Questions
Although Financial Ratio Analysis has limitations, it is a great tool to find the problematic areas...

Although Financial Ratio Analysis has limitations, it is a great tool to find the problematic areas in the company so that managers can go back and address the problems. One of the limitations is differences in accounting standards around the world that can distort financial ratios.

Starbucks / PepsiCo

these are two publicly traded US companies listed on the NASDAQ stock market and calculate each company’s P/E (Price to Earnings Ratio) and MB (Market to Book Ratio). What do these ratios tell you about how investors value these two companies’ future prospects?

In: Finance

Financial managers should be able to determine how risk factors into a company’s decision to expand...

Financial managers should be able to determine how risk factors into a company’s decision to expand or start a new project. Select one of the publicly traded Fortune 500 corporations listed below: Amazon Use Mergent Online to access the company’s annual report to its stakeholders, then complete the following activities: Retrieve and analyze the steps that the selected company uses for scenario and sensitivity analysis, risk management techniques, and how companies mitigate currency fluctuation risk for the launch of a new product/project. Prepare your analysis in a minimum of 500 words with APA formatting.

In: Accounting

Accounting standards update, ASU 2016-01, is effective for publicly traded companies with a fiscal year beginning...

Accounting standards update, ASU 2016-01, is effective for publicly traded companies with a fiscal year beginning after December 31, 2017. The accounting update now requires companies to classify its equity investments at fair value, except those accounted for using the Equity Method. In other words, equity investments are no longer classified as available-for-sale securities. Based on your knowledge of the accounting for equity investments, what is the financial reporting implications for a company that typically makes equity investments classified as available-for-sale? What impact might this reporting requirement have?

In: Accounting

Year Name MinPressure_before Gender_MF Category alldeaths 1950 Easy 958 1 3 2 1950 King 955 0...

Year    Name    MinPressure_before      Gender_MF       Category        alldeaths
1950    Easy    958     1       3       2
1950    King    955     0       3       4
1952    Able    985     0       1       3
1953    Barbara 987     1       1       1
1953    Florence        985     1       1       0
1954    Carol   960     1       3       60
1954    Edna    954     1       3       20
1954    Hazel   938     1       4       20
1955    Connie  962     1       3       0
1955    Diane   987     1       1       200
1955    Ione    960     0       3       7
1956    Flossy  975     1       2       15
1958    Helene  946     1       3       1
1959    Debra   984     1       1       0
1959    Gracie  950     1       3       22
1960    Donna   930     1       4       50
1960    Ethel   981     1       1       0
1961    Carla   931     1       4       46
1963    Cindy   996     1       1       3
1964    Cleo    968     1       2       3
1964    Dora    966     1       2       5
1964    Hilda   950     1       3       37
1964    Isbell  974     1       2       3
1965    Betsy   948     1       3       75
1966    Alma    982     1       2       6
1966    Inez    983     1       1       3
1967    Beulah  950     1       3       15
1968    Gladys  977     1       2       3
1969    Camille 909     1       5       256
1970    Celia   945     1       3       22
1971    Edith   978     1       2       0
1971    Fern    979     1       1       2
1971    Ginger  995     1       1       0
1972    Agnes   980     1       1       117
1974    Carmen  952     1       3       1
1975    Eloise  955     1       3       21
1976    Belle   980     1       1       5
1977    Babe    995     1       1       0
1979    Bob     986     0       1       1
1979    David   970     0       2       15
1979    Frederic        946     0       3       5
1980    Allen   945     0       3       2
1983    Alicia  962     1       3       21
1984    Diana   949     1       2       3
1985    Bob     1002    0       1       0
1985    Danny   987     0       1       1
1985    Elena   959     1       3       4
1985    Gloria  942     1       3       8
1985    Juan    971     0       1       12
1985    Kate    967     1       2       5
1986    Bonnie  990     1       1       3
1986    Charley 990     0       1       5
1987    Floyd   993     0       1       0
1988    Florence        984     1       1       1
1989    Chantal 986     1       1       13
1989    Hugo    934     0       4       21
1989    Jerry   983     0       1       3
1991    Bob     962     0       2       15
1992    Andrew  922     0       5       62
1993    Emily   960     1       3       3
1995    Erin    973     1       2       6
1995    Opal    942     1       3       9
1996    Bertha  974     1       2       8
1996    Fran    954     1       3       26
1997    Danny   984     0       1       10
1998    Bonnie  964     1       2       3
1998    Earl    987     0       1       3
1998    Georges 964     0       2       1
1999    Bret    951     0       3       0
1999    Floyd   956     0       2       56
1999    Irene   987     1       1       8
2002    Lili    963     1       1       2
2003    Claudette       979     1       1       3
2003    Isabel  957     1       2       51
2004    Alex    972     0       1       1
2004    Charley 941     0       4       10
2004    Frances 960     1       2       7
2004    Gaston  985     0       1       8
2004    Ivan    946     0       3       25
2004    Jeanne  950     1       3       5
2005    Cindy   991     1       1       1
2005    Dennis  946     0       3       15
2005    Ophelia 982     1       1       1
2005    Rita    937     1       3       62
2005    Wilma   950     1       3       5
2005    Katrina 902     1       3       1833
2007    Humberto        985     0       1       1
2008    Dolly   963     1       1       1
2008    Gustav  951     0       2       52
2008    Ike     935     0       2       84
2011    Irene   952     1       1       41
2012    Isaac   965     0       1       5
2012    Sandy   945     1       2       159
                                        

