Jacksonville Corp. is a U.S.‑based firm that needs $500,000. It has no business in Japan but is considering one‑year financing with Japanese yen, because the annual interest rate would be 3 percent versus 5 percent in the United States. Assume that interest rate parity exists.

a) Can Jacksonville benefit from borrowing Japanese yen and simultaneously purchasing yen one year forward to avoid exchange rate risk? Explain.

b) Assume that Jacksonville does not cover its exposure and uses the forward rate to forecast the future spot rate. Determine the expected effective financing rate. Should Jacksonville finance with Japanese yen? Explain.

c) Assume that Jacksonville does not cover its exposure and expects that the Japanese yen will appreciate by either 3 percent, 2 percent, or 1 percent, and with equal probability of each occurrence. Use this information to determine the probability distribution of the effective financing rate. Should Jacksonville finance with Japanese yen? Explain.

Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above.

A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges.

B. Using the two stocks you identified, determine the free cash flow from 2013 & 2014. What inference can you draw from the companies’ free cash flow?

C. Using the most recent financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year. What challenges, strengths, or weaknesses do you see? Please be articulate.

Please provide the Stata commands and outputs where necessary, thank you.

4. The following are data on

y = quit rate per 100 employees in manufacturing

x = unemployment rate

The data are for United States and cover the period 1990-2002.

(a) Estimate the regression and report the results

(b) Construct a 95% confidence interval for β.

(c) Test the hypothesis H₀ : β = 0 against the alternative β=0 at the 5% significance level.

(d) Test Normality of the residuals using Jarque-Bera test.

(e) What is likely to be wrong with the assumptions of the classical normal linear model in this case? Discuss.

Write a double-spaced essay of at least 500 words on the topics listed below. Your responses should be supported by the textbook and at least 2 other references and demonstrate an understanding of the information contained in this lesson.

Your paper should be structured into a clear introduction, body, and conclusion.

List your references at the end of the paper in standard format and use In-text citations.

1. Provide a definition of sociology and compare and contrast it with other social science fields. (2 points)
2. Explain how sociologists approach the study of human behavior and differentiate this from how someone within one of the other social science fields would approach it. (2 points)
3. Identify 2 theorists who contributed to the development of sociology in the nineteenth century. Describe the major ideas or contributions of each. (4 points)
4. Select one modern theory and describe how it can apply to a current phenomenon or issue. (3 points)
5. Connect your chosen theory to real world social issues within the United States today. (4 points)

Suppose the following data are selected randomly from a population of normally distributed values.

Construct a 95% confidence interval to estimate the population mean.

Appendix A Statistical Tables

(Round the intermediate values to 2 decimal places. Round your answers to 2 decimal places.)

≤ μ ≤

(a) Over the past decade, some of Japanese savings has been used to purchase large amounts of U.S. financial assets (typically U.S. government bonds). Suppose Japan suddenly stopped purchasing U.S. financial assets. Graphically illustrate the effect of Japan’s reduction in purchases of U.S. financial assets using the Open Economy model developed in the Ch 6 appendix. (Hint: In your model you will need to draw three diagrams). Clearly label the axes and curves in each of your graphs in the model. Clearly indicate the direction of any shifting curves. In your model, label the initial equilibrium points as Point A and label the new equilibrium points as Point B. Using your model drawn in Part (a), indicate what effect the reduction in Japanese investment in U.S. financial assets will have on the following economic variables in the United States: (i) real interest rate, (ii) domestic investment, (iii) net capital outflow, (iv) real exchange rate, (v) net exports.  

A student at a four-year college claims that average enrollment at four-year colleges is higher than at two-year colleges in the United States. Two surveys are conducted. Of the 35 two-year colleges surveyed, the average enrollment was 5061 with a standard deviation of 4775. Of the 35 four-year colleges surveyed, the average enrollment was 5216 with a standard deviation of 8101. Conduct a hypothesis test at the 5% level.

NOTE: If you are using a Student's t-distribution for the problem, including for paired data, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.)

1) State the distribution to use for the test. (Enter your answer in the form z or t_df where df is the degrees of freedom. Round your answer to two decimal places.)

2) What is the test statistic? (T or Z) & (Round your answer to two decimal places.)

3) What is the p-value? (Round your answer to four decimal places.)

4) Alpha: α =

A.        Price discrimination is one way firms who have monopoly power can attempt to build their profits even further. Briefly discuss two or three examples of price discrimination that were discussed in class and identify how firms' ability to separate consumers into two or more groups is critical in their efforts to build profits.

B.        In the Beer Game, we experienced the impact of long supply chains and hidden information on logistics costs and customer service. Explain how modern firms can modify their production and distribution processes to minimize the bullwhip effect caused by uncertain customer demand and supply chain communications. Identify some of the adverse financial consequences of failing to control inventories and backorders.

C.        One of the most controversial subjects in the Freakonomics books is the connection Levitt & Donohue drew between abortion policy and violent crime. Please describe how the authors contrast the experiences of Romania and the United States and tell why they believe these different histories help support their claims.

Aggregate expenditure equals:

A) Consumption + Investment + Government purchases + Transfers

B) Consumption + Investment + Government purchases + Net exports

C) Consumption + Investment + Federal government purchases + Exports

D) Consumption + Government purchases – Net exports

As the real interest rate rises:

I. consumption rises.

II. net exports fall.

III. investment rises.

A) II only

B) I only

C) I and III

D) III only

When the real interest rate rises in the United States, there is a(n) ________, which

causes the dollar to ________ and aggregate expenditure ________.

A) increase in net capital outflows; appreciate; to fall

B) decline in net capital outflows; depreciate; to rise

C) decline in net capital outflows; appreciate; to fall

D) decline in new capital investments; depreciate; to fall

The aggregate expenditure curve is the ________ relationship between ________ and

________.

A) positive; inflation; the output gap

B) negative; the real interest rate; output

C) negative; the unemployment rate; inflation

D) negative; the unemployment rate; the output gap

Suppose you run a regression containing observations for each of the 74 kinds of cars released in 1978 in the United States, and you regress price (in dollars) on weight (in pounds). You get the following results:
ˆ β0 is -6.71, with SE 1174.4. ˆ β1 (slope coefficient on weight) is 2.04 with SE .377.
• (a) Say, in words, what the slope coefficient means in this case, without taking a stand on causality.

• (b) Suppose I give you the following information: the sum of squares total is roughly equal to 635 million, and the sum of squares explained is equal to 185 million. Please report the R2 and the correlation coefficient between price and weight.

• (c) Use your regression model to predict what the price would be for a car that weighs 3000 pounds.

• (d) Use the SER to add uncertainty and make this prediction an interval. • (5 points) Build a 95% confidence interval for the slope coefficient and report the p-value for comparing it to 0. Interpret your results.