It is assumed that zt is i:i:d:both over time and with respect to At . (That is, the two shocks are independently distributed.) The depreciation rate of capital is 100%. Within this environment, do the following (a) Set up the social planner problem as a dynamic programming problem and derive the necessary conditions. (b) Conjecture a solution to the policy functions for consumption and savings. Derive the equations that determine these optimal policy functions and characterize their qualitative behavior. (c) Suppose one period (real) bonds were introduced into this economy. How do demand shocks aect interest rates in this economy? Explai

Peyton has invited a summer intern, Danny Riles, into her office so they can discuss how to proceed. As they review the data on the computer screen, Peyton's brow furrows as she realizes that this task may not be trivial. The data contains both categorical variables (Female, Married, Car, and Mortgage) and numerical variables (Age, Income, and Children).

Apply a two-step approach:

b. Based on the clusters from part (a), split the original 600 observations into four separate data sets as suggested by the four clusters from part (a). For each of these four data sets, apply k-means clustering with k 52 using Age, Income, and Children as variables. Normalize the values of the input variables. This will generate a total of eight clusters. Describe these eight clusters according to their "average" characteristics. What benefit does this two-step clustering approach have over just using hierarchical clustering on all seven variables as in part (1) or just using k-means clustering on all seven variables? What weakness does it have?

Recently Amy Ltd acquired 100% of the issued shares of Astra Ltd for $80,000 (Astra Ltd.'s owner's equity at the time of purchasing was $100,000 made up of share capital of $80,000 and retained earnings of $20,000). One of the liabilities of Astra Ltd was $18,000 for the dividend payable but not yet paid, and our accountant informed me that the shares were acquired based on Ex-dividend. In addition, one of the areas of discussion during the negotiation process was the current court case that Astra Ltd was involved in. No monetary amount was disclosed, but the company's lawyers had placed a $6000 amount on the probable payout to settle the case.

Having prepared the acquisition analysis as part of preparing the consolidated financial statements for Amy Ltd, can you explain how the unrecorded contingent liability of $6,000 by the subsidiary Astra Ltd affects the group's goodwill? I believe the goodwill for Amy Ltd should be $20,000 (being $80,000 less $100,000). Is this correct?

In addition, will the dividend payable by the subsidiary entity Astra Ltd impact the acquisition analysis? Please explain?

On Jan. 1, 2021, Jewish Corp. granted 30,000 share options to each of its 100 employees. The options were exercisable 3 yrs. from the date of the grant, conditional upon the employee remaining in the firm's employment during the three-year service period. The option would expire 10 yrs. after the grant date. The exercise price was P3, which was also the market price at the grant date. The FV of each share option was estimated at P1.50 at the grant date.

Management estimated a forfeiture rate of 10% over three years. Five employees left during 2021, but no adjustment was made to the forfeiture rate at the end of 2021. Another 5 employees left the firm during 2022. At the end of 2022, management revised the forfeiture rate to 15%. Two employees left the firm in 2023.

At Jan. 1, 2022, the market price of Jewish's share fell to P2.20. At this date, the FV of the original option before repricing was estimated at P1; the FV of the modified option was estimated at P1.40.

Determine compensation expense for 2021.

Determine the incremental compensation expense in 2022 due to modification.

Clive Anderson is a wealthy businessman just arrived from Manchester, England. As a part of his vision, he is planning to establish a cupcake drive-through in Melbourne's CBD. On 1 July 2021, after obtaining the TFN and ABN, the business is officially opened - Cupcake War. The name of the shop is inspired by his favourite TV show on Hulu. In the first year of operation, Cupcake War completed the following transactions. You are an intern in charge of accounting.

Transaction Details

1 On 10 July 2021, Clive sold his house in England for $1,000,000 and invested half of it in the Cupcake War. A bank account in that name was opened at the Bank of Warrnambool.

2 On the next day, Cupcake War hired two bakers and one waiter. The annual salary of the bakers and waiter is $50,000 and $40,000, respectively. Due to the ATO's new regulation, the salary is paid annually in advance.

3 On 15 July 2021, Cupcake War signed a rental agreement with Real Green Real Estate to rent an existing bakery shop at the cost of $20,000. Since Cupcake War paid that amount immediately, it received a 10% discount from the agent.

4 On 1 August 2021, Cupcake War purchased an inventory of flour, eggs, packaging and various artificial flavours, ingredients worth $100,000. Although it was a large order, the suppliers required Cupcake War to pay all the bills immediately.

5 On 15 of August 2021, to cope with a bigger order, Cupcake War purchased a new oven for $20,000 cash. The useful life is assessed as ten years.

6 On 1 September 2021, since the business was slowing down, Cupcake War purchased Facebook and Instagram advertising, valued at $10,000 for advertising in both social media. Cupcake War paid this expense using a debit card from the Bank of Warrnambool.

