The company established a defined benefit plan at the end of last year. Discount rate and expected rate of return is 6%. There are 400 employees that started working with the initial salary of $45000.00. Assume the employees will work 40 years and will benefit for 30 years. The Service costs for the year-employees earned $4000 each to be in retirement. Expect the rate of the return is 6% on the plan assets and valued at $4000000 as of January 1st. The prior year service costs for 20 employees were $300,000, and 2 employees retire yearly and use the service method. The actual loss for the year is $200,000. Compute the project benefit obligation, pension expense, plan asset, and whether the plan is under or over funded for the current year.

Machines J and K have the following investment and operating costs:

Year          0                      1          2          3

J                 10000              1100    1200

K               12000              1100    1200    1300

Which machine is a better buy at a WACC of 10%?

The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead:

1. The variable overhead spending variance is:

2. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:

3. Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance is:

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 51 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.1 pounds, what is the probability that the sample mean will be each of the following?


a. More than 60 pounds
b. More than 56 pounds
c. Between 56 and 57 pounds
d. Less than 53 pounds
e. Less than 48 pounds

Online Network Inc. has a net income of $500,000 in the current fiscal year. There are 100,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $1.2 million. The $1.2 million is represented by 1,200 different $1,000 bonds. Each $1,000 bond pays 4 percent interest. The conversion ratio is 20. The firm is in a 20 percent tax bracket.

. Compute basic earnings per share.

Compute diluted earnings per share

A three-year project will cost $150,000 to construct. This will be depreciated straight line to zero over the three-year life. The project is expected to generate sales of $450,000 per year. It has annual variables costs of $200,000 and annual fixed costs of $100,000 per year. The appropriate tax rate is 25 percent and the required rate of return on the project is 16 percent. Assume that a salvage company will pay $60,000 (before taxes) for the assets at the end of year 3. The project also has an initial net working capital requirement of $40,000, which is fully recoverable when the project ends. Note that the project only depreciates the $150,000 initial cost. The salvage value is excluded from depreciation. What is the project’s net present value (NPV)?

The unemployment rate (UR) for PEI by quarter was as follows:

   UR t

Year Quarter Rate For Regression

2017 Q1 11.9 1

Q2 7.9 2

Q3 8.1 3

Q4 10.1 4

2018 Q1 12.1 5

Q2 6.8 6

Q3 6.0 7

Q4 9.8 8

a) Sketch this data on a graph. Is there seasonality in the data?

b) Use a four quarter moving average to determine the seasonal factors for the four quarters.

. A male student that attends a 4 year College majoring in Arts and music felt sick for a day with diarrhea he took some medication and felt fine. 8 days later he had a second round of diarrhea this time it was much worse and lasted most of the day. Again with somewhat more medication he was fine. 5 days later he had a 3rd round of diarrhea that was much worse and included vomiting. He was bed ridden the next day his symptoms continued with fever. 1. What disease does he have? Name the causative agent. 2. How did he become infected with this microbe? Explain the pathogenesis of this disease. 3. What is the virulence factor and how would you treat this disease? 4. How would the immune system deal with this case and why? 5. Why Doctors could only treat the symptoms before and not the disease and why death may result from it?

What is the coupon rate of a 4-year, $1000 bond with coupons paid annually and a price of $850, if it has a yield to maturity of 12%? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write enter 0.05 as an answer."