1.

a. You are creating an index for the four following stocks:

What is the one day return for the index if it is price-weighted? Present your answer as the percent change from t=0 to t=1 to the nearest two decimals in this format, 1.23%

b.

What is the one day return for the index if it is market capitalization-weighted? Present your answer as the percent change from t=0 to t=1 to the nearest two decimals in this format, 1.23%

c.

Suppose that at the conclusion on t=1 trading day, stock ABC does a 2:1 stock split, what is the new divisor for your price-weighted index? Present your answer rounded to the nearest two digits like this, 1.23

COUNTRY: USA!!

For the following liability accounts, propose a substantive audit procedure (either an analytical test or a test of details) to test the year end balance of the following various liability accounts listed below. As an example - to audit the liability account mortgage interest payable at year-end, you would check to see when the last interest payment was, and then based upon the loan balance and interest rate and the number of days to year-end, you could compute an interest payable amount. Alternately, you could take the amount of mortgage interest expense for the year and divide by 12. That should be the maximum mortgage interest payable at year end. Here are the 5 liability accounts I would like you to propose audit procedures for:

1. Sales tax payable

2. Accrued wages

3. Accrued employer match for medicare/social security payroll taxes

4. Accrued employee portion of payroll taxes, including income tax withheld.

5. Utilities payable

BE SPECIFIC and descriptive about the audit procedures you propose.

Here is some additional information that you will need:

Sales tax is paid monthly.

Payroll is paid every two weeks.

The last payroll paid covered the two weeks ending 12/24, and was paid on 12/31.

Payroll taxes associated with the 12/31 payroll will be paid the first week of January.

As auditor, you have access to completed payroll records and government payroll tax form filings. Please note: you CANNOT suggest a review of subsequent payment of these liabilities.

PLEASE DO ALL, WILL GIVE A THUMBS UP! :)

The mayor of a town has proposed a plan for the construction of an adjoining community. A political study took a sample of 1200 voters in the town and found that 45% of the residents favored construction. Using the data, a political strategist wants to test the claim that the percentage of residents who favor construction is not equal 48%. Testing at the 0.01 level, is there enough evidence to support the strategist's claim?

Step 1 of 7 : State the null and alternative hypotheses.

Step 2 of 7: Find the value of the test statistic. Round your answer to two decimal places.

Step 3 of 7: Specify if the test is one-tailed or two-tailed.

Step 4 of 7: Determine the P-value of the test statistic. Round your answer to four decimal places.

Step 5 of 7: Identify the value of the level of significance.

Step 6 of 7: Make the decision to reject or fail to reject the null hypothesis.

Step 7 of 7: State the conclusion of the hypothesis test.

Here is a bivariate data set.

Find the correlation coefficient and report it accurate to three decimal places.
r =

What proportion of the variation in y can be explained by the variation in the values of x? Report answer as a percentage accurate to one decimal place.
r² = %

3. Suppose that you have 7 cookies to distribute between 13 children.

(a) If Jojo is one of the children, how many ways can you distribute the cookies so that Jojo gets at least two cookies?

(b) If Jojo and Joanne are two of the children, how many ways can you distribute the cookies so that Jojo and Joanne each get at least two cookies?

(c) Answer the above questions for when Jojo, Joanne, and Joey get two cookies each. Also, can we give Jojo, Joanne, Joey, and Josephine two cookies each?

(d) Use what you learned above to determine how many ways at least one of the 13 kids can have at least two cookies.

(e) Use what you learned. above to determine how many ways each of the 13 kids can have at most one cookie.

(f) Answer the question in (e) directly using binomial coefficients. Hint: Think of each kid being a position in a bit string.

(g) What combinatorial identity did you derive in the previous two problems?

The following is a free response question to be used as practice for future exams. You can complete the assignment in this document, using the drawing tools in Word (or any photo editing program) or print this document, and complete the activity by hand, submitting a scan or photo of your work. When you are done, submit the assignment for grading by your instructor. This question will be graded out of 6 points.

1. (a) The outputs and prices of goods and services in Country X are shown in the table above. Assuming that 2012 is the base year, calculate each of the following.

(i) The nominal gross domestic product (GDP) in 2013

(ii) The real GDP in 2013

(b) If in one year the price index is 40 and in the next year the price index is 50, what is the rate of inflation from one year to the next?

(c) Assume that next year’s wage rate will be 3.5% percent higher than this year’s because of inflationary expectations. The actual inflation rate is 3 percent. At the beginning of next year, will the real wage be higher, lower, or the same as today?

(d) Assume that Zac gets a fixed-rate loan from a bank when the expected inflation rate is 4 percent. If the actual inflation rate turns out to be 2 percent, who benefits from this: Zac, the bank, neither, or both? Explain.

Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company’s FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company’s four employees.

In addition to gross pay, the company must pay one-half of the $86 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund.

Required:
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.):

Find...

1. Employee's FICA withholdings for social security

2. employee's FICA withholdings for Medicare

3. employer's FICA taxes for social security

4. employer's FICA taxes for medicare

5. employer's FUTA Taxes

6. employer's SUTA taxes

7. each employee's net (take home) pay

8. employers total payroll related expense for each employee

This week we will look at the test for goodness of fit. In order to complete this discussion board, you will need a small bag of plain m&m’s.   M&m’s have six colors, listed below. The Mars Candy Company has published the percentage of each color that we should see in any given bag of m&m’s. We are going to determine if our purchases m&m’s are significantly different from what we should expect.

Our Null Hypothesis is that our percentages will match those provided by the company.

Our Alternate Hypothesis is that our percentages will not match those provided by the company.

Step 2:

Average your information with the information from two other students (three students total). This information is the OBSERVED data.

Observed data to be averaged:

• Color	Blue	Orange	Green	Yellow	Red	Brown	Total
  Number of M&M's	5	16	19	5	4	6	55
  Percent of Total	9%	29%	35%	9%	7%	11%	100%

  Color	Blue	Orange	Green	Yellow	Red	Brown	Total
  # of M&Ms	24	22	27	13	7	10	103
  % of Total	23%	21%	26%	13%	7%	10%	100%

• Color	Blue	Orange	Green	Yellow	Red	Brown	Total
  Number of m&m’s	13	5	3	10	9	5	45
  Percent of Total	29%	12%	7%	21%	20%	12%	100%

The EXPECTED data is published by the Mars Candy Company and is listed below:

Calculate the chi-square statistic using the formula on page 656 in your book, or use your calculator.

Then using a 0.05 level of significance and 5 degrees of freedom (because there are 6 colors), determine if we reject our Null Hypothesis or not.  

Digital Organics (DO) has the opportunity to invest $1.15 million now (t = 0) and expects after-tax returns of $730,000 in t = 1 and $830,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 11% with all-equity financing, the borrowing rate is 7%, and DO will borrow $270,000 against the project. This debt must be repaid in two equal installments of $135,000 each. Assume debt tax shields have a net value of $0.20 per dollar of interest paid. Calculate the project’s APV. (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations. Round your answer to the nearest whole number.)

Bond Yield and After-Tax Cost of Debt A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $676.72. The company's federal-plus-state tax rate is 40%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places. %