7 On the same day, 100 boxes of biodegradable packaging were purchased for $50 each. Due to a previous order, Cupcake War was given 90 days to pay the bills.

10 On 1 June 2022, Cupcake War paid the utilities bill of $7,000 for water, gas and electricity usage.

12 On 30 June 2022, Cupcake War purchased a second-hand Holden Colorado for $40,000. Cupcake War took out a 5-year loan for half of this purchase. The useful life is assessed as ten years.

Task 1

Prepare the worksheet for Cupcake War. (30 marks)

Task 2

Prepare the income statement for the year ended 30 June 2022

A diet problem includes five foods (pizza, chicken sub, hamburger, Greek salad, & minestrone soup). The diet planner wants to consider calories (must be between 1,500 and 2,000 per day), vitamin A (at least 20 units), & sodium (no more than 14,000 units). The formulation is as follows (the terms in red indicate parameters that are a function of i): Min = 4x1 + 6x2 + (5-0.5i)x3 + 2x4 + 7x5 12x1 + 20x2 + 11x3 + 6x4 + 25x5 1500 12x1 + 20x2 + 11x3 + 6x4 + 25x5 2000 2x1 + 4x2 + 4x3 + x4 + 5x5 20 123x1 + 159x2 + 266x3 + 61x4 + 294x5 14000 + 100i; Solve the problem with LINDO/LINGO in order to answer the following questions. Attach the printout to your exam. (a) How many servings of each type of food should the planner eat & how much does the diet cost? (b) How many calories, vitamin A & sodium does the diet include? (c) What would happen, if the price of pizza were to drop from $4 to $3.45 per serving? (d) What would happen if the price of chicken sub would drop by $1? (e) What would happen, if (for i = 0, 1, 2, 3): the upper bound on the calories were to drop to 1,800? (for i = 4, 5, 6): the lower bound on the calories were to increase to 1,600? (for i = 7, 8, 9): there would be an upper bound of 328 on vitamin A ?

You are thinking of starting an online business that rents out men designer wrist watches. The concept is to have a portal or an app where one can rent premium watches like Patek Philippe, Cartier and Rolex. It is a sharing economy concept where owners of the watches would rent them out and you earn a commission. What you are still contemplating is whether you would buy these used premium brands and rent it out, or alternatively just provide a platform for the owners to rent out the watches and you earn a commission. The business concept should clearly explain your business model and how the rental would operate. After some thought, you decided to also include premium ladies' handbags under the same concept. The first step is to analyse your business model and identify the assumptions you making. After that you want to appraise and validate your assumptions by applying the validation board.

(c)

Developing the basic app would cost you around SGD $9,000/-. You only have S$12,000/- with you. You are not able to borrow any money as you have no collateral. You have two credit cards with a combined credit limit of S$8,000. Your bank account has an overdraft facility of S$5,000. There are no family members or friends who are able to lend you any funds. You are not keen on getting any partners in the business. Analyse and explain how you would go about doing the business concept under those circumstances.

Ross Geller is a basketball varsity player at De La Sheng University. He is the starting point guard and averages career highs in points, assists, and steals. He is forecasted to become the country's top point guard when he graduates. Ross commutes to and from his house daily. His average daily travel time (one way) is 1.5 hours, not accounting for abnormal traffic jams. He is a scholar and has maintained good grades up to the current semester. One day, during his daily travels to the university, while walking down a public walkway, he fell into a manhole. He did not notice the manhole as he was memorizing the game plan to defeat their rival team later. He was hurt and severely injured. Luckily, emergency response team was quick enough to rescue him before something grave happened. Ross was rushed to the nearest hospital unconscious. Upon gaining consciousness, Ross was furious because he missed the most awaited game of the season. He is madly blaming the local government for not putting up a warning sign around the unsecured manhole. Apparently, the local government was fixing some issues in such manhole and the workers left it unattended because they wanted to glance Luka Doncic walking around the area. Ross called the Public Attorneys' Office and cried for help. When his lawyer, Chandler, arrived, they firmly decided they were going to sue the local government. When computing for damages, Chandler contacted Joey, a well-known financial advisor in the area, to get an expert opinion. Below is an excerpt from Joey's financial analysis of Ross: "Upon analyzing the gravity of Ross's injuries -there is a high probability he might not walk again. Therefore, decreasing his opportunities to be a productive member of the workforce. At the current age of 20, he is estimated to be a basketball superstar for 10 more years before he retires. As a prospected superstar (and the next face of the league), it is assumed that his starting salary at any basketball team is around 355,000 annually (gross), with expected growth rates of 2% for the first 3 years, with growth rate expected to increase by 25BPS per 2 years until year 10. With an extensive background in the triangle offense, Ross is also expected to put up his own basketball clinic at age 21, its expected initial investment is 1.9M, payable annually for 8 years (237.5k per year) starting at age 21. Gross sales for the first year of operations is 950,000 with an expense ratio of 70%. Gross sales are expected to grow by 300BPS annually until Ross's retirement. The expense ratio, on the other hand, is expected to remain 70% for the first two years of operations and will decrease to 65% for the next four years. Afterwards, it is expected to be stable at 62% of gross sales. Ross's hospital and medical expense are estimated to be 80,000 per month (non-taxable) for two years. Ross and Chandler are determined to claim all damages from the local government, including the medical fees. Joey volunteered to compute for total amount of damages and insisted all interest rates should not be compounded annually. His analysis resulted that interest rates for the first year is compounded

