With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies.
Health Insurance Size of Company Yes No Total Small 32 18 50 Medium 61 14 75 Large 87 13 100
a) Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use = .05. Use Table 12.4.
Compute the value of the 2 test statistic (to 2 decimals). The p value is What is your conclusion?
b) The USA Today article indicated employees of small companies are more likely to lack health insurance coverage. Calculate the percentages of employees without health insurance based on company size (to the nearest whole number).
Small % Medium % Large %
Based on the percentages calculated above, what can you conclude?
In: Statistics and Probability
3. Collateralized Debt Obligations (CDOs)
(a) are Asset-Backed Securities (ABS) that are based only on sub-prime mortgage loans in the U.S.
(b) are not usually rated by rating agencies as the underlying default-free government securities act as collaterals.
(c) are structured in tranches according to the underlying risk characteristics.
(d) (a) and (b) of the above
(e) (b) and (c) of the above
4. Which of the following was NOT a contributing factor to the sub-prime debt crisis in the U.S.?
(a) The series of cuts in the U.S. official interest rate from late 2001 to reach the level of 1% by early 2004.
(b) The unregulated growth of the CDO market in the U.S..
(c) The unregulated sub-prime mortgage market in the U.S. that constantly supplied assets to be securitized.
(d) The Quantitative easing that led to a four-fold increase in the U.S. money base between Dec 2008 to Apr 2014.
(e) Increased demand for higher-yielding AAA rated USD dollar denominated financial assets.
5. Home equity in relation to the mortgage loan market refers to
(a) The difference between the current market price of the mortgaged house and the remaining amount in the mortgage loan.
(b) The difference between the purchase price of the mortgaged house and the remaining amount in the mortgage loan.
(c) The difference between the face value of the mortgage loan and the remaining amount in the mortgage loan.
(d) The difference between the purchase price and the current market price of the mortgaged house.
(e) None of the above is true
In: Finance
The questions in this exercise are based on Netflix, Inc. To answer the questions you will need to download Netilix’s Form 10-K for the year ended December 31, 2005 at www.sec.gov/edgar!searchedgar/companysearch.html. Once at this website, input CIK code 1065280 and hit enter. In the gray box on the right-hand side of your computer screen define the scope of your search by inputting 10-K and then pressing enter. Select the 10-K with a filing date of March 16, 2006. You do not need to print this document to answer the questions.
Required:
In: Accounting
The intangible assets section of Salmiento
Corporation’s balance sheet at Decem-
ber 31, 2010, is presented here.
Patents ($60,000 cost less $6,000 amortization) $54,000
Copyrights ($36,000 cost less $25,200 amortization) 10,800
Total $64,800
The patent was acquired in January 2010 and has a useful life of 10
years. The copyright
was acquired in January 2004 and also has a useful life of 10
years. The following cash
transactions may have affected intangible assets during 2011.
Jan. 2 Paid $45,000 legal costs to successfully defend the patent
against in-
fringement by another company.
Jan.–June Developed a new product, incurring $210,000 in research
and development
costs. A patent was granted for the product on July 1, and its
useful life is
equal to its legal life. Legal and other costs for the patent were
$20,000.
Sept. 1 Paid $40,000 to a quarterback to appear in commercials
advertising
the company’s products. The commercials will air in September
and
October.
Oct. 1 Acquired a copyright for $200,000. The copyright has a
useful life and
legal life of 50 years.
Instructions
(a) Prepare journal entries to record the transactions.
(b) Prepare journal entries to record the 2011 amortization expense
for intangible assets.
(c) Prepare the intangible assets section of the balance sheet at
December 31, 2011.
(d) Prepare the note to the financial statements on Salmiento
Corporation’s intangible
assets as of December 31, 2011.
In: Accounting
Discussion 1 (finance 101 )
Apple's Jobs Takes Leave as Weight Loss Said to Continue; Cook Takes Over
Lead Story-Dateline: Satariano, Adam, Peter Burrows, and Joseph Galante,
"Apple's Jobs Takes Leave as Weight Loss Said to Continue; Cook Takes Over," Bloomberg.com,
Summary: Key Points in the Article
Apple Computer CEO Steve Jobs announced he was taking a leave of absence for health reasons. Jobs has been fighting cancer and also recently underwent a liver transplant. Even though the computer giant is in good hands with Chief Operating Officer Tom Cook taking over the stock price fell by US$6.40, or nearly two percent, on the news.
Jobs is widely known as a visionary and a micromanager. Under his leadership Apple has transformed the computing industry. While Jobs' health outlook is unknown many investors are betting on his recovery and return. Those who bought Apple stock when Jobs stepped down in 2004 for health reasons made a nice profit when he returned to the helm.
