Q1)

i) Suppose an economy experiences a 6% increase in  K,  N, and  H (human capital). Given this information, we know with certainty that:

Select one:

a. Y will increase by exactly 6%.

b. Y will not change.

c. Y will increase by less than 6%.

d. Y will increase by less than 12% but more than 6%.

e. Y will increase by more than 6%.

ii) Which of the following will occur when the capital stock falls?

Select one:

a. There will be an ambiguous effect on profit per unit of capital.

b. There will be no change in profit per unit of capital.

c. Profit per unit of capital will decrease.

d. Profit per unit of capital initially decreases followed by increases.

e. Profit per unit of capital will increase.

iii) Which of the following must occur for the nominal interest rate to be equal to the real interest rate?

Select one:

a. Expected inflation is equal to the nominal interest rate.

b. The nominal and real interest rates can never be equal.

c. Expected inflation is equal to twice the real interest rate.

d. Expected inflation is equal to the real interest rate.

e. Expected inflation is equal to zero.

Jackie approached her Human Resources representative and requested time off under FMLA. Jackie's son has a chronic disease, which requires him to miss significant amounts of school and Jackie to stay home and take care of him. Jackie is unsure if she qualifies to use FMLA, so she has many questions that she would like answered. Based on your readings and outside research, answer the following questions for Jackie so that she may have a better understanding of FMLA and how it applies to her. Discuss any discrepancies in the answers with your classmates and instructor.

How much leave is entitled to under the Family and Medical Leave Act?

How is the 12-month period calculated under the Family and Medical Leave Act?

Does the Family and Medical Leave Act guarantee paid time off?

Can the employer count time on maternity leave or pregnancy disability as leave under the Family and Medical Leave Act?

Who is considered an immediate "family member," under the Family and Medical Leave Act, for purposes of taking FMLA leave?

Do I have to give my employer my medical records for FMLA leave due to a serious health condition?

A double-blind randomised experiment investigated whether consumption of oligofructose would stimulate calcium absorption in healthy human males aged 14 to 16 years. Two sets of pills were prepared, identical in appearance and packaging. One set contained oligofructose and the other set contained ordinary sucrose (i.e., a placebo). The experiment ran in two rounds, with the second round starting 3 weeks after the first ended. Subjects were randomly assigned to either receive oligofructose in the first round and the placebo in the second, or the placebo in the first round and oligofructose in the second. In each round, subjects took pills for nine days and had their calcium absorption measured on the last day. Calcium absorption was measured as a percentage of calcium intake. The calcium absorption data are available in two data files, Oligo_paired.csv and Oligo_indep.csv. The measurements in each file are the same, but only one of these files is appropriate to the problem. In Oligo_paired.csv, the data columns are headed “Placebo” and “Oligofructose” to indicate which pill was being taken when calcium absorption was measured. Each row contains calcium absorption measurements from a single subject. In Oligo_indep.csv, the columns are headed “CaAbsorb” and “Pill”. CaAbsorb contains calcium absorption measurements, and “Pill” indicates whether the pill being taken was a placebo or oligofructose.

(b) Provide a graph of the data distribution appropriate to your choice of analysis.

How do i create the graph in R?

c) Formally test whether oligofructose stimulates calcium absorption in healthy males aged 14 to 16 years. You do not need to revisit the decision made in part (a), but your report should be consistent with that decision, and should include all relevant elements of a hypothesis test. Assume α = .05.

What is the null and alternative hypothesis?

Organizational Effectiveness and Development Scenario (Human Resources)

A small, family-run organization has always pursued a differentiation strategy that emphasizes quality and customer service. The CEO decides to retire and sell the business to a mid-sized competitor who has always employed a cost leadership strategy. As part of the sale agreement, the CEO insists that all current employees be retained. Within four months of the acquisition, the VP of HR sees that almost 40% of the acquired employees have left the organization, taking critical knowledge with them. If this continues, it will affect customer service.

1. What type of OED( Organizational Effectiveness and Development) intervention should the VP of HR consider first? ( support the answer with appropriate reasoning as per the above scenario with 100 words)

Your employer, a mid-sized human resources management company, is considering expan- sion into related fields, including the acquisition of Temp Force Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporary heavy workloads. Your employer is also considering the purchase of Bigger- staff & McDonald (B&M), a privately held company owned by two friends, each with 5 million shares of stock. B&M currently has free cash flow of $24 million, which is expected to grow at a constant rate of 5%. B&M’s financial statements report short-term investments of $100 million, debt of $200 million, and preferred stock of $50 million. B&M’s weighted average cost of capital (WACC) is 11%. Answer the following questions.

a. Describe briefly the legal rights and privileges of common stockholders.

b. What is free cash flow (FCF)? What is the weighted average cost of capital? What is the free cash flow valuation model?

c. Use a pie chart to illustrate the sources that comprise a hypothetical company’s total value. Using another pie chart, show the claims on a company’s value. How is equity a residual claim?

