1. Between 1982 and 2006, the S(¥/$) exchange rate moved from S(¥/$) 249.05 to S(¥/$) 116.34. During this same 25-year period, the consumer price index (CPI) in Japan rose from 80.75 to 97.72, and the CPI in the US rose from 56.06 to 117.07.

1. If PPP held over this 25-year period, what should the S(¥/$) exchange rate have been in 2006?

2. Was there a real appreciation or depreciation in the ¥ over this 25-year period (be sure to provide quantitative justification for your answer)?

3. Were there likely any associated positive or negative competitive pressures on Japanese exporters vs importers? If so, what likely happened to the competitive position of Japanese exporters? Japanese importers? Why (briefly)?

Radio frequency identification (RFID) is known as one of the three new technology solutions for supply chain management according to Mondragon, Lyons, Michaelides and Kehoe (2006). Critically discuss the concept of RFID and explain in your own understanding why old RFID technology can disrupt modern retail supply chains. [10]

I'm interested in a t-test of looking at the means for the <30 group in comparison to the other age groups. Do I need to run four t tests, one for <30 with each age group? The data below details the percentage of giving by age group for each of the 32 years listed. Thank you!

You are auditing Quick Technologies, Inc. (QTI). QTI is a manufacturer of various computer technologies and works hard on bringing new technologies to market. QTI has approximately 4,000 customers (some with multiple locations). On average, QTI sells its inventory every 45 days, and it takes approximately 33 days to collect receivables. QTI has also experienced a high degree of competitiveness and technological obsolescence. The company has found that the average product life is between 9 and 15 months.

Identify a potential application for ADA in the audit of QTI. Explain the account and the assertion(s) tested by the application.??

What is the population being analyzed and tested using ADA?

Is ADA being used as a risk assessment procedure or as a substantive test?

Explain the ADA application that is planned and how it will contribute to the evaluation of the assertion being audited.

Explain the role of business acumen in the application of ADA.​​​​​​​

The data are daily high temperatures in Atlanta for one month.

61, 61, 63, 64, 65, 66, 66, 66, 67, 68, 70, 70, 70, 71, 71, 72, 74, 74, 74, 75, 75, 75, 76, 76, 77, 78, 78, 79, 79, 94

Question 1 options:

Question 2:

The height in feet of 25 trees is shown below (lowest to highest).

21, 27, 30, 31, 31, 31, 33, 34, 34, 37, 38, 38, 38, 40, 41, 42, 43, 45, 46, 51, 51, 52, 52, 59, 59

Question 2 options:

Not all water produced by suppliers is sold to customers. Some is used for other purposes and some is not paid for. Other amounts are "lost". What are those other purposes? Why might some water not be paid for? How does a utility lose water?

Hint: research the term Unaccounted for Water and use your findings to answer the three questions above. A good place to start is Water and Revenue Losses by Lynn P. Wallace, American Water Works Foundation, Dec. 1987.

Explain how you would calculate the economic value created by the USPS, taking into account the positive externalities it produces.

Here's a few comments: The USPS has had $45 billion or so in cumulative accounting losses over the past four decades or so (see its financials). Was what the USPS produced over the past four decades worth $45 billion to the taxpayers? Take a for-profit business like FedEx. We know the value of the company’s inputs; that’s easy, we can look at their expenses. Now, what is the value of what they produced? Let’s assume for a second that what they produced is a private good with no externalities. Let’s also assume that the value of its services to customers matched or exceeded the amount its customers paid for its services. This is a reasonable assumption, because if it weren’t the case, customers wouldn’t voluntarily engage in transactions with the company. So, what is the value of what FedEx produced? In this case, it would be its revenue plus the difference between what customers paid for Fedex’s services and the value they placed on those services. This difference is called consumer surplus. So the value of what FedEx produced in a given year would be its revenue plus the consumer surplus it generated. To see if they created any economic value, you would subtract expenses from this total.

Bonus questions: Where does profit enter this equation? Note the following: (Revenue + Consumer Surplus) - Expenses = (Revenue - Expenses) + Consumer Surplus = Profit/Loss + Consumer Surplus = Economic Value Created. Why isn't profit/loss, by itself, enough to determine if economic value has been created? Why isn't profit/loss enough to determine if an organization is "efficient" or not?

For example, assuming that everything stays the same with respect to its operations and its volume of business, how FedEx prices its goods and services doesn’t change the amount of economic value it creates. If FedEx raises its prices (and its volume of business stays the same), it may increase its profits, but it would reduce consumer surplus by the same amount, so it would be a wash. What if FedEx lowered its prices below its costs? It would lose money, but the decline in revenue would be offset by a corresponding increase in consumer surplus, so the economic value created by the company would, again, remain the same. In this example, assuming the volume of business stays the same, FedEx’s pricing decisions affect the allocation of value—i.e. how the value created by the company is split between itself and its customers—but it doesn’t effect the overall amount of value the company creates.

The USPS doesn’t produce a private good, like we assumed in the case of FedEx. What it produces is a merit good, defined as a good or service that has both private benefit and associated positive externalities. This adds another layer of complexity to a strategic assessment of the USPS.

Trans Corp, a large conlomerate is evaluating the possible acquisition of the chip company. Transcorp analysts project the following post merger incremental cash flows.

Years                         CF

2003 12

2004 19

2005 23

2006 29

2007 and beyond       Constant growth rate at 10%

Chip currently has a market value capital structure debt of 10%, but transcorp would increase it to 50% if the acquisition were made. Chip, if independent pays30% taxes, but its income would be taxed at 40% if consolidated. Chips current market determined beta is 1.80 and its estimated post merger beta would increase to 2.67.The risk free rate stands at 10% and the return on the market is 15%.

What would be the appropriate discount rate for Valuing the acquisition? Ans:23.35%

What would be the total value of Chip company to Transcorp?$Ans:150.21

Chip has $5 million shares outstanding. Chip’s current market price is $32.50. What is the maximum price per share that Transcorp should offer for chip?Ans: $30.04