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In what setting should a subdiscipline that emphasizes strategic planning, decision making, and individual and group counseling be most effective? a) enterprise b) industry c) government d) non-profit
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The price elasticity of demand is -3. Which of the following changes will result in an increase in total revenues? A. A decrease in quantity supplied. B. An increase in the price of the good. C. An increase in the average price of substitute goods. D. A decrease in the number of buyers in the market.
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Let x and y be functions of time t that are related by the equation y^2 = xy + e. At time t = 1, the value of y is e and dy/dt = 2. Find dx/dt when t = 1.
2/e + 2
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Calculate the area of the region bounded by the graphs of the equations {eq}y = \sqrt {6x + 9} - 3 \enspace and \enspace y = \frac {1}{3}x + 1
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Investors are willing to pay the risk premium because they: a. Require a higher rate of return for taking on the additional risk b. Place a high value on diversification c. Buy additional shares during down markets d. Do all of the above
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Which of the following companies is likely to have a higher beta, and thus a higher cost of capital? a. An auto manufacturer who runs an assembly line with union workers b. A 'high-tech' auto manufacturer with a fully automated line requiring only a handful of nonunion workers.
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Which of the following statements is true? A) The cash budget is prepared before the other operating budgets. B) The financing budget is usually prepared before the cash budget. C) The projected income statement is the last of the financial budgets to be prepared. D) The budgeted balance sheet is the last of the fi...
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One way to reduce the risk of investing in real estate is to: A. hire an appraisal firm to value the property B. use leveraged real estate investment trusts C. buy investment properties near a university D. buy more than one property in the same geographic area
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Let i = 15% per year, compounded anually. Determine the NPV of the following cash flows. Year Anual Cash Flow 0 -$10,000 1 $2000 2 $2000 3 $6000 4 $6000 a.) $899.64 b.) $718.03 c.) 627.03 d.) $2000
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What is the payback period (in years) for the project shown below? Year 0 1 2 3 4 Cash Flow -$45,000,000 $15,000,000 $33,000,000 $38,000,000 $50,000,000
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The growth rate for the economy of Bedrock Industries is 5 percent annually. The earnings per share just released for Bedrock Industries were $3.50. The benchmark PE ratio for the industry is 14. What is the projected share price for Bedrock Industries?
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Use the power series method to solve the following equation: {eq}y"-xy'-y=0 ; y(0)=1, y'(0)=-1 {/eq}
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The number of contributors required for the pooling of resources to take place in order for the financial benefit to that individual contributor to equal the financial burden can be increased by: a. Increasing the number of individuals on whom the risk is shared. b. Decreasing the number of individuals on whom the ri...
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An increase in the expected interest rate will have a what effect on stock prices? a) If the price of a stock becomes more volatile, it will have a small effect on the price of a call option. b) An increase in the expected interest rate will have a negative effect on the stock price. c) An increase in the expected i...
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A firm that has monopoly power in the supply of a factor makes choices in the same manner as any other monopoly firm by selling where _____ and selecting a price determined by the _____ curve. a. MR = P; demand b. MR = MC; supply c. MR = MC; demand d. MRP = MFC; supply
c
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A protein's function is determined by the properties of its amino acids. Which replacement of one amino acid with another is least likely to affect the protein's function? a. A charged amino acid is replaced by an amino acid with a side chain consisting of a group with three C-H bonds. b. A negatively charged amino a...
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A monopolist faces the following demand, P = 10 - 2Q. The marginal cost of production is constant at $2. What is the deadweight loss created by the monopoly? a. $6 b. $16 c. $10 d. $4 e. None of the above
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General Motors Corporation is a listed company on the New York Stock Exchange. Its common stock has a par value of $30. The following information is available from General Motors' 2013 annual report: Net Income: $14,361,000 Number of shares outstanding: 2,491,000 Number of authorized shares: 5,200,000 Preferred Sto...
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Your firm has net income of $493,000, net fixed assets of $1,763,000, current liabilities of $150,000, and current assets of $488,000. How many dollars worth of sales are generated from every $1 in total assets?
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T3Q30 Multiple Choice Which of the following are advantages of the payback method of project analysis? I. liquidity bias II. works well for research and development projects III. ease of use IV. arbitrary cutoff point A. I and II only B. I and III only C. II and III only D. II and IV only E. I, III, and IV o...
