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The federal funds interest rate a. is the short-term interest rate the Fed pays on excess reserves. b. is the short-term interest rate the Fed charges on discount window loans. c. is the short-term interest rate at which one depository institution lends balances at the Federal Reserve to another depository instituti...
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Grazing of by fish is adjusted: a. by the fish b. by the ratio of available food to the fish density c. by the density of competitors d. by the population density of the grazed plants
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X Company uses the high-low method to predict maintenance costs each month, with maintenance hours as the activity measure. The following past monthly cost and activity information is available: Month Cost Hours May $8,039 2,050 June $10,034 3,000 July $13,184 4,500 August $10,349 3,150 If maintenance hours in Octobe...
$3,734
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On 1 January 2008, Elegant Fragrances Company issued $1 million worth of five-year bonds with annual interest payments of $55,000 paid each 31 December. The market interest rate is 6.0 percent. Using the effective interest rate method of amortizing, Elegant Fragrances is most likely to record? a. interest expense of ...
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Myclonex Inc. is an all-equity firm that has 500,000 shares of stock outstanding. The company is in the process of borrowing $5,000,000 at 5 percent interest to repurchase 125,000 shares of the outstanding stock. What is the value of this firm if you ignore taxes? A. $20,000,000 B. $25,000,000 C. $30,000,000 D. $32...
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On November 1 of the current year, Marshall Company sold $5,000 of merchandise to Goshen Company on account. Terms were 2/10, n/30. Goshen Company paid the invoice on November 8. On November 1, Marshall also received $5,000 cash from Regency Company on account but incorrectly recorded the transaction as a sale for $3,5...
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Assume that inflation reduces the real rate of return on investment by 1.0 percentage point. A firm has two investment opportunities, each costing $1,000 at the beginning of the year. The table below shows the approximate cash inflows for each alternative that would occur at the end of the year: Investment...
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Which of the following is not a federal interest rate-regulated monopoly: a. Commodity Trading and Spot Foreign Exchange Businesses, b. Savings and Loan and Thrift Institutions, c. Fed funds market, d. Time and Demand Deposit Interest Rate. {eq}\uparrow{/eq}
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Betty is contemplating purchasing shares in Daily Bugle Corp. and holding them for 2 years, at which time she will sell them. The market price of these shares is expected to be $36.50 in two years (after the second dividend.) The next two annual dividends are expected to be D1=$1.00 and D2=$1.20. The first dividend wil...
D
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Assume that the consumption function is {eq}\displaystyle C=0.75 + 0.25 Y_{D} {/eq} and there is a {eq}\displaystyle $50 {/eq} lump-sum tax cut. The government is not spending anything and there are no transfer payments. How much more will the final income be in this economy? a. {eq}\displaystyle $200 {/eq}. b. {...
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You recently hired individuals from China, Japan, and Korea to your office. What type of interpersonal conflict would be most likely? a) Personal differences b) Informational deficiency c) Role incompatibility d) Environmental stress e) There would be no conflict, as all the new hires are Asian
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How does the management accountant contribute to the goals of the organization? Check all that apply. a. Conducting variance analyses b. Providing information for management decisions c. Contributing to employee morale d. Preparing tax returns e. Developing budgets
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A binomial distribution has a known number of trials (n) and a known probability of success (p). The formula to compute the probability of exactly x successes in n trials is: a) {eq}P(X=x)=_nC_x \cdot p^x \cdot(1-p)^{n-x} {/eq} b) {eq}P(X=x)=(n)(x) \cdot p^x \cdot(1-p)^{n-x} {/eq} c) {eq}P(X=x)=_nC_x \cdot p^x {/...
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Assume a firm faces the following costs and revenues. What is the level of production to maximize profit? Q TR TC 1 $150 $100 2 $300 $175 3 $450 $260 4 $600 $350 5 $...
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The verbal part of the GRE test has a mean score of 500 and a standard deviation of 100. Assume the scores are normally distributed. What verbal GRE score corresponds to a percentile rank of 15%?
396
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Morgan Freeman is investing $16,168 at the end of each year in a fund that earns 5% interest. In how many years will the fund be at least $100,000?
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Why, in Gauss's proof of the law of quadratic reciprocity, does he take the product over $i = 1, 2, \dots, p-1$ instead of over $i = 1, 2, \dots, (p-1)/2$, given that $(-x/p) = (x/p)$ if $p$ is an odd prime? Is this due to the periodicity of the Legendre symbol, or is there another reason?
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Fly Away, Inc. has balance sheet equity of $7.2 million. At the same time, the income statement shows net income of $993,600. The company paid dividends of $569,028 and has 135,000 shares of stock outstanding. If the benchmark PE ratio is 17, what is the target stock price in one year?
