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# Contracts

### Instructions: a. Discuss the core principle of the standard and whether or not you are in agreement with the proposed standard. b. Discuss how you believe U. S. companies will react to the proposed changes. c. Assume you are working as a Certified Public Accountant. Discuss how you would prepare your clients to adopt the proposed changes to revenue recognition.

Instructions: a. Discuss the core principle of the standard and whether or not you are in agreement with the proposed standard. b. Discuss how you believe U. S. companies will react to the proposed changes. c. Assume you are working as a Certified Public Accountant. Discuss how you would prepare your clients to adopt the prop

### Immgrant families and their customs

To what extent do you think that immigrant families should give up their customs to become part of their host country?

### Put Call Parity Formula

Please help with the following problem. On June 25, the call premium on a December 25 PHLX contract is 5.42 cents per pound at a strike price of \$1.81. The 180-day interest rate is 4.22% in London and 2.45% in New York. If the current spot rate is 1 pound sterling = \$1.6720 and the put=call parity holds, what is the put pre

### Entry Barriers in Industry Types

What entry barriers exist in (a) the fast food industry, (b) cable TV, (c) the auto industry, (d) illegal drug, (e) potato chips and (f) beauty parlors?

### Market structure is assessed.

You have been contracted by an economic consulting firm to determine the economic structure and possible future actions of OPEC, the Organization of Petroleum Exporting Countries. Using the Library, the Internet, and your course materials, find websites that offer this information and answer the following questions (Perloff,

### RISK MANAGEMENT 1. Prepare a means-ranges chart using the five journeys on each day as a sample. Find the control limits and state your inferences from this chart. 2. Prepare a 5-point moving-means-ranges chart. Again find the control limits and state your inferences. Describe your inferences in comparison with those from part (1) and explain the advantages and drawbacks of the two kinds of analysis. 3. The airline's legal affairs manager is concerned that this approach will encourage the bus operator to pressurise drivers into driving too quickly in order to keep a high average. She has therefore asked for a control chart that shows how often the average speed has exceeded the proposed upper limit for contractual performance. Prepare an appropriate attributes chart that shows how often, on each day, average speed is excessive according to this definition. State your inferences from this chart. 4. The legal affairs manager has decided that the sample for this control chart should not be the first five journeys on each day, since some samples include journeys made by more than driver. You are now therefore asked to prepare an appropriate attributes chart such that each sample consists of the journeys of each driver. Thus, for example, the first sample is the series of journeys driven by the first driver shown in Exhibit 1. Again state your inferences. 5. Prepare an analysis of process capability, based on the proposed contractual journey speed limits, applying 1) the usual 3-standard deviation convention, 2) the acceptable failure rate that is proposed for the contract. For item (2) you will need to work out how many standard deviations of a normal distribution enclose the appropriate proportion of the population. State your inferences.

I NEED GUIDELINES. 1. Prepare a means-ranges chart using the five journeys on each day as a sample. Find the control limits and state your inferences from this chart. 2. Prepare a 5-point moving-means-ranges chart. Again find the control limits and state your inferences. Describe your inferences in comparison with those fr

### Dr Pepper Snapple group

One specialized type of security is called an equity futures. This is a contract that guarantees you a share of a particular company to be delivered to you not today, but sometime in the future, at a price that is determined by the market right now. This price is usually called the futures price of the stock (note - the term is

### Bond futures cash&carry arbitrage

Suppose that the price of a bond futures contract that settles in four months is \$101 and the price of the underlying bond is \$98. The underlying bond has a coupon rate of 9%, par value of \$100, and the next coupon payment is to be made in six months. The borrowing rate is 7.2%. If an investor implemented a cash and carry trade,

### IRR rule

The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of \$250,000 at the end of each of the next 2 years. At the end of the third year the company will receive payment of \$650,000. The company can speed up construction by working an extra shift. In this c

### Foreign Transactions

1. Many countries today have exchange rates that float somewhat freely against other countries. How can a business manager be responsible for foreign transactions forecast exchange rates to better manage foreign exchange exposure? Be sure to cite your source and provide numeric examples. 2. Why do some regions promote unr

### Monopoly and Competition.

When is an industry competitive and when is it monopolistic? Read the article below about Google and its "monopolistic" tendencies. http://online.wsj.com/article/SB124156244115989189.html 1) All of you have used Google. Do you think it's anticompetitive? Why or why not? 2) Do you feel you have a good substitute product

### arbitrage profit

Please help with this question. A one year oil futures contract is selling for \$74.5 . Spot oil prices are \$68 and the one year risk free rate is 3.25%. The arbitrage profit implied by these prices is________?

