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How many households should you survey if you want to be 98% confident that your sample percentage has a margin of 3%, given a previous study suggests vehicles are owned in 86% of households?
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Which of the following situations best characterizes the agency costs associated with diverse ownership? a. Managers have incentives to substitute low-risk projects for high-risk project. b. Managers have incentives to reduce the dividend payout ratio in order to accelerate debt repayment. c. Managers that own share...
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Find the residue of the function: $\dfrac{1-\cos z}{z^2}$ at $z=0$.
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We have just paid a dividend of $1.04 per share. The expected dividend for next year is $1.10 per share. The expected dividend for two years from now is $1.26 per share. What is the required return on this stock? State the answer in percentages rounded off to two decimal points.
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Use the Limit definition of the derivative to calculate {eq}\displaystyle {f}'(3). {/eq} {eq}\displaystyle f(x) = 2 - x^{2}. {/eq}
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One advantage of dividend reinvestment plans is that they: a) enable investors to avoid paying taxes on the dividends they receive. b) tend to stabilize actual cash dividends. c) can reduce the tax burden to investors if they are in a high marginal tax bracket. d) enable investors to take advantage of underpricing ...
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The Wall Street Journal reported on the annual changes in the fur coat industry. It noted that one furrier from North Carolina reported his revenues are 25 per cent ahead of last year despite a decrease in mink prices from last year. According to the information provided, the demand for fur coats tends to be: A. Not a...
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How can I calculate the Mertens function M(x) for very large x (up to 10^16 or 10^18) when standard numerical approximations fail due to limited precision, given that the prime number theorem states that x - M(x) ~ x ln x?
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A delivery van costing $36,000 is expected to have a residual value of $2,000 at the end of its useful life of 5 years. Assuming that the van is depreciated on a straight-line basis, the amount of annual depreciation expense will be: a. $7,400 b. $7,200 c. $7,000 d. $6,800 e. None of these.
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On January 1, 2010, equipment was purchased that cost $50,000, has a useful life of 10 years, and has no residual value. At the beginning of 2014, it was decided that there were only four years remaining in the asset's useful life, instead of six. Assuming the company uses the straight-line method, depreciation expense...
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You've researched and found that most firms in the market currently experience costs such that TC = 30 + 65Q - 14{eq}Q^{2} {/eq} + 2.4{eq}Q^{3} {/eq}. Determine whether or not you should enter this market. Select one: a. Firms are profitable when P exceeds MC; this only occurs at very low levels of output for my f...
c
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Aggressive behavior can be shown by: (a) Rats who have been deprived of food, water, or their own kind. (b) Monkeys deprived of mothers. (c) Primates socially deprived. (d) All of these choices. (e) None of these choices.
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Houston Chicken is currently a fully equity-financed firm that has 500,000 shares outstanding. It is planning to borrow $5 million at 6 percent interest in order to buy back 100,000 shares at $50 a share. What is the break-even EBIT?
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The most profitable strategy for producing personal computers (PCs) is for: A. One firm to own the world's supply of microprocessors, chips, and memory, and to license this technology to other computer firms. B. One firm to own the world's supply of microprocessors, chips, and memory, and to produce the entire line o...
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Gel Co. manufactures specialty tools to customer orders. It has two divisions, Commercial and Residential. The Commercial Division currently has excess production capacity, while the Residential Division is operating at full capacity. The managers of both divisions have been asked to supply a quantity of a product to a...
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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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Current liabilities are debts that are expected to be satisfied within: a) one year or the normal operating cycle, whichever is shorter. b) one year or the normal operating cycle, whichever is longer. c) one year d) the normal operating cycle
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The _____ of a bond and its coupon rate are related such that increases in the _____ lead to decreases in the _____. A. price; coupon rate; face value B. maturity; price; coupon rate C. maturity; face value; price D. price; face value; coupon rate
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Which of the following is not one of the steps in establishing a master budget? a. Prepare financial budgets b. Prepare capital budgets c. Prepare operating budgets d. Prepare static budgets
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How do I show that if $S_n = \sum_{1}^{n} X_i$, where $X_i$ are i.i.d. with $E(X_i) = \mu$, then $\lim_{n \to \infty} \frac{S_n}{n} = \mu$ almost surely?
