Foreigh Currency Risk Test

FOREIGN CURRENCY RISKQ1. Jack is a UK based car exporter who exports luxury cars and has a competitor in Germany; he has recently seen a change in foreign currency that pound ( £) of UK has strengthened against euro (â‚ ¬) of Germany. What is the type of risk does Jack face in his business? (MCQ) Credit Risk Translation Risk Economic Risk Transaction Risk(2 marks) Q2. Yarn Co is multinational business & wants its foreign subsidiary financial statements. They are making exchange losses when the accounting results of its foreign subsidiary are translated into the home currency. Which type of currency risk does Yarn Co face? (MCQ) Netting off Risk Translation Risk Economic Risk Hedging Risk(2 marks) Q3. Saito Co, a USA based fish exporter has competition with Sakkara Co based in Bangladesh. He believes he faces an economic risk in the business. What type of impact does it have on Saito Co? (MCQ) Direct Impact Indirect Impact Political Impact Economic Impact(2 marks) Q4. The current spot rate of UK ( £) to USA ($) is  £3:$1.5. The interest rates per annum are UK 5% & USA 9%. What will be the two-month forward rate (to the nearest two decimal places)? (FIB) £ :$1(2 marks) Q5. The current spot rate of UK ( £) is  £3. The inflation rate per annum of UK is 3% & the expected future six-month spot rate is  £3.06. Calculate the foreign annual inflation rate? (FIB)%(2 marks) Q6. Which of the following statements relates to International Fisher Effect? (MCQ) The exchange rates of countries depending on inflation rates The exchange rates of countries depending on interest rates Prices are same to different customers in an economy Nominal interest rate differentials between countries provide an unbiased predictor of future changes in spot exchange rates.(2 marks) Q7. Which of the following differences will result in an Expectation Theory? (MRQ) The difference in Inflation Rates Difference between Spot & Forward Rates The difference of Interest Rates Difference between Spot & Future Rates(2 marks) Q8. Select the appropriate theory with the following statements. (P&D)Depreciation of forwarding rates will be due to high-interest rates Differences in nominal rates due inflation rates A commodity is priced same in every country The forward rate is a fair predictor of the spot rate in the future EXPECTATION THEORY PURCHASING POWER PARITYTHEORY INTERNATIONAL FISHER EFFECT INTEREST RATE PARITY THEORY(2 marks)Q9. Patio Co. operates in the USA. They will be receiving a payment of  £2,500 from customers in four months' time. Calculate Patio Co.'s receipts in four months' time? Use the following rates. (MCQ)Spot Rate  £1.4/$ –  £1.6/$4 Month Forward Rate  £1.8/$ –  £2.0/$ $1,786 $1,563 $1,389 $1,250(2 marks) Q10. Fray Co is a USA based company ; imports Robots from China. The usual credit period is three months. Fray Co has to pay  ¥60,000. Calculate the loss/gain of the payment on forwarding contract? (MCQ)Spot Rate  ¥1.321/$ –  ¥1.521/$3 Month Forward Rate  ¥1.654/$ –  ¥1.854/$ $7,085 (Loss) $9,144 (Loss) $9,144 (Gain) $7,085 (Gain)(2 marks) Q11. PXG Co, a UK based company has made $3,600 sale to its USA customer on credit. The current  £/$ exchange rate is  £6.4/$12.8. It is expected that UK  £ will strengthen by 15%, by the time USA customer pays. Calculate the receipts in  £? (MCQ)  £244.57  £281.25  £489.13  £562.5(2 marks) Q12. The dollar is quoted at a $0.067 premium for the forward rate. The current exchange rate is $/ ¥ 1.0005 +/- 0.0045. What will a $4,900 payment convert at forwarding rate? (MCQ)  ¥4,876  ¥4,920  ¥5,224  ¥5,274(2 marks) Q13. A UK based company Bib Co will receive a foreign payment of $2,000 in four months' time. The spot rate is $1.1/ £ – $1.4/ £. Calculate the income in four months' time using money market hedging? (MCQ) Borrow DepositDollar ($) 4% 5%Pounds ( £) 3% 2%  £1,414.4  £1,419.4  £1,800  £1,807(2 marks)This information is used for Q14, Q15 ; Q14.A USA based company has to make a payment of  £95,000 in nine months' time. The spot rate is  £2.2/$ –  £2.5/$. Following details are: Borrow DepositDollar ($) 7% 5%Pounds ( £) 5% 3%Q14. Calculate the foreign payment using money market hedging? (MCQ) $37,164 $42,232 $43,816 $44,449(2 marks) Q15. Calculate the foreign payment if the nine-month forward rate is  £2.37/$ –  £2.71/$? (FIB)$ (2 marks) Q16. Calculate the gain/loss for the company for not leading the payment? (MCQ) $4,365 (Gain) $4,365 (Loss) $3,816 (Loss) $3,816 (Gain)(2 marks) Q17. Following statements relate to Forwarding contracts. (HA)An immediate binding contract TRUE FALSEThe forward rate is variable in nature TRUE FALSEThe timing of the contract is unknown TRUE