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Angler Equipment has a beta of 1.2 and an expected dividend growth rate of 6.00% per year. The T-bill rate is 1.00% and the 10 year T-bond rate is 2.13%. The annual return on the stock market during the past 4 years was 12.25%. Investors expect the average annual future return on the market to be 13%. What is the firm...
15.4%
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A labor efficiency variance resulting from the use of poor quality materials should be charged to: a) the production manager. b) the purchasing agent. c) manufacturing overhead. d) the industrial engineering department.
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You own a stock portfolio invested 25 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 25 percent in Stock T. The betas for these four stocks are 0.80, 1.12, 1.16, and 1.35, respectively. What is the portfolio beta?
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If depreciation expense is $22,000 and net income is $52,000, what is the cash flow from operating activities using the indirect method? a. $52,000 b. $74,000 c. $30,000 d. $22,000
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The diameter of a brand of ping-pong balls is approximately normally distributed with a mean of 1.4 inches and a standard deviation of 0.4 inches. If 500 ping-pong balls are selected at random, how many will have a diameter from 1.1 inches to 1.6 inches?
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Let f(x,y) = 2y^2 - 4xy + 6x^2 and g(x,y) = 3x - y - 5. Find all constrained extrema of f subject to the constraint g(x,y) = 0 using Lagrange Multipliers.
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You work for a firm with an issue of 40,000 bonds outstanding and 5,000,000 of market value in preferred stock that sells to yield 6%. The common stock has a market value of $50 per share with 100,000,000 shares outstanding. If the growth rate is 6% per annum and the earnings are $4 per share, what is the required rat...
14.48%
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Is 3 the only prime that is both a Mersenne prime and a Fermat prime?
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Business cycles can be readily identified from a. unemployment-rate data. b. real GDP data. c. salary or wage data. d. unemployment-rate data and real GDP data. e. unemployment-rate data and salary or wage data.
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The manager of The Cheesecake Factory in Boston reports that on six randomly selected weekdays, the store sold the following numbers of cheesecakes. 52, 40, 48, 48, 60, 58 The manager believes that the mean number of cheesecakes sold on weekdays is 54. If the population of numbers of cheesecakes sold on weekdays is n...
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If the first material is added at the beginning of the production process and the second material is added when the unit is 75 percent complete, how would a 30 percent increase in the second material affect the completion percentage of the equivalent units? a. Decrease the equivalent units for the second material by 3...
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Hartzog Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,700 units)$155,700 Variable expenses 103,500 Contribution margin 52,200 Fixed expenses 42,700 Net operating income $9,500 If the company sells 4,500 units, its contribution mar...
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Evaluate the following double integrals. {eq}\int_{0}^{1} \int_{\sqrt{1 - x^2}}^{\sqrt{9 - x^2}} \frac{y}{x^2 + y^2} dydx + \int_{1}^{3} \int_{0}^{\sqrt{9 - x^2}} \frac{y}{x^2 +y^2} dydx
2
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What is the present value of a $450 perpetuity discounted back to the present at 10 percent? a. $4,500 b. $5,555 c. $4,320 d. $450
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Beta Company's variable costs equal 60% of its sales. Its fixed costs are $120,000 and its sales are $300,000. What are the breakeven sales dollars? a) $120,000 b) $240,000 c) $300,000 d) $180,000 e) $420,000
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Use a change to polar coordinates to find the volume of the solid below the paraboloid {eq}z = 36 - x^2 - y^2{/eq} and above the xy-plane.
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Laidlaw Company has the following inventory data: January 1, beginning inventory of 20 units at $125 February 19, purchase of 70 units at $130 April 7, sale of 40 units June 1, purchase of 35 units at $135 October 15, sale of 25 units December 1, purchase of 18 units at $140 Assuming that a perpetual inventory s...
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The equilibrium price in the market represents the: a) average cost of producing the good. b) value of the good in its next highest-valued use. c) price of the good in its lowest-valued use.
