Dan Corp issues 3,000 shares of 10%, preferred stock. The Cash amount is $450,000; in this case the market value is: *

$10

$100

$120

$150

On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4- months, 5%, $30,000 interest bearing note. Interest Expense is: *

$500

$800

$30,500

$30,800

Lili Company’s products are subject to a 1-year warranty. During 2019, the company sold 300,000 units, of which the company estimates 4% will be defective. During the year, the company honored warranty contracts for 6,000 units. When honoring warranty contracts, the company must *

Debit Warranty Liability and credit Repair Parts

Debit Repair Parts and credit Warranty Liability

Debit Warranty Expense and credit Warranty Liability

Debit Warranty Liability and credit Warranty Expense

On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4- months, 5%, $30,000 interest bearing note. The payment date is *

October 1, 2019

November 1, 2019

December 1, 2019

January 1, 2020

Dan Corp issues 500 of 10%, $100 par value preferred stock to attorneys who helped the company organize. Attorneys valued their service at $100,000. Preferred Stock should be recorded as: *

Debit $50,000

Credit $50,000

Debit $130,000

Credit $130,000

Which of the following represents the number of shares repurchased from the market? *

Treasury shares

Issued shares

Outstanding shares

Authorized shares

The sale of common stock below par: *

Is a common occurrence

Is not permitted

Is a practice that most shareholders encourage

Requires that a liability be recorded for the difference between the sales price and the par value of the shares.

Suppose that as the result of the crisis in Greece, the Euro depreciates against the US dollar. Why should you care when the US dollar strengthens relative to other currencies? Describe the ways this could impact your life and that of your friends and family in the US.

Word count 350 words and one reference

US Economic growth has been criticized as being too slow. Why do we care? Compare the US growth with foreign countries. You pick the countries that you think the US should care about and explain how and why the economies in these countries have diverged in economic growth.

1. Should the US follow a more protectionist trade policy? Why or why not? What could be some measures the US can impose to restrict international trade? How would these measures affect the US trade balance, the current account balance, the capital account balance and the value of the dollar? Explain.

Your sister will start college exactly 1 year from now and she wants to join you at Marquette University. Marquette University offers a couple of payment plans for the tuition fee.

Flexible Plan: Pay once a year but the tuition will increase at 5% per year (which is much lower than other schools). The first payment due at the very first day of school. This year, the tuition is $30,000.

Convenient Plan: Lock in by paying a lump sum of $95,000 today for all four years of tuition fees

Your parents are looking at these payment options and of course come to you for an advice because you are doing so well in your finance class. Your parents said all of their money is in their investment account which makes 15% per year for the next 10 years.

Which plan should your parents choose and how much will they save? (Hint: this a two step problem.)

A. The Flexible Plan is better. Your parents will save $36,851.84

B. The Convenient Plan is better. Your parents will save $140.50

C. The Flexible Plan is better. You parents will save $26,925.59

D. The Convenient Plan is better. Your parents will save $1,084.56.

SIU is a university in the UK catering for international students. There are currently 950 students. Fees were £16,000 for the last year and the president is concerned that adverse changes in the economic and educational environment are threatening the university’s future. The income of the market is expected to decline next year by 2%, and it is also expected that the average fee of competitive institutions will fall from £14,000 to £12,000. 10% of revenue is currently spent on promotion. The president does some research and estimates that the relevant demand elasticities are as follows:

PED = -1.6, YED = 2.2, AED = 1.8, CED = 0.8.

1. Estimate the number of students at the university next year, and revenue, if the president keeps the present marketing mix unchanged.
2. Estimate the level of fees that would have to be charged next year in order to maintain the number of students at its current level, assuming no change in promotion.
3. Estimate the level of fees that would have to be charged next year in order to reach the president’s target of 1,200 students.
4. If fees are maintained at their current level, estimate the amount that would need to be spent on promotion to achieve the target.
5. Determine which of the strategy options above is more profitable, assuming that these are the only alternatives under consideration.

f. Briefly outline other marketing mix options for achieving the target (50 words

Case Study – Does a Turtle Have More Rights Than a Human?

Resolving Controversial Environmental Issues

• As you have learned in the first chapter, you need to identify the issue, conclusion, and reasons when reading an article. Identifying the argument in the following essay will help you better understand and evaluate it.
• Ethical norms are ideas that guide our behavior. Everyone generally agrees that ethical norms are positive ways of behaving. Some examples of ethical norms are honest, cooperation, and individual responsibility.  If I ask you, “Do you value honesty?” you would probably say “yes.” If I ask you, “Do you value loyalty?” you would probably say “yes.” But how do you behave when those ethical norms conflict? For example, you discover that your best friend, who is also your co-worker, is stealing money from your boss. If you are loyal to your friend, you cannot also be honest to your boss.  Which ethical norm guides your behavior?

Ethical norms often conflict in the law.  Four ethical norms that often arise in legal controversies are freedom, justice, security, and efficiency. Try to think of more ethical norms that might guide you thinking. When you read an article, you should try to identify the ethical norms that are guiding the authors thinking. This task is difficult because the author typically will not tell you his or her ethical norm preferences. Consequently, you must infer the preferences through the reasons. Can you identify which ethical norms seem to be present in the reasons and conclusion provided in the following editorial? Which ethical norm is in conflict with the authors preferred ethical norm?

Does a Turtle Have More Rights Than a Human?

Who should be allowed to bring a case in a court of law? One might respond with the following simple answer: Anyone who has been wronged. Environmentalists claim that when environmental wrongs occur, it is often difficult for those who have been wronged to bring a  case because of a perceived lack of legal standing – the legal right to bring a lawsuit.

However, environmentalists actually have had an advantage in lawsuits. Environmental groups have been permitted to file lawsuits alleging underenforcement of the Endangered Species Act (ESA); in contrast, property owners could not file suit against overzealous regulation. Environmental groups had standing whereas property owners did not. Imagine a scenario in which an individual’s property use is restricted because of an endangered species living on the property. Who seems most directly injured – the property owner or the environmental group? The proper owner, of course. Yet the property owner has been unable to bring a suit against the overzealous regulation.

Luckily, the Supreme Court has rectified this unfair situation. A recent ruling gives legal standing to people with an economic stake in land and water restrictions that allegedly protect endangered species. It is about time we give legal protection to those who are truly harmed.

After all, courts have now offered legal standing to animals protected by the ESA. For ex., turtles have been successful plaintiffs in cases. Furthermore, some environmentalists claim that legal rights should be extended to forests, oceans, and rivers.  We should not even consider extending rights to inanimate objects until all people have rights. Why should a river have more rights than a property owner? A person’s rights must come before the perceived concern of a river or a lake.

I argue that the Supreme Court made the right decision by allowing property owners to bring cases against overregulation. Most environmental laws are like the ESA in the sense that they allow citizens to bring suits. The Supreme Court ruling should allow property owners to bring suits under these other environmental laws. Environmental protection has gone too far when a turtle has more rights than a person. Let us not lower the protections for people while raising the protections for animals and inanimate objects.

Question:

2.  Identify the ethical norm guiding the author’s thinking.