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A new 15 year bond has just been issued by a company with a face value of $1,000 and a coupon rate of 12%. Comparable bonds are yielding 20% and interest is paid semi-annually. An investor is contemplating buying the bond of this company or investing it in shares of Fan Milk. He came up with a criterion to help him mak...
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Company C had the following common equity accounts and balances on December 31, 2016. Common stock ($1 par value) $368,000 Additional paid-in capital - common stock 73,400 Retained earnings 405,600 In 2017, Company C issued an additional 5,000 shares of common stock at a price of $9 per share. During 2017, Company...
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If a foreign country's currency is weakening in value, then: a. its exports will become less expensive. b. its exports will become more expensive. c. its imports will become less expensive. d. the total value of its exports will increase.
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The money supply consists of: (a) only metallic money. (b) only credit money. (c) only cash. (d) both cash and credit money.
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Find the interest at the end of 2 years on $400 at 6 percent per annum.
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You're prepared to make monthly payments of $250, beginning at the end of this month, into an account that pays 5.9 percent interest compounded monthly. How many payments will you have made when your account balance reaches $5,000?
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Which of the following solutions has the greatest buffer capacity? a. 100 ml of 0.1m HF mixed with 100 ml of 0.15m NaF. b. 100 ml of 0.1m HF mixed with 100 ml of 0.1m NaF.
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Evaluate the value of {eq}\beta {/eq} in the following situation: A level of significance of 1% is chosen, and the number of errors in the sampling distribution is less than 100.
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Select one way to handle the question of a right to choose. a. by disposing of the property by will b. by purchase of another's interest c. by expectancy interest d. all of the above
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The opportunity cost of consuming a good is: a) The goods that could have been produced with the resources that were used to produce the good consumed. b) The consumer surplus lost due to the consumption of the good. c) The price of the good, plus the producer surplus. d) The value of the good minus the price of th...
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During its first year of operations, the Winter Corporation's total assets were $2,550,000 and its net income was $540,000. The company had no long-term debt during this period. Calculate the sustainable growth rate for Winter Corporation. A) 21.2% B) 22.75% C) 24.375% D) 38.1%
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Consider a closed economy (no trade with other countries). If there is an increase in the stock of capital in this economy, which of the following will happen? A) Consumption will increase in the long-run only. B) Consumption will increase in the short-run and long-run. C) Savings will increase in the long-run only....
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On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months. After acc...
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Consider the differential equation {eq}y' = (y - 3)(y - 12){/eq}. For what values of {eq}y{/eq} is {eq}y{/eq} increasing?
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Which one of the following is not correct? a. The amount of the tax benefit to be recognized in future years cannot exceed the amount of net operating losses carried forward to those future years b. A loss carryback results in a refund of taxes previously paid c. In computing the minimum taxable income for a carryba...
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What is the z-score of sample X, if n=64, mu= 31, St.Dev = 12, and mu_x= 37?
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In the past, a company used to use FIFO method to compute its cost of goods sold but is now planning to use LIFO method. If the inventory cost is expected to go down during the next year, what would be the impact on net income and on assets? Net IncomeAssets a. IncreaseIncrease b. IncreaseDecrease c. DecreaseIncrea...
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Let $f:\mathbb R \rightarrow \mathbb R$ be a continuously differentiable function with $f(1)=3$ and $\displaystyle \frac{f^{-1}}{dt}(1)=\frac 12$. Find $f'(1)$.
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Top-Down is a levered firm with assets valued at $300,000, has $75,000 of debt issued at 7% interest, and 5,000 shares of stock outstanding. Suppose that earnings before interest and tax (EBIT) is $11,000 and that corporate profits are subject to a tax rate of 25%. Which of the following comes closest to the EPS of Top...
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Determine the pOH of a solution that is 0.25 M {eq}\rm CH_3NH_2 {/eq} and 0.10 M {eq}\rm CH_3NH_3^+Cl^- {/eq}. Express the pOH numerically to two decimal places.
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In a period of declining costs, which of the following inventory cost methods would result in the highest gross profit? A. Average cost B. LIFO C. FIFO D. Cannot be determined from the information given.
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Kant and Helmholtz agreed that: a. the faculties of the mind are innate b. the perceiver transforms what the senses provide c. perception is explained by unconscious inference d. nativism provides a better explanation of perception than does empiricism
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When an electromagnetic wave falls on a white, perfectly reflecting surface, it exerts a force F on that surface. If the surface is now painted a perfectly absorbing black, the force that the same wave would exert on the surface is: a. 2F b. F c. F/2 d. F/4 e. 4F
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The division manager of a company receives an annual bonus based on the division's net income. The division manager is considering replacing equipment that currently in service. The equipment has five more years of useful life and a zero salvage value. Replacing the equipment will cost $320,000 with no salvage value. T...
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In a proton NMR, which of the following statements is true about the signal for the OH proton? A) It will be lost due to exchange with acidic impurities. B) It will generally be upfield from the corresponding alkyl signal. C) It covers a broader chemical shift range than a phenol OH. D) It is generally unsplit by a...
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5250 bonds with a face value of $1000 each, are sold at 102. The entry to record the issuance is: a) Cash 5,200,000 Bonds Payable 5,250,000 Discount on Bonds Payable 50,000 b) Cash 5,300,000 Bonds Payable 5,250,000 Premium on Bonds Payable 50,000 c) Cash 5,350,000 Bonds Payable 5,350,000 d) Cash 5,250,000 Prem...