Open Hurricane data.

SETUP: Is it reasonable to assume that average hurricane pressure for category 4 is different from that of category 1? Given the data, your job is to check if this assertion is indeed reasonable or not. HINT: Read Lecture 24.

19. What would be the correct Null-Hypothesis?

  • a. Data related to two different categories should not be related.
  • b. The population averages are equal.
  • c. The slope of the regression line is equal to zero.
  • d. None of these.

20. The P-value is 3.33E-09. What can be statistically concluded?

  • a. We reject the Null Hypothesis.
  • b. We accept the Null Hypothesis.
  • c. We cannot reject the Null Hypothesis.
  • d. None of these.

21. Write a one-line additional comment.

  • a. We cannot conclude that data related to two different hurricane categories are related.
  • b. We are confident that hurricanes with category 4 has different pressure than those of category 1.
  • c. We cannot conclude that hurricanes with category 4 has lower pressure than those of category 1.
  • d. None of these.

In: Statistics and Probability

Year Name MinPressure_before Gender_MF Category alldeaths 1950 Easy 958 1 3 2 1950 King 955 0...

Year    Name    MinPressure_before      Gender_MF       Category        alldeaths
1950    Easy    958     1       3       2
1950    King    955     0       3       4
1952    Able    985     0       1       3
1953    Barbara 987     1       1       1
1953    Florence        985     1       1       0
1954    Carol   960     1       3       60
1954    Edna    954     1       3       20
1954    Hazel   938     1       4       20
1955    Connie  962     1       3       0
1955    Diane   987     1       1       200
1955    Ione    960     0       3       7
1956    Flossy  975     1       2       15
1958    Helene  946     1       3       1
1959    Debra   984     1       1       0
1959    Gracie  950     1       3       22
1960    Donna   930     1       4       50
1960    Ethel   981     1       1       0
1961    Carla   931     1       4       46
1963    Cindy   996     1       1       3
1964    Cleo    968     1       2       3
1964    Dora    966     1       2       5
1964    Hilda   950     1       3       37
1964    Isbell  974     1       2       3
1965    Betsy   948     1       3       75
1966    Alma    982     1       2       6
1966    Inez    983     1       1       3
1967    Beulah  950     1       3       15
1968    Gladys  977     1       2       3
1969    Camille 909     1       5       256
1970    Celia   945     1       3       22
1971    Edith   978     1       2       0
1971    Fern    979     1       1       2
1971    Ginger  995     1       1       0
1972    Agnes   980     1       1       117
1974    Carmen  952     1       3       1
1975    Eloise  955     1       3       21
1976    Belle   980     1       1       5
1977    Babe    995     1       1       0
1979    Bob     986     0       1       1
1979    David   970     0       2       15
1979    Frederic        946     0       3       5
1980    Allen   945     0       3       2
1983    Alicia  962     1       3       21
1984    Diana   949     1       2       3
1985    Bob     1002    0       1       0
1985    Danny   987     0       1       1