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Your company has 500 units in inventory that had been purchased for $12 each and that would currently cost $15 to replace. Your supplier has just announced the cost of these goods is rising to $16.5. a. Your company should make no adjustments to the inventory account. b. Your company should adjust the inventory accou...
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Which of the following is an example of a non-assurance service? a. Audits of financial statements. b. Examinations of internal control. c. Reviews of financial statements. d. Tax services.
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What sample size do you need to choose to ensure that the margin of error is less than {eq}2 \% {/eq} assuming a {eq}95 \% {/eq} level of confidence?
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Ace Landscaping experienced the following events in 20X1: 1. Issued 4,000 shares of common stock at $8 per share. 2. Recorded and paid wages expense of $10,000. 3. Acquired land by issuing common stock of a market value of $60,000. 4. Declared cash dividends of $10,000. 5. Collected cash from customers amounting t...
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I've been asked to compute $$\lim_{x\rightarrow 0}\frac{(x^2+x)^\frac{1}{3}-(x^2-x)^\frac{1}{3}}{x}$$ Is it possible to apply the "Hopital rule" here?
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Find the current yield for a stock: {eq}\displaystyle Market Price = $46.15 Expected Annual Dividend = $1.25 P/E Ratio = 16.28
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A survey of the entering class of 2016 found that most students were still living at home. A sample of 50 students was asked if they were an only child. Of the 50 students, 8 were only children. The sample population proportion of only children was reported to be 0.16. The standard error for the sample proportion was 0...
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Find the probability that the sample mean weight of 100 bags of chips exceeded 13.55 ounces, given that the amount of corn chips dispensed into a 13-ounce bag by the dispensing machine has a normal distribution with a mean of 13.5 ounces and a standard deviation of 0.1 ounce.
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If a project has a net present value equal to zero, then: I. the present value of the cash inflows exceeds the initial cost of the project. II. the project produces a rate of return that just equals the rate required to accept the project. III. the project is expected to produce only the minimally required cash infl...
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The difference between the _ and the _ from the sale of a product is called producer surplus. a. Lowest price a firm would have been willing to accept; price it actually receives b. Cost to produce a product; price a firm actually receives c. Cost to produce a product; profit received d. Highest price a firm would ...
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The price elasticity of demand is -2.25. A 20% increase in the price of the good will result in which of the following changes in the quantity demanded? A. A 45% decrease B. A 45% increase C. A 9% decrease D. A 9% increase E. Not enough information
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Which statement is correct? a. {eq}n(E) {/eq} = {eq}n(S) {/eq} b. The union of two events {eq}E1 {/eq} and {eq}E2 {/eq} can be represented as {eq}E1 \cup E2 {/eq} c. P(A) = 1/P(A) d. None of the other answers is correct.
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An insurance company's losses follow an exponential distribution with mean 100,000. What is the probability that losses are less than 100,000 given that they exceed 95,000?
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Machine A sells for $200,000 and has annual operating costs of $64,000. Machine B sells for $105,000 and has annual operating costs of $37,000. If both machines produce equal revenue, which one should be purchased? Why? Assume a 10-year life. a. Machine A because it requires a higher investment than Machine B. b. Mac...
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Two equal positive point charges, each of charge {eq}q{/eq}, are separated by distance {eq}L{/eq}. There are no other charges anywhere. The potential at the midpoint of the line joining the charges is defined to be zero. The electrostatic potential at an infinite distance from the two charges is therefore:
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A firm wishes to maintain a 10% profit margin on sales (also called return on sales or ROS). What is the firm's new return on equity (ROE) if it maintains its present capital structure but reduces its total assets to sales ratio from 50% to 40%? (Assume an after-tax cost of debt of 6%.) a. 11.75% b. 12.57% c. 15.50%...
