What are principal - agent interaction (for publicly traded co)?

a. What should be the goal of agents (managers) in that context? Explain.

b. What are some of the concerns that managers will not pursue that goal? Explain c. How can we be sure that managers make decisions to reach that goal? Explain.

Explain the concept of an interest rate swap. Find an example of a publicly traded firm that used an interest rate swap. Provide detailed analytics on how the swap was used and how it benefited both firms involved. You should include amounts, time frames, and actual rates.

1. On Feb 1 2019, ABC Co. traded in an old piece of equipment that originally cost $64,000 with a salvage value of $4000 and a useful life of 5 years for a new upgraded model that had a cash price of $80,000. The company uses straight-line depreciation and the original equipment was purchased on Feb 1, 2015.
A) Prepare the journal entry to record the exchange under the assumption that a $10,000 trade-in allowance was received and the balance was paid in cash. (B) Prepare the journal entry to record the exchange under the assumption that instead of a $10,000 trade-in allowance, a $15,000 trade-in allowance was received and the balance was paid in cash.

2. XYZ Co. Purchased a delivery van on January 1, 2000 for $80,000. At the time of purchased it was estimated that the van would be used for 8 years with a $20,000 trade-in value. On January 1, 2004 the company decided to revise the useful life to 10 years and revise the residual value to $15,000. Using straight-line depreciation, determine the book value on January 1, 2004 and the revised depreciation for 2004.

3. A, B, and C formed abc Consulting this year by making capital contributions of $250,000, $400,000, and $150,000, respectively. They anticipate annual loss of $200,000 and are considering the following alternative plans of sharing profits and losses:  
I. In the ratio of their initial investments; or
II. Salary allowances of $100,000 to A, $90,000 to B, and $50,000 to C and interest allowances of 15% on initial investments, with any remaining balance shared in the ratio of 3:2:1.  
Required:
1. Use the schedule to show how a loss of $200,000 would be distributed under each of the alternative plans being considered. (Round to the nearest dollar if needed.)

Investments in available for sale marketable securities:

1) Only include investments in the capital stock of publicly traded corporations

2) May be reported in the balance sheet at market values lower than cost, but never at values in excess of original cost

3) Are carried in the accounting records at current market values, and therefore do not generate gains or losses when sold at market values.

4) Are adjusted to current market value at the end of each accounting period.

Construct the 95% confidence interval for AOret using its the mean
and standard deviation. Construct another 95% confidence interval for AOret
using the mean of AOret and the average AOSD. Explain which one is more
reliable.

The global financial crisis (GFC) around 2008 had a significant
impact on the Australian economy and financial markets. We define the before
GFC period as Apr 2000 to July 2007, the GFC period as Aug 2007 to Dec 2009,
and the after-GFC period as after Jan 2010. Test the following hypotheses at 5%
significance. The Appendix provides the details for testing the difference in
means. a. The average AOret is the same before and after the GFC. b. The average AOSD is greater than the average AUDSD since April 2000

1.

As a business owner, you find that your resource prices are increasing often. Because these costs are rising, you find it necessary to change your prices frequently. This best describes
1.a price confusion problem.
2.money illusion.
3.future price uncertainty.
4.hyperinflation.
5.menu costs.

9.Arguably, the increases in housing prices in 2005–2006 caused
1.a price confusion problem for producers.
2.a menu cost problem for producers.
3.a money illusion problem for producers.
4.a money illusion problem for consumers.
5.future price uncertainty for producers.

Select AMAZON a publicly traded company that primarily sells tangible products. So, typically this would exclude banks, financial services companies, utilities etc. Post the name of your company in the Discussion Board section of the course website on Canvas. Look for the icon “Project Company Names” and post your company name under this icon by creating a new thread. Remember, you cannot work on a company that one of your classmates has already selected. Do not choose Target Corporation as I have included a sample analysis of Target here that was done by a student in an earlier semester. Also, note that the sample should be used as a general guide. There have been some changes in the questions in your assignment as compared to the Target sample provided. So, please consult the questions below and answer them accordingly.. Obtain electronic copies of the Annual Reports for the last two years.7. What is the total value of Stockholders Equity? (4pts)8. How many common shares has the company authorized, issued and outstanding? (3 pts)9. What is the par value of each common share? (3pts)10. What price is the share trading at on the date that you were conducting this research? Please note the date as well. (3pts)11. What was the highest price that the share traded at over the last 52 weeks? (3pts)

1. If the number of discouraged workers decreases because many of them start to look for work, everything else remaining the same, then the

Select one:

a. labour force participation rate will decrease.

b. non labor force will increase.

c. employment rate will decrease.

d. the labor market population will increase.

e. none of the above.

2.  

Initially, you earn $10 income per hour, and the price level is 100. Your income now increases to $20 per hour and the price level increases to 175. What happens to your purchasing power?

Select one:

a. It doubles in value

b. It increases in value by less than double

c. It increases in value by more than double

3.  

Suppose a trade union and a firm agree to increase the wage rate by the same percentage as the increase in the Consumer Price Index. If the CPI increases by 5 percent, then the real income of workers will

Select one:

a. decrease by 5 percent, accounting for bias in the calculation of the CPI.

b. increase by 5 percent as well.

c. increase by more than 5 percent, accounting for bias in the calculation of the CPI.

d. increase by less than 5 percent, accounting for bias in the calculation of the CPI.

e. remain unchanged, accounting for bias in the calculation of the CPI.

4.  

Refer to the table below, which shows price data for a hypothetical economy, between which two years did the price level increase the most?

Select one:

a. 2000 and 2001

b. 2001 and 2002

c. 2002 and 2003

d. 2003 and 2004

e. 2004 and 2005

Tunapuna Technologies (TT) is a privately traded firm with a target debt to value (D/V) ratio of 15% and current interest rate on debt of 6%.

Since the firm is privately traded, you turn to Arima Technologies (AT), TT’s closest publicly traded competitor, for data to estimate TT’s WACC. AT has a beta of 1.5 and a debt-to-value (D/V) ratio of 35%.

The current risk-free rate is 3.5%, the expected market risk premium is 6.5% (Rm-Rf), and the corporate tax rate for both firms is 40%.

(a) What is the “best estimate” of the equity beta for TT?

(b) What is the required return on equity for TT?

(c) What is the WACC for TT?