Problem 1: Endowment losses. An American university endowment has experienced severe losses over the past year. The value of the university's endowment is $1B as of today (t=0). The interest rate (i.e. the expected annual investment return on the endowment) is r = 7%. (a) What amount can the university spend from the endowment at t=1 if it would like the amount spent to grow by g=4% per year from then on and has no other resources than the endowment? (b) The planned spending is, however, much larger. Back when things looked better, the university set up plans to spend $40M at t=1, with future spending growing by 4% per year. What is the PV of the planned spending? How large is the shortfall between the PV of the planned spending and the value of the endowment? (c) The university president approaches the university's business school for innovative ideas for how to cover the shortfall to avoid having to cut spending. The business school 1 suggests that the university sets up a campus in Abu Dhabi and negotiates the following deal: Abu Dhabi will pay the university $200M today (t=0) for the right to name the campus after the famed university for the next 12 years (i.e. up to t=12) and have classes taught by professors from the university. The new campus would be ready to open two years from now (t=2). At the end of each of the following 10 years (t=3, 4, 5, 6, ...,12) Abu Dhabi would pay the university $24M (Abu Dhabi would also cover the cost of hiring extra faculty and travel cost for US faculty to go teach on the new campus, so the $24M is the university's per year profit). The deal would end at t=12. What is the PV of the deal with Abu Dhabi? Is it sufficient to cover the shortfall? (d) The university president is impressed with the PV calculations but would also like to know exactly how the endowment will develop over the years, assuming the deal with Abu Dhabi is accepted. At t=0 after the initial payment from Abu Dhabi, the value of the endowment is $1.2B. What is the value of the endowment at t=1 (after interest is received and after paying for the university's t=1 spending)? What is the value of the endowment at t=12 (after interest is received, after the last payment from Abu Dhabi and after paying for the university's t=12 spending)? At what time will the endowment equal zero if the deal with Abu Dhabi is not accepted (please report the time at which the endowment rest goes negative)? Hint: Do not bother with Excel functions here, just calculate the value of the endowment in a spreadsheet year by year for the different cases.

Using the internet, find the annual salary of the CEO of any company of your choosing.

• Do you believe the CEO of the company you chose is being compensated for being an excellent manager?
• Do you feel that this salary is fair, or that the salary should be higher or lower? Why?
• If you were the CEO of company, how much would you think is a fair salary, and what would be your philosophy in compensating your employees?

Suppose the Payroll tax reduction for middle-income households has been extended in the amount of $500 billion for the remainder of 2020 to recover from COVID-19 crisis. Assuming the MPC for that income group of households is 0.8 and also assuming that other things stay the same, the increase in GDP under this proposed extension of tax break is expected to increase by (ΔY) _______

1) The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph. What is the current actual u-rate for the US economy as of September Data for 2020? Is this unemployment rate below or above or equal to u-rate at full employment (usually called natural rate of unemployment or NAIRU)? What state of the economy do you consider from this u-rate for Sep 2020 (recession, depression or inflation?) and its sources?

2) A) Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU) and remained at that low level for a year or longer? Explain your answer in a few sentences.

B) Draw an AS/AD diagram illustrating your answer to part (A) and refer to the current state of the economy of the US to compare in this context. Be sure to label all lines and axes in your diagram clearly. 2pts 3) Suppose between Q1, 2018 and Q4, 2019 measured Output in the non- farm business sector increased by 3.6%. During this time period the unemployment rate fell from 4.6% to 3.7% and total hours worked in the nonfarm business sector increased by 3.8%. What was the % rate of change in labor productivity over this period (Q1 2018 and Q2 2020)? Explain your answer briefly. (Hint: Labor productivity = Y/Labor hours; RGDP growth rate = Labor productivity growth plus and Labor Force Growth rate. No need to use u-rate changes for this question)

4) a. The Federal Government distributed a recovery relief fund to all households with $600 for all individuals filing and $1,200 for all households filing jointly and $500 for each children in each household. This was part of the $2.2 Trillion stimulus package under CARES Act of March 2020 that also included employee job protection plan for small business owners and restaurants, travel related businesses, unemployment insurances and households with no taxes filed. What would be the overall impact on AD of this recovery relief fund caused by COVID19 public health crisis and its effect on change in real GDP? Assume that the Marginal Propensity to Consume (MPC) for all American consumers is 0.8 in March 2020. Explain your answer briefly as well in your own words. Make sure you use your understanding of the concept of expenditure multiplier in estimating this problem.