FALSE(2 marks) Q18. A company wants to reduce its transaction risks when conducting business with foreign receivables/payables. Following statements are said by the directors during this years' AGM. Select the appropriate statements to reduce the risk. (MRQ) â€Å"The company should hold back its payments for few months†, this technique is Leading â€Å"The company should continue as normal† â€Å"I have some friends offshore who work in a bank, I may able to arrange a foreign account for the company† said by a director â€Å"The company should deal in the foreign currency only† (2 marks) Q19. Juab Co is a manufacturing company ; has a foreign supplier who supplies raw materials. Recently the supplier has now become a customer as well, who purchases Juab Co.'s finished products and sells in his respective country. Which technique of reducing risk is applicable for Juab Co? (MCQ) Money market contract Leading & Lagging Forward market hedging Matching & Netting(2 marks) Q20. Which of the following statements are true in relation to futures? (MRQ) Currency futures are standard contracts A high premium is paid initially Futures are available in all currencies offered by the bank Future contracts are binding (2 marks) Q21. A company wants to hedge itself from any currency risk. They have decided to hedge themselves using currency futures. They have to make a payment in May of $36,000. The futures have a contract size of $15,000. Which of the following futures will they select? (MCQ) Buy three futures on March Sell two futures of March Buy two futures of June Buy three futures of September(2 marks) Q22. Select the appropriate option in relation to futures. (HA) Transaction cost is lowest ADVANTAGE DISADVANTAGEContracts are limited to some currencies ADVANTAGE DISADVANTAGEThe exact date does not have to be known ADVANTAGE DISADVANTAGE(2 marks) Q23. Picots Co is UK based company which has a lot of foreign customers. It will be receiving a payment from USA based customer of $500,000 in five months. The company has been advised to use derivatives to hedge themselves against any currency risk. If they opt for currency options which of the following are correct? (MCQ) Buying a USA $ call option in the UK Buying a USA $ put option in the UK Buying a UK  £ call option in the USA Buying a UK  £ put option in the USA (2 marks) Q24. Which of the following statements relate to currency options? (MRQ) In future the market becomes favorable and the company will face a loss because it is bound to the contract They are negotiated Cannot be traded in all currencies Easily arranged & Flexible (2 marks) Q25. Which of the following is incorrect for swaps? (MCQ) It is negotiated between two parties having their own spot rate It has a nominal cost It is an over the counter deal It has multiple markets (2 marks) Q26. Which of the following has a refundable cost? (MCQ) Currency Futures Forward Contracts Currency Options Currency Swaps(2 marks)FOREIGN CURRENCY RISK (ANSWERS)Q1. CEconomic risk is the variation in the value of the business due to unexpected changes in exchange rates. This is an indirect impact on Jacks business. Q2. BThey are making exchange losses when the accounting results of its foreign subsidiary are translated into the home currency. This is an indication of Translation Risk. Q3. AIt is a direct impact on Saito Co as the USA being home currency strengthens then foreign competitors Sakkara Co in Bangladesh is able to gain sales at your expense because your fish have become more expensive in the eyes of customers both abroad and at home. Q4.  £3.02Interest rate parity theory = 3 Ãâ€" (1+(9% Ãâ€" 2/12))/(1+(5% Ãâ€"2/12)) =  £3.02 Q5. 7%Purchasing power parity theory = 3 Ãâ€" (1+(x% Ãâ€" 6/12))/(1+(3% Ãâ€"6/12)) =  £3.06X% = 7% Q6. D The exchange rates of countries depending on inflation rates (Purchasing Power Parity Theory) The exchange rates of countries depending on interest rates (Interest Rate Parity Theory) Prices are same to different customers in an economy. The law of one price. (Purchasing Power Parity Theory) Nominal interest rate differentials between countries provide an unbiased predictor of future changes in spot exchange rates. (International Fisher Effect) Q7. When these two will become equal, Expectation Theory arises. Difference between Spot & Forward Rates Difference between Spot & Future Rates Q8.Depreciation of forwarding rates will be due to high-interest ratesINTEREST RATE PARITY THEORYDifferences in nominal rates due to inflation rates INTERNATIONAL FISHER EFFECTA commodity is priced same in every country PURCHASING POWER PARITY THEORY The forward rate is a fair predictor of the spot rate in the future EXPECTATION