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Homer purchased an annuity from AAA Insurance Company for $100,000 three years ago. The annuity will pay him $3,000 a year for the next 20 years as an income annuity. He can earn 6% on his investments. He sold the annuity this year for $115,000. He made the following (independent) purchases in 2009: - Stock in Company...
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Which of the following is not a risk of importing used cars? a) lower than fair market price b) hidden mechanical problems c) buyers purchasing from dealers, not owners d) not guaranteed by importers e) they are cheaper
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I found 8 spanning trees by contracting the edge in the middle of the triangle. Is my answer correct?
8
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Other things equal, if there is an increase in the economy's capital stock, which of the following occurs? a. The current stock of output rises and the quantity of labor employed rises. b. The current stock of output rises and the quantity of labor employed falls. c. The current stock of output falls and the quantit...
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At December 31, 2018, Quattrone Sales & Service has a {eq}\$100,000 {/eq}, 120-day note payable outstanding. The company has followed the policy of replacing the note rather than repaying it over the last three years. The company's treasurer says that this policy is expected to continue indefinitely, and the arrangeme...
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Countercyclical monetary policy in the AS/AD Model involves: A. contractionary monetary policy no matter what the level of unemployment. B. expansionary monetary policy no matter what the level of unemployment. C. contractionary monetary policy during periods of high unemployment and expansionary monetary policy dur...
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Each unit of Black Corporation's inventory has a ceiling of $7,570, a normal profit margin of $1,600, and a current replacement cost of $6,150. Determine the amount per unit that should be used as the market value to apply the lower of cost or market value method to determine Black Corporation's ending inventory.
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A firm's bonds have a maturity of 8 years with a face value of $1,000, a coupon rate of 12%, and semiannual payments. If these bonds are selling for $1,018.64, what is the yield to maturity (YTM) that the firm must pay? Express your answer in per cent to two decimals.
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When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method a. uses an allowance account. b. is used primarily by small companies with few receivables. c. uses a percentage of sales method to estimate uncollec...
b
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Calculate the triple integral {eq}\iiint_R (y^2+z^2) \, dV{/eq} , where R is the solid cylinder whose lateral surface is given by x=12y^2+12z^2 and whose axis is the x-axis, from x=0 to x=3.
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Professor Hardin wants to know if people consume greater quantities of alcohol during happy hour specials. It is most likely that she will use the _____ method to explore this topic. A) double-blind B) experimental C) naturalistic observation D) case study
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Company purchased the following merchandise: Purchases A 100 units for $800 B 200 units for $1,800 C 200 units for $2,000 Inventory at the end of the period was 200 units; cost of goods sold for the period was $2,500. What inventory method did the company use?
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A company produced a revenue of $4 million last year and has net profits of $0.5 million. This year, due to market growth, sales are expected to be $4.6 million and profits are expected to be $0.55 million. Which of the following best describes the company's expectations this year? a. increase in profit margin and an ...
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The best explanation for the negative correlation between demand and price is _____. A. the income effect and the substitution effect B. the law of supply C. the law of demand D. the demand-oriented pricing theory
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Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 77 billion, and the marginal propensity to consume on Troll Island is equal to 0.850.85. What is the change in Troll Island's real GDP after the increase in AE?
$513.59 billion
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Find the shortest distance from the origin to the graph of the function f(x)=3+2x+3x^2.
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Assume a closed economy described by the following equations: C = 300 + 0.6(Y-T) ; I = 500 - 40R; G = 200; T = 200; M = 2800; (M/P)d = 4Y - 100R; SRAS: P = 1; LRAS: Y=1000 Find the equilibrium values of Y, R and P using the IS-LM model.
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Which one of the following will cause a movement along the aggregate demand curve, not a shift of the aggregate demand curve? A) an increase in the money supply. B) an increase in consumer confidence. C) an increase in taxes. D) a decrease in the price level.
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Company is trying to decide between the following two projects: Year Project A Project B 0 -1,000 -1,000 1 1,500 0 2 0 1,500 If the companies WACC is 12% which of the following is the correct decision rule? a. Accept Project A and Reject Project B. b. A...
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Find the output level where ATC is minimum, given the total cost function {eq}TC = 100 + 2Q + 3Q^2.