1985    Elena   959     1       3       4
1985    Gloria  942     1       3       8
1985    Juan    971     0       1       12
1985    Kate    967     1       2       5
1986    Bonnie  990     1       1       3
1986    Charley 990     0       1       5
1987    Floyd   993     0       1       0
1988    Florence        984     1       1       1
1989    Chantal 986     1       1       13
1989    Hugo    934     0       4       21
1989    Jerry   983     0       1       3
1991    Bob     962     0       2       15
1992    Andrew  922     0       5       62
1993    Emily   960     1       3       3
1995    Erin    973     1       2       6
1995    Opal    942     1       3       9
1996    Bertha  974     1       2       8
1996    Fran    954     1       3       26
1997    Danny   984     0       1       10
1998    Bonnie  964     1       2       3
1998    Earl    987     0       1       3
1998    Georges 964     0       2       1
1999    Bret    951     0       3       0
1999    Floyd   956     0       2       56
1999    Irene   987     1       1       8
2002    Lili    963     1       1       2
2003    Claudette       979     1       1       3
2003    Isabel  957     1       2       51
2004    Alex    972     0       1       1
2004    Charley 941     0       4       10
2004    Frances 960     1       2       7
2004    Gaston  985     0       1       8
2004    Ivan    946     0       3       25
2004    Jeanne  950     1       3       5
2005    Cindy   991     1       1       1
2005    Dennis  946     0       3       15
2005    Ophelia 982     1       1       1
2005    Rita    937     1       3       62
2005    Wilma   950     1       3       5
2005    Katrina 902     1       3       1833
2007    Humberto        985     0       1       1
2008    Dolly   963     1       1       1
2008    Gustav  951     0       2       52
2008    Ike     935     0       2       84
2011    Irene   952     1       1       41
2012    Isaac   965     0       1       5
2012    Sandy   945     1       2       159
Test if there is a significant difference in the death by Hurricanes and Min Pressure measured. Answer the questions for Assessment. (Pick the closest answer)

7. What is the P-value?

  • a. #DIV/0!
  • b. 0.384808843
  • c. 0.634755682
  • d. None of these

8. What is the Statistical interpretation?

  • a. The P-value is too large to have a conclusive answer.
  • b. The P-value is too small to have a conclusive answer.
  • c. ​​The P-value is much smaller than 5% thus we are certain that the average of hurricane deaths is significantly different from average min pressure.
  • d. None of the above.

9. What is the conclusion?

  • a. The statistics does not agree with the intuition since one would expect that stronger hurricanes to be deadlier.
  • b. ​​Statistical interpretation agrees with the intuition, the lower the pressure the stronger the hurricanes.
  • c. Statistics confirms that hurricanes’ pressure does relate to the death count.
  • d. The test does not make statistical sense, it compares “apples and oranges”.

In: Statistics and Probability

Open Hurricanes data. Test if there is a significant difference in the death by Hurricanes and...

Open Hurricanes data.