THEORY Q9. DReceipts =  £2,500 à · 2.0 = $1,250 Q10.Payment (Forward) =  ¥60,000 à · 1.654 = $36,276Payment (Spot) =  ¥60,000 à · 1.321 = $45,420Gain = $9,144 Q11. AFuture Rate = $12.8 Ãâ€" 115% = $14.72Receipts =  £3,600 à · 14.72 = $244.57 Q12. DThe Spot rate = $0.996/ ¥ – $1.005/ ¥ -/+ 0.0045The dollar is at a premium so subtract it as if dollar strengthens then yen will weaken in the forwards market. The new Spot rate = $0.929/ ¥ – $0.938/ ¥ – 0.067Payment = $4,900 à · 0.929 =  ¥5,274 Q13. BBorrow Foreign Currency = $2,000 à · [1 + (4% Ãâ€" 4/12)] = $1,974Convert Foreign to Local = $1,974 à · 1.4 =  £1,410Deposit (Interest) = (1,410 Ãâ€" 2% Ãâ€" 4/12) =  £9.4Total Receipts =  £1,410 +  £9.4 =  £1,419.4 Q14. DDeposit Foreign Currency =  £95,000 à · [1 + (3% Ãâ€" 9/12)] =  £92,910Convert Foreign to Local =  £92,910 à · 2.2 = $42,232Deposit (Interest) = ($42,232 Ãâ€" 7% Ãâ€" 9/12) = $2,217Total Payments = $42,232 + $2,217 = $44,449 Q15. $40,084Payments =  £95,000 à · 2.37 = $40,084 Q16. B Q17. An immediate binding contract TRUE The forward rate is variable in nature FALSEThe timing of the contract is unknown FALSE Q18. â€Å"The company should hold back its payments for few months†, this technique is Lagging (Incorrect) â€Å"The company should continue as normal† This refers the company should take no action (Correct) â€Å"I have some friends offshore who work in a bank, I may able to arrange a foreign account for the company† said by a director. This statement indicates opening a foreign bank account. (Correct) â€Å"The company should deal in the foreign currency only† The company could deal in home currency rather in foreign currency (Incorrect) Q19. DThis technique attempts to match the same foreign currency receipt & payments due at the same time. The netting of the intra debit & credit balances saving transaction cost & reducing risk. Q20. Currency futures are standard contracts, fixed limits specified (True) A high premium is paid initially, this is applicable in options (False) Futures are available in all currencies offered by the bank, Only in few currencies (False) Future contracts are binding, they have to be closed (True) Q21. CThe Futures can be bought or sold only four times a year which are March, June, September & December. Future contracts can be signed relating to a month after the date of receipt. They will buy two futures each of $15,000 and the remaining $6,000 can be hedged using other techniques. (E.g. forward contracts)Q22. Transaction cost is lowest ADVANTAGEContracts are limited to some currenciesDISADVANTAGEThe exact date does not have to be knownADVANTAGE Q23. BPicots Co will want to sell the USA $ when they receive the payment which is why they will use USA $ put (sell) option bought in the UK. Q24. In future the market becomes favorable and the company will face a loss because it is bound to the contract, this statement relates to future contracts They are negotiated, this statement relates to options (Correct) Cannot be traded in all currencies, it is a disadvantage hence this statement relates to options (Correct) Easily arranged & Flexible, this statement relates to swaps Q25. DIt has no markets; it is a tailor-made an agreement between two parties.Q26. A Currency Futures, An initial margin cost which is refundable Forward Contracts, has a transaction cost Currency Options, A non-refundable premium cost Currency Swaps, No initial cost

Barbara Hepworth – presentation

Good morning, I know some you are taking the â€Å"british art† course this year, so I think it could be interesting if I give a brief account of Barbara Hepworthà ¯Ã‚ ¿Ã‚ ½s work and experiences. For those of you who are not taking that subject it may be a way of familiarising yourselves with abstract art coming from Great Britain. Before going straight into the subject, Ià ¯Ã‚ ¿Ã‚ ½d like you to get rid of any prejudices you may have against abstract art and just let yourselves to be carried along by what Ià ¯Ã‚ ¿Ã‚ ½m going to say and show. First of all, I can see in your faces youà ¯Ã‚ ¿Ã‚ ½re thinking â€Å"Whoà ¯Ã‚ ¿Ã‚ ½s that Barbara Hepworth sheà ¯Ã‚ ¿Ã‚ ½s talking about? Well, She is one of the most important abstract scuptors in Britain. What Ià ¯Ã‚ ¿Ã‚ ½m trying to do here this morning is to show you in what way her experiences in life changed her work. As you see this is Barbara Hepworth when she was only two years old. It is relevant the way she perceived nature from her very infancy. In this statement you can see it clearly. She says â€Å"All my early memories are of forms, shapes and textures†, so she identifies nature with sculture. The last line is also remarkable as Barbara Hepworth is establishing a