quarterly, the next year is compounded three times a year, the next two years are compounded semi-annually, the next two years are compounded monthly, next two years are compounded bi-monthly, the next year are compounded annually, and the last year is compounded weekly (assume 52 weeks in a year). Joey has utmost confidence in your (yes, you -the one answering this exam) work, therefore, he wants to use the annual interest rates you computed in Problem 1. For periods beyond year 10, use the twenty-year spot rate (Z20) you computed in problem 1 (for purposes of this problem, round off annual forward and spot rates to two (2) decimal points). The tax rate applicable to Ross is 25%. When computing for periodic cash flows, you may round off cash flows to one decimal point. Assume all cash flows occur at the end of the period. Assume further that all cash flows end when Ross retires 10 years from now.

Questions

a. What is the minimum amount Ross should claim as financial damages?

b. If the local government persuades that they will pay Ross five years from today, what is the minimum amount Ross should accept?

, Q, R, S, and T formed a partnership for the importation and distribution of electronic gadgets. P, Q, and R contributed PhP500,000, PhP400,000, and PhP100,000, respectively. S and T were industrial partners. It was agreed that S and T shall get 15% and 10%, respectively, from the partnership profits. By unanimous vote of the partners, Q and T were appointed managing partners without any specification of their respective duties.

If on dissolution, the partnership property amounted to PhP1,000,000. The partnership owed XX PhP200,000; YY PhP300,000; and Q PhP100,000. Distribute the profits or losses.

2. P, Q, R, S, and T formed a partnership for the importation and distribution of electronic gadgets. P, Q, and R contributed PhP500,000, PhP400,000, and PhP100,000, respectively. S and T were industrial partners. It was agreed that S and T shall get 15% and 10%, respectively, from the partnership profits. By unanimous vote of the partners, Q and T were appointed managing partners without any specification of their respective duties.

The partnership loaned PhP1.5 Million from VV. Upon default of payment, VV sued the partnership for the collection of sum of money, including interest and damages, of PhP2 Million. VV won the case. At the time of the execution of the decision, the partnership property amounted only to PhP500,000. If all the partners decided to dissolve the partnership due to insolvency, distribute the losses among the partners

3. P, Q, R, S, and T formed a partnership for the importation and distribution of electronic gadgets. P, Q, and R contributed PhP500,000, PhP400,000, and PhP100,000, respectively. S and T were industrial partners. It was agreed that S and T shall get 15% and 10%, respectively, from the partnership profits. By unanimous vote of the partners, Q and T were appointed managing partners without any specification of their respective duties.

The partnership loaned Php 1.5 million from VV. Upon default of payment, VV sued the partnership for the collection of sum of money, including interest and damages, of PhP2 million. VV won the case. At the time of the execution of the decision, the partnership property amounted only to PhP 500,000. Determine the liability of each partner

Each household has the following endowments: a) an initial capital stock x0 at time 0, b) one unit of productive time per period that can be devoted to work, and c) one unit of land. Final output is produced according to yt = F(kt ; nt ; lt); where F is a CRS production function, and kt ; nt ; lt denote capital, labor, and land services, respectively. This technology is owned by rms whose number will be determined in equilibrium. Output can be consumed (ct) or invested (it). We assume that households own the capital stock (so they make the investment decision) and the land, and they rent out capital, labor, and land services to the rms. The depreciation rate of the capital stock (xt) is denoted by . 1 The land does not depreciate, i.e. it is in xed supply. Finally, we assume that households own the rms, i.e. they are claimants to the rmsprots. The functions u and F have the usual properties that we have described in class.2 (a) Consider an Arrow-Debreu world. Describe the householdsand rmsproblems and carefully dene an AD equilibrium. How many rms operate in this equilibrium? (b) In this economy, why is it a good idea to describe the AD equilibrium capital stock allocation by solving the (easier) Social Planners Problem? From now on assume that F(kt ; nt ; lt) = A k1 t n 2 t l 112 t and = 1, with A > 0 and 1; 2 2 (0; 1). The households instantaneous utility function is given by u(c) = ln(c