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Winter Time Adventures is going to pay an annual dividend of $2.50 a share on its common stock next week. This year, the company paid a dividend of $2.40 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth 11 years from now if the applicable disco...
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An interest rate is 10.00% per annum expressed with continuous compounding. What is the equivalent rate with semiannual compounding?
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Use a Taylor expansion to evaluate the function $f(z) = e^{i z}$ at $z = \delta$ up to the second non-zero term. Consider $\delta$ a small positive real number.
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A consumer maximizes utility subject to a budget constraint by purchasing the combination of goods that: a. most perfectly aligns her indifference curves with her budget line. b. places her at the highest possible indifference curve that her budget line can support. c. places her at the highest possible indifference...
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The organization which regulates the relationship between bondholders and stockholders through laws and court decisions is: a. State corporate law b. Securities and Exchange Commission (SEC) c. National Association of Insurance Commissioners (NAIC) d. Uniform Commercial Code (UCC)
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You have found the following stock information for Crypt, Inc.: Price per Share of Stock: $31.27 Required Return: 13.1% Growth Rate: 5.2% Dividend Yield: ? If you know that the company's dividend yield is 4.1%, what is the growth rate of the company?
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RiverRocks, whose WACC is 11.7%, is considering an acquisition of Raft Adventures (whose WACC is 15.1%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why?
15.1%
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The market price of a security is $50. Its expected rate of return is 14%. The risk-free rate is 5%. The market risk premium is 9%. What is the beta of this security?
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Consider a competitive constant-cost industry with many identical firms (i.e. firms with identical U-shaped cost curves). The demand curve in this market is downward sloping, and the market is currently in long-run equilibrium. Assume that there is an increase in demand, ceteris paribus. Compared to the initial long-ru...
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Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.0 grams $4.00 per gram $20.00 Direct labor 1.3 hours $15.00 per hour $19.50 Variable overhead 1.3 hours $4.00 per hour $5.20 The company reported the follo...
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A company had a beginning inventory of $20,000 and an ending inventory of $24,000. During the year, the company reported a gross profit of $50,000 and its contribution margin was 30% of sales. Given this information, which of the following statements is true? A. Sales were $90,000. B. The company's operating expenses...
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Company A authorized $750,000 of 10-year, 8% bonds payable at par value on December 31, 2017. The bonds pay interest semi-annually on June 30 and December 31. If the market rate of interest was 10% at December 31, 2017, what would be the journal entry for the bond issuance at the beginning of 2017? A) Cash 633,132 Di...
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According to Keynes, real inflation takes place: a. before the level of full employment. b. on the level of full employment. c. after the level of full employment. d. all above are true.
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The following are potential outcomes attained by Specialization and Trade (S&T) based on Comparative Advantage, except: A) An economy that is Labor Abundant will tend to have C.A. in the type of production that is Labor Intensive. B) S&T based on Comparative Advantage will lead to efficiency in production. C) Large ...
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A 50.0 mL sample of 0.100 M acetic acid is titrated with 0.100 M NaOH. Calculate the pH after adding 60.0 mL of NaOH.
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A stock has a beta of 1.15, the expected return on the market is 10.2 percent, and the risk-free rate is 5.1 percent. Required: What must the expected return on this stock be? (Do not round your intermediate calculations.) Expected return _____%
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A U.S. investor purchases a Microsoft share on the New York Stock Exchange at $20. She sells the share two months later on the NASDAQ when the share is selling at $25. If she pays a broker a 1% commission on the $25 sale, her rate of return is _____.
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A company has the following capital structure: Bonds: $15,000,000 Preferred stock: $5,000,000 Common stock: $30,000,000 The required return on the bonds is 5%, the required return on the preferred stock is 7% and the required return on the common stock is 10%. If the company's marginal tax rate is 35% what is its ...
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A merchandising company has a beginning inventory of 50 units with a total cost of $500. They have the following transactions during the month of January: 1/5 bought 10 units at $11.00 each; 1/8 bought 15 units at $11.25 each; 1/15 sold 8 units for $16 each; 1/22 bought 10 units at $11.50 each and sold 12 units for $16...
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Assume the following information for the month of August. June sales$40,000 July sales65,000 August sales52,850 All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. The beginning cash balance is $14,670, w...