relationship between nature and the sculptor. One of the most important experiences who contributed to change her work is the visit she paid to Italy when she had become a sculptor herself. In this country she found two of her main preocupations: light and the grouping of people. The importance of light in relation to form will always interest her. Her second preocupation emerged in Venice. There, she realized that when people entered Saint Mark square, they walked in a different way and tended to group themselves because of the enormous proportion of the square and the cathedral. These two preocupations, those of light and the grouping of people will change her style. In this slide you can see her with one of her children. Barbara recognizes that with the birth of her first child her work developed notoriously. In her Autobiography, that I recommend you, the artist critizises those who thought a woman cannot be an artist and mother at the same time. What is more, she believes her work changed because of her children been, during several years, more formal, avoiding any trace of naturalism. You can see the resault in this sculpure. If we carry on the course of her life, we can find another turning point in her career when she first met Arp, one of the leaders of dadaism. By seeing his work, Barbara freed herself from many inhibitions and regarded the ralion between form and landscape with new eyes. In the decade of the 30à ¯Ã‚ ¿Ã‚ ½s, abstract art became quite famous in Britain because of Barbara and her husband, Ben Nicholson. They were in contact with some important artists from the continent, such as gabo or Mondrian. Here you can see her with Gabo and his wife. This contact originated new preocupations for Barbara. One of them was the quality of the materials she used in her scuptures. She wanted to do something of a piece of marble, for example, but in order to achieve it she had to discover what the block of marble wanted. In this period she is also interested in the hollowed form as you can see in many of her works. She pierced the scuptures to create a more profound relationship between human beings and nature through sculpture. It is in these years that she analyses the role of the sculptor. She also reflects about her hands. Barbara Hepworth thinks her left hand is her thinking hand while her right hand is the working one. As a result of the threatening of the 2nd world war, many european artists came to England and joined the group of Barbara and Ben Nicholson in St. Ives, establishing the foundations of Constructivism, one of the most important vanguardist movements. During these last years of the decade Barbara Hepworth devoted herself to curved and stringed carvings which symbolised, once again, a sense of identification with nature. After this period her scultures will evoque the idea of enclosure or embrace. In order to achive it she uses several kinds of forms which are: the standing figure, the two figures, that represent the relationship between one human being and another, and the spherical or oval form. Her work will change again in the 40à ¯Ã‚ ¿Ã‚ ½s, a decade she dedicates to monumental and enormous figures made of metal. This is Barbara Hepworth when she was nearly and old lady. In her last years she comes back to the formal style that characterized her work during the decade of the 30à ¯Ã‚ ¿Ã‚ ½s. Unfortunately, she passed away in 1975. She used to drink and smoke a lot, so one day she didnà ¯Ã‚ ¿Ã‚ ½t extinguish the butt of a cigarrete and it a caused a fire that killed her. In conclusion, I can say Barbara Hepworth was one of the most important artists of her time and her success depends a great deal on her experience in life. I hope you take a full advantage of my presentation. Anyway, if youà ¯Ã‚ ¿Ã‚ ½ve got any comments or questions you are welcomed. Thank you very much. * Introduction: Good morning, I know some of you†¦.. Get rid of any prejudices / let yourselves get involved. * Body: First of all: Who is Barbara Hepworth. What Ià ¯Ã‚ ¿Ã‚ ½m trying : in what way her experiences change her work. Slide of her 2 years old : relevant because from her infancy aware of forms. Slide of statement. (last line remarkable). Italy: preoccupations: light and grouping of people. Slides of Venice. Slides of child (2) Her children: developed her work, autobiography she critizises, her work more formal avoiding any trace of naturalism Slide of formal scupture. If we follow the course of her life another turning point: Arp: (leader of dadaism) freed herself from many inhibitions and regarded the relationship bet figure and nature with new eyes. In the decade of the 30à ¯Ã‚ ¿Ã‚ ½s abstract art famous