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The aggregate demand curve is defined as a. the net national product. b. the sum of wages, rent, interest, and profits. c. the real GDP purchased at different possible price levels. d. the total dollar value of household expectations.
c
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The chairman of Yanzhou Coal Mining reported that the recession had decreased the demand for coal, with its sales failing by 11.9 percent, despite a 10.6 percent cut in price. Source: cbc.ca, February 5, 2014. The supply of coal at Yanzhou Coal Mining is: A. perfectly elastic. B. perfectly inelastic. C. elastic bu...
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The main argument behind the dividend irrelevance theory is that ___________. A. investors like stock more than bonds. B. investors are indifferent to dividends and capital gains. C. investors prefer capital gains to dividends. D. investing cash in the company is less efficient than reinvesting cash.
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Find {eq}z{/eq} such that 6% of the standard normal curve lies to the right of {eq}z{/eq}.
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In calculating $\sin(2 \pi e n!)$ to determine whether the limit is $0$, how do I show that the fractional part of $e n!$ becomes $0$ or $0.5$ around a certain point, given that it is known that there are exactly $m$ terms of the series for $e$ before the denominator of one of them exceeds $n!$?
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A country that exports manufactured goods and imports raw materials has a(n) _____ exchange rate for the currency of the trading partner. a. Appreciating b. Depreciating c. Either d. Neither
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Use the Divergence Theorem to evaluate {eq}\iint_{S} F \cdot N \, ds{/eq} and find the outward flux of {eq}F{/eq} through the surface of the solid bounded by the graphs of the equations: $$F(x,y,z) = x^{2}z \boldsymbol{i} - y \boldsymbol{j} + xyz \boldsymbol{k} $$ $$S: x = 0, \, x = a, \, y = 0, \, y = a, \, z = 0, ...
3/4a^5-a^3
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Urbana Co. buys 24% of Julie company and uses the cost method to account for the investment. Urbana has no other investments in common stock. What are the effects on Urbana's books at December 31, year 1, of the 250,000 of Julie's net income for year 1? a. debit to investment $24,000, credit to income from subsidiary ...
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The _____ strategy requires all nations to adopt an identical, rigid free trade regime, which will solve the problem of discrimination. A. customization B. globalization C. open economy D. country-of-origin
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The first step in the HR planning process is: A) Conducting a skills inventory. B) Determining product demand. C) Forecasting labor demand. D) Forecasting labor supply. E) None of the above
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Which of the following is a true statement? a. The LIFO inventory method usually results in a higher net income in periods of falling prices. b. The FIFO inventory method usually results in a higher net income in periods of falling prices. c. The LIFO inventory method usually results in a higher ending inventory amo...
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Evaluate the double integral: {eq}\iint_D e^{x^2} dA{/eq}, where D is the region in the first quadrant bounded by {eq}y = 0, y = 2x, x = 2{/eq}.
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Find the average height of the building. Round your answers to the nearest 3 decimal places, where the height is given by {eq}h(x,y) = 83 - 0.03x^2 + 0.024y^2{/eq} and the rectangular base extends from {eq}-50 \leq x \leq 50{/eq} feet and {eq}-100 \leq y \leq 100{/eq}.
138.000
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Keenan Company is considering an investment of $700,000 in a new project. The project will not generate any cash flows for the first three years. Starting in year four, the project will generate cash flows of $800,000 in year 4, $750,000 in year 5, $700,000 in year 6, and $650,000 in year 7. What is the IRR of this pro...
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An analyst has gathered the following information regarding a stock: Total return for the past year18.20% Risk-free rate3.20% Beta1.30 If the analyst's expectations about the stock's future returns prove correct, what will be the stock's risk premium?
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Given a smooth function $f:\mathbb R^2 \to \mathbb R^2$ s.t. $f(x) := (x_1^3, x_1x_2)$. Let $E \subset \mathbb R^2$ be such that $f(E) = \mathbb R^2$, which is possible because $f$ is a polynomial and hence is measurable. Let $p: \mathbb R \to \mathbb R^2$ be the helix defined by $p(t) := (t\cos t, t\sin t, t)$. How to...
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A stock has an expected return of 13.45 percent, its beta is 1.60, and the risk-free rate is 6.05 percent. What must the expected return on the market be?
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A company reports the following information regarding its inventory. CostRetail Beginning Inventory$130,000$200,000 Net purchases$760,000$1,350,000 Sales$1,125,000 The year-end inventory shows $85,000 worth of merchandise available at retail prices. The estimated cost of the ending inventory using the retail inventor...
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Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $51,700; Supervising, $34,500; and Other, $22,400. Processing costs are assigned to products using machine-hours (MHs) and...
