2. Financial Globalization

   Assume that a country produces an output Q of 50 every year, and that the world interest rate is 10%. The country currently plans a consumption level C equal to 50 every year, with G =I = 0. But there is then an unexpected war in year 0, which requires government spending of G=22 units in year 0. The war is expected to last just one year. If the country desires to smooth consumption, how much should it borrow in the global financial market in period 0 to finance the war? What will the level of consumption be in year 0 (and all future periods)?

In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.

Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.

1. What is the probability that five fraudulent returns will be uncovered based on 100 IRS audits ? (n=100, p=0.05)
2. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS will uncover at least 15 fraudulent errors? (n=250 and P= 0.05)
3. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS would uncover at least 15 fraudulent returns but at most 20 fraudulent returns? (n=250 and P= 0.05)
4. What is the probability that out of the 250 randomly selected high net worth tax returns no fraudulent return is uncovered? (n=250 and P= 0.05)
5. Aside from the ethics of tax fraud and based solely on your answers to questions 1-4, do you think it would be advisable to cheat on your tax return? Do you need more information to decide? What type of information?

Markus Company’s common stock sold for $2.00 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements:     

Find:

accounts receivable turnover

average collection period

inventory turnover

average sale period

operating period

total asset turnover

times interest earned ratio

We are evaluating a project that costs $604,000, has an 8 year life, and has no salvage value. Assume that depreciation is straight-line to zero of the life of the project. Sales are projected at 55,000 units per year. Price per unit is $36, variable cost per unit is $17, and fixed cost are 685,000 per year. The tax rate is 21 percent and we require a return of 15 percent on this project.

a. Calculate the accounting break-even point.

b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.

c. What is the sensitivity of OCF to changes in the variable costs figure? Explain what your answer tells you about a $1 decrease in estimated variable cost.

In the previous problem, suppose the projections given for price, quantity, variable costs, fixed cost are all accurate to within plus or minus 10 percent. calculate the best-case and worst-case NPV figures.

A company that uses a FIFO inventory system and began operations in Year 1 has the following information. Year 1 Year 2 Sales units 8,000 10,000 Selling price $45 $46 Production units 12,000 8,000 Unit direct material cost $2.00 $2.00 Unit direct labor cost $1.00 $1.00 Unit commission cost $.50 $.50 Annual Fixed Overhead $180,000 $180,000 Annual Fixed S,G,&A $140,000 $150,000 1. What are the inventoriable cost per unit in years 1 and 2? Absorption Costing Variable Costing 2. What would the income statements look like? Absorption Costing Variable Costing Numerically reconcile the difference in Operating Profit (if any)

I know this question has already been asked...…. But I cannot follow where the numbers come from. I am assuming the issue is the change in inventory? I need to know how year two is calculated with more detail for both methods

Also note for my exams I have to use paper and pencil ….. I have no excel access

A survey of several 10 to 13 year olds recorded the following amounts spent on a trip to the mall:

$15.64, $12.62, $26.06

Construct the 95% confidence interval for the average amount spent by 10 to 13  year olds on a trip to the mall. Assume the population is approximately normal.

Step 1 of 4:

Calculate the sample mean for the given sample data. Round your answer to two decimal places.

Step 2 of 4:

Calculate the sample standard deviation for the given sample data. Round your answer to two decimal places.

Step 3 of 4:

Find the critical value that should be used in constructing the confidence interval. Round your answer to three decimal places.

Step 4 of 4:

Construct the 95% confidence interval. Round your answer to two decimal places.

JM, a 50 year old male returns to the clinic for a follow up visit. On his last visit BP was 136/90, HR 86, RR 18- weighs 220 lbs- at that time he was advised to limit salt intake and consume low fat diet- New visit - VS are as follows: BP 150/92, HR 88, RR 20 and weight 235 lbs.

1. JM has a strong family history for cardiac disease, his father passed away at age 60 from an MI and his 2 older brothers have had MI’s and stent placement. Does JM need any additional medication based on his own history and his family history? (2 Points)

2. Please devise a medication regimen for JM and provide a rationale for each medication recommended- additionally, please note all the non pharmacologic interventions as well. (4 points)

You are offered an annuity investment that will pay you $ 25,000 per year for 10 years     beginning in 20 years. These payments will be made at the beginning of each year and your discount rate is expected to be 8%. You will need to make payments at the end of each year for the next 20 years (also at 8%) in order to receive the annuity investment.

What is the present value of the annuity investment as of 20 years from now?
How much payments you will need to make for the next 20 years to get the annuity?

Oppenheimer Bank is offering a 30​-year mortgage with an APR of 5.06 % based on monthly compounding. With this mortgage your monthly payments would be $ 1 comma 972 per month. In​ addition, Oppenheimer Bank offers you the following​ deal: Instead of making the monthly payment of $ 1 comma 972 every​ month, you can make half the payment every two weeks​ (so that you will make 52 divided by 2 equals 26 payments per​ year). With this​ plan, how long will it take to pay off the mortgage if the EAR of the loan is​ unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places.

16) Given the information below, calculate the company's cash balance at the end of the year.

Cash Balance at Beginning of Year $80,000

Activity During the Year

Increase in Accounts Payable $60,000

Decrease in Accounts Receivable $40,000

Depreciation Expense $500,000

Net Income $2,000,000

Purchase of Fixed Assets $800,000

A) $1,880,000

B) $ 80,000

C) $1,265,000

D) -$1,120,000

Sales of Common Stock $100,000

Decrease in Notes Payable $85,000

Dividends Paid $15,000