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What is the problem if $\beta_1 = 1$ in the time-series regression model $Y_t = \beta_0 + \beta_1 Y_{t-1} + u_t, t = 1. . . T$? a. The variable $Y_t$ has a unit root. b. The variable $Y_t$ is not stationary. c. All of the above.
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How do I prove by definition that $$\lim _{x\to 1} \left ( x^3+3x^2-2x+1 \right ) = 3$$?
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A firm in a competitive market has the following cost structure: Quantity / Total Cost / Marginal Cost 0 / $3 / $0 1 / $9 / $6 2 / $14 / $5 3 / $18 / $4 4 / $23 / $5 5 / $29 / $6 6 / $36 / $7 7 / $44 / $8 8 / $53 / $9 9 / $63 / $10 10 / $74 / $11 Assume that the market price is $9 and that the firm maximiz...
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As the income tax expense (or benefit) line item appears on a company's income statement? a) tax expense or benefit for a given period b) tax expense and preferred dividends c) tax expense and interest d) tax expense, preferred dividends, and interest
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Wilson Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $53,000. The equipment will have an initial cost of $631,000 and have an 8-year life. The salvage value of the equipment is estimated to be $63,000. If t...
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If a bank receives a deposit of $25,000 and the legal reserve requirement is 10%, then the money supply: A. decreases by $2,500 B. increases by $100,000 C. increases by $25,000 D. remains unchanged
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On January 1, 2010, Fairbanks Inc. issues $200,000 of face value 4%, 10-year bonds at par. On December 31, 2010, the fair value of the bonds is $185,000. Based on this information alone, A. at December 31, 2010, goodwill of $15,000 will be recorded. B. at December 31, 2010, a loss of $15,000 will be recorded. C. at ...
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Luce is a new partner in the Jackson, O'Malley, and Smith partnership. Smith is selling one-third of his interest to Luce for $42,000. Smith has a $21,000 balance in his capital account. The income and loss sharing ratio in the new partnership is 30% for Jackson, 40% for O'Malley, and 30% for Smith and Luce. How much ...
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In a market, the demand for a good is such that marginal benefit of the nth unit is $20 - n dollars. The market has only two consumers, and they are willing to pay up to the amounts shown in the following table for the various units of the good: Units Consumer A Consumer B 1 $15 $18 2 $13 $14 3 $11 $12 4 $9 $10...
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How large a sample must be drawn to be able to assert with 99% confidence that the sample mean is within $1,000 of the true mean, given the distribution of annual salaries in a large city is positively skewed, the population standard deviation is $35,000, and the population mean is $34,000? (Hint: use t.) Round up to t...
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What is the present value of $14,050 to be received 4 years from today if the discount rate is 4 75 percent? a. $11.831.58 b. $11.669.71 c. $11, 553.02 d. $12, 224.02 e. $11, 564.75
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When a service contract expires and an unearned revenue account is adjusted to their correct balance, the entry will: A. debit Service Revenue and credit Unearned Revenue. B. debit Service Revenue and credit Accounts Payable. C. debit Unearned Revenue and credit Service Revenue. D. debit Unearned Revenue and credit...
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What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case? A) It is helpful in predicting the future potential of the organization. B) It contributes to determining the risk factors when computing the Z value. C) It shows the true performance of the corporat...
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The marginal product of labor measures the: a. total change in output that results from a one-unit change in labor, holding other inputs constant. b. change in output when labor increases by one unit and capital decreases by one unit. c. change in the total product of labor when more labor is employed. d. change in...
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You collect data on 20 firms in order to estimate the following equation Net Income = \beta _0 + \beta _1 Return + \beta _2 Size + u You then obtain the following regression results. Variable Coefficient Standard error Return 0.047 0.021 Size 0.0016 0.00052 Constant -0.010 0.0116 All of the coefficients are st...