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{eq}\sum_{n=1}^{\infty} \frac{(-1)^{n-1}}{n} {/eq}
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To protect its investment in oil field lease investments, a company decides to use natural gas futures as a hedge. Given that the firm is long the physical asset and short futures, the hedge would be considered _____. a) a long hedge b) a short hedge c) a natural hedge d) none of the above
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Intercompany transfers of inventory prior to the statement of financial position date and not recorded by the selling company at that date should be excluded from the cost of the inventory when the transfer: A. has commercial substance. B. does not have commercial substance. C. is recorded for a higher than market p...
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You are considering two mutually exclusive projects with the following cash flows: Project A: Initial - $800; Year 1 - $325; Year 2 - $325; Year 3 - $325; Year 4 - $325 Project B: Initial - $950; Year 1 - $300; Year 2 - $375; Year 3 - $375; Year 4 - $375 Compute the crossover rate between the two projects. Round the...
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Find the limit of the sequence {eq}\displaystyle \{(\frac{n}{e^n+19n})\}{/eq} or determine that the limit does not exist.
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For a 6% coupon bond that has a current yield of 6.31%, which of the following is true? a) The face value of the bond has been cut in half. b) The bond's internal rate of return is 6.31%. c) The bond's maturity value exceeds the bond's price. d) The bond's price exceeds the bond's maturity value. e) The bond's mat...
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Selling expenses consist of shipping, commissions, and average advertising expenses of $0.50 per unit sold. How many units need to be sold to make a profit if expenses are $3,500, sales revenue is $5 per unit, and the contribution margin ratio is 55%?
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A current liability is characterized by all but which of the following? a. Payment is expected to be made within one year or the normal operating cycle, whichever is longer. b. Payment will be made within one year or the normal operating cycle, whichever is shorter. c. It has been unconditionally promised. d. There...
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J&J Industries just paid an annual dividend of $1.32 a share. The stock is selling for $34.27 a share and has a growth rate of 3 percent. What is the expected rate of return? a. 6.46 percent b. 5.48 percent c. 4.46 percent d. 3.48 percent e. 2.49 percent
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Trout, Inc. is considering a project with an accounting break-even point of 7,630 units. The selling price is $59 per unit, and the variable cost per unit is $33. The fixed costs are $161,800. What is the amount of the depreciation expense?
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Which of the following would not be a consequence of an increase in the U.S. government budget deficit? A. U.S. interest rates rise B. the U.S. supply of loanable funds shifts left C. U.S. net capital outflow falls D. the real exchange rate of the U.S. dollar depreciates
D
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Zarkon Inc., sells office chairs with a manufacturing cost of $58 each. During 2010, 43,650 chairs were produced and 40,750 chairs were sold. There was no beginning inventory. In 2011, 50,850 chairs were produced and 54,950 chairs were sold. Of the chairs sold in 2011, 40,750 were produced in 2010. Assume that both 201...
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Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 5.05 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.00 pound. Materials cost $5 per pound, but Stefani always takes the 4.00% cash discount all o...
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Mo's Market receives a shipment of milk at 10 pm daily. The holding cost is $0.05 per gallon per day, the stockout cost is $10 per gallon, and the ordering cost is $100 per order. The daily demand for milk is approximately normally distributed with a mean of 1,600 gallons and a standard deviation of 150 gallons. What i...
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Assume that a monopolist faces a demand curve for its product given by: p = 120 - q. Further assume that the firm's cost function is: TC = 580 + 11q. How much output should the firm produce at an optimal price? (Round your answer to the nearest whole number)
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The energy per unit volume in an electromagnetic wave is: A) all in the magnetic field B) mostly in the electric field C) equally divided between the electric and magnetic fields D) mostly in the magnetic field E) all in the electric field
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Which of the following are duties of the Board of Governors of the Federal Reserve System? a) Setting margin requirements, the fraction of the purchase price of the securities that have to be paid for with cash. b) Setting the maximum interest rates payable on certain types of time deposits under Regulation. c) Regu...
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The returns for stock A for the past three years are 8%, 12% and 14%. Compute the standard deviation of the returns for stock A.
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What is the annual worth of an alternative with a first cost of $35,000 and annual benefit of $20,000 in years 1 and 2 and $10,000 in years 3 through 8 at an interest rate of 15% per year?
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A survey organization draws a sample of 100 households from 10,000 in a certain town, by the following procedure. First, they divide the town into 5 districts, with 2,000 households each. Then they draw 2 districts at random. Within each of the 2 selected districts, they draw 50 households at random. Select all correc...