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You buy a machine for $10,000. Annual benefits are $3500 per year for 6 years. At the end of Year 6 the machine is sold for $1100. If MARR = 20%, what is the correct specification for the B/C ratio? a. B/C = (3500 + 1100(A/F,20%,6)) / 10,000(A/P,20%,6) b. B/C = (3500 - 1100(A/F,20%,6)) / 10,000(A/P,20%,6) c. B/C = 3...
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A stock is expected to have a dividend of $2.50 at the end of the year and is expected to pay a dividend of $2.75 the following year. The stock has a beta of 0.75 and its required rate of return is 10%. The stock is in a risk-adjusted constant growth state and its current market price is $50.00. What is the expected co...
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A borrowed reserves target is _____ because increases in income _____ interest rates and discount loans, causing the Fed to _____ the monetary base, everything else held constant. A) procyclical; increase; increase B) countercyclical; increase; increase C) procyclical; reduce; reduce D) countercyclical; reduce; red...
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Which statement is true regarding the disposal of the inventory for a period under the LIFO inventory method when market values for inventory decline? a) The total cost of goods sold will be lower than in the FIFO method, which could lower taxes payable. b) The total cost of goods sold will be higher than in the FIFO...
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What sample size is needed so that the confidence interval will have a margin of error of 0.5 hour for a 95% confidence interval, given a normal distribution with a standard deviation of 7 hours?
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On a supply and demand graph, the area above the price and below the supply curve is: a) producer surplus, b) consumer surplus, c) total welfare, d) deadweight loss.
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Evaluate the integral. {eq}\int \frac{1}{\sqrt{x + x^{3/2}}} \, \mathrm{d}x{/eq}
4\sqrt{1+\sqrt x}+C
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Using the production function in Table 2, we can conclude that when labor increases from 2 units to 3 units, total production increases from _____, and average product _____. A) 15; rises from 6 to 7 B) 14; falls from 5 to 3.5 C) 14; rises from 5 to 7 D) 15; rises from 5 to 7
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Manufacturers that are not in a cartel will, when the market price is below marginal cost and there are many close substitutes, A. Produce less than in the case of perfect competition, and sell it for a higher price than in the case of perfect competition. B. Produce less than in the case of perfect competition, and ...
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Southwest Physicians, a medical group practice, is just being formed. It will need $2 million of total assets to generate $3 million in revenues. Furthermore, the group expects to have a profit margin of 5%. The group is considering two financing alternatives. First, it can use all-equity financing by requiring each ph...
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Use Green's Theorem to evaluate the line integral {eq}\displaystyle \int_{C} \vec{F} \cdot d \vec{r} where C is the triangle formed by the lines y = 0, y = x, and x = 1, oriented counterclockwise, and {eq}\vec{F} = \left \langle y^{2},x \right \rangle{/eq}.
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Galaxy United, Inc. 2017 Income Statement ($ in millions) Net Sales $7,950 Less: Cost of goods sold 6,580 Less: Depreciation 400 Earnings before interest and taxes 970 Less: Interest paid 80 Taxable Income 890 Less: Taxes 312 Net income $578 Galaxy United, Inc. 2017 Balance Sheets ($ in millions) 2017 201...
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Free Motion Enterprises intends to pay a $2.20 per share annual dividend in the coming week. Dividends are expected to increase by 3.75% annually. What is one share of this stock worth to you today if your required rate of return is 15%? A. $19.76 B. $19.30 C. $19.56 D. $20.29 E. $20.79
D
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Universal Movers has two classes of common equity stock, Class A and Class B. The stock of Class A bears no dividend. The stock of Class B bears a dividend of $5.00 per share. Universal Movers plans to issue the following number of shares. {eq}\begin{array}{cc} \text{Issue} & \text{Number of Shares} \\ \text{Class A...
