 17%

Using these assets, you have isolated the three investment alternatives shown in the following table:

Alternative Investment

1 100% of asset F

2 50% of asset F and 50% of asset G

3 50% of asset F and 50% of asset H

a. Calculate the expected return over the 4-year period for each of the three alternatives.

b. Calculate the standard deviation of returns over the 4-year period for each of the three alternatives.

c. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives.

d. On the basis of your findings, which of the three investment alternatives do you recommend? Why?