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Ahat [919]
3 years ago
9

Suppose Mr . Jacobs is a successful candidate.draw up his employment contracts and include five espect of the employment contrac

ts
​
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
4 0

Answer:1. Suppose a candidate who runs on a platform of “soak the rich” wins the 2016 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.

2. Suppose it is 2020 and 1-year interest rate is 5 percent. You observe that the interest rate on 2-year bond is 4.5%. Assume there is no liquidity premium and the interest rates are determined according to expectation hypothesis of the yield curve

a. Based on the interest rates above, what is the expected 1-year interest rate, starting one year from today?

b. If the interest rate on 3-year bond is 4%., what is the expected 1-year interest rate starting 2 years from today?

c. If the interest rate on 4-year bond is 4%., what is the expected 1-year interest rate starting 3 years from today?

d. Draw the yield curve for the next four years.

e. Is the yield curve for the next four years upward sloping or downward sloping? Explain why

f. What might the yield curve today indicate about future interest rates?

g What might the yield curve today indicate about future economic activity? Explain why?

h. What might the yield curve indicate about the markets’ prediction for inflation rate in the next four years?

i. What might the yield curve indicate about monetary policy today?

j. What might the yield curve indicate about a long-term bonds price? Expected return on long-term bonds? Explain

k. Given the slope of the yield curve today, would you rather be lender or borrower in the next five years? Why?

3. The following is from an article in the Wall Street Journal, describing events in the market for Treasury securities on the given day: “Treasury prices were mixed, with the shorter end of the yield curve falling and the longer- dated Treasury rising in prices”.

a. Draw Treasury yield curve, showing the situation on that day as described in the sentence above.

Explain why prices of Treasury were mixed with the shorter end of the yield curve rising in prices and the longer- dated Treasury falling in prices.

Given the latest data on the state of the U.S. economy, assume that the Fed signals the next increase in the target for the federal funds. The increase won’t happen until the Fed’s meeting in summer of 2016.

Will the Treasury yield curve become more or less steep today?

Which of the following would you expect in the market for Treasury? Explain your choice

- There will be an increase in demand for bond today?

There will be a decrease in supply of bonds today?

There will be a decrease in demand for bonds today?

There will be an increase in supply of bonds today?

What will happen to the yields on Treasury? Explain

4. The table below shows current and expected future one-year interest rates, as well as current interest rates on n-year bonds

Year One-year Bond Rate N-Year Bond Rate Liquidity premium

1 2% 2% _______

2 3% 3% _______

3 4% 5% _______

4 6% 6% _______

5 7% 8% _______

Assume the expectation theory of the term structure and calculate interest rates in the term structure for maturities of one to five years.

Draw the yield curve for the next four years.

Is the yield curve for the next four years upward sloping or downward sloping? Explain why

What might the yield curve today indicate about future interest rates?

What might the yield curve today indicate about future economic activity? Explain why?

What might the yield curve indicate about the markets’ prediction for inflation rate in the next four years?

Calculate the liquidity premium for each n-year bond

What does the liquidity premium stay for?

Compare the liquidity premium in 2-year bond and 5-year bond. Why is the liquidity premium on 2-year bond lower than the liquidity premium on 5-year bond?

5.  Suppose that you are the manager of Bank One. Assume required reserve ratio 10 percent. The bank has the following balance sheet:

Assets Liabilities

Reserves $ 65 million Deposits $ 400 million

Loans $ 425 million Bank capital $ 90 million

Is Bank One meeting the reserve requirement?

By how much can Bank One increase its loans?

Suppose Bank One suffers a deposit outflow of $40 million .Illustrate numerically the effect of the deposit outflow of $40 million on the bank’s deposits and reserves

Does the bank now hold excess reserves?

Is the bank meeting a required reserve ratio of 10 percent?

What action must you take to meet the reserve requirement? List three or more actions. work

If a borrower defaults on a loan of $10 million, will be the bank able to sustain the loss?