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What happens to a firm that reinvests its earnings at a rate equal to the firm's required return? a. Its stock price will remain constant. b. Its stock price will increase by the sustainable growth rate. c. Its stock price will decline unless dividend payout ratio is zero. d. Its stock price will decline unless plo...
a
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Determine the area that is inside the polar curve r = 2 - sin(θ) and outside the polar curve r = 2 + cos(θ)
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The management of Londo Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 4 years. The company uses a discount rate of 10% in its capital budgeting. The net present value of the investment, excluding th...
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The Economic Profit (also called the Financial Profit) takes into account: a. Explicit Costs and Implicit Costs. b. Explicit Costs only. c. Implicit Costs only. d. Economic Value Added.
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Over-the-wall syndrome refers to the difficulties that arise when _____ . A) different types of engineers work in totally different departments B) firms integrate financial, planning, and control systems into a single architecture C) translating customer requirements into functional design D) environmental issues b...
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The name economists give the process by which stockholders gather information by frequent monitoring of the firm's activities is: A) costly state verification. B) the free-rider problem. C) costly avoidance. D) debt intermediation.
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Find the absolute maximum and absolute minimum values for the function {eq}\; f(x) = \ln(1 + x^2) \; {/eq} for {eq}\; -1 \leq x \leq 3 {/eq}.
0
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Suppose there are two countries, Canada and the United States. Canada exports lumber and wine to the United States, which exports clothing and automobiles to Canada. If there were a significant increase in the price of lumber, this would: A. increase the terms of trade for both countries. B. decrease the terms of tra...
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Thomson Co. has entered into a 5-year lease on a machine. The first payment is $22,000 at the signing of the lease. The remaining 4 payments are to be made at the beginning of the second through fifth years of the lease. The first payment is to be adjusted to account for the time value of money. The rate implicit in th...
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Which of the following is a true statement? A. In the ideal economy, the price of a good would equal the marginal value of the last unit produced. B. Marginal benefit equals marginal cost in the ideal economy. C. The ideal economy produces the quantity of a good where marginal value equals marginal cost. D. All of ...
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Compute the future value in year 9 of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 using a 10 percent interest rate.
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Which of the following events would we expect to: (1) decrease consumption, (2) decrease investment, (3) increase consumption and decrease investment, (4) decrease consumption and increase investment, or (5) have no impact on consumption and investment? a. an increase in the price level b. a decrease in governme...
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A fair die is rolled 100 times. Let X be the sum of all of the faces of the rolls. E(x) = 350. Find P(X = 100).
1.5306e-78
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Hess Distributors is evaluating a project in which there is a 35% chance of it increasing operating cash flows by $1.20 million per year for three years, a 40% chance of it increasing operating cash flows by $1.75 million per year for three years, and a 25% chance of it decreasing operating cash flows by $1.50 million ...
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$$\sum_{k=0}^{n} (-1)^k {2n-k \choose k} 2^{2n-2k} = 2n + 1$$ How to prove this identity directly, using generating functions/algebra? Calculate $\Sigma_{n=0}^\infty\Sigma_{k=0}^{n}(-1)^k {2n-k \choose k} 2^{2n-2k} x^{2n}$ and consider the fact that $ \Sigma_{n=0}^\infty(2n+1)x^{2n}= \frac{d}{dx}\frac{x}{1-x^2} $ and $...
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Baker Corporation is a company that produces and sells a single product with the following characteristics: The company is currently selling 9,000 units per month. Fixed manufacturing overhead is applied on the basis of units produced and sold, using the company's unit-based overhead rates in its standard ...
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Compute the standard deviation and coefficient of variation for the data set of the lowest annual incomes for 10 countries: {eq}\$300, \$500, \$300, \$2,000, \$2,000, \$2,000, \$1,000, \$300, \$500, \$1,000 {/eq}. Are these numbers consistent with what you would expect based on your own experiences and knowledge? Expla...
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What impact will a reduction in credit card fees by banks have on interest rates? a) They will become lower. b) They will become higher. c) They will become less volatile. d) They will become more volatile. e) They will remain unchanged.
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Which of the following costs would be capitalized? A. An asset purchased for a specific R&D project if the asset's useful life extends beyond the current year. B. R&D purchased in a business combination that has not yet reached the point of technological feasibility. C. Start-up costs from introducing operations in ...
