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1. SAT or ACT? Each year thousands of high school stu- dents take either the SAT or ACT, standardized tests used in the college admissions process. Combined SAT scores can go as high as 1600, while the maximum ACT composite score is 36. Since the two exams use very different scales, comparisons of performance are difficult. (A con- venient rule of thumb is SAT = 40 * ACT + 150; that is, multiply an ACT score by 40 and add 150 points to estimate the equivalent SAT score.) Assume that one year the combined SAT can be modeled by N11000, 2002 and the ACT can be modeled by N127, 32. If an applicant to a uni- versity has taken the SAT and scored 1260 and another stu- dent has taken the ACT and scored 33, compare these students scores using z-values. Which one has a higher rel- ative score? Explain.
2. Economics. Anna, a business major, took final exams in both Microeconomics and Macroeconomics and scored 83 on both. Her roommate Megan, also taking both courses, scored 77 on the Micro exam and 95 on the Macro exam. Overall, student scores on the Micro exam had a mean of 81 and a standard deviation of 5, and the Macro scores hada mean of 74 and a standard deviation of 15. Which stu- dent's overall performance was better? Explain.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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