in GB because of her and her husband. Slide of BH and her husband. They were in contact with artists from continent. (Gabo, Mondrian). Slide of her with Gabo. This contact originated new preoccupatiosns: qualitiy of materials, hollowed form. She pierced scultures to create a more profound relation bet human beings and nature. Slide of pierced figure. It is in these years: analyses the role of artist and reflects about her hands. Slides of hands (2). As a result of the threatening of the 2nd w.w. many artist came and joined her group in St Ives. Slides of her studio in St. Ives (2). There they established the foundations of Constructuvism, one of the most imp vanguardist movements. During these last years of the decade, BH devoted herself to the curved and stringed carving, a sense of identifiation with nature. Slide of stringed sculpture. After this period her sculptures will evoque the idea of enclosure or embrace by using several kinds of forms: standing form, two forms and oval or spherical form. Slide of standing figure. Slide of spherical figure. 40à ¯Ã‚ ¿Ã‚ ½s her work changes again: enormous figures made of metal. Slides of enormous figures (3). Slides of her old (2) In her last years she came back to the formal style of the 30à ¯Ã‚ ¿Ã‚ ½s. She passed away in 1975: she used to drink etc. * Conclusion: As a conclusion we can say she was 1 of the + imp artists of her time, and her success depends a great deal on her experience in life. I hope you have taken full advantage of my presentation. If you have any comments or questions you are welcome.

Man in the Mirror Essay

Man in the Mirror Essay Man in the Mirror Essay Man in the Mirror – Michael Jackson Feb 5th 2013 Tori Gonsalves This song has to be my all-time favourite. It tells us that in order to make a change you have to start with yourself, and the rest will follow. In some way everyone can relate to this song. We all have these big dreams and imagine these amazing things, but nothing will ever happen unless you start with yourself, no one else can make those dreams come true, only you. â€Å"Be the change you wish to see in the world- Gandhi.† Man in the Mirror ties in with this course because with Sole we are trying to get more people involved with the community we live in. You have to start with yourself and then get everyone involved, leaving no one out. â€Å"Gotta make a change. For once in my life. Its gonna feel real good. Gonna make a difference. Gonna make it right.† This verse relates so much to the course because we are trying to make a difference in many lives. We are going to be giving back to a community, and no matter what that we will make a change not in lives of those w e help but of our own. It will give us a feeling that we will be unable to explain in words. This song relates to who I am and who I want to become because I want to be able to make a difference in the lives of many. I know that if I want to be the difference that I need to start with myself. I am my biggest competition; the only person that will hold me back from my dreams is I. But I am also my biggest fan. I know that I can do anything I put my mind too as long as I put forth my best

buy custom Organized Gangs essay

buy custom Organized Gangs essay According to the FBI, over one million people in the US belong to organized gangs. When members of different gangs are arrested, convicted for crimes and imprisoned, they meet each other in prison. This means that they can use the common background that they have in criminal activities in order to perpetuate criminal acts within prison cells. Outside prisons, contact with those who are yet to be imprisoned makes it easy for crimes to continue being organized and perpetrated. Within California, Terry Thorton, a spokeswoman for California Department of Corrections, the prisons are today accommodating about 162,000 inmates within the states prisons. Gang population has been estimated to comprise 803 members, 325 inactive member, 900 associates and 1,050 dropouts. In The Influence of Prison Gang Affiliation on Violence and Other Prison Misconduct, Wallace, et al, 2002 used automated The Bureau of Prisons data in order to conduct an empirical research how prison affiliation gangs contribute to various forms of misconduct and violence inside prisons. They found out that specific as well as more generic indicators of gangs were directly connected to instances of violence and various unlawful acts that threatened to destabilize law and order in prisons. Prison gangs represent an extension of a society whose morality has suffered untold erosion. Many people who join these gangs do so in order to survive in a prison society full