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Suppose a company has a beta of 1.7, its tax rate is 30%, its current market value of equity is $34 million and it has no debt. If the company's debt-to-equity ratio was 50%, the firm's cost of equity would be approximately: A) 5.1% B) 7.2% C) 8.5% D) 12.8% E) None of the above
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Sharon went to her local bank to see what products they had for savings accounts. The bank representative gave her the following information on a particular savings account. What is the APY of this account if the interest is compounded quarterly? Rate 3.25% Periodic rate 0.81% Number of periods 4
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Pistoletto Corporation manufactures two types of office chairs, Model A and Model B. It estimates the following results for next year. Sales revenue Model A $400,000 Model B 570,000 Variable expense 200,000 Model A 380,000 Model B ...
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Suppose that the interest rate is 10% (r = .10). Then the future value of $200 after three years is closest to: A. $180 B. $220 C. $242 D. $266
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Compute the Jacobian of $\Phi \left( {r, \ \theta } \right) = \left( {4r\cos \theta , \ 3r\sin \theta } \right)$.
12r
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Net income on the income statement is closed to the: a. retained earnings account. b. stock account. c. cost of goods sold account. d. loss on discontinued operations account. e. common stock account.
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What is the integral of 12tcos(4t)dt? What method do you use to find the integral?
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In a situation of competitive labor market equilibrium a. Labor demand is perfectly inelastic. b. Labor supply is perfectly elastic. c. Labor demand and labor supply are both perfectly elastic. d. There is no such thing as a competitive labor market.
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With the assumption that the market price of the share is equal to the intrinsic value of the share: a. A share with a beta of 1 will offer a return equivalent to the market average. b. A share with a beta of less than one is less risky than the market average. c. An increase in the beta value of a share will lead t...
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The NPV of project A is +$30 and that of project B is +$60. The NPV of the combined project is? A. $30 B. $60 C. $90 D. zero
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If {eq}a_0 + a_1 + a_2 + . . . a_k = 0 {/eq} show that {eq}\lim\limits_{n \to \infty} (a_o \sqrt n + a_1 \sqrt {n+1} + a_2 \sqrt {n+2} +...+ a_k \sqrt{n+k}) = 0 {/eq}
0
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How many cars must be randomly selected and tested in order to estimate the mean braking distance of registered cars in the United States to give a 90% confidence that the sample mean is within 2 ft of the population mean, given that the population standard deviation is known to be 7 ft?
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Use sigma notation to write and evaluate the approximation to the area under the curve {eq}f (x) = 2 x^5 + 2x{/eq} on the interval [0, 2]. Use left endpoints and 4 rectangles. Give your answer to 3 decimal places.
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Which of the following characteristics refers to the fact that the property invested in a partnership by a partner becomes the joint property of all the partners? a. Mutual agency. b. Co-ownership. c. Mutual ownership. d. Participation in partnership.
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Direct materials used is $1,100,000, and I have to compute the total manufacturing costs using the following information. Raw materials inventory, January 1 was $20,000; Raw materials inventory, December 31 was 40,000; Work in process, January 1 was 18,000; Work in process, December 31 was 12,000; Finished goods, Janua...
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The depreciation of the dollar will cause the price of a pound of British goods to a. rise, which will cause U.S. exports to increase. b. fall, which will cause U.S. exports to increase. c. rise, which will cause U.S. imports to increase. d. fall, which will cause U.S. imports to increase.
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In 6 years, Mattos Oil Refining Company wants to pay off a $50,000 debt in one lump sum amount. They must set up an account to accumulate the necessary funds to pay off their debt. If the payments are made every 6 months and the fund earns 9.6% compounded semiannually, what is the amount of each semiannual payment? a)...
a
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To increase, a firm must: a. increase all inputs. b. decrease all inputs. c. leave one input constant and increase another input. d. leave one input constant and decrease another input.
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The income statement for Henson Corporation shows the following: Net Sales$700,000 Cost of Goods Sold$500,000 Selling Expenses$40,000 Administrative Expenses$10,000 Income Taxes$15,000 An examination of the company's current assets and current liabilities shows the following information: Current assets: ...
