Information：

1.taxes

Trump:

Keep and extend 2017 tax cuts.

Tax legislation in 2017 reduced marginal tax rates across the board, including reducing the top personal income tax rate from 39.6% to 37%.

Increased the standard deduction from $6350 to $12,000 (currently $12,400)

Limited deduction of state and local taxes to $10,000

Reduced top marginal corporate tax rate from 35% to 21%

Biden: Raise certain tax rates

Increase top personal marginal tax rate back to 39.6%, but leave other marginal tax rates unchanged

Apply Social Security taxes to earnings over $400,000 (currently earnings above $137,700 are not taxed). Current SS tax rate is 6.2%.

Tax capital gains as ordinary income for households earning over $1 million (currently the top marginal tax rate on capital gains is 20%)

Raise top marginal corporate tax rate from 21% to 28%

2.Infrastructure

Trump

Wants a $2 trillion infrastructure package

Establish a national high-speed wireless internet network

Wants to win the 5G race

Expand Opportunity Zones tax breaks

Opportunity Zones were part of the 2017 tax bill

States may designate up to 25% of low-income census tracts as Opportunity Zones

Capital gain taxes are deferred for investments reinvested into investments in these zones, and capital gains taxes are waived if the investment is held for at least 10 years

For financing, cited low borrowing rates

Biden

Proposes 10-year, $1.3 trillion infrastructure package

Includes $400 billion for clean energy research and innovation; $100 billion to modernize schools; $50 billion to repair roads, bridges, and highways; and $20 billion for rural broadband infrastructure

3.Minimum wage

Trump: would consider raising the minimum wage, but thinks minimum wage should differ across states

Biden: raise minimum wage to $15 an hour

4.Health care

Trump

Proposes cuts in health care spending, especially Medicare and Medicaid

Wants to protect Social Security and Medicare

Wants to lower health care insurance premiums, end surprise billing, and bring down drug prices

Biden

Public health care option, which people could buy into. Would make health insurance more affordable for people who could not afford private health insurance premiums or who had pre-existing conditions. Public option would be free to low income individuals and families.

Limit cost of health care coverage to 8.5% of income

Paid sick leave

12 weeks of paid family leave for new parents

5.Trade

Trump

Penalize countries that the U.S. has a high trade deficit with and countries that are unfairly taxing American companies overseas

No federal contracts for companies that outsource jobs to other countries

Tax credits for companies the bring jobs back to the U.S., focusing specifically on pharmaceutical and robotics companies

Tax credits to businesses making American products

Enact fair trade deals that protect American jobs

Biden

Invest at home in innovation to make American companies more competitive

Form coalitions with allies and partner to confront other nations on intellectual and property and technology transfers

6.Environment

Trump

Supports fossil fuels industry

Biden

Wants to achieve 100% clean energy with net-zero emissions by 2050

Transition away from fossil fuels

Rejoin Paris Climate Agreement

Make climate change part of foreign policy and trade negotiations

Tax incentives/credits for renewable energy

7.Education

Trump

Eliminate the Public Service Loan Forgiveness and subsidized loans programs

Income-driven repayment program would cap monthly payments at 12.5% of income

Forgives undergraduate student loans after 15 years instead of 20 years

Biden

Cancel a minimum of $10,000 in student debt per person

Forgive all undergraduate, tuition-related federal student debt for low-income and middle class individuals (earning up to $125,000) who have attended public colleges and universities and private HBCU’s

From those information:

Discuss your reaction to the economic proposals of the two candidates in one of the presidential debates or the vice-presidential debate. In particular, write about what each candidate proposes in terms of economic policy, discuss the pros and cons of each candidate’s proposed economic policies, state which proposals you believe are better (or argue that something in between would be optimal), and explain your reason for your policy recommendations. Your write-up should be between 400-750 words.

Assume the that over the past couple of years your investment into a stock that pays no dividends was as follows:

What is your dollar-weighted annual return for over this period for this investment?

Enter answer in percents, to two decimal places.

Bonus exploratory question: how does this compare to the average annual return, or the geometric average annual return?

Suppose you are given the following end of year stock price data for Random Inc. stock. Assume the returns are normally distributed, calculate the probability that an investor will lose more than -3% in a year, Prob(Ret<-3%). (Enter percentages as decimals and round to 4 decimals). Year Price 2005 43.65 2006 44.01 2007 45.77 2008 53.04 2009 45.67 2010 59.05 2011 46.88 2012 49.24 2013 43.99 2014 42.67 2015 48.14

Suppose you are given the following end of year stock price data for Random Inc. stock. Assume the returns are normally distributed, calculate the probability that an investor will lose more than -3% in a year, Prob(Ret<-3%). (Enter percentages as decimals and round to 4 decimals). Year Price 2005 43.65 2006 44.01 2007 45.77 2008 53.04 2009 45.67 2010 59.05 2011 46.88 2012 49.24 2013 43.99 2014 42.67 2015 48.14

Danny Ferry Co. sells $250,000 of 10% bonds on March 1, 2007. The bonds pay interest on September 1 and March 1. The due date of the bond is September 1, 2010. The bond yield is 12%. Give entries through December 31, 2008.

Round to the nearest dollar.

Instructions:

Prepare all of the relevant journal entries from the time of sale until the date indicated. Use the effective interest method for discount amortization. (Assume the no reversing entries are made.)

Country Financial, a financial services company, uses surveys of adults age 18 and older to determine if personal financial fitness is changing over time (USA Today, April 4, 2012). In February of 2012, a sample of 1000 adults showed 410 indicating that their financial security was more than fair. In February of 2010, a sample of 900 adults showed 315 indicating that their financial security was more than fair. At 99% confidence, what is the margin of error? Round to 2 decimal places.

The following table of values gives a company's annual profits in millions of dollars. Rescale the data so that the year 2005 corresponds to  x=1 .

Use the power regression model to predict the company's profits in 2012.

a) $70.2 million

b) $68.6 million

c) $71.5 million

d) $67.7 million

e) $66.6 million

f) None of the above

You have the following historical annual total returns on Terlingua Oil & Gas Exploration:

Calculate the sample standard deviation of annual return.

Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol.

‘If financial information is to be useful, it must be relevant and faithfully represent what it purports to represent. The usefulness of financial information is enhanced if it is comparable, verifiable, timely and understandable’ (IASB Conceptual Framework for Financial Reporting 2010). Required: (a) Identify and explain the fundamental and enhancing characteristics of financial information, as defined by the IASB. (b) Critically evaluate the use of a conceptual framework as a frame of reference for the regulation of financial reporting. Your critical evaluation should be developed using independent wider reading of quality academic sources.