Due to a recession, expected inflation this year is only 3.25%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3.25%. Assume that the expectations theory holds and the real risk-free rate (r*) is 3.25%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 3.25%, what inflation rate is expected after Year 1? Round your answer to two decimal places.

Interest is compounded annually unless stated otherwise. Payments are at the end of the year unless stated otherwise. All bonds have a face value of $1000.

3. Lettuce Unite expects free cash flows of $10B next year, growing by 15% until year 2. After year 2, the growth rate falls to 4%. The cost of capital is 14%. They have $2B in cash and marketable securities and $25B in debt. There are 8B shares outstanding. Find the share price.

The net income reported on the income statement for the current year was $346,400. Depreciation recorded on equipment and a building amounted to $99,330 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Required:

A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $300,000 $420,000 $350,000 $370,000 Total cash disbursements $358,000 $328,000 $318,000 $338,000 The company’s beginning cash balance for the upcoming fiscal year will be $35,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Complete the company's cash budget for the upcoming fiscal year. (Cash deficiency, repayments, and interest, should be indicated by a minus sign.)

Kamini, a student of the 1-Year post graduate program at the International School of Business and Design is trying to establish the relationship between compensation (in Rs. Lakh) and years of work experience. She collected data from 9 students who have been placed and fitted a regression equation with Compensation (in Rs. Lakh) as the dependent variable and Years of experience as the independent variable. The Excel output is given below (with some missing values):

Answer the following questions based on the above.

1. What is the value of Regression Sum of Squares?

2. What is the 95% confidence interval for the slope?

3. What is the estimated compensation for a person with 8 years of experience?

4. What is the coefficient of correlation between Compensation and Years of experience?

5. What is the R2 for the above regression equation?

6. What is the t-value corresponding to the intercept?

7. Interpret the value 0.004177 under the column “P-Value”

8. What is the expected compensation for a person with no work experience?

9. The above output provides 95% confidence interval for the intercept. What is the lower limit for the 90% confidence interval for the intercept?

10. The above output provides 95% confidence interval for the intercept. What is the upper limit for the 90% confidence interval for the intercept?

This year Amy purchased $2,650 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation expense for the equipment.

a. After the accident, Amy had the choice of repairing the equipment for $1,960 or selling the equipment to a junk shop for $330. Amy sold the equipment. What amount can Amy deduct for the loss of the equipment?

b. After the accident, Amy repaired the equipment for $1,520. What amount can Amy deduct for the loss of the equipment?

c. After the accident, Amy could not replace the equipment so she had the equipment repaired for $3,350. What amount can Amy deduct for the loss of the equipment?

Randy currently has an obligation that he will pay $1 million a year for the next 3 years, what is the duration of his obligation if the appropriate discount rate is 5%?

If Randy wants to immunize his obligation using a 1-year zero coupon bond and a perpetuity both yielding 6%. I rounded the durations to two decimal places to minimize rounding errors.

What is the weight he should invest in the zero?

What is the weight he should invest in the perpetuity?

What amount ($ in millions) of cash was used in the fiscal year ended February 3, 2018, to purchase property and equipment? Is this an increase or decrease compared to the previous year?

https://corporate.target.com/_media/TargetCorp/annualreports/2017/pdfs/2017-Annual-Report.pdf?ext=.pdf

A high school physics teacher wondered if his students in the senior class this year will be more likely to go into STEM (Science, Technology, Engineering, Mathematics) majors than Social Science and Liberal Arts majors. He asked each of his 65 students about their first choice for major on their college applications and conducted a Chi-square test for goodness of fit with an alpha level of .05 to see if the number of students choosing each category differs significantly.

35 – STEM

20 – Social Sciences

10 – Liberal Arts

a. What is the variable in this test? What type of variable is it (nominal, ordinal, or continuous)? (1 point total: .5 for each question)

b. State the null and alternative hypotheses in words (1 point total: .5 for each hypothesis)

c. Calculate X² statistic (2 points total: 1 for final answer, 1 for the process of calculating it)

d. Calculate the degree of freedom and then identify the critical value (1 point total: .5 for df, .5 for critical value)

e. Compare the X² statistic with the critical value, then report the hypothesis test result, using “reject” or “fail to reject” the null hypothesis in the answer (1 point total, .5 for each answer)

f. Explain the conclusion in a sentence or two, to answer the research question. (1 point)