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Stock Y has a beta of 1.6 and an expected return of 17.5%. Stock Z has a beta of 0.90 and an expected return of 12.50%. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
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Suppose that due to a change in production technology the average cost of producing laptops decreases by $100, but there is no change in average labor costs. Everything else held constant, this will result in: a. a decrease in the real price of laptops and an increase in net exports. b. an increase in the real price ...
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Show that $\lim_{n\to \infty}n\log\left(1-\frac{x}{n}\right)=x$ for $x\in \mathbb{R}$.
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Suppose a computer manufacturer is producing in the short run when capital is fixed and the only variable factor of production is labor. The firm's production data is given in the table below. What does the production function given illustrate? Labor Quantity of Computers Produced 0...
a
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Suppose to have a linear programming problem. It is known from the optimal solution that allowable increase of the cost coefficient c1 is equal to 20. Initial value of c1 is 50. Choose the correct statement: a) If we change the initial value of c1 to 80 nothing will happen b) If we change the initial value of c1 to ...
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With what rate, on average, did the U.S. GDP change in 2020? a. Between 1% and 1.5% b. Below 1% c. Between 1.5% and 2% d. Between 2% and 2.5% e. Between 2.5% and 3%
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Which of the following statements is true? a. In the long run, there will be no economic profit in a monopolistically competitive industry. b. A monopolistically competitive industry consists of many small firms, each of which has a small share of the total sales in the market. c. In the short run, a firm in a monop...
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Which of the following items represents a temporary difference that will reverse and create a future taxable amount? a. Accrued warranty costs. b. Interest received on municipal obligations. c. Prepaid rent. d. Depreciation expense.
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For the following activity below, select the most appropriate cost driver. Design new products A) Number of different raw material items B) Number of classes offered C) Number of machine hours D) Number of employees E) Number of maintenance hours F) Number of units of raw materials received G) Number of new customers H...
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The following information describes a company's usage of direct labor in a recent period: Actual hours used 41,000 Actual rate per hour $13.00 Standard rate per hour$12.00 Standard hours for units produced 43,000 The direct labor rate variance is: a. $24,000 favorable. b. $17,000 unfavorable. c. $24,000 unfavorabl...
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Federer Corporation's balance sheet at December 31, 20X1, included a $34,800 account receivable from Upton Corporation of Canada. The account receivable is denominated as 50,000 Canadian dollars (C$). What entry should Federer make on January 16, 20X2, when the account receivable is collected and the exchange rate for ...
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Amster Corporation reported the following information for the month of June: Units in Beginning Inventory 200 Units Purchased 6,500 Units Sold 4,600 Assume that the sales price was $62 and the purchase price was $49. The FIFO inventory method would result in net income for Jun...
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Let $(t_1, t_2, \dots, t_n)$ be $n$ real numbers and $(X_1, X_2, \dots, X_n)$ be $n$ independent random variables with $E(X_i) = 0$ and $E(X_i^2) = 1$ for all $1 \le i \le n$. Also, assume that $\sum_{i=1}^n t_i^2 = 1$. Find the value of $P(|\sum_{i=1}^n t_iX_i| > 1/2)$. Is it possible that the answer is between $0$ an...
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Use Green's Theorem to calculate the counterclockwise circulation and flux for vector field {eq}\displaystyle F = \left ( \frac{y}{x^2+y^2} \ i + \frac{x}{x^2+y^2} \ j \right ) {/eq} and {eq}\displaystyle C: \ r(t) = \left ( e^t \cos t,\ e^t \sin t \right ) {/eq} for {eq}\displaystyle 0 \leq t \leq \pi {/eq}.
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Sales revenue was $600,000, sales discounts were $12,000, and the cost of goods sold was $360,000. What is the gross profit percentage?
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A closed system of mass 5 kg undergoes a process in which there is work of magnitude of 9 kJ to the system from the surroundings. The elevation of the system increases by 700 m during the process. The specific internal energy of the system decreases by 6 kJ/kg and there is no change in kinetic energy of the system. The...
