Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period:

Year. Large Company. US Treasury Bill  

1. 3.99%. 6.65%

2. 14.50. 4.46

3 19.39 4.33   

4 -14.29 7.34

5 -31.78   5.44

6 37.10   6.45

a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period.

b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this period.

c-1. Calculate the observed risk premium in each year for the large-company stocks versus the T- bills. What was the average risk premium over this period?

c-2. Calculate the observed risk premium in each year for the large-company stocks versus the T- bills. What was the standard deviation of the risk premium over this period?

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The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:

The income before income tax was $588,300 and $514,800 for the current and previous years, respectively.

a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.

b. Determine the times interest earned ratio for both years. Round to one decimal place.

c. The ratio of liabilities to stockholders' equity has (improved or deteriorated) and the times interest earned ratio has (improved or deteriorated) from the previous year. These results are the combined result of a (larger or smaller) income before income taxes and (larger or lower) interest expense in the current year compared to the previous year.

On 1st January 2020 Tom Shanks started trading as Shanks Real Estate, and completed the following transactions regarding the business in the first month:

1. Jan 1: Tom Shanks transferred cash from his personal bank account to the business bank account in order to start operations, $25,000.
2. Jan 4: The business paid a year’s rent in advance for office space, $11,880
3. Jan 5: The business purchased a motor vehicle, $22,000. A deposit of $6,000 was paid with the remainder financed by a bank loan.
4. Jan 14: Earned first sales commission and received cash, $16,500
5. Jan 18: Paid motor vehicle expenses, $55
6. Jan 20: Tom Shanks used $60 from the business’ account to buy flowers for his wife Rita
7. Jan 25: Earned sales commission and sent the client an invoice which will be paid in February, $27,500

1. Looking at the transactions a) – g) above, identify any adjusting entry which may be necessary to improve the financial reporting for January 2020. Explain why this entry may be necessary (you may wish to refer to the ‘matching’ concept or GAAP (generally Accepted Accounting Principle)).

Additional Critical Thinking Questions

1. You are the captain of a miniature submarine that is being sent on a voyage through the body. Your assignment is to plot the course taken by molecules of oxygen from the atmosphere to the heart and the reverse course taken by molecules of carbon dioxide from the heart to the atmosphere. Diagram and explain how you would organize the course.

2. A five-year-old child threatens to hold his breath until he dies if his mother does not buy him an ice cream cone. Would you advise the mother to let the child hold his breath or to give in to his demand? Your advice should be based only on any possible physiological damage to the child.

3. You have been asked to assist an 80-year-old resident of a nursing home who is hyperventilating. You want to be sure she does not faint and lose consciousness. What are you going to do to help this individual?

4. A tracheotomy is an operation to make an opening in the trachea if there is an upper respiratory obstruction of airflow. Explain how ventilation is possible via this opening and why you don’t need to use your nose or mouth to bring air into your lungs.

5. Asthma is an obstructive disease characterized by inflamed airways that lead to decreased diameter of the airways. Based on your knowledge of airway resistance and mechanics of breathing explain the effect of asthma on inspiration and expiration. Which of these, expiration or inspiration, will be more greatly affected by this disease?

Timpanogos Inc. is an accrual-method calendar-year corporation. For 2018, it reported financial statement income after taxes of $1,152,000. Timpanogos provided the following information relating to its 2018 activities:

Required:

1. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income.
2. Identify each book-tax difference as either permanent (P) or temporary (T).
3. Complete Schedule M-1 for Timpanogos.
4. Compute Timpanogos Inc.’s tax liability for 2018.

enith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.

Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.

Question 2. Upon starting your new job after college, you've been confronted with selecting the investments for your 401(k) retirement plan. You have four choices for investing your money:

• a money market fund that has historically returned about 0.50% per year.
• A long-term bond fund that has earned an average annual return of 4.0%
• A conservative common-stock fund that has earned 6.0% per year.
• An aggressive common-stock fund that has earned 9.0% per year.

a. If you were to contribute $5,500 per year for the next 35 years, how much would you accumulate in each of the above funds?

b. Now, change your worksheet so that it allows for less than annual investments (monthly, weekly, etc.). The annual investment will be the same, but it will be made in smaller, more frequent, amounts.

c. Set up a scenario analysis that shows your accumulated value in each fund if you were to invest quarterly, monthly, biweekly, and weekly. Create a scenario summary table of your results.

d. What relationship do you notice between the frequency of investment and future value? Create a column chart of the results that more clearly shows the outcome from more frequently investing.

I need to know the excel formula step by step to get this done. I have A but need B C and D

If the US government imposes a quota on imports of a popular doll, the price of the doll in the US will ________ and the quantity of doll imports purchased in the US will ________.

Group of answer choices

A. fall; decrease

B. rise; decrease

C. rise; increase

D. fall; increase

Globalization is supposed to provide diversification benefits that domestic sectors in US can not. Find three examples where foreign events led to major set-backs in US stock markets and Discuss why those events affected the US markets.

Cookies R Us Incorporated is evaluating a new cookie cutting machine that will cost $500,000. The machine can be depreciated on a straight-line basis to zero over 10 years. It will provide the company with annual before-tax savings of $135,000. The marginal corporate tax rate is 40% and the required rate of return is 15%. What is the net present value of this cost-cutting asset?

Multiple Choice

• $128,611.12

• $157,458.69

• -$193,855.11

• $6,895.63

• $277,909.14