Due to the threat from the COVID-19 pandemic, physical distancing measure was suggested as one of how transmission of the disease can be reduced. At Nesto Hypermarket in Muscat, Mr. Ahmed, the recently appointed Retail Manager, is bound to assume his new role.

a. What are the major challenges you think will be faced by Mr. Ahmed? Discuss.

b. What changes will Mr. Ahmed bring in the retail business and make the customers buy the products? Suggest some promotional strategies which will be used by Mr. Ahmed to increase profit based on the above situation.

1. The positive relationship between inflation and unemployment in the Philips curve comes from that

1. Job searchers underestimate the future inflation
2. Job searchers overestimate the future inflation
3. Firms have no expectation

2. When the Fed buys bonds, it:

1. Changes the size of the money multiplier
2. Decreases the money supply
3. Increases the money supply

3. if people are very sensitive to the interest rate change, which of the following is a more effective policy to control the inflation in the short run?

1. A ten-year tax-cutting plan
2. The Fed buys U.S. bonds from banks
3. A restrictive monetary policy

Modigliani and Miller argued that the value of a firm is separate from the source of financing for its assets. Do you agree? Why or why not?

Do you believe that, for any or all firms, there exists an optimal capital structure?

Why or why not?

How do taxes impact their original findings?

If tax laws changes eliminated the deductibility of interest for corporations, would this motivate or deter corporations from increasing the level of debt in their capital structure? Why?

What is the dividend irrelevance theorem?

State your position on the dividend irrelevance theorem and support it.

What is the Law of One Price?

explain why if interest rates increase after a bond issue, the bond’s price will decline and the yield to maturity will increase.  Explain how the time to maturity impacts the extent to which interest rate changes impact the bond’s price.

Additionally, assume that you have a short investment horizon (less than 1 year). You are considering two investments: a 1-year Treasury security and a 20-year Treasury security. Explain why the longer-term Treasury security would be considered riskier than the shorter-term Treasury security.

1) What is the purpose of Statement of Cash Flows?

2) Why do we need Statement of Cash Flows?

3)Statement of Cash Flows tracks net changes in cash flow. Transactions are grouped into 3 categories, Operating, Financing and Investing.

Provide one sample transaction for Financial Activity Cash Inflow. (i.e. borrow $5000 from the bank)

Provide one sample transaction for Investing Activity Cash Outflow. (i.e. purchase a truck)

4) Companies prefer the Indirect Method for Operating activity. What is the starting point?

In Unit 3 we learn about recognition of revenue and expenses, and the proper timing of their recording in the firm's accounting records.

For those of us accustomed to thinking of revenue and expense occurring at the time payments are made and money changes hands, this may be a new and unfamiliar concept - but it is an important one.

Discuss the difference between accrual basis accounting and cash basis accounting. Please remember to create your submission in your own words. Feel free to include brief quotes from your sources (with citations) but do not copy and paste from the source material.

Bank Of England Rate Cut

On Thursday, Aug 4, 2016 the Bank of England cut its interest rate to 0.25% -- the lowest it’s ever been in the central bank’s 332-year history. They also announced the government would buy government and corporate bonds (quantitative easing). Check out this article in The Guardian. This is all in response to changes in the economy since the UK voted to leave the European Union in June. What is the central bank trying to do – increase the money supply or decrease the money supply? Why? How would that help the economy? Will it work?

Ethel

Bond P is a 12 percent coupon bond that is selling at a premium. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make semi-annual payments, have a YTM of 9 percent and have 5 years to maturity.

a. What is the current yield for bond P?

b. What is the current yield for bond D?

c. Assume the YYM decreases to 8%. Which bond is more sensitive to changes in the market interest rate making the bond riskier? Show your work!

(fully solved, no excel or calculator shortcuts)

A company sends a satellite up to 4.0 Earth radii from the center of the Earth and then launches it at a speed of 7423 m/s. Their hope is that it will go into a circular orbit at that distance.

a) Can a satellite be in circular orbit at that distance and speed without using any kind of propulsion?

b) How fast should the satellite go in order to orbit at this distance? [...] they tell the satellite to fire a set of emergency rockets for 2.0 minutes, thereby correcting its speed.

c) What average angular acceleration do we see as the satellite changes its speed? (magnitude)

4. Describe the structure of musculoskeletal muscle. What are the skeletal muscle stem cells responsible for skeletal muscle regeneration after injury? Use this skeletal muscle stem cells as an example to describe changes of stem cells with aging (5 points)

5. Sexual reproduction is the formation of a new individual following the union of two gametes. Asexual cloning refers to reproduction without the fusion of gametes. Sexual reproduction or asexual cloning, which one is characterized by meiosis? Compare and state the advantage and disadvantage of sexual reproduction and asexual cloning. (5 points)