1. On November 2, 2017, Scannell, LTD., issued a $200 million, five-year maturity CDs(liability) denominated in Dollars at an interest rate of 2.25 percent. The CDs pay interest annually and the principal value of $200 million at maturity. Also on November 2, 2017, Scannell invested $150 million in a Rouble (?)-denominated ten-year maturity loan with an annual interest rate of 11 percentand $50 million was invested in a ten-year maturity U.S. Treasury note with an interest rate of 2.34 percent. The Rouble denominated loan pays interest annually with the principal paid at maturity (remember this loan contract is denominated in Rouble (?)). The ten-year U.S. Treasury note pays interest semiannually. The exchange rate on November 2, 2017 was ?59.0141/$. The exchange rate on November 2, 2018 was ?66.0468/$. Market interest rates in the U.S. for four-year maturity CDs on November 2, 2018 are 2.50 percent, the current market yield to maturity for an 9-year maturity U.S Treasuries is 3.20 percent, and the interest rate on an 9-year maturity Russian loan increased from 11 percent on the loan when originated on November 2, 2017 to a market rate of 13 percent on November 2, 2018. Thus, values of both assets and liabilities decline since interest rates increased in both Russia and the U.S. Note that the values of each of the balance sheet assets and liabilities change because of changes in market interest rates, changing time to maturities and changes in exchange rates.Fill in the table below for the balance sheets in Dollars and Rouble (?). Since Scannell, LTD was exposed to both interest rate risk and exchange rate risk, what were the gains or losses resulting from interest rate changes, maturity changes and the gains or losses due to exchange rate changes?
Exchange rates may be found at:https://www.xe.com/currencycharts/?from=USD&to=RUB&view=1M
U.S Treasury rates may be found at:
http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-Yield-Data-Visualization.aspx
Solution matrix for problem (Market Values)
November 2, 2017 Date: ?59.0141/$
Balance Sheet Dollar Values (in millions) Balance Sheet Rouble Values (in millions)
Rouble Dollar Rouble Dollar
Loan $150 CD $200 Loan ?_______CD ?__________
U.S T-bill $50 U.S.T-bill ?________
$200 $200 ?________ ?__________
November 2, 2018 Date: ?66.0268/$
Balance Sheet Dollar Values (in millions) Balance Sheet Rouble Values (in millions)
Rouble Dollar Rouble Dollar
Loan $_______ CD $_______ Loan ?________ CD?________
US Trea$______ USTrea?________
Total $______ $_______ ?________ ?13,081.17
Gain or loss in $________ Gain or lossin ?__________
Russian Loan Price in Roubles on 11/2/18 with 9 years to maturity, yielding 13%
VB= 4,996.85 + 2,946.73 =?7,943.58
or ?7,943.58/?66.0268/$ = $___________
Scannell LTD CD in $ on 11/2/18 with 4 years to maturity, yield 2.50%
Vcd= = $____________
or $_____________*?66.0268/$ = ?____________
U.S Treasury Bond in $ on 11/2/18 with 9 years to maturity, yielding 3.2%
VTB = = $__________________
or $__________*?66.0268/$ =?_____________
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1 Offshore Accounting Services Especially To India Are Becoming An Increasingly Attr 3237772
/in Uncategorized /by developer1. Offshore accounting services, especially to India, are becoming an increasingly attractive option for many U.S. companies. This shift has led to huge startup and communication costs, and the employment situation is further affected by general downsizing of corporations, as well as an increase in productivity. Are the exports of white-collar jobs to India necessarily a loss for the United States?
2. What is the difference between Rybczynski and the Stolper-Samuelson theorem.
3. What is the difference between Ricardian and Specific Factor model.
4. What is it that North-South trade in manufactures seems to be consistent with the results or expectations generated by the factor-proportions (H-O) theory of international trade, whereas North-North trade is not? Include the types of trade involved.
5. Why the evidence from the East Asia New Industrializing Countries suggests that as international productivities converge, so do international wage levels? What do you think is likely to happen to the relative wages (relative to those in the US) of China in the coming decade? Explain your reasoning based on the Ricardian Model.
6. Discuss the framework of the Specific Factors model in analyzing the distributional effects of international labour migration.
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1 On A Dollar Bar Series On E Mini S P 500 Futures A Apply The Brown Durbin Evans Me 2664118
/in Uncategorized /by developer1. On a dollar bar series on E-mini S&P 500 futures,
(a) Apply the Brown-Durbin-Evans method. Does it recognize the dot-com bubble?
(b) Apply the Chu-
-White method. Does it find a bubble in 2007– 2008?