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Market risk is also called _____. a. systematic risk, undiversifiable risk, and total risk b. systematic risk, diversifiable risk, and total risk c. systematic risk, diversifiable risk, and beta risk d. systematic risk, undiversifiable risk, and beta risk
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Which of the following would not be considered a current asset? a. Prepaid insurance b. Cash c. Interest receivable d. Accounts receivable
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Let $K = \mathbb{Q}(\sqrt{23})$. Compute the class number of $K$. We have $\Delta_K = 92$ and the Minkowski bound is $M_K < 5$. We also know that $(2) = (2, 1 + \sqrt{23})^2$ and $(3)$ is prime. How do I use these facts to find the class number of $K$?
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I'm given that 3 is an eigenvalue of the matrix $A = \left( \begin{array}{ccc} 3 & 0 & -1 \\ 2 & 3 & -2 \\ -1 & 0 & 2 \end{array}\right)$. How can I find an eigenvector with the largest third component such that the components add to zero?
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Graveyard Visits has paid a constant annual dividend of $2.10 a share for the past 15 years and plans to continue paying this dividend into the foreseeable future. Yesterday, the firm announced that it plans to begin paying annual dividends of $2.20 next year. Following this announcement, the stock sold for $68.05 a s...
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So let's say there are 12 large fish in the lake with an average weight of 25 lbs. Assume that the weight of the fish has a standard deviation of 6 lbs. Let X = the weight of one of these fish. What is the probability that a fish chosen at random from the lake is at most 17 lbs?
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The consumer price index is used to a. adjust dollars in one year to be in today's dollars. b. adjust dollars in one year to be in future dollars. c. measure the rate of change in the overall level of prices in the economy. d. A and c.
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A firm desires to issue new common shares at a price of $30 per share. The last dividend paid was $2.75, and the firm expects a 10% growth rate for earnings and dividends for the foreseeable future. What is the firm's expected return for the new issue of common stock? A. 16.9% B. 17.5% C. 19.9% D. 20.5% E. 22.5%
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As the director of capital budgeting you are evaluating two mutually exclusive projects: Year Project X Project Y 0 -100,000 -100,000 1 40,000 10,000 2 40,000 30,000 3 30,000 40,000 4 20,000 60,000 What is the MIRR for project X, if the discount rate is 10% and the reinvestment rate is 12% a. 5.770...
D
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Consider a random variable X distributed normally with a mean of 100 and a standard deviation of 25. Find P(X > 128).
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On July 10, 2016, Johnson Corporation signed a purchase commitment to purchase inventory for $185,000 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 Febr...
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On January 1, 2016, Jensen Inc., acquired a machine for $436,500. The estimated useful life of the machine was five years. The estimated residual value at the end of five years is $15,000. The straight-line method of depreciation is being used. What is the book value of the machine at the end of 2016? a. $411,500 b. ...
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Which of the following equations correctly expresses the relationship between earning per share and net income? a. Earnings per share = Net income after-tax income/Number of shares of stock outstanding b. Earnings per share = Number of shares of stock outstanding/Net income after tax income c. Earnings per share = T...
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It has been observed that when managers set their target selling prices for products using the cost-plus approach, they often: a. set higher selling prices than customers would have paid using the value-based approach. b. increase prices in competitive markets where their competitors have not increased prices. c. de...
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Assume that a country with an open economy has a fixed-exchange-rate system and that its currency is currently overvalued in the foreign exchange market. Which of the following must be true at the official exchange rate? A. The quantity of the country's currency supplied is less than the quantity demanded. B. The qua...
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Which of the following is not true? A) Consumers prefer points on the higher indifference curve. B) Any point on a higher indifference curve is preferred to any point on a lower indifference curve. C) Two indifference curves never intersect. D) All of the above are true.
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Mitch's Microwave Manufacturing has fixed costs of $23,000. The selling price per unit is $89.50 and variable cost per unit is $71.50. Based on this information, how many units must Mitch's sell to earn a profit of $33,700? a. 3,122 b. 4,761 c. 5,184 d. 3,609 e. 4,464
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Find the limit: $$\lim_{x\to 0} \frac{e^{\sqrt x} - 1}{\sqrt{\sin x}}$$
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A scientific instrument that costs $4,300 has a 5-year recovery period. If the instrument uses MACRS depreciation, what would be the depreciation in year 3 (Round the amount to the nearest dollar)
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In a country with an inflation rate of 5%, real output growing at a rate of 2% and the money supply growing by 5%, there is an excess demand for money. To get rid of this excess demand, the central bank could? A. decrease the money supply. B. increase taxes. C. increase the money supply. D. decrease taxes. E. B or...