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The direct materials price variance is computed as a. the difference between the standard price and the actual price, multiplied by the standard quantity. b. the difference between the standard price and the actual price, multiplied by the actual quantity. c. the difference between the actual cost and the standard c...
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The following information is for Winnie Company: Product A: Revenue$4 Variable cost$1 Product B: Revenue$6 Variable cost$2 The fixed cost is $40,000 What is the operating income assuming actual sales are 300,000 units, and the sales mix is one unit of product A and two units in product B?
$1,060,000
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Everything else held constant, an increase in the number of bonds issued by a firm: A. will increase the bond price. B. will have no effect on the bond price. C. will decrease the bond price. D. will have an indirect effect on the bond price. E. will have an indeterminate effect on the bond price.
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In the household production model, the income effect resulting from a decrease in the wage will cause the quantity of labor supplied in the paid labor market to: A. increase. B. decrease. C. remain the same. D. change in an unpredictable manner.
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The total factor productivity is defined as a. the sum of capital and labor. b. capital plus labor times output. c. output divided by capital plus labor. d. output minus capital minus labor. e. output divided by capital and labor.
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The comparative financial statements of Marshall Inc. are given in the following tables. The market price of Marshall's common stock was $82.80 on December 31, 20Y2. Determine the Price-earnings ratio for 20Y2. Marshall Inc.'s Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1....
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Which of the following is not a financial performance measure? a. Budget variance analysis. b. Residual income. c. Economic value added. d. Return on investment.
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Union Pacific is considering issuing commercial paper and would like to know the yield it should offer. The corporation believes that a 0.2 percent default risk premium, a 0.1 percent liquidity premium, and a 0.3 percent tax adjustment are necessary to sell its commercial paper to investors. Furthermore, annualized T-b...
6.8%
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A method of evaluating sustainability performance that starts by identifying the firm's strategy and then considers sustainability from a business perspective and a stakeholder perspective is called: a) strategy-based approach. b) performance-based approach. c) input-based approach. d) output-based approach.
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Suppose you observe the following situation: Security Beta Expected return Pete Corp. 1.25 .16 Repete Co. .75 .08 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market?
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Suppose that the economy is depicted by the following relationship. Expenditures = C + I + G + X C = $100 + 0.80(Y - T) G = $700 T = $700 I = $400 X = $250 The economy is in equilibrium at a level of real GDP or income of _____.
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Let $A \in \mathbb R^{n \times n}$ be a symmetric matrix and let $\lambda_1(A) \le \dots \le \lambda_n(A)$ be its eigenvalues, where $n \ge 1$. Define $$f(A) := \sum_{i=1}^n \lambda_i(A)^2 - \left( \sum_{i=1}^n \lambda_i(A) \right)^2/n.$$ Is it true that $f(A) = 0$ for all $A$? I can prove that $f(A) = 0$ if $A$ is dia...
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A country has an absolute advantage in the production of all goods, but a comparative advantage in only one of them. What should that country do? A) Not trade because it is not more productive than other countries in all goods. B) Specialize in the production of the good for which it has a comparative advantage and t...
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Find the volume of the region in the first octant bounded by the coordinate planes and the planes x+z = 5, y+6z=30.
250
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Let $f$ be such that $\lim\limits_{x \to 0}\frac{f(x)-f(0)}{x} = 2$ and let $g(x) = f(3x)$ for all $x$. Now, $\lim\limits_{x \to 0} \frac{g(x)-g(0)}{x} = ?$ and why can't I use L'Hopital here? I see that $\lim\limits_{x \to 0} \frac{g(x)-g(0)}{x} = \lim\limits_{x \to 0} \frac{f(3x)-f(0)}{x}$ and the expression tends to...
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Which of the following situations best characterizes the agency costs associated with diverse ownership? a. Managers have incentives to substitute low-risk projects for high-risk project. b. Managers have incentives to reduce the dividend payout ratio in order to accelerate debt repayment. c. Managers that own share...