of animosity, hostility and cruelty. According to Bill Wallace, a Chronicle staff writer, Californias prison system is dominated by 5 major inmate gangs. According to Wallace, the gangs are often organized based on racial affiliations. This brings into sharp focus the survival theory. In this case, those races that are threatened by marginalization find themselves finding for ways through which they can survive. They find solace in prison gangs in the face of harsh life outside and within the confines of prison walls. Even upon completion of their sentences, members of thee gangs maintain close ties with the base that is within the prison. The gangs thrive because their members are able to take advantage of the tensions that already exist among inmates due to ethnic and tribal affiliations. The State Department stated in a 2003 report relating to the genesis of organized prison gangs: as these gangs began to continuously grow in number and acquire leverage, more and more cases of rivalries began to emerge and this resulted in increase of violence in prisons. Nuestra Familia is one of the earliest prison gangs to be formed in Soledad Prison. It was formed in order to protect young inmates held in North California prisons from the Mexican Mafia. The Mexican Mafia, also known as La EME, had been formed as early as w1950s in order to enable prisoners to connect with the outside world and to continue organizing crimes. In November, 2005, Pelican Bay State Prison, considered one of the toughest penitentiaries in California, froze the accounts of some 16 inmates believed to have been laundering money through sale of drugs in the streets, criminal activities and prostitution. Black Guerilla Family is another prison gang, which gang experts say, is largely responsible for racial frictions within California prisons. The gang was founded in 1996 in San Quentin prison. The 1990s saw the memberships of Black Guerilla Family drop dramatically. It is only six years ago that saw recruitment drives for this prison gang increase dramatically. The gang even started hiring from street gangs with a predominantly black population, including The Crips and 415 Kumi Nation. How do gangs maintain control in California prisons? All gangs thrive through connections that they maintain with street gangs. All prison gangs are affiliated to certain street gangs whose members cooperate in matters of mutual interest such as crimes, sale of drugs in the streets and prostitution. These links have become so cohesive that they have attracted the interest of federal prosecutors. Modern communications technology has made it easy for inmates to communicate with the outside world. It takes a simple phone call for the leader of a prison gang to coordinate drug business in the street through the use of connections with gang members who are out of prison. In most cases, these members happen to be former inmates at the said prison from where the activities are being coordinated. In most cases, mobile phones find their way into prisons as contraband. This makes it possible for gang leaders to issue commands even when they are in segregation. Geoffrey et al, 1993, looks at the organizations of California prison gangs within the context of a culture that has developed in prisons over decades that go as far back as the 1950s. Within this context, prison gangs are seen to rely on external subcultures as well as a prison culture that is not easy to find in any other place on earth. Every gang maintains a unique sense of identity by designing symbols and tattoos. Prison population demographics are never constant; they keep changing as new inmates come in and old ones go. This scenario presents even experienced inmates with a difficult situation where they have to keep adapting to a new environment all the time. With prison gangs, the problem of maintaining cohesion is solved. Without solidarity, gangs cannot succeed in making contraband find its way into the prisons. Where cooperation between members of different gangs takes place, it is because there are mutual benefits to be derived. In most cases, this happens when there is need to coordinate efforts aimed at covering up the illegal activities that go on in prison cells. Members of each gang have a particular coded language that they use for communication. They also replace letters with number codes in order to ensure that only a member of their gang can decode the information that is transferred. The codes are changed periodically in order to ensure that they are not cracked by law enforcement agencies. Buy custom Organized Gangs essay

What Does it Cost to Attend Pennsylvania State University-Main Campus?