B
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Use Green's Theorem to evaluate the integral of {eq}F \cdot dr{/eq} , where {eq}F(x, y) = <3y^2, 5x^2>{/eq}, and {eq}C{/eq} is the positively oriented, closed curve bounded by the lines y = 0 and y = 2, and the curves {eq}x = 0{/eq} and {eq}x = y^2{/eq}
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Use L'Hospital's Rule to evaluate the following: {eq}\lim_{t\rightarrow 0^+} \frac{6(\sqrt{t}-t)^2}{t^2(1-\sqrt[3]{t})}
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Assuming x is in radians, determine for what values of x the function f(x) = ln(4 + e^{3x}) is concave up.
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Use polar coordinates to evaluate {eq}\displaystyle \int_{D} \int f(x, y)\ dA {/eq} if {eq}f(x, y) = 5y {/eq} and {eq}D {/eq} is bounded by {eq}y = 0 {/eq} and {eq}y = 1 - x^2 {/eq}.
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Find the limit of (e^x - 1)/x as x approaches 0.
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Which of the following choices would be guaranteed to increase a firm's ROE if the ROA is currently 10% and the leverage ratio equals 1? A. Decrease the leverage ratio B. Increase the debt burden from its current level C. Decrease assets from the current level D. Decrease the debt burden from its current level
B
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I want to estimate $\left| \frac{2z+i}{z^2+1} \right| $ along the path that goes from $z = -R$ to $z = R$ along the real axis. I rewrote the equation to $\left| \frac{2z}{z^2} + \frac{i}{z^2+1} \right| $. I know that $z^2$ goes to infinity so I can say that $ \frac{i}{z^2+1} \to 0 $ as $ R \to \infty $ , and that $ \le...
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What is the present value of $4,000 a year for five years at a discount rate of 8%?
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The objective of _____ analysis is to determine the level of financial risk, while that of _____ analysis is to determine the level of business risk. A) liquidity; leverage B) leverage; liquidity C) solvency; operating D) cash flow; debt management
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Two equal partners invest $60,000 in a partnership. How would the profit be distributed if the partnership agreement contains the following provisions? 1. Interest of 10% on capital balances. 2. Salary allowances of $10,000 for Partner A and $8,000 for Partner B. 3. The remainder to be shared equally.
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Determine the dimension of the subspace of {eq}\mathbb{R^4} {/eq} whose elements are solutions of the equation {eq}x_1 + x_2 + x_3 + x_4 = 0 {/eq}.
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Variable costing fell out of favor in management circles because: A) It leads to devastating price wars. B) It leads to government intervention. C) It was replaced by the balanced scorecard. D) None of the above.
A
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Find the limit: {eq}\displaystyle \lim_{x\ \to\ -\infty} \log (x^4).
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The reason that markets with high barriers to entry tend to be monopolistic is because a. entry will occur that will drive down prices to the point that there is no economic profit to be made b. prices charged by competing firms will tend to be high and close to marginal cost c. market power is not an issue in marke...
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Assume you receive $3,130 a year in benefits from a public school and the annual inflation rate is 3%. How much in benefits would you receive in year 3? (Use the consumer price index (CPI) to adjust for inflation.) a. $3,396.26 b. $3,484.82 c. $3,579.36 d. $3,211.68 e. $3,194.76
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Leisure Lodge Inc. has 20,000 shares of common stock outstanding at a price of $89 a share. It also has 5,000 shares of preferred stock outstanding at a stated value of $30 a share. The preferred stock pays a quarterly dividend of $2.75 a share. The tax rate is 34 percent. The cost of equity is 13.5 percent. What is th...
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I have to calculate the area of the domain bounded by the curves $r=1$, $r=3\cos\theta$ and $r=3\sin\theta$, setting up iterated integrals in polar coordinates. The figure has 3 segments: the first one bounded by $r=1$, the second one by $r=3\cos\theta$, the third one by $r=3\sin\theta$. The equations of these three cu...
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Which of the following statements regarding proposed regulations is not correct? A. Proposed and temporary regulations are generally issued simultaneously.B. Proposed regulations do not provide any insight into the IRS's interpretation of the tax law.C. Proposed regulations expire after 3 years.D. Practitioners and ot...
B
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Which of the following is included as a subdiscipline by the Association for Psychological Science but not the American Psychological Association? a. rehabilitation b. behavioral genetics c. suicide d. measurement
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At the start of a new organization, the majority of the company's profits should be: A. used to create a sustainable business model. B. invested in building the reputation of the company. C. reinvested in the organization for growth. D. used for shareholder pay-outs.
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Country Homes has net income of $1,800,000, interest expense of $200,000, total debt of $12,000,000, and total assets of $24,000,000. (Note: Assume a tax rate of 35% and Round final answer to 2 decimal places.) Calculate the times interest earned ratio.