Why no, why yes?

If Bank One ROA is 7%, what is the bank profit? What is the bank ROE?  

How can you increase the bank’s ROE, what trade –off do you face?  

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Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected
Jobisdone [24]

Answer:

The correct answer is D

Explanation:

Computation of allocation of factory overhead cost for the Job NO 117:

Now, computing the rate of overhead allocation as:

Pre- determined rate of overhead allocation = Estimated aggregate overhead / estimated number of labor hours

where

Estimated aggregate overhead is $95,000

Estimated number of labor hours is 9,500 hours

Putting the values above:

= $95,000 / 9,500 hours

= $10 per hour.

Computing the overhead cost to be allocated to Job No 117 as:

Overhead cost to be allocated to Job No 117 = Number of direct labor hours  × pre- determined rate of overhead

where

Number of direct labor hours is 2,300 hours

Pre- determined rate of overhead allocation  is 10 per hour

Putting the values above:

= 2,300 hours × $10 per hour

= $23,000

8 0
3 years ago
The director’s collaborator who has various tasks such as taking notes, keeping track of blocking, and communicating with all th
joja [24]

The director’s collaborator who has various tasks such as taking notes, keeping track of blocking, and communicating with all the members of the production team is the <u> Stage Manager </u>.

<h3>What is a Stage Manager ?</h3>

A Stage Manager supports and organizes all the different teams involved in the day-to-day running of a theatre production from rehearsals right through to performances and then post-show.

They liaise and communicate with the full company and organize each team to ensure the smooth running of a production.

During the rehearsal process the stage manager is responsible for:

  • communicating with all members of the team.
  • keeping daily reports and logs.
  • taking notes.
  • keeping track of blocking.

Therefore, we can conclude that the Stage Manager  is responsible for various tasks such as taking notes, keeping track of blocking, and communicating with all the members of the production team.

Learn more about Director’s on:

brainly.com/question/15410575

#SPJ4

5 0
1 year ago
Some federal grants, such as categorical grants, ____________, while others, such as block grants, ____________.
Vinil7 [7]
Fund only individual citizens; fund only projects for states and localities
5 0
3 years ago
South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $
drek231 [11]

Answer:

South Sea Baubles

1. Shareholders' equity in 2015 and 2016 =   $300  and  $260 respectively.

2. Net working capital in 2015 and 2016 = $25 and $110 respectively.

3. Taxes paid in 2016 = $84.

4. Cash provided by operations during 2016 = $666.

5. South Sea's gross investment in fixed assets = $100 ($105 - $95).

Explanation:

a) Data and Calculations:

BALANCE SHEET AT END OF YEAR (Figures in $ millions)

Assets                                                     2015         2016

Current assets                                       $ 105       $ 215

Net fixed assets                                       950       1,050

Total assets                                         $1,055    $1,265

Current liabilities                                    $ 80       $ 105

Long-term debt                                       675         900

Total liabilities                                       $755     $1,005

Shareholders' equity                           $300        $260

Liabilities and Shareholders' Equity $1,055      $1,265

INCOME STATEMENT, 2016 (Figures in $ millions)

Revenue               $ 2,025

Cost of goods sold   1,105

Gross profit             $ 920

Depreciation              425

EBIT                          $495

Interest expense       255

Profit before taxes  $240

Income taxes (35%)    84

Net Income            $ 156

Cash provided by operations:

Net income =      $156

Depreciation        425

Working capital:

Current assets      110

Current liabilities (25)

Net cash           $666

8 0
3 years ago
Routine, day-to-day business processes and interaction with customers occur at the ________ level of a firm.
Setler79 [48]

Answer:

Operational level

Explanation:

The operational level is the bottom level in an organization and it is at this level that <u>daily business operations and activities, that connect the organization directly with customers, take place.</u>

Examples of such activities include; manufacturing, marketing and selling.

8 0
3 years ago
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