Michele is single with no dependents and earns $23,000 this year. Michele claims sixteen allowances on her Form W-4. Which of the following is correct concerning her Form W-4?

a.Michele may not under any circumstances claim sixteen allowances. b.Michele's employer will require her to verify her right to claim sixteen allowances. c.Michele's employer will submit a copy of her W-4 to the IRS if directed to do so by written notice. d.Michele's employer should ask her to prepare a corrected Form W-4. If Michele is unwilling to update her Form W-4, then her employer should disregard her Form W-4 and withhold at the single taxpayer rate with no allowances. e.None of these choices are correct.

The process for employee withholding involves:

a.the employee provides wage information and the employer completes Form W-4 and withholds based on employee instruction

b.the employee provides filing status and the employer completes the Form W-4 and submits to the IRS for proper withholding

c.the employee completes most of the Form W-4 and the employer submits the form to the IRS and awaits withholding instructions

d.the employee computes the number of allowances on Form W-4 and the employer uses the W-4 information to calculate income tax withholding

PROMPT:  The article indicates that in the year 2016 the number of households earning less than the Federal Poverty Line ($24, 300 for a family of four or $11,880 for a single adult) represented 10.5% of the population of New Jersey, but that the number of households earning more than the Federal Poverty Line but not enough to afford basic necessities ($74,748 for a family of four or $26,640 for a single adult) represented 28.0% of the population of New Jersey. The households that have incomes above the Federal Poverty Line but are unable to afford basic necessities are called ALICE (Asset Limited, Income Constrained, Employed).

Comment on the disparity between the Federal Poverty Line and the ALICE level.

The households in the ALICE category have one or more adults working to earn an income. What role should the individual, government and other members of society play in addressing the shortfall between the household income and the amount needed to afford basic necessities?

Does the Household Survival Budget detailed in the report seem reasonable to you? Are there other categories of expense that should have been included?

The Fly-By-Night Corp. paid a dividend of $2.85 last year and the dividend is expected to grow at 5% per year for the foreseeable future. The company’s stock is currently selling for $38 per share. What are the expected dividend yield, capital gains yield, and total expected return for Fly-By-Night.

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 17%. The stock of Todd Mountain Development Corporation has a beta of .75. Using the constant-growth DDM, the intrinsic value of the stock is_________.

Suppose a 10​-year, $ 1,000 bond with a 10 % coupon rate and semiannual coupons is trading for a price of $906.44

.a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?

b. If the​ bond's yield to maturity changes to8 %​APR, what will the​ bond's price​ be?

5. Assume that a country produces an output Q of 50 every year and that r* = 10%. Consumption C is 50 every year, and I = G = 0. Suppose there is a temporary drop in output in year 0, so Q falls to 28. Q returns to 50 in every future year. If the country desires to smooth C, how much should it borrow in period 0? What will the new level of C from then on? (Hint: calculate the new present value of output and then estimate the new constant level of consumption.)

A. The nation borrows 20 in period 0 and the new level of C is 48.

B. The nation borrows 22 in period 0 and the new level of C is 28.

C. The nation borrows 28 in period 0 and the new level of C is 36.

D. The nation borrows 48 in period 0 and the new level of C is 22.

6. If a nation experiences an output shock and wishes to borrow to smooth consumption, how much of consumer spending must it forgo each year to achieve consumption smoothing and maintain the long-run budget constraint?

A. an amount equal to r*/(1 + r*) of the output shock

B. an amount equal to r* as a percent of the former level of GDP

C. an amount equal to 20% of its output shock

D. 95% of the output shock

7. Which expression below represents the change in wealth in period 0? Use the following notation: Δ denotes change, W_t is external wealth at time t, TB_t is the trade balance during time period t, and r* is the constant real interest rate. Assume that net labor income from abroad is zero, there are no capital gains on external wealth, and there are no unilateral transfers.

A. ΔTB₀ = W₀ + r*W_-1.

B. ΔW₀ = TB₀ + r*W_-1.

C. ΔW_-1 = ΔW₀ + TB₀.

D. ΔTB₀ = ΔW_-1 + r*W_-1.

3. What is the relationship between cash flows from operations and Income for the year of the statement?

4. Explain the difference between the direct method and the indirect method of disclosing cash flows from operations.

5. Do you believe that cash inflows and outflows associated with nonoperating items such as interest expense, interest revenue, and dividend revenue, should be separated from operating cash flows? Explain.

Use this information to answer the following questions

An outstanding 30 year corporate bond for a U.S. company has 14 years left to maturity and has a coupon rate of 4.0%. The bond is currently selling for $980.

1) What is the yield to maturity?

2) What is the current yield?

3) What is the capital gains yield?

Assume a corporation is expecting the following cash flows in the future: $-5 million in year 1, $8 million in year 2, $22 million in year 3. After year 3, the cash flows are expected to grow at a rate of 6% forever. The discount rate is 11%, the firm has debt totaling $41 million, and 10 million shares outstanding. What should be the price per share for this company? Enter your answer in dollars, rounded to the nearest cent.