Q5. The annual salary for a sample of 500 part-time unskilled worker s is normally distributed with a mean of $30,000 and a standard deviation of $3,000. a. The salary that separates the top 15% from the lower is b. The number of students who earned more than $36,000 was c. Find the proportion that the salary is less than $28,500 d. Calculate the 90th percentile

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies.

For years, Worley believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $33,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. Hint - Do not overlook the $33,000 cost of goods sold that Worley incurred serving each hospital. The company provides service to customers (instead of selling products), so there will be no direct material or direct labor costs.

I need assistance determining the steps required to answer the Chapter 4 Data Case questions 2, 3, and 4 in the Fundamentals of Corporate Finance 4th edition by Berk, DeMarzo and Harford. I have provided the answer to question 1. An analysis isn't required. Only the steps to obtain the answers. Can anyone help?

Data Case: Assume that today is August 5, 2015, Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service representative for a telephony corporation located in Seattle, Washington, and earns $38,000 a year that she anticipates will grow at 3% per year. Natasha hopes to retire at age 65 and has just begun to think about the future.

Natasha has $75,000 that she recently inherited from her aunt. She invested this money in 10-year Treasury bonds. She is considering whether she should further her education and would use her inheritance to pay for it. She has investigated a couple of options and is asking for your help as a financial planning intern to determine the financial consequences associated with each option. Natasha has already been accepted to two programs and could start either one soon.

One alternative that Natasha is considering is attaining a certification in network design. This certification would automatically promote her to a Tier 3 field service representative in her company. The base salary for a Tier 3 representative is $10,000 more than the salary of a Tier 2 representative, and she anticipates that this salary differential will grow at a rate of 3% a year for as long as she remains employed. The certification program requires the completion of 20 Web-based courses and a score of 80% or better on the final exam. She has learned that the average amount of time necessary to finish the program is one year. The total cost of the program is $5,000, due when she enrolls in the program. Because she will do all the work for the certification on her own time, Natasha does not expect to lose any income during the certification process.

Another option is going back to school for an MBA degree. With an MBA degree, Natasha expects to be promoted to a managerial position in her current firm. The managerial position pays $20,000 a year more than her current position. She expects that this salary differential will also grow at a rate of 3% per year for as long as she keeps working. The evening program, which will take three years to complete, costs $25,000 per year, due at the beginning of each of her three years in school. Because she will attend classes in the evening. Natasha doesn't expect to lose any income while she is earning her MBA if she chooses to undertake it.

1. Determine the interest rate Natasha is currently earning on her inheritance by going to Yahoo! Finance (http://finance.yahoo.com) and clicking the 10 Yr. Bond link in the Market Summary section or enter ^TNX in the symbol lookup field. Then go to the Historical Prices link and enter the appropriate date, August 5, 2015, to obtain the closing yield or interest rate she is earning. Use this interest rate as the discount rate for the remainder of this problem. Interest rate is 2.268%

2. Create a timeline in Excel for Natasha's current situation, as well as the certification program and MBA degree options, using the following assumptions:

a. Salaries for the year are paid only once, at the end of the year.

b. The salary increase becomes effective immediately upon graduating from the MBA program or being certified. That is, because the increases become effective immediately but salaries are paid at the end of the year, the first salary increase will be paid exactly one year after graduation or certification.

3. Calculate the present value of the salary differential for completing the certification program. Subtract the cost of the program to get the value of undertaking the certification program.

4. Calculate the present value of the salary differential for completing the MBA degree. Calculate the present value of the cost of the MBA program. Based on your calculations, determine the value of undertaking the MBA.

5. Based on your answers to Questions 3 and 4, what advice would you give to Natasha? What if the two programs are mutually exclusive? If Natasha undertakes one of the programs, there is no further benefit to undertaking the other program. Would your advice change?