4) b. Trump’s imposition of $260 billion tariff in the Month of May 2019 (taxes on imports to the US Market) on Chinese exports to the US has caused a global tension in financial markets and related business activities. In retaliation of Trump’s tariff, China also imposed almost similar amount of tariff on US exports to China about $200 billon. In response to this trade war between the US and China, the US stock price indices of the Wall Street plummeted in May and June 2019. Th stock market in Shanghai in China also crashed at the same time. The data on new job for the US economy in May showed a very slow rate of job creation at the same time. Given this scenario from the US-China trade war and given your knowledge on macro model of AD an AS, do you think the the retaliation of China in response to Trump’s Tariff would have a negative impact on the US economy in near future? Give your reason in your opinion as to why or why not the case.

What are some of the learning's and/or takeaways from studying "Networking Essentials and Security"? Why do you think this subject is important from an Executive MBA perspective? Give examples if any as necessary.

discuss the importance of the clinical interview. Write from the point of view of a therapist include how you might feel about a counselor who is taking notes during the interview and how you might feel about receiving a diagnosis.

What did you learn about conducting a Clinical Interview?

In what ways would you modify the Clinical Interview if you were conducting one with a 12-year old. Support your response with evidence from the literature.

An electronic company in the recruitment of employees, conducts two stages of selection, namely the interview stage and psychological testing. But because the cost of psychological testing is increasingly expensive, the company plans to cancel the psychological testing process if the results of the interview are good enough. For this reason, the company assumes a positive correlation between interviews and psychological tests. This means that workers who are hired usually have high scores on interview tests and psychological tests. For this reason, human resource managers are instructed to test whether the hypothesis is correct. Therefore, the Human Resources Manager took interviews and psychological tests from 35 applicants. Help these human resource managers by using the Spearman Correlation Test with an error rate of 0.01 !

JLB Enterprises acquired 15% of REB Corporation on January 1, 2020, for $63,000 when the book value of REB’s net assets was $360,000. During 2020, REB reported net income of $90,000 and paid dividends of $30,000. On January 1, 2021, JLB purchased an additional 25% of REB for $240,000. Any excess of cost over book value was attributable to goodwill (No amortization). On that same date, JLB changed to the equity method. During 2021, REB reported net income of $120,000 and paid dividends of $45,000.  

a. What investment income did JLB record from REB in 2020?

b. What investment income did JLB record from REB in 2021?

c. What journal entry was made on Jan 1 2021 as switch equity method?

d. What was the balance in Equity Investment at December 31, 2021? (Hint: use the amount paid for 25% of REB from JLB to calculate the implied fair value of the original 15% of the investment)

How would you describe Apple's global corporate, major SBU and key functional strategies during Steve Jobs second run as CEO from 1997 to his death in 2011? How would you compare that to Tim Cooks approach since taking over as CEO in 2011? Tim Cook is widely credited with developing and managing Apple's supply chain into one of the best in the world. Shortly after he took over as CEO in 2011, he raised the idea of viewing Apple as being a "mature technology company, rather than a high growth, innovative product development company. What do you think he meant by this, what significant financial and other actions did he take, and how successful do you think they have been?

The Enormous State University Public Relations Department has issued a statement claiming that 80% of those

who enroll at ESU graduate within 6 years. Being naturally skeptical, you decide to test their claim. You

interview 500 randomly selected people from the population that enrolled at ESU just over 6 years ago. Of

those 500, 360 have graduated.

a. What is the variable you are analyzing here? Of what sort is it? Who/what are the subjects?

b. What statistic can you compute from the sample?

c. Carefully write out the hypotheses for your test.

d. Run the test! Remember, if you use a normal approximation, you must justify it!

e. Give a “plain English” conclusion for your test.

f. If needed, give a 95% confidence interval for p, with an explanation. Remember the difference between CI and hypothesis testing calculations for