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Find the partial fractions decomposition and an anti-derivative of $\frac {2x}{x^2-6x+9}$.
2ln|x-3|-\frac{6}{x-3}+c
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Find the order of the factor group $Z_2\times Z_{36}/\langle(1,6)\rangle$.
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Find the volume of the solid formed when the graph of the region bounded by y=x^2, y=4, and the y-axis is revolved about the x-axis.
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What is the total energy consumption during the operation of a 75 W bulb lighted for 9.0 h?
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A 6.7% coupon bond with 12 years left to maturity is priced at 1000.00. What is the yield to maturity for this bond?
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A partnership that desires to avoid partner liquidation can avoid this by all of the following means EXCEPT: a) bringing in additional partners b) continuing the business during the partner's life c) selling the partnership interest to a third party d) reducing the partner's ownership percentage
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How do I determine the number of trailing zeroes for 2718#, where n# is the primorial of n (the product of the prime numbers less than or equal to n), and can you provide a simple example?
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Project S costs $2,000,000 and its expected net cash flows are $500,000 for 5 years. The net present value of the project is $678,901.61. The internal rate of return is 9.24%. Calculate the project's profitability index (PI). PI = 1.36 PI = 0.68 PI = 1.30 PI = 0.65
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Mackinaw Company produces sporting goods. One of their products is a backpack. They have provided the following information: Unit data: Direct materials $5 Direct labor $1 Variable overhead $4 Fixed overhead $6 Mackinaw has a c...
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Consider a firm whose plant and equipment, its inventory, and the investments it makes in its labor force are collectively referred to as: a. capital stock. b. investment stock. c. financial capital. d. human capital.
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Calculate the following integral by using the residue theorem: {eq}\int_C \frac{dz}{z^2+2z+2} {/eq} where C is the circle |z|=3.
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Artisan Corporation gathered the following information for the 2010 and 2011 fiscal years: 2010 2011 Sales $65,000 $64,000 Beginning inventory $9,500 $6,000 Purchases $38,000 $45,000 Ending inventory $6,000 $11,500 Compute the average invent...
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Given that the population mean is 132 and the population standard deviation is 26 on a continuous normally distributed scale, find: {eq}P(98 \leq x \leq 150) {/eq} = _____
0.6598
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On November 15, 2015, Jacob Company signed a 1-year lease on a machine. The lease calls for a payment of $10,000 due on November 15, 2016, and payments of $10,000 due on November 15th of each year after that. The machine has no residual value. The implicit rate for the lease is 8%. Calculate the amount Jacob should rec...
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Bebut Company is considering purchasing an investment that would cost it $412,090 and would have a useful life of 5 years. The investment would produce annual cash inflows of $110,000 and annual cash outflows of $40,000. The scrap residual value of the investment at the end of its life would be $5,000. The cash inflows...
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X possesses an asset with a fair market value of $500,000. Y supplies X with the services that are necessary in order to transfer the asset to X. Y has sustained a loss in the transaction because the fair market value of the services is only $100,000. The transaction between X and Y with respect to the asset and the se...
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Junction Company common stock is currently selling for $23.87. The last dividend paid was $1.96, and the market rate of return for similar stocks is 13.5 percent. At what growth rate is the stock currently priced?
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The Watson Oil Company has sustainable earnings of $2,400,000. The company forecasts an ROE of 8% and a dividend payout ratio of 60%. The company's stock price is $28.50. If the company maintains a constant payout ratio and dividend growth does not change, what is the company's P/E ratio? A) 5.4 B) 6.4 C) 7.4 D) 10...
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Evaluate the following sum: $$\sum \limits_{n=1}^{\infty}\dfrac{2^{<n>}+2^{-<n>}}{2^n}$$ where $<n>$ the nearest integer to $\sqrt{n}$.
3
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Clover Corporation currently pays preferred stockholders a dividend of $1.50 per share and common stockholders a dividend of $.50 per share. The company plans to raise the common stock dividend to $2.00 per share, which is the average annualized dividend for mature, stable companies in the industry. What is the expecte...