-4.665 kJ
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Which one of the following projects would an analyst most likely recommend given the following financial information and assuming the cost of capital is 12%? Project X: Payback period = 10.75 years; beta = 1.7 Project Y: Net present value = $2,800; beta = 1.2 Project Z: Internal rate of return = 13.21% A. Project X...
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A machine used to fill cans of paint is supposed to be calibrated so that the average content of a can is 1.20 litres. A random sample of 40 cans is selected from an output 5 minutes later, and the mean content of the sample is calculated to be 1.18 litres. The standard deviation of the population is 0.08 litres. Calcu...
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Company A and Company B both have an expected return of 12 percent and a standard deviation of 20 percent. The correlation coefficient between their returns is 0.3. Company C has an expected return of 12 percent and a standard deviation of 20 percent, but Company C's return is uncorrelated with the return of the market...
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Select all of the following that are true regarding the statement {eq}\alpha = \beta {/eq}. a. The same percentage of samples will produce confidence intervals that contain the true population parameter. b. The likelihood of rejecting a false null hypothesis will be equal for any sample size. c. The likelihood of c...
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Assume that the price of labor and capital are $5 and $20, respectively. Which of the following statements is correct? a. The marginal product of the last unit of labor employed is 10. b. The marginal product of the last unit of capital employed is 10. c. The marginal product of the last unit of labor employed is 4....
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What mass of limestone (in kg) would be required to completely neutralize a 15.0 billion-liter lake that is 1.7 * 10^-5 M in H_2SO_4 and 8.8 * 10^-6 M in HNO_3 ? m =
3.21 * 10^4 kg
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Today, you borrowed $35,000 on your credit card to purchase some furniture. The interest rate is 14.75 percent compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $2250? a. 1.82 years b. 2.04 years c. 1.72 years d. 2.0...
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What would be the result if the prior period adjustments account had a balance of $5,000 (debit) in the current period financial statements, which were not prepared under the cumulative effect basis, were not adjusted, and the current period income was $25,000? a) Net income, $20,000; retained earnings, $5,000. b) Ne...
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Suppose that the nominal GDP was $360 billion in 1990 and $480 billion in 2000. If the GDP deflator was 60 in 1990 and 80 in 2000, then what would be the real 2000 GDP in 1990 dollars?
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If f and g are both odd functions defined on the domain of all real numbers, and f(x) ≤ g(x) when x ≥ 0, evaluate the integral: $$\lim_{n\rightarrow \infty}\int_{-n}^{n} \frac{e^x+e^{-x}}{e^x-e^{-x}}(g(f(x)-x^2)-f(g(x)+x^2))dx$$
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Oster Corporation manufactures two types of office chairs, Model A and Model B. It estimates the following results for next year. Model A Model B Sales $400,000 $480,000 Variable cost $200,000 $240,000 Oster has decided to devote more resources to Model B production ...
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Find the average value of the function {eq}h(u) = (5 - 3u)^{-1}{/eq} on the interval {eq}[-1, 1]{/eq}.
1/6ln4
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You own a stock portfolio invested 30 percent in Rich Oil, 40 percent in Legal Mart, and 30 percent in Building Helpers. The betas for these three firms are 1.5, 1.2, and .7, respectively. Required: What is the portfolio beta? a. 1.21 b. 1.30 c. 1.16 d. 1.12
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A 95% confidence interval for a population mean is determined to be 55.2 to 64.8. If the confidence coefficient is reduced to 0.90, what will be the new confidence interval?
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Covey Co. expects its annual overhead costs to be $250,000, its annual direct labor costs to be $300,000, and its annual direct labor hours to be 240,000 hours. The company allocates overhead based on direct labor hours. Required: What is the amount of total overhead cost to be applied to Job 168 if it incurred 500 d...
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Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,200 units) $155,400 Variable expenses 100,800 Contribution margin 54,600 Fixed expenses 42,400 Net operating income $12,200 If the Sorin company sells 4,600 units, what is its c...
