According to the National Health Statistics Reports, the
standard deviation of the weights of all one-year-old baby boys
born in the U.S. is 5.3 pounds. A random sample of 360 one-year-old
baby boys born in the U.S. had a mean weight of 25.5 pounds.
a) Construct a 90% confidence interval for the mean weight of all
one-year-old baby boys in the U.S. Write a sentence that interprets
this interval.
b) Should this confidence interval be used to estimate the mean
weights of all one-year-old babies in the U.S.? Explain.
In: Statistics and Probability
When the U.S. Government proposes a fiscal stimulus package during a recession there is usually a debate in Congress as to whether the Government should: 1) increase spending directly such as building bridges and schools; or 2) reduce personal income taxes. Using the concepts of U.S. GDP accounting based on the expenditure approach: (p. 749 ch 30)
In: Economics
In the figure, a French submarine and a U.S. submarine move toward each other during maneuvers in motionless water in the North Atlantic. The French sub moves at speed vF = 47.00 km/h, and the U.S. sub at vUS = 73.00 km/h. The French sub sends out a sonar signal (sound wave in water) at 1.000 × 103 Hz. Sonar waves travel at 5470 km/h. (a) What is the signal’s frequency as detected by the U.S. sub? (b) What frequency is detected by the French sub in the signal reflected back to it by the U.S. sub?
In: Physics
Matthias Corp. had the following foreign currency transactions during 2017: Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $59,300 and paid the invoice on April 20 at the U.S. dollar equivalent of $51,200. On September 1, borrowed the U.S. dollar equivalent of $308,000 evidenced by a note that is payable in the lender's local currency in one year. On December 31, the U.S. dollar equivalent of the principal amount was $321,000. In Matthias's 2017 income statement, what amount should be included as a net foreign exchange gain or loss?
In: Accounting
Suppose that half of U.S. foreign assets are denominated in euros, while all of American liabilities to foreigners are denominated in dollars. Suppose that at the beginning of the year, U.S. foreign assets were valued at 100% of U.S. GDP, while American liabilities to foreigners were valued at 150% of GDP. By how much and in what direction would a 10% depreciation of the dollar relative to the euro affect the U.S. net international investment position?
Suppose that at the beginning of 2019, American holding of
foreign assets consists of 100 shares of European corporate stock,
with each share having a value of 1 euro. Moreover, suppose that
the rest of the world holds $400 of U.S. government bonds. Finally,
the exchange rate at the beginning of the year is $1.5 per euro.
What was the American net international investment position at the
beginning of 2019?
In: Economics
Assume that labor is the only factor of production and that
wages in the United States equal $20 per hour while wages in Japan
are $10 per hour. Production costs would be lower in the United
States as compared to Japan if
A) U.S. labor productivity equaled 40 units per hour and Japan's 15
units per hour.
B) U.S. labor productivity equaled 30 units per hour and Japan's 20
units per hour.
C) U.S. labor productivity equaled 20 units per hour and Japan's 30
units per hour.
D) U.S. labor productivity equaled 15 units per hour and Japan's 25
units per hour.
E) U.S. labor productivity equaled 15 units per hour and Japan's 40
units per hour.
In: Economics
IFRS and U.S. GAAP for hedge accounting differ on which of the following points?
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A. |
U.S. GAAP requires changes in the value of all speculative hedges to be reported in income, while IFRS allows speculative hedge gains and losses to be reported in other comprehensive income. |
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|
B. |
U.S. GAAP requires changes in the value of cash flow hedges to be reclassified from other comprehensive income when the hedged transaction is reported in income, while IFRS allows permanent reporting of these gains and losses in AOCI. |
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|
C. |
IFRS requires gains and losses on hedges to be reported in the same income line with losses and gains on the hedged item, while U.S. GAAP is silent on this issue. |
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|
D. |
U.S. GAAP requires an initial quantitative evaluation of hedge effectiveness, while IFRS only requires that the hedge fits with the company's risk management strategy. |
In: Finance
Tailor Johnson, a U.S. maker of fine menswear, has a subsidiary in Ethiopia. This year, the subsidiary reported and repatriated earnings before interest and taxes (EBIT) of 140 million Ethiopian birrs. The current exchange rate is 9.6046 birrs/dollar or S=$0.1041/birr.
The Ethiopian tax rate on this activity is 21%. U.S. tax law requires Tailor Johnson to pay taxes on the Ethiopian earnings at the same rate as on profits earned in the United States, which is currently 39%.
However, the United States gives a full tax credit for foreign taxes paid up to the amount of the U.S. tax liability. What is Tailor Johnson's U.S. tax liability on its Ethiopiansubsidiary?
Tailor Johnson's U.S. tax liability on its Ethiopian subsidiary is $___million. (Round to two decimal places.)
In: Finance
Question 45 (3 point)
If the exchange rate between the U.S. dollar and the British Pound is $1.66 per Pound, then what is the Pound per dollar exchange rate? (Express your answer as xx.xx.)
Your Answer:
If the exchange rate between the U.S. dollar and the Euro is $1.72 per Euro and the exchange rate between the U.S. dollar and the Japanese yen is 108.36 Yen per dollar, then what is the Yen per Euro exchange rate?
Your Answer:
If the exchange rate between the U.S. dollar and the British Pound is $1.52 per Pound and the annual rate of inflation is 2.24 percent in the United States and 3 percent in Great Britain, what will be U.S. dollar per Pound exchange rate in one year? (Express your answer as XX.XX)
Your Answer:
In: Finance
Which of the following is NOT true about American Depository Receipts (ADRs)?
A. ADRs are claims issued by U.S. financial intermediaries (FIs) against shares in foreign companies, with the shares held in custody by financial intermediaries for investors.
B. ADRs are issued in the U.S. and are denominated in U.S. dollars. All cash flows to the investor are in dollars.
C. An ADR enhances a companys visibility, status and profile in the U.S. and internationally among investors.
D. An ADR decreases the foreign firms U.S. liquidity (and potentially total global issuer liquidity).
E. All of the above are true.
In secondary stock markets, brokers earn ____ , dealers earn ____.
A. commissions; commissions
B. commissions; bid-ask spread
C. underwriter's spread; bid-ask spread
D. bid-ask spread; commissions
E. bid-ask spread; underwriter's spread
In: Finance