I. INSTRUCTIONS
A. Your grade is based on your conviction, correctness, elaboration and elucidation of your answers.
B. Show your work. Un-shown work will receive no points.
C. Each of the questions is worth 7 points. The exception is the long problem, which is worth 30 points.

II. TEST
A.ESSAYS( 8 pages)
1. Because there is inflation of 4%, the central bank intervenes and decreases the money stock by 7%. Interest rates rise by 1%, or 100 basis points. Eventually, the intervention lowers the GDP and the interest rates as well as inflation. The GDP, in fact, decreases by 1.5%, the inflation rate becomes 1%, and the interest rates drop by 1.7%, or they fall from the initial level by70 basis points (.7 %.) Divide the analysis into two areas. First, address the initial effect on the bond and the stock market. Second, discuss both, after the effects have worked themselves out as I have indicated above.
2. Expound on an expansion in GDP and the effects on the stock market and bond market in two different cases. First, the economic growth does not induce inflation. Second, the economic expansion causes substantial increase in inflation. Specifically, the GDP rises by 2.5% and the inflation rises by 5.5%.
3. How do we forecast GDP? Explain the different components of it and the determinants of those components.
4. What tools have we got to foretell the values of the portions of the GDP?
5. Analyze the defense industry versus the digital mobile device industry in terms of
a) Structure
Ascertain that you include population, income, regulation and technology.
b) Competition
c) Business cycle
6. We have two individuals whom we have to advise about investments. The one is a twenty three year old who has gotten a job in investment banking and is receiving 150 k annually. The other is an eighty year old woman, Ms. Brown, who has $10 million in assets, as well as owns her house mortgage free. The expenses to sustain herself is 30k for her house costs and 45 k for all other costs. She has 2 children, and she wants to pass as many of her assets to them. Assume their return objectives and their risk profiles and recommend the appropriate investments for them.
7.a) Talk about two concepts to tell us about prospects of the firm.
b) Talk on the drawbacks of using ROE as a performance measure.
8. Define risk. Elaborate on the different cases of bheta. Explicate the 3 factors which affect it.

B. PROBLEMS (6 pages)
1. Cummings has EAT, depreciation expense, capital expenses, debt and debt principal payments of $9m, $2.8m, $1.3m, $40m and $1.5m respectively. Between the first and the second years, it has current assets of $11m and $13.4m and current debts of $5m and $6.1m respectively. Its unlevered bheta, D/E and t are 3, 40/60 and .4 respectively. The t bond rate is 2% and the risk premium is 8% and its sales are $90m. Cummings plows about 30% of its profits back into its business. Derive the value of Cummings, if the growth rate continues perpetually.
2. We know the following about Mansur. Total assets are $1000m, E is $700m, cash is $100m and the # of shares is 1m. We estimate that the market value of equity is 2 times the book value of it. Finally, a fire sale of the firm would bring 70% of the value to the co. Compute the book value, liquidation value, replacement value and enterprise value per share of Mansur.
3-See document ABEX Chemicals Inc. “Attached”

Instructions

1. Use appropriate data visualization and descriptive statistical tools to analyze and summarize the survey data in the excel file questionnaire-database.
2. Compute and interpret confidence intervals for your ratio variables and key proportions for your categorical variables.
3. Summarize and explain the results in a well-written Word document and provide a well-organized Excel workbook with the full results. “Well-organized” means clear and descriptive worksheet tabs in logical order. You should comprehensively describe what statistical analysis you did and include embedded charts and portions of your Excel worksheets, as well as your interpretation of results and conclusions.
4. The report should be self-sufficient so that the reader would not need to search through the Excel workbook to understand what you did, so the excel workbook is only as a backup to verify your work. Use the Snipping tool in Excel to capture portions of the worksheets and paste them into the Word document.
Questionnaire on The Basic Living Conditions of Chinese Students

The object of this questionnaire is the Chinese students studying in UC. More and more Chinese students come to study in the United States. The relatives and friends of these students are usually very interested in their life in the United States, and many their Chinese peers also want to seek more information, especially financial information, supports for their own future study abroad, so the data collected in this questionnaire mainly aim to provide these Chinese relevant people some reference on the basic living expenses and the living conditions of the students studying in UC.

