Question 1
IM struggling with this weeks assignment: . Consider the following four debt securities, which are identical in every characteristic except as noted: W: A corporate bond rated AAA X: A corporate bond rate BBB Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X Z: A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or Y. List the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest. Explain your work. 2. Explain how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter. 3. One year ago, you bought a bond for $10,000. You received interest of $400 at the end of the year, as well as your $10,000 principal. If the inflation rate over the last year was five percent, calculate the real return. Show your work. 4. Suppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock?s current yield, capital-gains yield, and the return. Show your work for three separate calculations. 5. Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent. Calculate a stock with a beta of -0.3, 0.7, and 1.6. Show your work for three separate calculations.,IM having a hard time grasping the bond issues, I will be working on the rest of the paper as well but if you could please help me out I would appreciate this. Thanks so very much
Question 2
Individual Business Writing Portfolio Suppose you are part of the following scenario: ? You are a public relations manager who must present information regarding changes in retail store operations to three sets of stakeholders of a retail clothing chain. The stakeholders are store managers, employees, retail customers, and the public. You must explain adjustments that allow employees to come to work on fewer days a week in an effort to combat rising gas prices and save money on store operations. ? Stores close on Sundays. On Monday through Saturday, stores open an hour later and close an hour earlier. Full-time employees, including managers, work four 10-hour days a week. Part-time employees consolidate their hours in 1-, 2-, or 3-day workweeks, depending on how many hours they are scheduled to work. No stores are closing, and no new stores are opening. ? While constructing your messages, determine the characteristics of your audience and consider the appropriate communication type and style for each audience. Complete Part I: Business Writing Steps. Outline the steps you must take in drafting the three business communications. The outline may take the form of a list, a flowchart, or a web diagram. Complete Part II: Portfolio. Write three messages by selecting one message format for each audience. Explain the changes in the retail store operations. The three messages contain potentially negative information; address the information presented in the scenario so your audience might perceive it in a positive way. Audiences Message Formats Store managers A business letter Store employees A business memo Retail customers and the public An e-mail message Complete Part III: Reflection. Write a 200- to 300-word reflection on your writing, and compare and contrast the business writings in this assignment with academic papers you have completed. Text Book: Business and Administrative Communication, Ch. 11 Locker, K., & Kienzler, D. (2008). Business and Administrative Communication (8th edition). New York, NY: McGraw-Hill.
Question 3
Jasper Inc. has a December 31 year-end. a. Current assets are $30 million. b. Current accrued liabilities (accounts payable, salaries payables, interest payable, and other short-term accruals) are $9 million. c. Short-term debt at December 31 is $4 million. The treasurer has indicated he intends to get this debt refinanced before its due date in September, but it is unlikely to happen before the financial statements are issued. (This debt is not included in the $9 million) d. Long-term debt A of $8 million has equal principal payments due over the next four years. e. Long-term debt B is due in five years and has a principal balance of $6 million. The treasurer discovered a debt covenant violation in December and a waiver was obtained during the first week of January, prior to issuing the financial statements. f. Long-term debt C is due in three years and has a principal balance of $5 million. The treasurer discovered a debt covenant violation in November and a waiver was obtained in December. g. Long-term debt D is due in five years and has a principal balance of $5 million. The treasurer discovered a debt covenant violation in December and a waiver was obtained during the first week of January, prior to issuing the financial statements. h. A provision must be established for a lawsuit that is expected to be settled sometime within the next year. The settlement range is between $ 2 million to $4 million with no one amount being a better estimate at this point in time. Based on the following financial information, what should the calculation of the current ratio (current assets/current liabilities) be using US GAAP and IFRS?
Question 4
. In what ways can shopping over the Internet be more convenient for consumers? In what ways can it be less convenient? List at least five products you would have no hesitation buying over the Internet, five products you might want to think about before buying, and five products you would never consider buying over the Internet. Justify your answer in each case. For one of those products you would hesitate or never consider buying over the Internet, what could companies do to reduce / minimize the hesitation to buy? Provide a real world example of the kind of technologies or processes you think could benefit companies in overcoming consumer reluctance to buy the product. Describe in detail.. In what ways can shopping over the Internet be more convenient for consumers? In what ways can it be less convenient? List at least five products you would have no hesitation buying over the Internet, five products you might want to think about before buying, and five products you would never consider buying over the Internet. Justify your answer in each case. For one of those products you would hesitate or never consider buying over the Internet, what could companies do to reduce / minimize the hesitation to buy? Provide a real world example of the kind of technologies or processes you think could benefit companies in overcoming consumer reluctance to buy the product. Describe in detail.
Question 5
The auditor ia auditing accounts receivable for a long-time client that has good internal controls. The auditor has assessed control risk as low and assigns a control risk assessment of 20 % and a desired audit risk of 5 %. Other factors considered by the auditor: 1. The auditor will not be performing any other substantive audit procedures. 2. Inherent risk, by firm policy, is assessed at 1.00. 3. Client book value is $9,325,000. 4. Tolerable misstatement is assessed at $215,000. 5. Previous audits have shown an expected error of $45,000 over-statement is reasonable. REQUIRED: a- Calculate the detection risk b- Calculate (and show the calculation) of the sample selection interval. c- Assume the auditor rounds the sampling interval down to the next nearest $5,000. Calculate the approximate largest sample size the auditor would expect. d- The auditor found the following differences when performing the audit work: BOOK VALUE AUDITED VALUE AUDIT DIFF 32,500 15,000 -17,500 was billed to wrong Co. for error in transcription. 55000 20000 - Merchandise was returned before year end, but credit was not recorded until next period. 125000 $??? Incurred 60000 105000 85000 -Dispute on product quality disputed for 6 months but customer satisfied. 500 400 -Credit was supposed to be issued, but was not. REQUIRED: a- Calculate the most likely error and the upper error limit for accounts receivable b- Discuss the audit implications, that is, whether the audit work supports book value or whether additional audit work should be recommended, and, if so, the nature of the audit work.