Pennsylvania State University is a popular choice for Pennsylvania students, as it offers students the flexibility to transfer to the main campus at University Park after starting college at one of the regional campuses. But because of the difference in tuition and fees and the local cost of living, you’ll want to be prepared to know what it would cost to send your student to Penn State’s main campus over one of the regional campuses. We’re going to look at what factors contribute to the cost of attendance at Penn State-University Park, and how you can keep the costs down for your family. You may be surprised to learn that college costs vary from campus to campus of the same institution, but they also vary from student to student at the exact same campus. Although we’re going to go over what the full price of a year of education at Penn State is, you should know that the actual cost of a Penn State education will likely be different for your family. Instead, you’ll want to consider what the net cost for your family will be. Although averages are a good place to start and we will include them, it’s better to consider the specific factors that will reduce your net cost. Very few families pay full price, and this is due to financial aid from: A combination of financial aid from these sources will help you reduce your net cost, and we’ll go over what you can roughly expect from each source below. Although we call it the list price, schools refer to this as the estimated cost of attendance. If you’re wondering why it’s an estimate and not an exact number, it’s because schools tend to average the cost from their current students. Each student has different expenses, from housing to transportation to groceries. Generally, the cost of attendance includes things like tuition and fees, room and board, and other costs of living like transportation, or even laundry expenses. Because Penn State is a public institution, there is a difference in the tuition and fees for in-state students versus out-of-state students. In the 2016-2017 school year, the total price for in-state students was $35,758, while the total price for out-of-state students was $50,240. Most families don’t end up paying list price because they qualify for some kind of financial aid, but there are some families who would likely pay list price at any institution. Wealthy families with household incomes over $175,000 usually end up paying the list price, especially if their student didn’t receive any merit scholarships. We hope that you’re feeling relieved to know that you’re not likely paying the list price, but you may still be wondering what you can expect to pay if your student attends Penn State. For students who qualify for financial aid, the average price for in-state students was $34,167, and the average price for out-of-state students was $48,649. While the averages above are a good starting point for determining your net cost, it’s often more helpful to look at the cost based on household income. Students who come from families with higher need will have a lower average net price, which helps make college more accessible. Estimating your chance of getting into a college is not easy in today’s competitive environment. Thankfully, with our state-of-the-art software and data, we can analyze your academic and extracurricular profile and estimate your chances. Our profile analysis tool can also help you identify the improvement you need to make to enter your dream school. Merit aid is usually offered to students on a need-blind basis, meaning that students of any income level can receive merit aid. Merit aid is generally offered to the top admitted students with exceptional accomplishments. At Penn State, about 15.6% of students who don’t qualify for need-based aid receive some form of merit aid (note that there are some students who receive need-based and merit aid). The average merit aid award for a student without need was $653, which reduces the net cost for in-state students to $35,105 and out-of-state students to $49,587. Although it may not be much, every bit helps, and there are some schools that don’t offer any merit aid. Due to its small average award size, Penn State ranked 807th in a pool of over 1000 schools we analyzed for merit aid generosity. Students have to cover the remaining cost of attendance somehow, and a common way that students do that is to take out loans. At Penn State, about 56% of students have a loan to help cover their annual expenses. The average size of the federal loan per student was $7,838 total across all four years. When choosing a school, you should encourage your student to look at the typical student outcomes as a factor in their decision. Although their individual effort and resourcefulness are more likely to secure their post-college success, it’s still good to know if a school provides a conducive environment to students. At Penn State, around 83% of their students graduate within six years. Ten years out of school, the average main campus grad is making $55,300. Penn State’s University Park campus is located in the State College municipality, which offers a small-town environment with an emphasis on college activities. The cost of living index for State College is 113, which means that it’s about 13% higher than the national average. Overall, it’s pretty affordable to live near University Park. All freshman students are required to live on-campus, but students are allowed to live off-campus starting their sophomore year. Here are the average apartment rents in State College: Although some of the housing options may be cheaper per month, students who live on-campus are required to purchase a meal plan. Many students find that the freedom that off-campus housing provides is worth it, especially because they can easily cook their own meals. Many students choose to work part-time jobs to help cover some of their living expenses. According to the Economic Policy Institute , the minimum wage in Pennsylvania is the same as the federal minimum wage at $7.25, and the average hourly wage is $22.55. Aside from traditional saving methods, one of the best ways that your student can help reduce the net cost to your family is to apply for as many scholarships as they can. Scholarships are a form of gift aid that doesn’t have to be paid back, and they are often merit-based. Here are just a few ways you and your student can start looking for scholarships: If your student will be considered out-of-state at the time of application, you may want to look into what the requirements are for your student to be reclassified as an in-state student after their freshman year. They should speak directly with a financial aid officer at their school to make sure that it doesn’t impact any of their other financial aid, but it could save your family thousands of dollars each year. Although we focused on how to make attending the main campus more affordable, you should also know that your family can save money if your student chooses to attend a regional campus. Many students transfer to the main campus after spending a year or two at the main campus; the regional campuses often have lower tuition rates, and if your family lives in the area, they can save even more by staying at home. With many ways to reduce your family’s net cost, from financial aid to part-time student work, we hope that you have found your student’s dream school to be financially feasible. If you’re looking for personalized guidance about college affordability, we’ve got you covered. As part of our College Applications Program, our Finances tool shows students the ROI of different schools and majors and help students identify scholarships to apply for. On average, our students earn about $83,000 in scholarships. Find out if working with our Financial Aid Tools is right for your family!