### Solve cumulative rate of return

I need help with the attatched questions on stocks.

### basic microeconomic theory

Please answer the following three questions from the perspective of basic microeconomic theory as applied to the world of buying and selling goods and services. Keep in mind that business are both sellers of goods and services and buyers of goods and services such as labor services and goods and services supplied by other busin

### The Equivalent Uniform Annual Cost per Machine

Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. Their operating cost per machine is \$22,000 for year 1 and it increases by \$1000 per year through year 5. The equivalent uniform annual cost per machine (years 1-5) at an interest rate of 8% per year is?

### Will annual payments of \$4800 be sufficient to repay a loan of \$40,000 in 20 years of an interest rate of 10% compounded annually?

1) Will annual payments of \$4800 be sufficient to repay a loan of \$40,000 in 20 years of an interest rate of 10% compounded annually? 10% compounded continuously? 12% compounded quarterly? 2) Maintenance costs for a new piece of mining equipment are expected to be \$20,000 in the first year, rising by \$1,000 per year there

### Hybrid and Derivative Securities

Please see the attachment. JLB Corporation is attempting to determing whether to lease or purchase research equipment. The firm is in the 40% tax bracket, and its after-tax cost of debt is currently 8%. The terms of the lease and of the purchase are as follows: Lease- Annual end-of-year lease payments of \$25,200 are require

### Different market structures

1. Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New York are: QS = -20 + 2P (Supply

### Different market structures

Please refer attached file for the graph. 1.Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive

### Profit Maximization

You have an exclusive contract with Major League Baseball to manufacture Dodgers baseball jerseys and sell them in two markets: Los Angeles and Brooklyn. You produce all the jerseys in a single factory located in Seattle. Your total cost function associated with producing the baseball jerseys is c(Q)=Q2+400 where q is the total

### Noise and smell externalities

Suppose Smith owns and works in a bakery located next to an outdoor cafe owned by Jones. The patrons of the outdoor cafe like the smell that emanates from the bakery. When Smith leaves his windows open, the cafe faces the demand curve P=30-0.2Q, while when the windows are closed, demand is given by P=25-0.2Q. However, Smith

You have been asked to evaluate a lease-purchase investment on a piece of equipment with a three-year MACRS depreciable life (33%-45%-15%-7%). The cost of the equipment is \$100,000 plus \$15,000 for transportation and \$10,000 for installation. Your bank will finance the investment for three years at prime plus 130 basis points.

### Net Advantage to Lease (NAL)

Buster's Beverages is negotiating a lease on a new piece of equipment that would cost \$100,000 if purchased. The equipment falls into the MACRS 3-year class, and it would be used for 3 years and then sold, because the firm plans to move to a new facility at that time. The estimated value of the equipment after 3 years is \$30,000

### Present Value & Annual Dividend

What is the present value of a contract that promises to make year end payments to you of \$100 for the next 20 years if the interest rate is 5%? The level payments (PMT) are \$100 and we know the interest rate and the duration of the contract. Suppose you are willing to pay \$30 today for a share of stock which you will expec

### Demand and Forecasting Necessities

Assuming that all other factor remain unchanged, determine how a firm's break even point is affected by each of the following a. The firm finds it necessary to reduce the price per unit because of increased foreign competition. b. The firm's direct labor costs are increased as the result of a new labor contract. c. The Occupa

### Discrimination Legislation

Affirmative Action is one of the most contentious issues; its intent and the discriminatory result of applying it in practice has become a major issue in today's workforce. 2 pages The Web site is as follows: * http://www.latimes.com/news/opinion/la-oe-westfaulcon24-2009apr24,0,5548886.story * What is Affirmative

### Interest Rate

What is the present value of a contract that promises to make year end payments to you of \$100 for the next 20 years if the interest rate is 5%? The level payments (PMT) are \$100 and we know the interest rate and the duration of the contract.

### Marking to Market: Compute the cash flows at the end of each trading day, and compute your total profit or loss at the end of the trading period.

You are long 10 gold futures contracts, established at an initial price of \$480 per ounce, where each contract represents 100 ounces. Over the subsequent four trading days, gold settles at \$473, \$479, \$482, and \$486 respectively. Compute the cash flows at the end of each trading day, and compute your total profit or loss at the

### What is the consumer price index (CPI)? How is it measured? What are the pros and cons of using the CPI as a measure of the cost of living? Use examples in your response.

What is the consumer price index (CPI)? How is it measured? What are the pros and cons of using the CPI as a measure of the cost of living? Use examples in your response.

### Graph

Week Five Assignment 2 Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to office maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New Y