In December 2017 the US Congress passed legislation that will reduce corporate and individual taxes by an estimated $1.45 trillion over 10 years. In what ways was this action similar to a conventional Keynesian counter-cyclical stimulus? In what ways did it differ? How would you evaluate its effectiveness?

In December 2017 the US Congress passed legislation that will reduce corporate and individual taxes by an estimated $1.45 trillion over 10 years. In what ways was this action similar to a conventional Keynesian counter-cyclical stimulus? In what ways did it differ? How would you evaluate its effectiveness?

Expected

-

utility theory tells us that a risk

-

averse individual would want to be paid

a risk premium to induce

her

to voluntarily accept risk. Or, alternatively, the risk

-

averse individual would have to be offered odds that were in

her

favor in order to

induce h

er

to gamble. Here, “odds” refer to the probability of loss/gain and/or the

magnitude of the loss/gain.

Ms

.

Jane’s

utility function is U(

I

) =

(

10

0

+

I

)

0.

4

5

, where

100 is her initial income

level and

I

is

additional income gained or lost from a gamble. Ms.

Jane

can

choose not to gamble or to gamble.

The gamble involves the roll of a fair dice. If

the number is e

ven Ms.

Jane

wins $100 but if it is odd Ms.

Jane

loses $100.

(i)

Will Ms.

Jane

choose the gamble?

(ii)

In words, briefly describe what would need to change to induce Ms.

Jane

to take the gamble

(

hint

: focus on the characteristics of the gamble not her

preferences).

The H. J. Heinz Company, better known simply as Heinz, is an American food processing company based in Pittsburg, Pennsylvania. Originally, the company was founded by Henry John Heinz in 1869. Heinz manufactures thousands of food products in plants on six continents, and markets these products in more than 200 countries and territories. The company claims to have 150 number-one or number-two brands worldwide. Heinz ranked first in ketchup in the US with a market share in excess of 50%; the Ore-Ida label held 46% of the frozen potato sector in 2003. Since 1896, the company has used its “57 Varieties” slogan; it was inspired by a sign advertising 21 styles of shoes, and Henry Heinz chose the number 57 even though the company manufactured more than 60 products at the time. In February 2013, Heinz agreed to be purchased by Berkshire Hathaway and the Brazilian 3G Capital for $23 billion. On March 25, 2015, Kraft announced its merger with Heinz, arranged by Berkshire Hathaway and 3G Capital. The resulting Kraft Heinz company is the fifth largest food company in the world. Berkshire Hathaway became a majority owner of Heinz on June 18, 2015. Based on the information provided do the following: a) Indicate the growth strategy used by Heinz on March 25, 2015; and b) Think for a moment about the company’s core competences that represent its business domain to help the company to grow further. You can opt between two possible Diversification Strategies - Concentric Strategy and Horizontal Strategy. Explain Your answer.

Suppose we refused to sell goods to any country that reduced or halted its exports to us. Who would benefit and who would lose from such retaliation? Can you suggest alternative ways to ensure import supplies? Are there any particular imported commodities that you or your firm rely on? What has happened to the supply of these imports over the years?

2. Joanne Jamison

Joanne started with Performance Horizons five years ago, after receiving her MBA from The Wharton School. She has told people the reason she went to Wharton was to have the best opportunities at jobs that would offer quick advancement so she could rapidly rise to the top of the organization. Joanne has a keen sense of what makes organizations tick and who to go to when things need to get done. She doesn’t “waste” her time with chitchat, as she calls it. Her time is all spent on doing a good job on all her assignments and making sure she makes the right connections with the executives. Her performance has always been rated as excellent.

Which two of the four motivates Joanne the most?

I need to answers this questions in relation to THE LATEST DATA OF NIKE COMPANY:

- About stockholders and Governance:

• Is there separation between management and ownership? If so, how responsive is management to stockholders?
• How does this firm interact with financial markets? How do markets get information on the firm?
• How does this firm view its social obligations and manage its image?
• Who is the average investor in this stock? (Individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign?)
• Who is the marginal investor in this stock?

Thank you!

Quilici Family: Greg and Debra Quilici own a four bedroom home in an affluent neighborhood just north of San Francisco, California. Greg is a partner in the family owned commercial painting business. The family is Composed of Greg (father), Debra (mother), and 5 year old son Brady.Greg is a partner in the family owned commercial painting business.Debra is a housewife

After visiting Lawrence Krause, a family financial planner, Greg and Debra became concerned of their spending, and that they are not putting enough money for their son’s future education needs as well as their own retirementThey have a Koegh plan (retirement plan for self-employed individuals and small businesses in the US), but they did not account for Brady’s education.

Greg earns $95,000 per year, Greg is an alumnus of Stanford University (Tuition = $40,000 per year). Debra graduated from University of North Carolina at Chapel Hill (Tuition = $4,500 per year). The couple wants to send Brady to either school when he turns 18, with a slight preference towards Stanford. The problem, however, is that with the rate at which tuition is increasing the Quilicis are not sure they can raise enough money.

They expect the following things to happen.

• Tuition fees is expected to increase at an annual rate of 6%
• Living expenses are estimated to be $7000 per year for both schools (expecting to grow 3.5% per year)
• The couple can deposit their money into a growth oriented mutual fund at Neuberger and Berman Management, Inc. (historically earning 12% per annum)

The couple wishes to have a pre-determined monthly amount automatically paid from their bank account. When Brady starts college they will slowly liquidate the account by making an annual payment to Brady to cover tuition and living expenses at the beginning of each year for the four years he will be in college.

From the Case above

1. Identify the variables for each university (Tution Fees, Living Expenses, Interest rate, No of years)

2. How much will the tuition and living expenses be per year when Brady is ready to attend Stanford University?

3. How much will the tuition and living expenses be per year when Brady is ready to attend University of North Carolina at Chapel Hill?

4. Once Brady starts college what will his total expenses (future) be in each of his four years for Stanford University?.

5. Once Brady starts college what will his total expenses (future) be in each of his four years for University of North Carolina at Chapel Hill?.

6. Based on your analysis which university shoulf Greg and Deba choose for their son?

St. Andrew’s University receives 900 applications annually from prospective students. The application forms contain a variety of information including the individual’s scholastic aptitude test (SAT) score and whether or not the individual desires on-campus

housing.

What is the probability that a simple random sample of 30 applicants will provide an estimate of the population mean SAT score that is within plus or minus 10 (within 10 points) of the actual population mean m ? Given that the population Standard Deviation is 80.

Data show 648 applicants wanting On-Campus Housing. What is the probability that sample proportion exceeds 50%, when n =30?

What is the probability that a simple random sample of 30 applicants will provide an estimate of the population proportion of applicants desiring on-campus housing that is within plus or minus .05 of the actual population proportion?

If the University can provide to no more than 45% for the on –campus housing facilities, what would be the estimated number of accepted applicants desiring on-campus housing?

A committee surveyed 173 students from a large university campus and found that 53 of them participated in varsity sports. (a) Based on the survey results, construct and interpret a 95% confidence interval for the proportion of students who are varsity athletes. (b) Based on the survey results, test the claim that more than 25% of students are varsity athletes. Use alpha=0.01α = 0.01. Show all work.