A
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Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 35%, rd = 7%, rps = 6.5%, and rs = 11%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC?
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When testing a hypothesis using the p-value approach, which of the following statements is correct? a. If the p-value is less than the alpha level, reject the alternative hypothesis. b. If the p-value is greater than the alpha level, reject the null hypothesis. c. If the p-value is greater than the alpha level, reje...
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When you buy a T-bill, you are investing in: a. Fed funds b. Commercial paper c. A short-term government security d. Annual percentage rate e. Federal reserve system
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You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $200,000?
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How do we know when to use the t-statistic versus the z-statistic? a. When the sample standard deviation is smaller than the population standard deviation, we use the t-statistic. b. When the population standard deviation is known, we use the z-statistic. c. When the population is normally distributed, we use the z-sta...
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Leaf it To Us Corporation is considering an expansion project. The necessary equipment could be purchased for $26,874,400 and shipping and installation costs are another $11,949. The project will also require an initial $276,654 investment in net working capital. What is the project's initial investment outlay? Round ...
27163003
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Excess demand for a good can be eliminated through a. Increasing the price of the good. b. Increasing the supply of the good. c. Decreasing the demand for the good. d. Increasing the price and decreasing the supply of the good simultaneously. e. Decreasing the price and increasing the supply of the good simultaneo...
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Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $46,500. The division sales for the year were $952,400 and the variable costs were $466,000. The fixed costs of the division were $537,000. If the backpack division is dropped, 40% of the fixed co...
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In order to maximize profits in perfect competition, firms should produce at the quantity where: a. Price is equal to marginal cost. b. Price is equal to marginal revenue. c. Marginal cost equals average total cost. d. Price equals average total cost.
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Cuban Corporation will pay a dividend of $2.43 per share next year. The company pledges to increase its dividend by 3% per year indefinitely. If you require a return of 10% on your investment, how much will you pay for the company's stock today?
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Determine the minimum sample size needed to be {eq}95\%{/eq} confident that the sample mean is within 2% of the population mean, given that the standard deviation of the number of young adults who become parents during their first marriage is known to be {eq}7{/eq} years.
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A bank lends a firm $500,000 for one year at 8 percent and requires compensating balances of 10 percent of the face value of the loan. The effective annual interest rate associated with this loan is _____?
8.89%
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Is a balance sheet called an accounting statement?
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A perfectly competitive firm is currently producing 20 units of output, selling each unit for $6. It's marginal cost is $5, and it knows that marginal cost is rising. If the marginal cost of the next unit of output is $7, then: a. it will not make more than $40 profit in total no matter how many more units it produces...
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Of the following items, which would not be included in the cost of goods manufactured? a. Cost of goods sold b. Direct materials cost c. Direct labor cost d. Manufacturing overhead cost
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Coin A has 2 heads and 1 tail. Coin B has 2 tails and 1 heads. Coin C has 1 heads and 1 tail. I randomly select a coin and flip it. I get heads twice. I flip it again and I get tails. What is the probability of getting heads if I flip it again?
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If you invest $100,000 today in a savings account that earns interest at 5% compounded annually for 2 years, the FV factor is 1.1025. The FV factor represents the future value of $1 invested now, and will earn the interest rate of 5% for two periods. The FV factor is used to calculate the future value of $100,000 inves...
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What is the yield to maturity (YTM) on a STRIPS maturing in five years if its ask price quote is 77.75?
5%
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The Hill Company has $500,000 in operating income and 5,000 shares of common stock outstanding. Its target capital structure is 40 percent debt and 60 percent equity. The company's tax rate is 35 percent, its cost of debt is 7 percent, and its cost of equity is 10 percent. If Hill can raise any additional required cap...
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What is the standard error of the estimate in a simple linear regression when using the method of least squares?
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Gopal Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,800 units) $187,200 Variable expenses 129,600 Contribution margin 57,600 Fixed expenses 45,360 Net operating income $12,240 If the company sells 5,100 units, its contribution mar...
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Zayt Industries has a net income of $1,980,000. They have a target capital structure of 58% common stock and 42% debt. Their cost of equity is 11% and the cost of debt is 8.5%. What is their WACC?
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Find the area of the region bounded by the curves y = x^2 and y = 2-x^2.