CASE TWO, J.J. HEVA COMPANY J.J. Heva Company is an American company that prepares its financial statements under US GAAP. In 2014, the company reported income of $5,000,000 wit stockholders’ equity of $40,000,000 on December 31, 2014. In anticipation of possible adoption of IFRS by the US companies, the management wishes to explore possible impacts of the conversion on the company’s financial statements. You are hired to prepare a reconciliation schedule to convert 2014 income as well as stockholders’ equity on December 31, 2014 from US GAAP basis to IFRS. The following information is provided by the company’s accounting department: 1) In 2012, the company’s pension plan was amended and consequently created a past service cost of $75,000. Half of the past service cost was attributable to already vested employees who had an average remaining service life of 15 years, and half of the past service cost was attributable to non-vested employees who, on average, had two more years until vesting. The company has no retired employees. 2) In 2014, the company entered into a contract to provide engineering services to a long term customer over a 12-month period. The fixed price is $300,000 and the company estimates with high degree of reliability that the project is 30 percent complete at the end of 2014. 3) The company publicly announced a restructuring plan in 2014 and created a valid expectation on the part of the employees to be terminated that the company will carry out the restructuring. The estimated cost of restructuring is $500,000. No legal obligation to restructure exists as of December 31, 2014. 4) Stock options were granted to key officers on January 1, 2014. The grant date fair value per option was $10, and a total of 9,000 options were granted. The options vest in equal installments over three years: one-third in 2013, one-third in 2014, and one-third in 2015. A straight line method is utilized to recognize compensation expense related to stock options. 5) On January 1, 2013, the company issued $10,000,000 of 5% bonds at par value that matures in five years on December 31, 2017. Costs incurred in issuing the bonds were $500,000. Interest is paid on bonds annually. Assume the effective interest rate is 6.193%. Make sure your reconciliation statement is accompanied by an adequate explanation and reference for every one of your adjustments. Ignore income taxes.

1. For this problem, we will be working with an annual labor supply decision (rather than weekly). This means the person will have 5,000 hours available to spend on labor/leisure (50 weeks * 100 hours per week). We will explore the life and labor supply decisions of Sully. Sully is a single father of 2 that lives his life a quarter mile at a time. Suppose Sully can currently earn a wage of $10 per hour in the labor market. Because of his 2 beloved - though troubled - children, he is eligible to earn a tax credit (if he qualifies based on income level). The tax credit program for individuals with 2 kids has the following features:

• No credit is earned if no income is earned
• For annual earnings between 0 and $10,000, a 50% tax credit will be applied. This means, for example, an individual earning $1,000 in wage income would receive $500 in tax credit/refund (we can think of this as additional income).
• For annual earnings between $10,000 and $20,000, the individual keeps the tax credit earned (there is no payback in this range).
• For annual earnings over $20,000, the individual will begin to payback his or her tax credit at a rate of 20% (every $1 earned beyond $20,000 means paying back $0.20 worth of credit).

1. (2 points) Complete the following table by filling out earned income, tax credit earned, and total amount of spending money at each level of work hours. Determine the amount of hours/earned income where Sully will no longer qualify for any tax credit (he has paid it all back). Use this information to find his effective hourly wage (net wage) at different levels of work.

2. (4 points) Create a sketch of Sully’s annual labor supply decision by showing the budget constraint with and without the tax credit program. Assume he has no non-labor income. Be sure to label consumption and leisure at any critical points on the budget constraint. Draw an indifference curve showing what you think is a reasonable choice, and label consumption and leisure at this point. Discuss how the income tax credit’s impact on net wages might impact Sully’s labor supply decision.

3. (3 points) Suppose that the tax credit program exists, but is instead structured as: $0 to $10,000 a 50% tax credit is earned, and at $10,000 or more in income payback of the credit occurs at a 20% rate. Show the budget constraint for this program (and label the key points). Discuss how this might affect Sully’s labor supply decision differently as compared to the program in parts a and b.

4. (4 points) Now suppose the tax credit program is structured as follows: $0 to $10,000 a 50% tax credit is earned, and at income of over $10,000 the person does not qualify for any tax credit. This means anyone making more than $10,000 in annual income is not eligible for the program at all. Show the budget constraint for this program (and label the key points). Discuss how this would affect Sully’s labor supply decision as compared to the other versions of the program. Summarize what this type of modeling means about how to structure income support programs.

For this problem, we will be working with an annual labor supply decision (rather than weekly). This means the person will have 5,000 hours available to spend on labor/leisure (50 weeks * 100 hours per week). We will explore the life and labor supply decisions of Sully. Sully is a single father of 2 that lives his life a quarter mile at a time. Suppose Sully can currently earn a wage of $10 per hour in the labor market. Because of his 2 beloved - though troubled - children, he is eligible to earn a tax credit (if he qualifies based on income level). The tax credit program for individuals with 2 kids has the following features:

• No credit is earned if no income is earned
• For annual earnings between 0 and $10,000, a 50% tax credit will be applied. This means, for example, an individual earning $1,000 in wage income would receive $500 in tax credit/refund (we can think of this as additional income).
• For annual earnings between $10,000 and $20,000, the individual keeps the tax credit earned (there is no payback in this range).
• For annual earnings over $20,000, the individual will begin to payback his or her tax credit at a rate of 20% (every $1 earned beyond $20,000 means paying back $0.20 worth of credit).