2. On a dollar bar series on E-mini S&P 500 futures,
(a) Compute the SDFC (Chow-type) explosiveness test. What break date does this method select? Is this what you expected?
(b) Compute and plot the SADF values for this series. Do you observe extreme spikes around the dot-com bubble and before the Great Recession? Did the bursts also cause spikes?
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1 On A Series Of E Mini S P 500 Futures Tick Data Compute Dollar Bars And Dollar Imb 2664286
/in Uncategorized /by developer1. On a series of E-mini S&P 500 futures tick data, compute dollar bars and dollar imbalance bars. What bar type exhibits greater serial correlation? Why?
2. On dollar bar series of E-mini S&P 500 futures and Euro
50 futures:
(a) Apply Section 2.4.2 to compute the {𝜔
(b) Derive the time series of the S&P 500/Euro
50 spread.
(c) Confirm that the series is stationary, with an ADF test.
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1 On A Dollar Bar Series On E Mini S P 500 Futures A Compute Smt For Sm Poly1 And Sm 2664120
/in Uncategorized /by developer1. On a dollar bar series on E-mini S&P 500 futures,
(a) Compute SMT for SM-Poly1 and SM-Poly 2, where 𝜑 = 1. What is their correlation?
(b) Compute SMT for SM-Exp, where 𝜑 = 1 and 𝜑 = 0.5. What is their correlation?
(c) Compute SMT for SM-Power, where 𝜑 = 1 and 𝜑 = 0.5. What is their correlation?
2. If you compute the reciprocal of each price, the series
turns bubbles into bursts and bursts into bubbles.
(a) Is this transformation needed, to identify bursts?
(b) What methods in this chapter can identify bursts without requiring this transformation?
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1 On March 1 2017 Beldon Corporation Purchased Land As A Factory 2419265
/in Uncategorized /by developerRequired: Determine the amounts that Beldon should capitalize as the cost of the building only.Answer in dollars and cents ($0.00).
Answer:
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On March 1, 2017, Beldon Corporation purchased land as a factory site for $62251. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2017. Costs incurred during this period are listed below: Demolition of old building $4694 Architect’s fees for new building $11120 Legal fees for title investigation of land $1622 Property taxes on land for period beginning March 1, 2017 $3065 Construction costs $491792 Interest on construction loan $4896 Salvaged materials resulting from the demolition of the old building were sold for $2061 Required: Determine the amounts that Beldon should capitalize as the cost of the building only. Answer in dollars and cents ($ 0.00 ). Answer: On March 1, 2017, Beldon Corporation purchased land as a factory site for $50743. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2017. Costs incurred during this period are listed below: Demolition of old building $3630 Architect’s fees for new building $11423 Legal fees for title investigation of land $1992 Property taxes on land for period beginning March 1, 2016 $2948 Construction costs $517411 Interest on construction loan $6506 Salvaged materials resulting from the demolition of the old building were sold for $1711 Required: Determine the amounts that Beldon should expense as operating costs. Answer in dollars and cents ($ 0.00 ). On March 1, 2017, Beldon Corporation purchased land as a factory site for $58780. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2017. Costs incurred during this period are listed below: Demolition of old building $3180 Architect’s fees for new building $11294 Legal fees for title investigation of land $2041 Property taxes on land for period beginning March 1, 2017 $2118 Construction costs $483848 Interest on construction loan $5558 Salvaged…
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1 On January 2 2017 David Corporation Paid 1 200 000 For Buster Company In A Transac 2434369
/in Uncategorized /by developer1. On January 2, 2017, DavidCorporation paid $1,200,000 for Buster Company in a transactionproperly accounting for as an asset acquisition. The book valuesand fair values of Buster Company’s net assets on January 2, 2017were as follows:
BookValue Fair Value
AccountReceivable 400,000 350,000
Inventory 50,000 65,000
Plant andEquipment 250,000 450,000
AccountsPayable 40,000 50,000
MortgagePayable 150,000 150,000
510,000 665,000
A. What will be the goodwill recorded from the abovetransaction? Show your calculation.
B. If David Corporation’s Accounts Receivable balanceimmediately prior to the acquisition was $500,000. What will DavidCorporation’s Accounts Receivable balance be immediately after theabove acquisition? Show your calculation.
2. To determine whether goodwill impairment exists, U.S. GAAPrequires a two-step process (complete the statements):
Step 1 – Compares F.V. (fair value) ofthe Reporting Unit to _____________________________.
Step 2 – If necessary, first comparesthe F.V. of the Reporting Unit to _____________________.
