(10 pts) Barley Company owns a plot of land on which buried toxic wastes

have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Barley wishes to sell the land now. It has located two potential buyers: Buyer A, who is willing to pay $350,000 for the land two years from now, and Buyer B, who is willing to make 12 annual payments of $50,000 each, with the first payment to be made 4 years from today. Assuming that the appropriate rate of interest is 9%:

What is the present value of Buyer A’s offer? $ __________

What is the present value of Buyer B’s offer? $ __________

Emory University

Identify the sub-industry or type of organization it belongs to (e.g., home care, hospital) and the financial background of the organization.

 Is Emory University a nonprofit or for-profit?

 What kind of impact do the economic principles of demand and market/consumer behavior have on Emory University's financial statements?

Case 1–2: True Religion Jeans: Flash in the Pants or Enduring Brand?

Founded in 2002 by Jeff Lubell, True Religion had become one of the largest premium denim brands in the United States by 2012. Although True Religion made its debut in upscale department stores and trendy boutiques a decade earlier, the company owned 86 full price retail stores and 36 outlet stores in the United States as well as 30 stores in international markets by the end of 2012. The company’s domestic retail store business accounted for about 60% of revenues and 64% of operating profit before unallocated corporate expenses in 2012. Just five years earlier, the U.S. retail store segment generated only 17% of sales and 25% of operating profit before unallocated corporate expenses.

Jeff Lubell’s vision of the company had come true—at least partly. The company had transformed itself from a jeans designer into an apparel retailer with it own brand à la Buckle and Diesel. At the same time, True Religion had managed to shift its product mix so that sportswear accounted for almost 35% of sales in its company-owned stores. Lubell felt these two ingredients were critical to establishing True Religion as a “lifestyle brand.” The ultimate in product differentiation, many companies attempt to create so-called “lifestyle” brands that transcend product category and inspire deep consumer loyalty. Lubell felt becoming a lifestyle brand was the key to insulating True Religion from the inevitable fluctuations in fashion trends.

Moreover, True Religion’s sales had grown at an average annual rate of almost 22% from 2007-2012. The company’s return on invested capital was an impressive 27% and its return on average assets was 12% in 2012. Despite these factors, press articles and analyst reports on True Religion described the company as, “the struggling maker of premium denim.”1 A New York Post article entitled “Escape From Hell for True Religion” described private equity firm, TowerBrook, as the company’s “savior,”2 when the company announced it had been acquired by TowerBrook in 2013. Other denim brands, such as Jeff Rudes’ J Brand, appeared to be usurping True Religion’s position as the “must have” denim brand for young consumers.

What had gone wrong at True Religion? Was the change in ownership the answer to the company’s problems? Was premium denim destined to go the way of Flash Dance legwarmers and Crocs as fast fashion from the likes of H&M became more mainstream? Private equity investors had snapped up stakes in both established and up-and-coming premium denim brands in the past five years—leaving just one publicly traded premium jeans maker, Joe’s Jeans. Should investors stay away from the industry?

How would the trade war actually affect the macroeconomy of the US?

Summarize decade-long macroeconomic data in the US. Analyze US’s economic structure and argue on the severity of those impacts.

Based on your above data analysis, comment on whether President Trump's tariff and tax policies help resolve some underlying structural issues revealed from the trade war

1 Current government policy

In this year, the US government decide to cut tax to stimulate economic growth. Meantime, the US government raise the tariff against a list of imported goods from Asian countries. Use the open economy IS? ?LM? model to graphically explain how a combination of the fiscal and trade policy will affect the real exchange rate and the real output in equilibrium.

Research paper “Dynamic Risk Management” (JFE, Rampini, Sufi, Viswanathan) showed that those US airlines that experienced financial distress in 2004-2005 chose not to hedge their commodity price risk. As financial health of US airlines improved they became active hedgers. Please explain the paper’s findings from the point of view of the agency theory (conflict between shareholders and bondholders)

Explain how countries like Greece have largely misused the Keynesian model to “buy” votes and how this has created “sovereign debt” problems. In this regard, why can countries like Greece, or US states like California and cities like Detroit, become bankrupt, but countries like the US and Canada can never be bankrupt from too much debt?

In 2018, Carson is claimed as a dependent on his parent's tax return. Carson's parents provided most of his support.

What is Carson's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. for reference.

a. Carson is 17 years old at year-end and earned $14,000 from his summer job and part-time job after school. This was his only source of income.

Tax Liability?

b. Carson is 23 years old at year-end. He is a full-time student and earned $14,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.

Tax Liability?