Test if there is a significant difference in the death by Hurricanes and Min Pressure measured. Answer the questions for Assessment. (Pick the closest answer)

7. What is the P-value?

  • a. #DIV/0!
  • b. 0.384808843
  • c. 0.634755682
  • d. None of these

8. What is the Statistical interpretation?

  • a. The P-value is too large to have a conclusive answer.
  • b. The P-value is too small to have a conclusive answer.
  • c. ​​The P-value is much smaller than 5% thus we are certain that the average of hurricane deaths is significantly different from average min pressure.
  • d. None of the above.

9. What is the conclusion?

  • a. The statistics does not agree with the intuition since one would expect that stronger hurricanes to be deadlier.
  • b. ​​Statistical interpretation agrees with the intuition, the lower the pressure the stronger the hurricanes.
  • c. Statistics confirms that hurricanes’ pressure does relate to the death count.
  • d. The test does not make statistical sense, it compares “apples and oranges”.

Year   Name   MinPressure_before   Gender_MF   Category   alldeaths
1950   Easy   958   1   3   2
1950   King   955   0   3   4
1952   Able   985   0   1   3
1953   Barbara   987   1   1   1
1953   Florence   985   1   1   0
1954   Carol   960   1   3   60
1954   Edna   954   1   3   20
1954   Hazel   938   1   4   20
1955   Connie   962   1   3   0
1955   Diane   987   1   1   200
1955   Ione   960   0   3   7
1956   Flossy   975   1   2   15
1958   Helene   946   1   3   1
1959   Debra   984   1   1   0
1959   Gracie   950   1   3   22
1960   Donna   930   1   4   50
1960   Ethel   981   1   1   0
1961   Carla   931   1   4   46
1963   Cindy   996   1   1   3
1964   Cleo   968   1   2   3
1964   Dora   966   1   2   5
1964   Hilda   950   1   3   37
1964   Isbell   974   1   2   3
1965   Betsy   948   1   3   75
1966   Alma   982   1   2   6
1966   Inez   983   1   1   3
1967   Beulah   950   1   3   15
1968   Gladys   977   1   2   3
1969   Camille   909   1   5   256
1970   Celia   945   1   3   22
1971   Edith   978   1   2   0
1971   Fern   979   1   1   2
1971   Ginger   995   1   1   0
1972   Agnes   980   1   1   117
1974   Carmen   952   1   3   1
1975   Eloise   955   1   3   21
1976   Belle   980   1   1   5
1977   Babe   995   1   1   0
1979   Bob   986   0   1   1
1979   David   970   0   2   15
1979   Frederic   946   0   3   5
1980   Allen   945   0   3   2
1983   Alicia   962   1   3   21
1984   Diana   949   1   2   3
1985   Bob   1002   0   1   0
1985   Danny   987   0   1   1
1985   Elena   959   1   3   4
1985   Gloria   942   1   3   8
1985   Juan   971   0   1   12
1985   Kate   967   1   2   5
1986   Bonnie   990   1   1   3
1986   Charley   990   0   1   5
1987   Floyd   993   0   1   0
1988   Florence   984   1   1   1
1989   Chantal   986   1   1   13
1989   Hugo   934   0   4   21
1989   Jerry   983   0   1   3
1991   Bob   962   0   2   15
1992   Andrew   922   0   5   62
1993   Emily   960   1   3   3
1995   Erin   973   1   2   6
1995   Opal   942   1   3   9
1996   Bertha   974   1   2   8
1996   Fran   954   1   3   26
1997   Danny   984   0   1   10
1998   Bonnie   964   1   2   3
1998   Earl   987   0   1   3
1998   Georges   964   0   2   1
1999   Bret   951   0   3   0
1999   Floyd   956   0   2   56
1999   Irene   987   1   1   8
2002   Lili   963   1   1   2
2003   Claudette   979   1   1   3
2003   Isabel   957   1   2   51
2004   Alex   972   0   1   1
2004   Charley   941   0   4   10
2004   Frances   960   1   2   7
2004   Gaston   985   0   1   8
2004   Ivan   946   0   3   25
2004   Jeanne   950   1   3   5
2005   Cindy   991   1   1   1
2005   Dennis   946   0   3   15
2005   Ophelia   982   1   1   1
2005   Rita   937   1   3   62
2005   Wilma   950   1   3   5
2005   Katrina   902   1   3   1833
2007   Humberto   985   0   1   1
2008   Dolly   963   1   1   1
2008   Gustav   951   0   2   52
2008   Ike   935   0   2   84
2011   Irene   952   1   1   41
2012   Isaac   965   0   1   5
2012   Sandy   945   1   2   159
                  