3. If goodwill impairment is determined to exist, the entry torecord the impairment is as follows:
Debit Credit
Goodwill $xxx
Impairment Loss -Goodwill $xxx
A. True
B. False
Explain your answer:
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1 One Government Intervention In Health Care Is Compulsory Vaccinations For Children 1897891
/in Uncategorized /by developer1. One government intervention in health care is compulsory vaccinations for children against various infectious diseases. Can you explain why governments might enact such policies? (Hint: are there any externalities involved?)
2. In some countries and some regions, there are shortages of doctors. Why is this problem not quickly resolved by the normal workings of supply and demand in the labor market?
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1 On November 2 201 7 Scannell Ltd Issued A 200 Million Five Year Maturity Cds Liabi 2843573
/in Uncategorized /by developer1. On November 2, 2017, Scannell, LTD., issued a $200 million, five-year maturity CDs(liability) denominated in Dollars at an interest rate of 2.25 percent. The CDs pay interest annually and the principal value of $200 million at maturity. Also on November 2, 2017, Scannell invested $150 million in a Rouble (?)-denominated ten-year maturity loan with an annual interest rate of 11 percentand $50 million was invested in a ten-year maturity U.S. Treasury note with an interest rate of 2.34 percent. The Rouble denominated loan pays interest annually with the principal paid at maturity (remember this loan contract is denominated in Rouble (?)). The ten-year U.S. Treasury note pays interest semiannually. The exchange rate on November 2, 2017 was ?59.0141/$. The exchange rate on November 2, 2018 was ?66.0468/$. Market interest rates in the U.S. for four-year maturity CDs on November 2, 2018 are 2.50 percent, the current market yield to maturity for an 9-year maturity U.S Treasuries is 3.20 percent, and the interest rate on an 9-year maturity Russian loan increased from 11 percent on the loan when originated on November 2, 2017 to a market rate of 13 percent on November 2, 2018. Thus, values of both assets and liabilities decline since interest rates increased in both Russia and the U.S. Note that the values of each of the balance sheet assets and liabilities change because of changes in market interest rates, changing time to maturities and changes in exchange rates.Fill in the table below for the balance sheets in Dollars and Rouble (?). Since Scannell, LTD was exposed to both interest rate risk and exchange rate risk, what were the gains or losses resulting from interest rate changes, maturity changes and the gains or losses due to exchange rate changes?
Exchange rates may be found at:https://www.xe.com/currencycharts/?from=USD&to=RUB&view=1M
U.S Treasury rates may be found at:
http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-Yield-Data-Visualization.aspx
Solution matrix for problem (Market Values)
November 2, 2017 Date: ?59.0141/$
Balance Sheet Dollar Values (in millions) Balance Sheet Rouble Values (in millions)
Rouble Dollar Rouble Dollar
Loan $150 CD $200 Loan ?_______CD ?__________
U.S T-bill $50 U.S.T-bill ?________
$200 $200 ?________ ?__________
November 2, 2018 Date: ?66.0268/$
Balance Sheet Dollar Values (in millions) Balance Sheet Rouble Values (in millions)
Rouble Dollar Rouble Dollar
Loan $_______ CD $_______ Loan ?________ CD?________
US Trea$______ USTrea?________
Total $______ $_______ ?________ ?13,081.17
Gain or loss in $________ Gain or lossin ?__________
Russian Loan Price in Roubles on 11/2/18 with 9 years to maturity, yielding 13%
VB= 4,996.85 + 2,946.73 =?7,943.58
or ?7,943.58/?66.0268/$ = $___________
Scannell LTD CD in $ on 11/2/18 with 4 years to maturity, yield 2.50%
Vcd= = $____________
or $_____________*?66.0268/$ = ?____________
U.S Treasury Bond in $ on 11/2/18 with 9 years to maturity, yielding 3.2%
VTB = = $__________________
or $__________*?66.0268/$ =?_____________
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1 One Of The Reasons That Protectionists And Government Officials May Favor Using A 2750349
/in Uncategorized /by developer1. One of the reasons that protectionists and government officials may favor using a quota instead of a tariff is: A. quotas ensure that the quantities of imports are strictly limited. B. quotas give less power to politicians than tariffs. C. quotas create less market distortions than tariffs. D. quotas generate more revenue for the government than tariffs.
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1 Outline Two Possible Ways To Use Parallelism In Quicksort 2 Prove That The Split I 2538337
/in Uncategorized /by developer1. Outline two possible ways to use parallelism in Quicksort.
2. Prove that the “split-interleave” method preserves the property that the columns are sorted.
3. Write a conventional C program to merge files using Batcher's
method.
4. Write a conventional C program to merge files using Batcher's
method, but without actually doing any shuffles.
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