The following table shows the initial balance sheets of Bank A and The Federal Reserve (Fed). Suppose that the Fed then buys $10 million in bonds from Bank A.

a.) What are total assets and total liabilities for Bank A after the transaction? Write down the new balance sheet for Bank A.

b.) Excess reserves are reserves that banks hold beyond what they are required to hold to meet their reserve requirement. Assume that the reserve ratio is 10%. What are excess reserves for Bank A before and after the transaction? What are the pros and cons for Bank A of holding excess reserves?

c.) What are total assets and total liabilities for the Fed after the transaction? Write down the new balance sheet for The Fed

d.) Why would the The Fed conduct such a transaction?

Given: A 0.147 gram sample of an unknown weak monoprotic organic acid, HA, was dissolved in sufficient water to make 50.0 milliliters of solution and was titrated with a 0.0363 M NaOH solution. After the addition of 10.6 mL of base, a pH of 5.65 was recorded. The equivalence point was reached after the addition of 42.2 mL total of the 0.0363 M NaOH.

1. Calculate the number of moles of acid in the original sample.
2. Calculate the molecular weight of the acid HA.
3. Calculate the value of the ionization constant (Ka) of the acid HA
4. Calculate the pH before any base was added
5. Calculate the pH after 57.7 mL total of base has been added
6. Calculate the pH at the equivalence point.

Klean N’ Kind Corporation sells one product which has a sales price of $250 each. The company operates with variable costs for this one product of $200 per unit. The company’s monthly fixed costs are $15,000. The applicable tax rate is 20%.
Required:
Using the Contribution Margin approach perform the following:
1. Calculate the contribution margin per unit.
2. Given a desired after tax profit of $68,000, compute the before tax profit.
3. Calculate the sales units needed to achieve the after-tax profit of $68,000.
4. Compute the contribution margin ratio.
5. Using your answer to Part 4, calculate the dollar sales needed to achieve an after-tax profit of $68,000.

Popeye and Olive are partnerships with capital balances of $50,000 and $40,000, respectively. They agree to admit Pluto as a partner. After the assets of the partnership are revalued, Pluto will have 15% interest in capital and profits, for an investment of $10,000.

Assume Popeye and Olive receive 50:50 profit/loss before admitting Pluto.

The partnership uses the BONUS method. Answer the following questions:

1) Calculate the interest (in $) received by Pluto and compare with his capital contributed. Who will receive bonus?

2) Calculate the capital of Olive after admitting Pluto

3) Calculate the capital of Popeye after admitting Pluto

4) Journalize the transaction to record the asset contributed and the change in capital of the partners.

5) What are possible reasons that the partner(s) receive(s) the bonus?

Crystal Inc. is currently an all equity firm with a market capitalization of 100 million dollars. It has a total of 10 million shares. The firm announces it will borrow 20 million dollars permanently to repurchase its shares. The capital market is not perfect: The corporate tax rate is 30%, personal tax rate on interest income is 20%, and personal tax rate on equity income is 10%.

a. What is the firm’s stock price before announcing the stock repurchase?

b. What is the effective tax advantage of debt?

c. What is the firm’s value after announcing the stock repurchase?

d. What is the firm’s stock price after announcing the stock repurchase?

e. What is the market value of the firm’s equity after the stock repurchase?

Blocks A (mass 5.00 kg ) and B (mass 9.00 kg ) move on a frictionless, horizontal surface. Initially, block B is at rest and block A is moving toward it at 2.00 m/s . The blocks are equipped with ideal spring bumpers. The collision is head-on, so all motion before and after the collision is along a straight line. Let +x be the direction of the initial motion of block A.

a.) Find the maximum energy stored In the spring bumpers.

b.) Find the velocity of block A when the energy stored in the spring bumpers is maximum.

c.) Find the velocity of block B when the energy stored in the spring bumpers is maximum.

d.) Find the velocity of block A after they have moved apart.

e.) Find the velocity of B after they have moved apart.

In January 2020, the government of Yoyo (which is part of the Commonwealth) invited bids for the construction of mobile internet towers. Royal Paints owns a subsidiary, Telall, which is experienced in phone tapping and building communications networks for countries with poor landline infrastructure. If Telall won a few of these early contracts, it would be sought after for its field experience and expertise. After careful analysis, it prepared a detailed bid for the Communications Minister of Yoyo, building in half of its usual profits margin and providing a contractual guarantee that the project would be completed in two years or less. The multi-million-dollar bid was submitted before the deadline and Telall received notification that it had reached the Yoyo government. Then, despite repeated emails, phone calls, and even faxes to the ministry, there was no news on the bids or the project from the Yoyo government.

Shawn Lamb, the management accountant (and CPA fellow) for Telall, contacted the Australian commercial attaché in Yoyo, who told him that the best chance was to go to Yoyo and try to meet with the Deputy Minister for Communication in person. Lamb prepared thoroughly for the trip, rereading the proposal and making sure that he understood the details.

At the communication attaché office in Yoyo’s capital, Lamb waited nervously for the deputy minister and his assistant. Lamb had come with a clear negotiation strategy to try to win the bid. Soon after the Deputy Minister and his staff arrived and pleasantries were exchanged, he asked a few questions about Telall and the bid and then excused himself, leaving his assistant to talk to Lamb. The Deputy Minister’s assistant indicated clearly that many other compelling bids had been made by firms from around the world. The assistant said “Mr Lamb, I guarantee that Telall’s bid will be accepted if you pay a $1 million commission. Of course, your excellent proposal does not need to be altered in any way”. It was clear to Lamb that the “commission” was in fact, a bribe.

Required:

Lamb described his experience to his friend Amada Hugs, who manages international business development for developing countries. Hugs said that her ‘own personal philosophy’ was to make such payments if they are typical in the local country’s culture. Using the provided readings as a starting point, advise Shawn Lamb on what he should do.

I would like for you to reflect on the historical events, issues, and figures discussed in this class from the 1500 to present day. Choose one of more events, issues, and figures that have, in your opinion, had the greatest impact on the present day. Make an argument as to why you believe this to be case.   

Example:

After the assassination of Archduke Franz Ferdinand triggering one of the most impactful events to exist, World War I. The war began in 1914 and lasted until 1918, there were two separate sides the central powers (Germany, Austria-Hungary, Bulgaria, and the Ottoman Empire) and the allied powers (Great Britain, France, Russia, Italy, Romania, Japan, and the United States). Ultimately, Germany met its fate and signed the Treaty of Versailles which brought a great cost to their country. On the other hand, the United States being an allied power flourished from this war and had an economic boom. One side note that was remarkable was the 369th Infantry Regiment which consisted of African Americans. This was significant due to the fact that it was the very first black platoon. Many social customs eventually were faded out and society as a whole became much more open o new ideas. Innovation and technology was also a big effect from this war as it made a carpet for the industrial revolution.

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A newly issued bond pays its coupons once a year. Its coupon rate is 4.3%, its maturity is 10 years, and its yield to maturity is 7.3%.

a.Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.3% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding-period return % 14.71

b. If you sell the bond after one year when its yield is 6.3%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) After-tax holding-period return %

d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 6.3% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 2.3% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Realized compound yield before taxes %

e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.) After-tax two-year realized compound yield %

A newly issued bond pays its coupons once a year. Its coupon rate is 5.5%, its maturity is 10 years, and its yield to maturity is 8.5%.

a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7.5% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Holding-period return             %

b. If you sell the bond after one year when its yield is 7.5%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

After-tax holding-period return             %

d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 7.5% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 3.5% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Realized compound yield before taxes             %

e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

After-tax two-year realized compound yield             %