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In the capital budgeting decision, a project is selected only when: a. its IRR > 0. b. its IRR > 1. c. its IRR > the cost of capital. d. its IRR > the opportunity cost of capital.
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During a period of high unemployment, what is likely to happen to aggregate demand and the price level? a. Aggregate demand will increase, and the price level will decrease. b. Aggregate demand will decrease, and the price level will increase. c. Aggregate demand will decrease, and the price level will decrease. d....
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The short-run supply curve of a monopolistically competitive firm (a) intersects the average total cost curve at its minimum point, (b) intersects the average total cost curve at its maximum point, (c) never intersects the average total cost curve, (d) could intersect the average total cost curve at either its mini...
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If two firms (duopoly) dominate an industry and if each sets its price equal to the going market price, the oligopoly outcome is: a. more productive than the outcome under perfect competition b. less productive than the outcome under perfect competition c. the same as the outcome under perfect competition d. higher...
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Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold bonds with a par value of $300,000 when the market rate was 7 percent. Light purchased two thirds of the bonds; the remainder was sold to non-affiliates. The bonds mature in ten years and pay an annual interest rate of 6 ...
B
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For a given confidence level, an interval estimate of a population parameter will be: a. Wider when the sample standard deviation s is small than when s is large. b. Wider for a sample size of 100 than for a sample size of 50. c. Wider for 90% confidence than 95% confidence. d. Never wider than the corresponding tw...
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An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she had total revenue of $200,000 and business expenses of $150,000. She made an a. implicit profit. b. economic loss. c. economic profit. d. accounting loss but not an economic loss.
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McBride Inc., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $260,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The net inc...
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Granite Construction, Inc. paid $27,000 for a one-year construction permit on January 1, 2018. The permit expires on December 31, 2018. Prepaid Construction Permits had a debit balance of $71,000 and an ending balance of $37,000 on December 31, 2018. What was the total amount of construction permit expenses recorded o...
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How do you find the limit of (x^2+10x+25)^(1/3) - x as x approaches infinity?
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Which of the following one-year $1,000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6%, compounded monthly. b. A loan with an APR of 6%, compounded annually, that also has a compensating balance requirement of 10% (on which no interest is paid). c. A loan with an APR of 6%, compounded...
c
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What is the present value of a series of $110,000 annual payments that extend over the next ten years at a discount rate of 7.50% assuming payments are made at the beginning of each year?
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Let {eq}S {/eq} be the part of the plane {eq}\displaystyle x + 2 y + z = 16 {/eq} that lies in the first octant. Evaluate the surface integral {eq}\displaystyle \iint_{S} \cos (x + 2 y + z) \ dS {/eq}.
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Which of the following formulas correctly calculates the cash flow to sales ratio? A. Cash flows from operations / Total assets. B. Cash flows from operations / Revenue. C. Cash flows from operations / Cash balance. D. Net cash flows / Total assets.
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What is the accounting income for 2011 for Jordan Corporation, which sold a machine used in its production process for $10,000, given the following information: Original cost = $30,000 Salvage value = $8,000 Useful life = 5 years Date of disposal = 1/1/11 Depreciation method = Straight-line a. $14,800 b. $17,600...
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What is the probability that the mean salary of a sample of 43 specialists is less than $58,000, given that the population mean annual salary for environmental compliance specialists is about $62,000 and the standard deviation is $5,900?
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Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $60,500. Required: If the relevant tax rate is 34 percent, what is the after-tax cash flow from the sale of this ass...
$142,780.00
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Lexis Company purchased equipment for $60,000 on October 1, 2009. It is estimated that the equipment will have a useful life of 10 years and a residual value of $2,000. Assuming that Lexis uses the straight-line method of depreciation, depreciation expense in 2009 will be: a) $3,720 b) $5,800 c) $6,000 d) $3,800
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Which of the following factors affects the costs of nonmarket action? a) size of the interest groups and its coverage of legislative districts b) per capita benefits for a union c) increase in demand for a company's products d) creating substitutes closer to replicating the benefits
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Sander's Supplies has paid a constant dividend of $2.20 a share for the past 20 years. Yesterday, the firm announced that the dividend will increase next year by 5 percent and will stay at the level for three years, after which time the dividends will increase by 4 percent annually. The required return on this stock is...
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