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Sirmans Co. uses a periodic inventory system. The purchases of a particular product during the year are shown below. The number of units sold during the year was 1,500. Each unit was sold for $20. Based on FIFO method of inventory valuation, compute the gross profit for the current year. January 1 Beginning invento...
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Consider a project with free cash flows in one year of $130,000 or $180,000, with each outcome being equally likely. The initial investment required for the project is $100,000, and the project's cost of capital is 20%. The risk-free interest rate is 10%. What is the NPV of this project?
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Do these data indicate that the dividend yield of all Australian bank stocks is higher than {eq}5\%{/eq}? Use {eq}\alpha = 0.1{/eq}. Are the data statistically significant at the given level of significance? Based on your answer, will you reject or fail to reject the null hypothesis? a) The {eq}P{/eq}-value is less tha...
e
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Information about a possible plant shutdown and early retirement of employees at Wilkinson Company was gathered. The costs expected if the shutdown occurs are as follows: Cost for a two-year plant shutdown: Fixed manufacturing overhead$254,000 Cost to lay off employees$125,000 Cost to train new employees$90,000 Loss...
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A 90% confidence interval for u is (7.32, 12.08). Which of the following is true about this interval? A) It indicates that we are confident that the sample average (x̄) lies between 7.32 and 12.08. B) It indicates that we are confident that the true population mean (μ) lies between 7.32 and 12.08. C) It indicates th...
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Calculate the area of the region bounded by the polar curve r = 10 sin (θ).
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The incremental internal rate of return can be used to rank mutually exclusive projects. It is often considered superior to the incremental payback period and incremental accounting rate of return because: a. the incremental internal rate of return uses net cash flows rather than gross cash flows. b. the incremental ...
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For the cost function {eq}C (x) = x^3 - 3x^2 + 4x{/eq}, find the average cost over [0, 3].
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Evaluate the double integral {eq}\displaystyle \iint_{D} 8xy \ dA{/eq}, where {eq}D{/eq} is the triangular region with vertices {eq}(0,0) , \ (1,2){/eq} and {eq}(0,3){/eq}.
7
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Given the regression equation: y = 5.186x + 37.453, how much is y expected to change when x decreases by 2 units?
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Assume that we are interested in estimating the average tread wear (measured in mm) of a new type of tire. We randomly select 100 tires of this new type. Each tire is conditioned under accelerated conditions and then run until the tread wear is measured. Suppose that the results show an average tread wear of 65 mm and ...
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What is wrong with using the method $e(e^{-1} \pmod{\phi(n)}) \pmod{\phi(n)}$ to find the modular multiplicative inverse of $e$, where $\phi(n) = (p-1)(q-1)$ and $n = pq$, instead of the extended Euclidean algorithm?
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Company X has a current market value of $20 million. Company Y has a current market value of $4 million. Company Y is acquired by Company X in an all stock deal. Assuming Company X continues to exist after the acquisition, how much would Company X have to pay for Company Y in order to offer its shareholders a 10% premi...
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If a company issues debt in London, but plans to use the funds in the United States, the company is participating in the: A. Eurocurrency market B. Eurobond market C. Euroequity market D. International capital market
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You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 2.05, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio?
0.95
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Which of the following is responsible for partial specialization existing? a. Increasing costs can force the cost basis of two trading nations to converge b. Labor union contracts can make a firm responsible for employee benefits long after a plant is shut down c. Some products cannot be traded internationally d. A...
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a sample of 400 people is selected from a large population. Each person's blood type is classified. The distribution of the sample is: A 100, B 80, AB 40, O 180. Estimate the probability that a person has a blood type of AB.
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Suppose the income tax rate is 25 percent. Consider a firm whose production function has decreasing returns to scale, and suppose that the rental rate on capital is r and the wage rate is w. The firm is currently paying $80 in labor costs and $50 in interest payments. If the government decreases the income tax rate to...
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Rising star company has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 15%, and the cost of debt is 8%. The relevant tax rate is 35%. What is the company's WACC?
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The population of a particular country was 23 million in 1990 and 25 million in 1993. Assuming that the population grows exponentially, in what year will the population reach 35 million?
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There are two independent investment projects for the Galactic Empire. Project A (build TIE Fighters) costs the Empire $300,000 to set up, and it will provide annual cash inflows of $70,000 for 7 years. Project B (build Death Star) costs the Empire $1,000,000 to set up, and it will provide annual cash inflows of $255,0...
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A minimum wage increases the unemployment rate for which of the following types of unemployment? A. cyclical B. frictional C. structural D. all of the above
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