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Assume the the firm has $ 200,000 of debt @10% and the tax rate is zero. Find the firm value using APV method. Assume that the firm has no debt. The cashflows are received at the end of each year and are perpetual. Cost of equity capital for an unlevered firm, r0 , is 20%. The first cash-flow will be received one year...
462000
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The present value of a perpetuity of $100 per year discounted at 5% is _____. a) $2,500 b) $2,000 c) $1,050 d) $500
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Suppose you must pay $50 in interest in one year. You can protect yourself against a potential increase in interest rates by: a. taking a long position in a T-Bill forward contract. b. taking a long position in a zero-coupon bond. c. taking a long position in a discount bond. d. taking a short position in a T-Bill ...
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Which of the following is a source of internally generated cash? a. Long-term debt b. Dividends c. Interest d. None of the above
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The economy is in long-run equilibrium. When the aggregate demand curve shifts to the right, in the new long-run equilibrium (with fixed prices), __________. A. The price level is higher than before, real GDP is unchanged and unemployment is unchanged B. The price level is unchanged, real GDP is unchanged and unemplo...
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Suppose that a random sample of size n is to be selected from a population with mean and variance . Find the smallest n so that the probability is approximately 95% that will be within of μ.
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What is the expected time to roll all $1$ through $6$ on a six-sided die? Why is the solution $E(\text{all six}) = E(1) + E(2) + \ldots + E(6) = 6 + 6 + \ldots + 6 = 36$ incorrect?
14.7
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Management should concentrate its sales and production efforts on the product or products with: a. the highest contribution margin b. the highest sales c. the highest contribution margin per unit d. the lowest costs
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Safari Co. determined that they had $3,500,000 of net income during 2013 using the LIFO inventory method. Their beginning inventory was $550,000 and their ending inventory was $650,000. Their FIFO inventory amount for 2013 would have been $3,440,000. Based on the information given what was their cost of goods sold for ...
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What is the probability that if we flip a coin 100 times we will get exactly 50 heads and 50 tails? The coin is fair, has two sides, and has no memory. Assume the coin flips are independent and identically distributed.
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Calculate the flux of B through the rectangle with vertices at A=(2,0,0),B=(2,4,0),C=(0,4,0) and D=(0,0,0) when the magnetic field is given by a) {eq}B = 3i + 4j {/eq} b) {eq}B = 4j + 2k {/eq}
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Two firms both have EBIT equal to $50,000. Firm A has a levered capital structure with $50,000 of debt and $100,000 in equity. Firm B has an unlevered capital structure with $100,000 in equity. What is the value of Firm A under the MM Capital Structure Proposition with Corporate Taxes?
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A firm has net working capital of $510, net fixed assets of $2,256, sales of $6,200, and current liabilities of $820. How many dollars worth of sales are generated from every $1 in total assets?
$1.73
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If a person makes {eq}\$55,000 {/eq} a year and the company decides to give each employee a {eq}\$2,500 {/eq} raise, which of the following factors will remain unchanged? A. real wage B. nominal wage C. purchasing power D. Standard of living
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In a binomial experiment with n = 300 and p = .5, find the probability that \(\hat{p}\) is greater than 60%. Given the binomial experiment with n = 300 and p = .5, find the probability that \(\hat{p}\) is less than 55%. In a binomial experiment with n = 300 and p = .5, find the probability that \(\hat{p}\) is less th...
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Suppose the population standard deviation is known. Using data set X, a 95% confidence interval for \(\mu\) is calculated. The 95% confidence interval is (0.414 , 0.486). Using the exact same data set X, another 95% confidence interval for \(\mu\) is calculated. This time the population standard deviation is unknown so...
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Which of the following statements are true? A. The sample mean is the best point estimate of mu B. The sample mean is always a good estimator of the population mean. C. The sample mean is always equal to mu. D. The sample mean is never equal to mu. E. The sample mean is a biased estimator of mu.
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Suppose the population standard deviation is known. Using data set X, a 95% confidence interval for mu is calculated. The 95% confidence interval is (100, 200). Using the same data set X, another researcher calculates a 90% confidence interval for mu. Which of the following is a possible 90% confidence interval based o...
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How do you use limits to evaluate #int 8xdx# from [0,2]?