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Computers Inc., is a company that produces and sells a variety of products and provides services to individuals and businesses. The company uses a periodic inventory system and is considering the following inventory cost flows when reporting a LIFO inventory: Goods purchased in year 1 cost $25 each, and goods purchased...
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Haley's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: 12.25% Year 0 1 2 3 4 5 Cash flows -$1,000 $300 $300 $300 $300 $500 a. $175.89 b. $230.91 c. $191.47 d. $117...
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Which of the following would cause both the equilibrium price and equilibrium quantity of number two grade potatoes (an inferior good) to increase? a. an increase in consumer income b. a decrease in consumer income c. greater government restrictions on agricultural chemicals d. fewer government restrictions on agri...
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A company had 100,000 shares of common stock issued and outstanding at the end of the most recent year. The company paid $60,000 in dividends to its common stockholders and $40,000 in dividends to its preferred stockholders. The company's earnings per share for the most recent year were $3.60. What is the company's div...
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Suppose that the price p (in dollars) and the weekly sales x (in thousands of units) of a certain commodity satisfy the demand equation 4p^3 + x^2 = 45,900. Determine the rate at which sales are changing at a time when x = 180, p = 15, and the price is falling at the rate of $70 per week.
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57% of total costs are allocated to: a. Variable cost pool. b. Fixed cost pool. c. Product cost. d. Period cost. e. Selling, general and administrative expenses. f. Operating expenses.
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Let $f(z) = \frac{z+2}{z^2-4z+3}$, and let $\gamma$ be the circle of radius $2$ centered at the origin. Then what is the value of $\frac{1}{2\pi i}\int_{\gamma} f(z) dz$?
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Why does the integral $\int_{0}^{1}\frac{1}{\sqrt{x}}\mathrm dx$ converge even though the function $\frac{1}{\sqrt{x}}$ is undefined at $x=0$ and appears to approach infinity, suggesting an infinite area under the curve?
2
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The diameter of a brand of tennis balls is approximately normally distributed, with a mean of 2.64 inches and a standard deviation of 0.04 inch. If a random sample of 15 tennis balls is selected, what is the probability that the sample mean is between 2.61 and 2.70 inches?
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Use a linear approximation (or differentials) to estimate the given number. Use the linearization of \dfrac{1}{x^2}. Do not round your answer. \dfrac{1}{(999)^2}.
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Which of the following statements is correct? a) A company is most likely to use the FIFO method if its inventory costs are changing slowly. The weighted-average method is most appropriate when costs are changing rapidly. b) The FIFO method of costing inventories generally results in a higher gross profit figure and ...
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For a sample of n = 64, find the probability of a sample mean being less than 12,672 or greater than 12,676 when the mean = 12,672 and the standard deviation = 1.2. (Assume the variable is normally distributed).
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McCormac Motors' current capital structure of 25% debt and 75% equity is considered to be optimal. If the company's beta is 1.4 and its tax rate is 40%, then what is the company's after-tax cost of debt? a. 6.3% b. 6.8% c. 7.1% d. 7.4% e. 8.4%
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When all the positive and negative externalities have been internalized: a. marginal private benefit equals marginal private cost b. marginal private benefit equals marginal social cost c. marginal social benefit equals marginal private cost d. marginal social cost equals marginal private cost
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Taco Corporation expects an EBIT of $10,000 every year forever. The firm currently has no debt, its cost of equity is 12%, and its tax rate is 35%. The firm can borrow at 7% and the corporate tax rate is 35%. What will the value of the firm be if it converts to 50% debt?
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Find the sample size, n, needed to estimate the percentage of adults who have consulted fortune tellers. Use a 0.07 margin of error, use a confidence level of 95%, and use results from a prior poll suggesting that 17% of adults have consulted fortune tellers.
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Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 103, what is the amount of gain or loss on redemption? A. $32,000 gain B. $2,000 gain C. $32,000 loss D. $2,000 loss
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