1. What best describes your affiliation to the UC ? (categorical data)
A. Carl H. Lindner College of Business (LCB)
B. College-Conservatory of Music (CCM)
C. College of Design, Architecture, Art and Planning (DAAP)
D. College of Engineering and Applied Science (CEAS)
E. McMicken College of Arts and Sciences (A&S)

2. What’s your current stage of learning? (categorical data)
A. Undergraduate,
B. Master’s degree
C. Doctor’s degree

3. How much scholarship do you get per semester from your college ? (ratio data)
A. $0
B. _____________ (Please offer an approximate integer figure)

4. What’s your rental housing type? (categorical data)
A. Apartment
B. Studio
C. House
D. Dormitory provided by UC

5. What’s your average cost of rent per month (including water, heating and electricity)? (ratio data)

______________ (Please offer an approximate integer figure)

6. Do you cook or buy your meals mainly? (categorical data )
A. Cook by yourself.
B. Buy
C. Half and half
D. The meal plan in school

7. How much do you need to cover the board expenses each month? (ratio data)

______________ (Please offer an approximate integer figure)

8. Do you have part-time job (including RA,TA or any job that can bring an income to you) ? (categorical data )
A. No, I don’t have any part-time job.
B. Yes, I have a part-time job.
C. Yes, I have more than one part-time jobs.

9. How much is your average total living cost each month ? (ratio data)

______________ (Please offer an approximate integer figure)

Instructions

1. Use appropriate data visualization and descriptive statistical tools to analyze and summarize the survey data in the excel file questionnaire-database.
2. Compute and interpret confidence intervals for your ratio variables and key proportions for your categorical variables.
3. Summarize and explain the results in a well-written Word document and provide a well-organized Excel workbook with the full results. “Well-organized” means clear and descriptive worksheet tabs in logical order. You should comprehensively describe what statistical analysis you did and include embedded charts and portions of your Excel worksheets, as well as your interpretation of results and conclusions.
4. The report should be self-sufficient so that the reader would not need to search through the Excel workbook to understand what you did, so the excel workbook is only as a backup to verify your work. Use the Snipping tool in Excel to capture portions of the worksheets and paste them into the Word document.
Questionnaire on The Basic Living Conditions of Chinese Students

The object of this questionnaire is the Chinese students studying in UC. More and more Chinese students come to study in the United States. The relatives and friends of these students are usually very interested in their life in the United States, and many their Chinese peers also want to seek more information, especially financial information, supports for their own future study abroad, so the data collected in this questionnaire mainly aim to provide these Chinese relevant people some reference on the basic living expenses and the living conditions of the students studying in UC.

1. What best describes your affiliation to the UC ? (categorical data)
A. Carl H. Lindner College of Business (LCB)
B. College-Conservatory of Music (CCM)
C. College of Design, Architecture, Art and Planning (DAAP)
D. College of Engineering and Applied Science (CEAS)
E. McMicken College of Arts and Sciences (A&S)

2. What’s your current stage of learning? (categorical data)
A. Undergraduate,
B. Master’s degree
C. Doctor’s degree

3. How much scholarship do you get per semester from your college ? (ratio data)
A. $0
B. _____________ (Please offer an approximate integer figure)

4. What’s your rental housing type? (categorical data)
A. Apartment
B. Studio
C. House
D. Dormitory provided by UC

5. What’s your average cost of rent per month (including water, heating and electricity)? (ratio data)

______________ (Please offer an approximate integer figure)

6. Do you cook or buy your meals mainly? (categorical data )
A. Cook by yourself.
B. Buy
C. Half and half
D. The meal plan in school

7. How much do you need to cover the board expenses each month? (ratio data)

______________ (Please offer an approximate integer figure)

8. Do you have part-time job (including RA,TA or any job that can bring an income to you) ? (categorical data )
A. No, I don’t have any part-time job.
B. Yes, I have a part-time job.
C. Yes, I have more than one part-time jobs.

9. How much is your average total living cost each month ? (ratio data)

______________ (Please offer an approximate integer figure)