Financial economics

Please see the attached file.

Book Value and Fair Market Value Discussion

We discussed cash flow in DQ1. Another measure of value is the company's assets less liabilities or shareholder's equity. We call this the book value of the firm. However the actual fair market value of the firm's assets and liabilities can be far different than the book value which has important implications for valuing a firm. Go to the Internet and compute UPS and FDX book value or also known as shareholder's equity (Total Assets less Total Liabilities). Then compute the market value of the firm by multiplying the stock price by the shares outstanding. · Why is there a difference between the book value (Assets minus Liabilities from the balance sheet) and market value (stock price t... click for more

Use the Internet or other resources to locate an article regarding ethics considerations in financial management. Prepare a 350-700-word analysis of your article. Discuss how ethics impacts the financial decision-making process and explain the ethics considerations involved in the financial decision making outlined in your article. Identify the financial management objectives of the organization in your article and explain how these objectives may have influenced financial decisions that were described in the article. Be prepared to discuss your analysis in class. Make sure you use APA guidelines and format.

Use the Internet or other resources to locate an article regarding ethics considerations in financial management. Prepare a 350-700-word analysis of your article. Discuss how ethics impacts the financial decision-making process and explain the ethics considerations involved in the financial decision making outlined in your article. Identify the financial management objectives of the organization in your article and explain how these objectives may have influenced financial decisions that were described in the article. Be prepared to discuss your analysis in class. Make sure you use APA guidelines and format.

Life Insurance Needs

Sue and Tom Wright are assistant professors at the local university. They each take home about $40,000 per year after taxes. Sue is 37 years of age, and Tom is 35. Their two children, Mike and Karen, are 13 and 11. Were either one to die, they estimate that the remaining family members would need about 75% of the present combined take-home pay to retain their current standard of living while the children are still dependent. This does not include an extra $50/month in child-care expenses that would be required in a single-parent household. They estimate that survivors' benefits would total about $1,000 per month in child support. Both Tom and Sue are knowledgeable investors. In the p... click for more

GDP

Define GDP and calculate GDP in a simple example, avoiding double counting.