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1. In a health study, the dietary habits of 420,000 men were examined over a 3-year period. For those who ate no fried foods, the death rate was 1208 per 100,000 man-years. For men who consumed fried foods more than 15 times a week, the corresponding rate was only 702. Considering that the relative ages of members of these two groups were not mentioned, critique the internal validity of the experiment. Source: "Science Finds Fried Foods Not Harmful," Moneysworth magazine, November 24, 1975, p. 1.
2. When traveling, some motorists assume that a res- taurant has good food and reasonable prices if there are a lot of trucks parked outside. What other observed char- acteristics of a restaurant might a traveler use in deciding whether to stop and eat?
3. In doing "observational studies" while driving through suburban neighborhoods during the summer months, home burglars look for potential victims who are away on vacation. What kinds of observation indicators would tend to tell the burglars that a family is likely away on vacation? What are some of the strategies that vacationing homeowners might use in attempting to fool potential burglars into thinking they are not away on vacation?
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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