Question & Answer

Explain how the probability distribution of a financial institution’s returns is affected when it uses interest rate futures to hedge. What does this imply about its risk? (LO2)

The Bank of Japan desires to decrease the value of the Japanese yen against the U.S. dollar. How could it use direct intervention to achieve this goal? (LO2)

} Dennis is currently considering investing in municipal bonds that earn 6 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 8 percent.  If Dennis’ tax rate is 20 percent, which bond should he choose?  Which bond should he choose if his tax rate is 30 percent?  At what tax rate would he be indifferent between the bonds?  What strategy is this decision based upon?

1.       : Why is self-awareness important for being a good manager? Can you think of some specific negative consequences that might result from a manager with low self-awareness?

What is a photoresist?

A horizontal true centrifugal casting process is used to make lead pipe for chemical plants. The pipe has length = 0.5 m, outside diameter = 70 mm, and wall thickness = 6.0 mm. Determine the rotational speed that will provide a G-factor = 60.

Compute SWK Inc.’s tax liability for each of the following scenarios:

Name some manufacturing processes that produce very good or excellent surface finishes

Pam has a $27,000 basis (including her share of debt) in her 50 percent partnership interest in the Meddoc Partnership before receiving any distributions. This year Meddoc makes a current distribution to Pam of a parcel of land with a $40,000 fair market value and a $32,000 basis to the partnership. The land is encumbered with a $15,000 mortgage (the partnership’s only liability). a. What are the amount and character of Pam’s recognized gain or loss? b. What is Pam’s basis in the land? c. What is Pam’s remaining basis in her partnership interest?

Rolando purchases a golf cart from his employer, E-Z-Go Golf Carts, for a sizable discount. Explain the rules for determining if Rolando’s purchase results in taxable income for him.

What is the predominant chemical compound in almost all glass products?

In what ways are the inventory accounts of a retailing company different from those of a manufacturing company?

Under what circumstances would a taxpayer who generates a loss from renting a home that is not a residence be able to fully deduct the loss? What potential limitations apply?

In a direct extrusion operation the cross section shown in Figure P19.32(b) is produced from a copper billet whose diameter = 100 mm and length = 500 mm. In the flow curve for copper, the strength coefficient = 300 MPa and strain hardening exponent = 0.50. In the Johnson strain equation, a = 0.8 and b = 1.5. Determine (a) the extrusion ratio, (b) the shape factor, (c) the force required to drive the ram forward during extrusion at the point in the process when the billet length remaining in the container = 450 mm, and (d) the length of the extruded section at the end of the operation if the volume of the butt left in the container is 350,000 mm3

What is the continuity law as it applies to the flow of molten metal in casting?

What are some design recommendations for ceramic parts?

1. (a) What discount factor is used to weight benefits that occur in three months’ time for a person with a per-monthly discount factor of 0.9? (b) What does this make the present value of £20 of benefits received in three months’ time? 2. Assume that the good costs £10, which has to be paid today. How long would the maximum delay in (whole) months before receiving the £20 of benefits have to be before a person with a monthly discount of 0.9 would no longer purchase the good.

1.      Broken Rock LLC was recently formed with the following members: Name Tax Year-End Capital/Profits % George Allen December 31 33.33% Elanax Corp. June 30 33.33% Elizabeth Cheam December 31 33.34% What is the required taxable year-end for Broken Rock LLC?

EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $200,000. The redemption represented 20 percent of the corporation’s outstanding stock. The redemption was treated as an exchange by the shareholder. By what amount does EG reduce its E&P as a result of the redemption under the following E&P assumptions?

In what ways might the views of different politicians on what constitutes a ‘good’ tax system conflict?

Did the exchange rate difficulties experienced by countries under the ERM strengthen or weaken the arguments for progressing to a single European currency?

If customers were all charged the same price for a product could this ever be classed as an example of price discrimination? Explain your answer.

What is the difference between deep drawing and bar drawing?

What is a flow-through entity, and what effect does this designation have on how business entities and their owners are taxed?

What amounts are included in gross income for the following taxpayers? Explain your answers.