• A 2 points) Complete the following table by filling out earned income, tax credit earned, and total amount of spending money at each level of work hours. Determine the amount of hours/earned income where Sully will no longer qualify for any tax credit (he has paid it all back). Use this information to find his effective hourly wage (net wage) at different levels of work.

2. (4 points) Create a sketch of Sully’s annual labor supply decision by showing the budget constraint with and without the tax credit program. Assume he has no non-labor income. Be sure to label consumption and leisure at any critical points on the budget constraint. Draw an indifference curve showing what you think is a reasonable choice, and label consumption and leisure at this point. Discuss how the income tax credit’s impact on net wages might impact Sully’s labor supply decision.

3 points) Suppose that the tax credit program exists, but is instead structured as: $0 to $10,000 a 50% tax credit is earned, and at $10,000 or more in income payback of the credit occurs at a 20% rate. Show the budget constraint for this program (and label the key points). Discuss how this might affect Sully’s labor supply decision differently as compared to the program in parts a and b.

4 (4 points) Now suppose the tax credit program is structured as follows: $0 to $10,000 a 50% tax credit is earned, and at income of over $10,000 the person does not qualify for any tax credit. This means anyone making more than $10,000 in annual income is not eligible for the program at all. Show the budget constraint for this program (and label the key points). Discuss how this would affect Sully’s labor supply decision as compared to the other versions of the program. Summarize what this type of modeling means about how to structure income support programs.

For this problem, carry at least four digits after the decimal in your calculations. Answers may vary slightly due to rounding. In a random sample of 61 professional actors, it was found that 45 were extroverts. (a) Let p represent the proportion of all actors who are extroverts. Find point estimates for p and q. (Round your answer to four decimal places.) p̂ = q̂ = (b) Find a 95% confidence interval for p. (Round your answers to two decimal places.) Find the maximal margin of error. (Round your answer to two decimal places.) E = Report the bounds from the 95% confidence interval for p. (Round your answers to two decimal places.) lower limit upper limit Give a brief interpretation of the meaning of the confidence interval you have found. We are 5% confident that the true proportion of actors who are extroverts falls above this interval. We are 95% confident that the true proportion of actors who are extroverts falls outside this interval. We are 95% confident that the true proportion of actors who are extroverts falls within this interval. We are 5% confident that the true proportion of actors who are extroverts falls within this interval. (c) Do you think the conditions np > 5 and nq > 5 are satisfied in this problem? Explain why this would be an important consideration. Yes, the conditions are satisfied. This is important because it allows us to say that p̂ is approximately normal. No, the conditions are not satisfied. This is important because it allows us to say that p̂ is approximately normal. No, the conditions are not satisfied. This is important because it allows us to say that p̂ is approximately binomial. Yes, the conditions are satisfied. This is important because it allows us to say that p̂ is approximately binomial.

Urine samples were taken every 30 minutes from four volunteers who had undergone different preparations.

Individual #1 did not drink any water

Individual #2 drank 200 mL water

Individual #3 drank 600 mL water

Individual #4 drank 600 mL water and swallowed a salt tablet.

1A.Compare the results of these four individuals. What conclusions can be drawn from the differences in volume and specific gravity in how they relate to each other?

1B.Description of the data and its significance. Include which hormone or hormone may have been involved in the results of each individual

1C.What effect does the addition of NaCl have on urine production? What effect would it have on ADH? How would it affect Aldosterone secretion?

1D.What effect would drinking excess plasma levels of K+ have on the release of aldosterone? Why?

Case study: the right portfolio

After working as a securities broker for 20 years, Simon Eckstein decided to lead a less hectic life. He set up an investment consulting firm 2 years ago and has rapidly built his reputation as the best consultant on securities investment in the area. Today, 5 clients called on Simon for his advice on their investment plans. The first is a 35-year-old divorced woman who has 2 teenage sons and wants to invest $50,000. the second and the third are a couple, both having retired and planning to invest $60,000. The fourth is an university freshman, a 19-year-old boy. He lost his parents in a car accident last year and received $2,000,000 from the insurance company. He plans to use some of the compensation to pull himself through the university and the rest to invest. The last is a single woman, 27 years old, working as an accountant for a local department store with an annual salary of 26,000. Her planned investment is $40,000.

(1) What do you think should be appropriate investment goals for the five clients If you were Simon?

(2) What kind of portfolio investment would you suggest for each of them?