Government G levies an income tax with the following rate structure:

Percentage

Rate Bracket 6 % Income from –0– to $30,000

10 Income from $30,001 to $70,000

20 Income from $70,001 to $200,000

28 Income in excess of $200,000

Taxpayer O earns $68,500 annually during years 1 through 10. Taxpayer P earns $26,500 annually during years 1 through 5 and $110,500 annually during years 6 through 10. Assume the tax rate bracket has not changed.

How much total income does each taxpayer earn over the 10-year period? Compute each taxpayer’s average tax rate for the 10-year period.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

Compute each taxpayer’s average tax rate for the 10-year period. (Round your answers to 1 decimal place.)

When circuit boards used in the manufacture of compact disc players are tested, the long-run percentage of defectives is 10%. Let X = the number of defective boards in a random sample of size n = 20, so X ~ Bin(20, 0.1). (Round your probabilities to three decimal places.)

(a) Determine P(X ≤ 2).


(b) Determine P(X ≥ 5).


(c) Determine P(1 ≤ X ≤ 4).


(d) What is the probability that none of the 20 boards is defective?


(e) Calculate the expected value and standard deviation of X. (Round your standard deviation to two decimal places.)

Eric wants to estimate the percentage of elementary school children who have a social media account. He surveys 450 elementary school children and finds that 280 have a social media account. Identify the values needed to calculate a confidence interval at the 99% confidence level. Then find the confidence interval.

4) Okun's law states that one extra percentage point in unemployment causes A) a 2 percent fall in GDP B) a 0.5 percent fall in GDP C) a 2 percent fall in the rate of inflation D) a 0.5 percent fall in the rate of inflation

5) If output is at its full-employment level, then A) the actual unemployment rate is zero B) the natural rate of unemployment is zero C) there are no frictions in the labor market since wages have reached their market-clearing level D) there is still some positive level of unemployment due to frictions in the labor market

6) The income velocity of money can be calculated using the following formula A) V = M/(PY) B) V = (MY)/P C) V = (PY)/M D) V = MY

Hollow Truth Publishers is considering whether to launch a new e-magazine. The annual percentage rate of return (APR) on a similar risk project is 8%, the cash flows occur semi-annually (at the end of the 6th and 12th month for each year), and the publishing company requires a payback period of 2 years. The finance department has calculated that the required rate of return for all projects that it will consider is 14%.

The costs of the project are:

Advertising on various billboards and cable television stations $200,000

Hollow Truth’s headquarters accounting department charges $50,000

Production costs and employee bonuses $260,000

Last year’s purchase price for the e-magazine's offices $470,000

Potential rental income from the offices if rented to a 3rd party $200,000

a. What are the total relevant costs of the project? Explain why you consider each cost relevant or not for this project.
b. Assume the semi-annual cash inflows are $150,000 and $200,000 in year 1, and $250,000 and $200,000 in year 2. Calculate the payback, discounted payback, IRR and MIRR of the project. Based on each criterion, should you accept the project? Why?
c. If the project is analyzed using the NPV rule, should you accept the project? Why?
What would you do if you believed the semi-annual cash flows had a high degree of uncertainty and could be potentially 15% lower? (You don’t have to re-estimate the NPV, just describe what you would do and how you would assess this.)
d. If you were the CEO of the firm, would you accept or reject this project? Why?   

Calculate the percentage returns generated over the past five years by the following three indices: TSX Composite, Dow Jones Industrial Average (DJIA), and S&P 500. Use the Globe Investor website to chart and estimate the returns. Choose an index, then view the five-year chart by clicking on the 5Y link above the chart. Hover your cursor on the beginning and ending of the graph line to see the price (this feature may not work in Internet Explorer). Once you have the beginning and ending values, use the formula (End Price – Beginning Price)/Beginning Price to calculate the total percentage return over the five-year period. Show your calculations, contrast the results, and discuss possible reasons for the differences between indices.

1. Adam wants to know what percentage of YU students want to stay in Canada after Graduation. Previous studies suggest 85%. He has taken a sample of 25 students.
   1. What is the probability that he finds a percent less than 80%?

2. Assuming that he found 90% would like to stay in Canada, construct the 95% confidence interval for the true population’s proportion.

Eric wants to estimate the percentage of elementary school children who have a social media account. He surveys 450 elementary school children and finds that 280 have a social media account. Identify the values needed to calculate a confidence interval at the 99% confidence level. Then find the confidence interval.

What percentage of cases (or area under the normal curve) lie BELOW a z-score of .87?

AP10-14A (Debt to equity and net debt as a percentage of capitalization)

Uchida Genetics Corporation develops and markets biological pharmaceuticals. Uchida is approaching the bond market to raise money to buy equipment to manufacture a new biological therapy. The following is an extract from Uchida Genetics' statement of financial position:

Required

a.  

Prior to approaching the bond market, Uchida's management would like you to determine the company's debt to equity and net debt as a percentage of capitalization ratios for both years.

b.  

Explain whether Uchida's debt to equity ratio and net debt as a percentage of capitalization ratios have improved in 2020.