d. Suppose the free cash flow at Time 1 is expected to grow at a constant rate of gL forever. If gL WACC, what is a formula for the present value of expected free cash flows when discounted at the WACC? If the most recent free cash flow is expected to grow at a constant rate of gL forever (and gL WACC), what is a formula for the present value of expected free cash flows when discounted at the WACC?

e. Use B&M’s data and the free cash flow valuation model to answer the following questions. (1) What is its estimated value of operations? (2) What is its estimated total corporate value? (This is the entity value.) (3) What is its estimated intrinsic value of equity? (4) What is its estimated intrinsic stock price per share?

f. You have just learned that B&M has undertaken a major expansion that will change its expected free cash flows to ?$10 million in 1 year, $20 million in 2 years, and $35 million in 3 years. After 3 years, free cash flow will grow at a rate of 5%. No new debt or preferred stock was added; the investment was financed by equity from the owners. Assume the WACC is unchanged at 11% and that there are still 10 million shares of stock outstanding.

(1) What is the company’s horizon value (i.e., its value of operations at Year 3)? What is its current value of operations (i.e., at Time 0)?

(2) What is its estimated intrinsic value of equity on a price-per-share basis?

g. If B&M undertakes the expansion, what percent of B&M’s value of operations at Year 0 is due to cash flows from Years 4 and beyond? (Hint: Use the horizon value at t 3 to help answer this question.

h. Based on your answer to the previous question, what are two reasons why managers often emphasize short-term earnings?

i. YouremployeralsoisconsideringtheacquisitionofHatfieldMedicalSupplies.Youhave gathered the following data regarding Hatfield, with all dollars reported in millions: (1) most recent sales of $2,000; (2) most recent total net operating capital, OpCap $1,120; (3)mostrecentoperatingprofitabilityratio,OP NOPAT Sales 45%;and(4)most recent capital requirement ratio, CR OpCap Sales 56%. You estimate that the growth rate in sales from Year 0 to Year 1 will be 10%, from Year 1 to Year 2 will be 8%, from Year 2 to Year 3 will be 5%, and from Year 3 to Year 4 will be 5%. You also estimate that the long-term growth rate beyond Year 4 will be 5%. Assume the operating profitability and capital requirement ratios will not change. Use this information to forecast Hatfield’s sales, net operating profit after taxes (NOPAT), OpCap, free cash flow, and return on invested capital (ROIC) for Years 1 through 4. Also estimate the annual growth in free cash flow for Years 2 through 4. The weighted average cost of capital (WACC) is 9%. How does the ROIC in Year 4 compare with the WACC?

j.What is the horizon value at Year 4? What is the total net operating capital at Year 0? How does the value of operations compare with the current total net operating capital?

k. What are value drivers? What happens to the ROIC and current value of operations if expected growth increases by 1 percentage point relative to the original growth rates (including the long-term growth rate)? What can explain this? (Hint: Use Scenario Manager.)

l. Assume growth rates are at their original levels. What happens to the ROIC and current value of operations if the operating profitability ratio increases to 5.5%? Now assume growth rates and operating profitability ratios are at their original levels. What happens to the ROIC and current value of operations if the capital requirement ratio decreases to 51%? Assume growth rates are at their original levels. What is the impact of simultaneous improvements in operating profitability and capital requirements? What is the impact of simultaneous improvements in the growth rates, operating profitability, and capital requirements? (Hint: Use Scenario Manager.)

m. What insight does the free cash flow valuation model provide regarding possible reasons for market volatility? (Hint: Look at the value of operations for the combinations of ROIC and gL in the previous questions.)

n. (1) Write out a formula that can be used to value any dividend-paying stock, regardless of its dividend pattern.

(2) What is a constant growth stock? How are constant growth stocks valued?

(3) What happens if a company has a constant gL that exceeds its rs? Will many stocks have expected growth greater than the required rate of return in the short run (i.e., for the next few years)? In the long run (i.e., forever)?

o. Assume that Temp Force has a beta coefficient of 1.2, that the risk-free rate (the yield on T-bonds) is 7.0%, and that the market risk premium is 5%. What is the required rate of return on the firm’s stock?

p.Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 6% rate. (1) What is the firm’s current estimated intrinsic stock price?

(2) What is the stock’s expected value 1 year from now?

(3) What are the expected dividend yield, the expected capital gains yield, and the expected total return during the first year?

q. Now assume that the stock is currently selling at $30.29. What is its expected rate of return?

r. Now assume that Temp Force’s dividend is expected to experience nonconstant growth of 30% from Year 0 to Year 1, 25% from Year 1 to Year 2, and 15% from Year 2 to Year 3. After Year 3, dividends will grow at a constant rate of 6%. What is the stock’s intrinsic value under these conditions? What are the expected dividend yield and capital gains yield during the first year? What are the expected dividend yield and capital gains yield during the fourth year (from Year 3 to Year 4)?

s. What is the market multiple method of valuation? What are its strengths and weaknesses?

t. What are the advantages of the free cash flow valuation model relative to the dividend growth model?

u. What is preferred stock? Suppose a share of preferred stock pays a dividend of $2.10 and investors require a return of 7%. What is the estimated value of the preferred stock?