16
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Evaluate the line integral of {eq}\int_C F * dr {/eq} , where F(x, y) = (y - x) i + (y + x)j and C is the curve which is the union of two line segments, the first going from (0, 0) to (1, 1), the second going from (1, 1) to (1, 2).
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One ounce of gold is worth $1000. An ounce of gold can be exchanged for 100,000 units of good X. Assume that all prices are fixed in advance and that the price of gold does not change. A 10% increase in the money supply will A) lead to a 1% increase in the price level and a 100% increase in the price of gold. B) lead...
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Boenisch Motors Inc. recently reported ($8 million) of net income. Its EBIT was $15 million, and its tax rate was 36%. What was its interest expense? A. $2,880,000 B. $7,000,000 C. $19,000,000 D. $2,500,000 E. $3,000,000
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Suppose the dollar value of invoices in a company's accounts payable is normally distributed with a mean of $1,681.13 and a standard deviation of $258.83. If the company's accounts payable department selects a random sample of 60 invoices, what is the probability that the average invoice value in the sample will be les...
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Your bank account pays an APR (annual percentage rate) of 6 percent. You are looking to invest $5,000 in a risk-free savings account. Which of the following has the greatest value? a. Invest $5,000 now and leave it in the account for two years. Rate = 6 percent compounded annually. b. Invest $3,000 now and $2,000 in ...
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Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and...
D
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Compute the following limit using L'Hopital's Rule if appropriate: \(\displaystyle \lim_{x \to 0} \dfrac {e^{x^2} - 1} {e^x - 1}\)
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Why do labor-market conservatives support low tax rates? a. Low tax rates will result in a greater supply of labor. b. Low tax rates will reduce the equilibrium wage. c. Low tax rates will reduce the cost of unemployment insurance. d. Low tax rates will increase employment.
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When Acme, Inc. produces a certain amount of output at least cost, Acme, Inc. definitely A. uses more capital than labor. B. earns a normal profit. C. achieves economic efficiency. D. None of the above is true.
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Suppose a publicly-traded company is trying to maximize its perceived value to decision-makers external to the corporation. In that case, the company is most likely to understate which of the following on its balance sheet? a. Assets. b. Liabilities. c. Retained Earnings. d. Contributed Capital.
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For any real number x, let [x] denote the greatest integer less than or equal to x. Then the limit $$\lim _{x \rightarrow 1-}\left(\frac{1}{\sin (\pi x)}-\frac{1}{\cos (\pi[x])}\right)$$ exists and has a finite value A. If True enter 1, else enter 0
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Let {eq}\displaystyle A = y \mathbf a_x + z \mathbf a_y + x \mathbf a_z {/eq}. Find the flux of A through surface {eq}\displaystyle y = 1,\ 0 \lt x \lt 1,\ 0 \lt z \lt 2 {/eq}.
2
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Based on this data, what is the probability that a defective unit is from Operation 2? OPERATION # OF UNITS PROCESSED # OF DEFECTIVE UNITS 1 300 3 2 300 6 3 300 9 a. 60% b. 20% c. 30% d. 40%
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Amster Corporation had a beginning balance in the Accounts Receivable control account of $85,000 and an ending balance of $70,000. The revenues per the sales journal are $650,000. Determine the amount of cash receipts from customers.
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Zynga Corporation (a developer of software for electronic gaming and music for computers) recently had a severe cash flow problem. Which of the following financial ratios would have been least helpful in forecasting this outcome? a. Debt/equity ratio b. Days in receivables ratio c. Days in inventory ratio d. Gross ...
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Universal Tool Company would like to calculate its weighted average cost of capital. The company currently has 12 percent coupon bonds outstanding, with a face value of $50,000,000. The bonds carry a current yield to maturity of 10 percent. Universal Tool also has an issue of 2,000,000 shares of 5 percent preferred sto...
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Information related to Mingenback Company for 2016 is summarized below. Total credit sales$2,619,000 Accounts receivable at December 31931,000 Bad debts written off$34,200 Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Mingenback ...
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Otobai Motor Company just paid a dividend of $1.40. Analysts expect its dividend to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter. What is the expected dividend per share at the end of year 5? a) $2.35 b) $2.54 c) $2.91 d) $1.50
b
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The reserves component of the Federal Reserve System consists of a) government securities owned by the Federal Reserve Banks. b) plus cash held by banks at the Federal Reserve Banks. c) required reserves. d) excess reserves.
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