In: Statistics and Probability

SUBJECT: TAXATION OF INDIVIDUALS AND BUSINESS ENTITIES (Chapter 25) Required information Roland had a taxable estate...

SUBJECT: TAXATION OF INDIVIDUALS AND BUSINESS ENTITIES (Chapter 25)

Required information

Roland had a taxable estate of $5.5 milionwhen he died this year.

Calculate the amount of estate tax due (if any) under the following alternative. (Refer to EXHIBIT 25-1 AND EXHIBIT 25-2).

a. Roland's prior taxable gifts consist of a taxable gift of $1 million in 2005. Estate tax due?

b. Roland's prior taxable gifts consist of a taxable gift of $1.5 million in 2005. Estate tax due?

c. Roland made a $1 million taxable gift in the year prior to his death. Estate tax due?

EXHIBIT 25-1

TAX BASE EQUAL

TO OR OVER

NOT OVER TENTATIVE TAX PLUS

OF AMOUNT

OVER

$ 0 $ 10,000 $ 0 18% $ 0
10,000 20,000 1,800 20 10,000
20,000 40,000 3,800 22 20,000
40,000 60,000 8,200 24

40,000

60,000 80,000 13,000 26 60,000
80,000 100,000 18,200 28 80,000
100,000 150,000 23,800 30 100,000
150,000 250,000 38,800 32 150,000
250,000 500,000 70,800 34 250,000
500,000 750,000 155,800 37 500,000
750,000 100,000 248,300 39 750,000
1,000,000 345,800 40 1,000,000

EXHIBIT 25-2 THE EXEMPTION EQUIVALENT

YEAR OF TRANSFER GIFT TAX ESTATE TAX
1986 $ 500,000 $ 500,000
1987-1997 600,000 600,000
1998 625,000 625,000
1999 650,000 650,000
2000-2001 675,000 675,000
2002-2003 1,000,000 1,000,000
2004-2005 1,000,000 1,500,000
2006-2008 1,000,000 2,000,000
2009-2010* 1,000,000 3,500,000
2011 5,000,000 5,000,000
2012 5,120,000 5,120,000
2013 5,250,000 5,250,000
2014 5,340,000 5,340,000
2015 5,430,000 5,430,000
2016 5,450,000 5,450,000
2017 5,490,000 5,490,000

Please show the solution. Thank you

In: Accounting

If you were a CFO of a publicly-traded firm. How would you disclose to the public...

If you were a CFO of a publicly-traded firm. How would you disclose to the public the impact of the pandemic on your firm's income statement? What measures would you take to make such disclosures in order to ensure you maintain legal and ethical standards? Use citations to support your positions.

In: Finance

Drawing from your professional or personal experience, or from your research skills (researching news articles or...

Drawing from your professional or personal experience, or from your research skills (researching news articles or publicly traded companies' corporate annual reports), explain a situation in which a profitable organization had negative cash flows or when an organization experiencing a loss had positive cash flow.

In: Accounting

b. In April 2015, Larry Fink, CEO of Blackrock, wrote an open letter (listed as assigned...

b. In April 2015, Larry Fink, CEO of Blackrock, wrote an open letter (listed as assigned reading on the course website) to S&P500 CEOs in the US and to CEOs of some of the largest publicly traded foreign companies. Identify and briefly discuss two key issues raised in this letter. (6 pts)

In: Finance