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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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I'm struggling to find the maximum value of $x$ in the equation $\int_{-π}^0 e^{\cos(t)} \cos(\sin(t)-x)dt = 0$. My attempt involved substituting $u = -t$ and recognizing $e^{\cos t}\cos(\sin t - x)$ as the real part of $e^{\cos t + i(\sin t - x)} = e^{e^{it} - x}$. This led me to $\int_{π}^0 e^{e^{-iu}-x}du = 0$, whic...
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What is the probability that the mean annual family out-of-pocket expenses for a random sample of 20 families are between $3,800 and $4,200, given that the annual out-of-pocket expenses for a family with insurance follow a normal distribution with a mean of $4,600 and a standard deviation of $900?
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Which of the following statements is/are true? If {eq}f '(x) > 0{/eq} on (a, b), then f(x) is increasing on {eq}[a, b].{/eq} If {eq}f(a) = f(b),{/eq} then there exists a number c in (a, b) such that {eq}f '(c) = 0.{/eq} If f(x) is differentiable at x = c, then f(x) is continuous at x = c. a. I only b. II only c. I ...
c
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Immunosuppressive effect of glucocorticoids is caused by: a) Reducing the concentration of lymphocytes (T and B cells) and inhibiting the function of tissue macrophages and other antigen-presenting cells. b) Suppression of cyclooxygenase II expression which results in reducing amount of an enzyme available to produce...
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How do you find the integral of (2t + 1) / (t^2 + t + 2)?
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We make annual output of 45,000 units by splitting the 90,000 units produced into two equal volumes. Each unit takes $5 of direct materials and $12 of direct labor. Fixed overhead is $540,000. Variable overhead is $1 per unit. Consider the following choices for producing 45,000 units: a. the company can produce its ow...
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Your firm, Beta Corp, is considering a project with the following cash flows, ROE's, and payout ratio. The firm's required rate of return is 10.5% and its tax rate is 40%. Calculate the MIRR for the project. Year 0: -$52,000 Year 1: $27,000 Year 2: $27,000 Year 3: $27,000 Year 4: $27,000 Year 5: $27,000 ROE: 9.8...
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What is the consumer surplus if the supply function is 4p = q + 5 and the demand function is p=45-q? a) 50 b) 250 c) 500 d) 1000
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You have $20,059.81 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $200,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.
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If firms are adding factors of production to their current levels of employment, then: (a) Marginal revenue product is greater than marginal resource cost (b) Marginal resource cost is greater than marginal revenue product (c) The marginal revenue product curve is falling (d) The marginal resource cost curve is fal...
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A cut in the statutory corporate tax rate would most likely affect a firm's demand for labor by: A. increasing the marginal revenue product of labor. B. increasing the marginal product of labor. C. increasing the wage rate. D. raising marginal costs. E. decreasing the marginal revenue product of labor.
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A company that produces car seats has determined that each child occupies a mean time of 35 minutes in a car seat before being ready for release. If 16 children are in a van that is 4 hours old, what is the probability that the 16 children will keep the van's broken down for more than 3 hours?
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A monopolistic competition differs from perfect competition because: a. in monopolistic competition, firms advertise. b. in perfect competition, the firms produce a standardized product, whereas in monopolistic competition, the firms produce a differentiated product. c. there are no barriers to entry in perfect comp...
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Compared to a strategic budget, the master budget is: A) more comprehensive and long term B) less comprehensive and long term C) more comprehensive and short term D) less comprehensive and short term
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A mix of two miscible solvents may be used as the solvent for recrystallization when: a.) One solvent cannot dissolve the sample when cold but can when hot b.) One solvent cannot dissolve the sample when hot but can when cold c.) One solvent cannot dissolve the sample when cold but slightly when hot d.) One solvent...
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Selma Co. had a beginning inventory of $75,000, an ending inventory of $90,000, and net income of $120,000 using the LIFO inventory method in 2015. If the FIFO method had been used, the beginning inventory would have been $85,000, the ending inventory would have been $105,000, and net income would have been: a. $125,0...