A heterozygous brown-eyed human female who is color blind marries a homozygous brown-eyed male who is not color-blind (remember, color-blindness is sex-linked).  Assume that eye color is an autosomal trait and that brown is dominant over blue.

a. Write out genotypes of parents and the Punnett squares for the possible offspring below first (Use the table feature to help and clearly label parental and offspring genotypes):

*What is the probability that any of the offspring produced have the following traits?  (please provide possible genotypes and show mathematical work for full credit)

b. carrier of color blindness?

c. blue-eyed normal vision female?

d. How many copies of the colorblind/normal vision allele do females carry? How many do males carry? Please explain any differences and define any terms.

Be complete and specific in your responses.

Exercise 17-17:

Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and
the Computing Department. The bank has two other departments that directly service customers, the
Deposit Department and the Loan Department. The usage of the two service departments’ output for the
year is as follows:
Provider of Service
User of Service HR Computing
HR ......................................................................................................................................................... — 15%
Computing ............................................................................................................................................ 10% —
Deposit ................................................................................................................................................. 60% 50%
Loan ...................................................................................................................................................... 30% 35%

The budgeted costs in the two service departments for the year are as follows:
HR ........................................................................................................................................................................... $153,000
Computing .............................................................................................................................................................. 229,500

Required: Use the direct method to allocate the budgeted costs of the HR and Computing departments
to the Deposit and Loan departments

Exercise 17–18
Step-Down Method of
Service Department Cost
Allocation; Bank
Refer to the data given in the preceding exercise.
Required: Use the step-down method to allocate the budgeted costs of the HR and Computing departments
to the Deposit and Loan departments. Tuscaloosa National Bank allocates the costs of the HR
Department first.

Please can you show all the work for 17-17 and 17-18. Please use Question 17-17 to answer 17-18

Thank you

Hiring Discrimination Based on Social Media Posts

Human resource officers in most companies routinely check job candidates’ social media posts when deciding whom to hire. Certainly, young people are warned not to post photos that they might later regret having made available to potential employers. But a more serious issue involves standard reviewing of job candidates’ social media information. Specifically, do employers discriminate based on such information?

An Experiment in Hiring Discrimination via Online Social Networks

Two researchers at Carnegie-Mellon University conducted an experiment to determine whether social media information posted by prospective employees influences employers’ hiring decisions. The researchers created false resumes and social media profiles. They submitted job applications on behalf of the fictional “candidates” to about four thousand U.S. employers. They then compared employers’ responses to different groups—for instance, to Muslim candidates versus Christian candidates.

The researchers found that candidates whose public profiles indicated that they were Muslim were less likely to be called for interviews than Christian applicants. The difference was particularly pronounced in parts of the country with more conservative residents. In those locations, Muslims received callbacks only two percent of the time, compared with seventeen percent for Christian applicants. According to the authors of the study, “Hiring discrimination via online searches of candidates may not be widespread, but online disclosures of personal traits can significantly influence the hiring decisions of a self-selected set of employers.”

Job Candidates’ Perception of the Hiring Process

Job candidates frequently view the hiring process as unfair when they know that their social media profiles have been used in the selection process. This perception may make litigation more likely. Nevertheless, eighty-four percent of employers report using social media to recruit job applicants. One-third of those who recruit in this manner admit that they have disqualified applicants based on content found in their social media accounts.

The EEOC Speaks Up

The Equal Employment Opportunity Commission (EEOC) has investigated how prospective employers can use social media to engage in discrimination in the hiring process. Given that the Society for Human Resource Management estimates that more than three-fourths of its members use social media in their employment screening process, the EEOC is interested in regulating this procedure.

Social media sites, examined closely, can provide information to a prospective employer on the applicant’s race, color, national origin, disability, religion, and other protected characteristics. The EEOC has reminded employers that such information—whether it comes from social media postings or other sources—may not legally be used to make employment decisions on prohibited bases, such as race, gender, and religion.

Question Presented

Can you think of a way a company could use information from an applicant’s social media posts without running the risk of being accused of hiring discrimination?

1) Edgar, a manager from Human Resources, thinks the problem stems from night-shift workers not getting proper sleep and consequently inducing errors. He thinks that less than 50% of workers on the night shift are getting at least the seven hours of sleep necessary to perform adequately. HR surveys 80 night-shift workers and finds that 46 of them claim to get at least seven hours of sleep per night. At 95% confidence, can we reject Edgar’s claim? Please use the critical-value method to test this, stating the null and alternative hypotheses as well as the test statistic you will use.

- Lisa, another HR manager, thinks that the problems have nothing to do with the night shift, so she wants to prove to Edgar that the proportion of day-shift workers getting adequate sleep and night-shift workers getting adequate sleep is the same. She interviews 50 day-shift workers and finds that 31 claim to get at least seven hours of sleep per night. Using the surveys for night-shift workers from problem 2, can we say that Lisa is wrong with 95% confidence? In your answer, please use the critical-value method, stating the null and alternative hypotheses as well as the test statistic you will use.