Exhibit 21 -Refer to Exhibit 21

question 28

Multiple Choice

Exhibit 21.2
Use the Information Below for the Following Problem(S)
Assume you are the Treasurer for the Johnson Pharmaceutical Company and in late July 2004, the company is considering the sale of $500 million in 20-year debentures that will most likely be rated the same as the firm's other debt issues. The firm would like to proceed at the current rate of 8.5%, but you know that it will probably take until November to bring the issue to market. Therefore, you suggest that the firm hedge the pending issue using Treasury bond futures contracts which each represent $100,000.
$$\begin{array} { l c c } & \text { Casel } & \text { Case2 } \\ \text { Current Value - July 2004 } & 8.5 \% & 8.5 \% \\\text { Bond Rate } & 87.75 & 87.75 \\\text { Dec. 2004 Treasury Bonds } & & \\\text { Estimated Values - Nov. 2004 } & 9.5 \% & 7.5 \% \\\text { Bond Rate } & 85.60 & 91.65 \\\text { Dec. 2004 Trea5ury Bonds } &\end{array}$$
-Refer to Exhibit 21.2.What is the dollar gain or loss assuming that future conditions described in Case 1 actually occur? (Ignore commissions and margin costs,and assume a naive hedge ratio.)

• A) $47,316,683.00 gain
• B) $36,566,683.00 loss
• C) $10,750,000.00 gain
• D) $10,750,000.00 loss
• E) None of the above

Apply hypothesis testing concepts to various fields and research questions.

Understand the concept and purpose of incentive pay and how it influences employee behavior.

Identify different types of incentive pay plans such as differential piece rate, standard hour plans, merit pay, and gainsharing.

Recognize the characteristics of well-designed pay plans and how they align with organizational goals.

---

Definitions:

Endocrine

Pertains to the system of glands that release hormones directly into the bloodstream to regulate body functions.

Chemical Secreted into Blood

Substances released by cells or glands into the bloodstream to act on distant target organs or tissues.

Specialized Cells

Cells that have developed distinct characteristics and functions, adapted to perform a specific role within an organism.

Endocrine

Relating to glands that secrete hormones directly into the bloodstream to regulate various bodily functions.