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Your firm has been in business for five years. This year, it had gross sales of $1,000,000 and cost of goods sold of $500,000. Your firm also paid $20,000 in interest on a bank loan. You estimate that your opportunity cost of capital for this firm is 10%, and that your firm's assets are worth $3,000,000. Your firm's ta...
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What are the selling prices for each of the three products if ABC costing information is used to set a selling price at 150% of total unit cost?
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The manager of the Really Cheap Beer brewery has calculated that daily demand for RCB's light beer, q cases of beer, and the price of a case, p are related by the equation p + 0.0006q = 12. He also knows that his daily marginal cost on a case of beer is C'(q) = 2 + 0.0013q dollars per case. What is the largest possibl...
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Which of the following inventory cost methods is based on the assumption that the oldest inventory items are sold first? a. Average cost b. LIFO c. FIFO d. Specific identification
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Entries for bank collections for payment on a loan _. A. are automatically recorded at the completion of the bank reconciliation B. must be recorded after the bank reconciliation is complete C. should be recorded on the first of the month D. should be recorded while reconciling the bank statement
D
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Kiddy's Inc. just paid a dividend of $2.75. The company plans to pay $3.00, $3.20, and $3.45 per share over the next three years, respectively. After that time, they plan to pay a constant $2.75 dividend per share forever. What is the dividend yield?
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What is the one-year interest rate in the United States, given the following information: The 1-year exchange rate is $1.2 per pound spot, the 1-year forward exchange rate is $1.29 per pound, and the 1-year interest rate in the United Kingdom is 4 percent.
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A firm uses the following rule to determine the composition of its optimal bundle: {eq}MRS_{xy} {/eq} = 4. This implies that the firm a. cannot afford to purchase any units of y. b. is willing to give up 4 units of x to get an additional unit of y. c. would like to purchase more x and less y. d. is indifferent bet...
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Assume a company has been maintaining a receivables factoring program for the past five years and has been experiencing the same level of sales, factoring, and bad debts over that period. Customers typically pay their receivables within 60 days. Which of the following is true with respect to the current period (all els...
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Two of the most commonly used risk adjustment methods are A. Payback and Internal Rate of Return. B. Net Present Value and Payback. C. Internal Rate of Return and Net Present Value. D. None of the above is correct.
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In starting the titration of {eq}KHP {/eq}, you leave a half-drop of the {eq}NaOH {/eq} hanging from the tip of the buret at the start of the titration. The rest of the experiment was done flawlessly. The calculated {eq}\ \% {/eq} of acetic acid in the vinegar will be {eq}\_\_\_\_\_\_\_\_. {/eq} a. Correct. b...
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Presented below is the information related to Jackson Corporation for 2011, 2012, and 2013. December 31, 2011 December 31, 2012 December 31, 2013 Inventory $210,000 $280,000 $340,000 Cost of goods sold $620,000 $760,000 $790,000 Net income $220,000 $290,000 $350,000 Using the perpetual inventory system, the...
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How do I find the expected number of tosses of a fair 6-sided die until I get 5 and then 6 on two consecutive rolls, given that the expected number of rolls between 5's is 6?
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Suppose the monopolist faced the following demand: P = 100 - 3Q. Which of the following statements is true? a. An increase in demand will result in an increase in profit. b. A decrease in demand will result in a decrease in profit. c. None of the above. d. The monopolist should decrease price to maximize profit.
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Johnson Corporation signed a purchase commitment on July 10, 2016, to purchase inventory for $204,000 on or before February 15, 2017. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2017, and the inventory was purchased for cash at the contract price. On the purchase date of Feb...
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If the interest rate increases by 1% for all maturities, which of the following bonds will have the greatest percentage decrease in price? A) A 10-year, zero-coupon bond. B) An 8-year, 5% coupon bond. C) A 10-year, 5% coupon bond. D) A 10-year, 10% coupon bond.
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