An analysis of the inventory owned by Owens Company as of the Company’s fiscal closing date is shown in the following table.

Assuming Owens applies the lower-of-cost-or-market rule on an individual basis, the Company would be required to recognize an expense amounting to

Multiple Choice

$1,660.

$2,200.

$3,860.

$540.

For each of the following problems, define the appropriate parameter(s) and state the null and alternative hypotheses.
1. Is the proportion of men who vote greater than the proportion of women who vote in the United States?
2. A car dealership announces that the mean time for an oil change is less than 15 minutes.
3. A researcher wants to test if there is evidence that the proportion of US citizens who can name the capital city of Canada is greater than 0.75.
4. A researcher wants to see if there is evidence that the mean time spent studying per week is different between first-year students and upper-class students.

My responses so far...?

1. H_a: P_m > P_w - The proportion of men voters is greater than the proportion of female voters in the alternative hypothesis.
H_o: P_m = P_w - The proportion of men voters is equal to the proportion of female votes in the null hypothesis.

2. H_a: Mu < 15 minutes
H_o: Mu = 15 minutes

3. H_a: P_c > 0.75 - The proportion of citizens who can name the capital city of Canada is greater than 0.75 in the alternative hypothesis
H_o: P_c = 0.75 - The proportion of citizens who can name the capital city of Canada is equal to 0.75 in the null hypothesis.

4. I'm really stuck on this one!

A US multinational corporation has operations in Bolivia through which it plans to sell a new product of 500,000 cans of beans per year for the next 3 years, at a price of BOB 4 per can after incurring a variable cost of BOB 2.50 per can. The company will also incur a fixed cost of BOB 120,000 per year. The company has invested BOB 900,000 today in manufacturing equipment for its Bolivian operations, which will be depreciated to $0 at the end of its 3-year life. The corporation’s required rate of return is 20% and has a tax rate of 25%. The spot rate was BOB 6.91/$ before it unexpectedly changed to BOB 7.25/$.

a.) What is the value of the Bolivian operations prior to the unexpected change in the spot rate assuming the operations have a 3-year life only? (round to the nearest dollar)

b.)What is the value of the Bolivian operations after the unexpected change in the spot rate assuming the operations have a 3-year life only? (round to the nearest dollar)

c.) What is the foreign exchange operating gain/loss resulting from the unexpected change in the spot rate? (round to the nearest dollar)

d.)What is the impact on the value of the Bolivian operations if the US multinational decided to increase the domestic price to BOB 4.90, which will likely cause a decline in the number of units sold by 75,000?

e.) What is the impact on the value of the Bolivian operations if the US multinational decided to increase the number of units sold by 75,000, which will likely cause an increase in the direct cost per until to BOB 2.55? (round to the nearest dollar)

f.) What percent increase in Bolivian Bolivianao (BOB) (selling) price would be necessary to minimize the effect of the unexpected change in spot on the value of the Bolivian operation, assuming all else remains unchanged? (round your answer)

Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year.

Question 4

Suppose 100,000 kilograms of gold can be obtained from a gold mine during its first year in operation. However, its subsequent yield is expected to decrease by 10% over the previous year’s yield. The gold mine has a proven reserve of 1,000,000 kilograms.

1. a) Suppose that the price of gold is expected to be $60 per gram for the next several years. What would be the present worth of the revenue earned at an interest rate of 12% per annum compounded annually over the next seven years?
2. b) Suppose that the price of gold is expected to start at $60 per gram during the first year, but to increase at the rate of 5% over the previous year’s price. What would be the present worth of the revenue earned at an interest rate of 12% per annum compounded annually over the next seven years?
3. c) Consider part b again, find the net worth of the revenues to be earned in the next 4 years at the end of year 3.

Females, on average, are shorter and weigh less than males. One of your friends, who is a pre-med student, tells you that in addition, females will weigh less for a given height. To test this hypothesis, you collect height and weight of 29 female and 81 male students at your university. A regression of the weight on a constant, height, and a binary variable, which takes a value of one for females and is zero otherwise, yields the following result: Students = -229.21 – 6.36 × Female + 5.58 × Height , R 2 =0.50, SER = 20.99 where Studentw is weight measured in pounds and Height is measured in inches. (a) Interpret the results. Does it make sense to have a negative intercept? (b) You decide that in order to give an interpretation to the intercept you should rescale the height variable. One possibility is to subtract 5 ft. or 60 inches from your Height, because the minimum height in your data set is 62 inches. The resulting new intercept is now 105.58. Can you interpret this number now? Do you thing that the regression R 2 has changed? What about the standard error of the regression?

Managerial Accounting Question (Conceptual):

Preparing a personal budget has always worked as a great tool for controlling personal finances. Particularly when we make a big decision, it has always been useful to prepare a budget. For many people in our country, one of the important decisions they make is whether to purchase a car. In India the percentage of people who own a car has increased significantly during the last few years. This is partially because of the starting of operation of Uber in India. Another reason can be availability of car loans. Moreover,the interest on car loan is also tax deductible. Before purchasing a car you should first consider whether buying it is the best choice for you. Suppose you have just graduated from the university and got a decent job. Should you immediately buy a car?   

Write a response of considering the pros and cons and indicating your position regarding the situation, should you buy the car. Provide proper justification. (Explain in as detail as possible.)

( Use the concept of relevant costing and budgeting ,to answer the question. The question is related to decision making)

Dr. Joe Schmo is a finance professor at a small Southern liberal arts university. A student who has performed poorly in the introductory finance class has offered to pay Dr. Schmo for a better grade. Dr. Schmo presented the student with this agreement to sell a better grade: Since he would be fired from his position, he would lose his salary and benefits. His salary is $74,000 per year, paid in equal payments at the end of the each month. His salary is expected to keep pace with inflation. You may assume the monthly salary payments increase at the inflation rate. His benefits amount to $23,000 per year, and the benefit payments occur at the beginning of each year. The benefits will also increase at the rate of inflation. He expects to work for another 15 years. Assume the required return is 5.4 percent and the inflation rate is 3.1 percent. All rates are effective annual rates. Dr. Schmo will sell the student a better grade if the student pays the present value of the future lost salary and benefits. How much will the student have to pay for a better grade

Michael and Greg share an apartment 10 miles from campus. Michael thinks that the fastest way to get to campus is to drive the shortest route, which involves taking several side streets. Greg thinks the fastest way is to take the route with the highest speed limits, which involves taking the highway most of the way but is two miles longer than Michael’s route. You recruit 50 college friends who are willing to take either route and time themselves. After compiling all the results, you found that the travel time for Michael’s route follows a Normal distribution with mean equal to 30 minutes and standard deviation equal to 5 minutes. Greg’s route follows a Normal distribution with a mean equal to 26 minutes and a standard deviation of 9.5 minutes.

1)Which route is faster and why?

2)Which route is more reliable and why?

3) Suppose that you leaving home headed for a University exam. Obviously, you don’t want to be late. You are leaving home at 5:15 and the exam is at 6:00PM. Which route would you take to avoid being late and why? Show your calculations.

Suppose you have $800,000 in your savings account when you retire. Your plan is to withdraw $6,000 a month as retirement income from this account. You expect to earn annual interest of 6 percent, compounded monthly, on your money during your retirement. How many months can you be retired until you run out of money?

The dividends paid by a corporation

Which one of the following bonds has the greatest interest rate (price) risk?