Question 2 Marks
“When a financial manager makes good or bad financial decisions the impact of these decisions will be reflected in the company's Stock price”.
Do you agree with the decision taken in the above case? What decisions you will take to improve the stock price of Apple Computers in this situation?
In: Finance
With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies. Health Insurance Size of Company Yes No Total Small 31 19 50 Medium 68 7 75 Large 90 10 100 Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use = .05. Use Table 12.4. Compute the value of the 2 test statistic (to 2 decimals). The p value is What is your conclusion? The USA Today article indicated employees of small companies are more likely to lack health insurance coverage. Calculate the percentages of employees without health insurance based on company size (to the nearest whole number). Small % Medium % Large % Based on the percentages calculated above, what can you conclude?
In: Statistics and Probability
With double-digit annual percentage increases in the cost of
health insurance, more and more workers are likely to lack health
insurance coverage (USA Today, January 23, 2004). The
following sample data provide a comparison of workers with and
without health insurance coverage for small, medium, and large
companies. For the purposes of this study, small companies are
companies that have fewer than 100 employees. Medium companies have
100 to 999 employees, and large companies have 1000 or more
employees. Sample data are reported for 50 employees of small
companies, 75 employees of medium companies, and 100 employees of
large companies.
| Size of Company | Health Insurance-Yes | Health Insurance-No | Total |
| Small | 39 | 11 | 50 |
| Medium | 62 | 13 | 75 |
| Large | 88 | 12 | 100 |
Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use a = .05.
Compute the value of the x2 test statistic (to 2 decimals).
Find the p-value
What is your conclusion?
The USA Today article indicated employees of small
companies are more likely to lack health insurance coverage.
Calculate the percentages of employees without health insurance
based on company size (to the nearest whole number).
Small:
Medium:
Large:
Based on the percentages calculated above, what can you
conclude?
In: Statistics and Probability
With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies
Health Insurance
Size of Company
Yes
No
Total
Small
38
12
50
Medium
61
14
75
Large
90
10
100
Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use
= .05. Use Table 12.4.
Compute the value of the
2 test statistic (to 2 decimals).
The p value is
What is your conclusion?
The USA Today article indicated employees of small companies are more likely to lack health insurance coverage. Calculate the percentages of employees without health insurance based on company size (to the nearest whole number).
Small
%
Medium
%
Large
%
Based on the percentages calculated above, what can you conclude?
In: Statistics and Probability
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.3% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $91,000 at the end of 2018 and the company's actuary projects her salary to be $285,000 at retirement. The actuary's discount rate is 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) At the beginning of 2019, the pension formula was amended to: 1.40% × Service years × Final year's salary The amendment was made retroactive to apply the increased benefits to prior service years. Required: 1. What is the company's prior service cost at the beginning of 2019 with respect to Davenport after the amendment described above? 2. Since the amendment occurred at the beginning of 2019, amortization of the prior service cost begins in 2019. What is the prior service cost amortization that would be included in pension expense? 3. What is the service cost for 2019 with respect to Davenport? 4. What is the interest cost for 2019 with respect to Davenport? 5. Calculate pension expense for 2019 with respect to Davenport, assuming plan assets attributable to her of $110,000 and a rate of return (actual and expected) of 10%.
In: Accounting
China's Galanz built a new complex at the expected cost of 2
billion yuan in order to produce 12 million air-conditioning units
annually. The site was completed in 2004.
1 Make the following assumptions:
•The actual investment cost is either 1.9, 2.0, or 2.1 billion
yuan, with respective probabilities of 0.25,0.50, and 0.25.
•The plant operates for 15 years, with the salvage value being
either 50 million, 0, or-100 million(remediation costs) yuan at
that time, with probabilities of 0.20,0.50, and 0.30,
respectively.
•Finally, the net cash flow resulting from operations and sales is
60 yuan per unit. The number of units sold in each year is either 9
(0.1), 10 (0.2), 11 (0.3), or 12 (0.4) million. The figures
in
parentheses represent the probabilities of the given level of
production.
Assume that these are the only relevant cash flows and the interest rate is 18% per year.
a) Find an expression for the present worth (PW).
b) Find the expected value of the PW(if possible).
c) Find the standard deviation of the PW(if possible).
d)Find Pr(PW >0) (if possible).
e)Perform 200 simulations, and find the sample mean, standard deviation, as well as the probability that the investment will have a positive PW (point & interval estimates). Finally, summarize your process (which will naturally include all the appropriate steps) and results
In: Finance