The Pluses and Minuses of Online Shopping Essay

The Pluses and Minuses of Online Shopping - Essay Example (Kenney, M. & Curry, J., 1999) But although this newfangled idea has gone this far, research on the subject of e-commerce and Internet marketing remains largely confined to the difficulties encountered by companies going online, including its advantages and disadvantages to them. An important aspect of the phenomenon yet to be fully explored is the sentiment and attitude of consumers toward online shopping. As attempts get underway to create the ultimate e-mall, the question may be asked: Are the consumers willing and ready to accept and patronize such a store in place of the shopping mall This research project will thus give a fresh look at Internet marketing from the perspectives of the consumers. It will seek to identify the advantages and disadvantages the consumers derive from online shopping, with the end in view of determining whether the marketing process helps promote consumer welfare and interests at all, the way the traditional stores do so. 9) In going to the regular stores, one has to contend with the traffic and pollution, spend for the thrift and search for a parking space that is often not there. Do these count as arguments for buying online instead Corporations, both established and new, are turning to the Internet to create new markets and reorganize existing markets. It began in 1990 when the US National Science Foundation approved the use of the Internet for non-academic uses. From only 5 million users in 1993, the figure jumped to 62 million in 1997 and 100 million in 1998. According to Internet provider Uumet Technologies, Internet traffic continues to double every 100 days that this has become "one of the fastest adoption rates any technology has ever experienced." (Yang, S., 2001) Worldwide, there could be 550 million users and a far greater number of .com sites. The latter websites are made up of companies engaged in online retail of all sorts of products and services. E-commerce is transforming the traditional retail industry. For this business sector, e-commerce is eliminating the costs of retail branches, thus lowering the initial entry costs and the fixed costs associated with retail stores. (Kenny, M. &

Commentary on Accounting Ratios Research Paper Example | Topics and Well Written Essays - 1000 words

Commentary on Accounting Ratios - Research Paper Example This means newer businesses will generally have lower ROCE as compared to older businesses due to the depreciated amount of its assets. Additionally, the number of years that both Dairy Crest and its close competitor have been in business is unclear. The revenue of Dairy Crest is up by almost 20% in 2008, resulting in Operating Profit Margin of 6%. This result is on par with its competitor. However, the improvement may have been attributed by the twofold increase in Dairy Crest's other income, of which the breakdown has not been disclosed. Given the equal result, it can be said that the competitor may be new in the market since its ROCE is way lower than that of Dairy Crest. In fact, the company's Gross Margin Profit is down from 4.6% in 2007 to only 3.9% in 2008, whereas its competitor's is 25.7%. Looking at Dairy Crest's consolidated income statement, its operating cost is up by almost 21% while its revenue increased only by about 20%. Also, there may be some differences in the pricing strategy adopted by the two companies, which explains the big gap in the margin. The company's Asset Turnover Ratio is slightly better at 1.8 times in 2008, while its competitor is at 1.9 times. The higher revenue in 2008 means Dairy Crest is utilising its assets more. Assuming its competitor is new in the business, this result shows Dairy Crest is not performing as well as its competitor. It appears that Dairy Crest has better control of its stocks with a drop in its Stock Turnover of 38.6 days in 2008 against 43.1 days in 2007. As food stocks are perishable items, it is advisable not to hold them for too long. Dairy Crest's move to bring its stock holding period down by 10% is wise. While its competitor holds stocks 46 days in 2008, it is unclear if this is due to uncertainty in suppliers, as the high levels seem unnecessary based on industry. The Current Ratio of Dairy Crest in 2008 is 1.4, an improvement from 1.0 in 2007. This shows the company's financial position is healthier. However, its competitor's Current Ratio of 0.8 in 2008 seems risky, as