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What is the probability of no more than one employee having an on-the-job injury in a company with 50 employees, given they are expected to average 3 employee off-the-job accidents per year?
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Capital equipment with a three-year service life will be depreciated over three full years under the: a. straight-line method b. MACRS method c. tax basis method d. opportunity cost method
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What happens to consumer surplus, producer surplus, and tax revenue when a tax is imposed on a good? a. Consumer surplus declines, producer surplus declines, and tax revenue is equal to the height of the tax. b. Consumer surplus declines, producer surplus rises, and tax revenue is equal to the height of the tax. c. ...
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State and local government funds are required to present financial statements on: A. General Fund basis only. B. Several separate bases. C. Modified accrual basis only. D. Accrual basis only. E. Current financial resources basis only.
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Suppose $p\leqslant a_n\leqslant q$ $\forall$ $n\geqslant 1$, where $p, q \in \mathbb{R}$. Then how to calculate the radius of convergence of $$\sum_{n=0}^\infty a_nx^n.$$
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According to a study by Ridner Fidelity Investments, 71% of employees have not had to deal with an ethics issue at work. Suppose that a random sample of 12 employees is selected. Assuming that this assumption is correct, what is the probability that 7 or fewer employees have not had to deal with an ethics issue?
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Which school of thought can be considered a rebuttal to the nonactivist schools of thought? a. supply side economics b. traditional Keynesian economics c. new Keynesian economics d. accelerationism
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When the Federal Reserve conducts open-market operations, it: a. sells bonds to commercial banks to expand the money supply. b. buys bonds from commercial banks to contract the money supply. c. buys bonds from commercial banks to expand the money supply. d. sells bonds to commercial banks to contract the money supp...
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The payback period is an example of a: a. Risk-adjusted method of analysis b. Profitability index method c. Benefit-cost ratio method d. Capital budgeting method e. Psychological method of analysis
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Bouquet, Inc., estimates that its operating cash flow for the first year of operation will be $244,000; its second year operating cash flow will be $294,000; and its third year operating cash flow will be $311,000. The firm's cost of capital is 12%. If accounts receivable is $24,000, accounts payable is $14,000, and t...
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I am trying to find a general formula for this sequence, in order to find its limit (has to be this way): $$X_{k+1} = \frac {X_k} 2 + \frac 1 {X_k}$$
$\sqrt{2}$
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An insurance company is considering offering discounts to customers who complete health questionnaires in exchange for access to their policy records. The premium for a policy is {eq}\$450 {/eq} per year. The company's costs of managing the health records of these clients are {eq}\$25 {/eq} per year. The possible gai...
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Which one of the following is the most restrictive definition of capital? a) spending on plant and equipment plus capital formation b) spending on plant and equipment c) plant, equipment, and inventory d) plant and equipment e) spending on plant and equipment plus new housing construction
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Which statement is correct regarding the following real GDP and potential real GDP data for 2010 to 2014? 20102011201220132014 real GDP $14 trillion$15 trillion$17 trillion$19 trillion$20 trillion potential real GDP $13 trillion$14 trillion$15 trillion$16 trillion$17 trillion a. In 2013, the economy had an inflation...
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Jorge Corp. is replacing a technologically obsolete machine with a state-of-the-art numerically controlled machine. The new machine would cost $280,973. Unfortunately, the old machine could be sold now for only $20,000. The new machine would have a 10-year useful life and a salvage value of zero. Unfortunately, the old...
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If exports increase by $100 and the marginal propensity to consume is 0.75, by how much will GDP increase in the first round? a) $400 b) $300 c) $100 d) $200
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Determine the business entity that is being described by the following statement: A withholding tax on income that is effectively connected with a United States trade or business. a. ECI (Effectively Connected Income) b. FDAP (Fixed, Determinable, Annual and Periodic) c. FIRPTA (Foreign Investment in Real Property T...
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Getzels and Jackson (1962) used _____ to assess creativity by asking subjects to write as many meanings of the words: duck, sack, pitch, and fair. a. vocabulary ability b. language ability c. semantic ability d. associative ability
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Therapist, the HR manager at RightWay Enterprises, believes that job withdrawal has become a significant problem at the firm. Therapist most likely came to this conclusion after observing all of the following employee behaviors EXCEPT: a. frequent vacation time requests b. idle employee conversations c. undeserved w...
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For the given reactions, predict the sign of \(\Delta S\) and explain your prediction: (a) \(C(s) + 2H_2(g) \rightleftharpoons CH_4(g)\) (b) \(NH_4Cl(s) \rightleftharpoons NH_3(g) + HCl(g)\) (c) \(H_2O(l) \rightleftharpoons H_2O(g)\) (d) \(2NO_2(g) \rightleftharpoons N_2(g) + 2O_2(g)\) (e) \(I_2(g) \rightleftharpo...
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What sample size is needed if you wish to be 95% confident that your estimate is within $2 of the true proportion, given a preliminary estimate of 0.22?
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What will happen to the AD and AS curves if households become more risk averse, given that the equity market is generally considered riskier than the bond market? a) AD shifts left and AS shifts down. b) AD shifts right and AS shifts down. c) AD shifts left and AS shifts up. d) AD shifts right and AS shifts up.
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Consider a competitive market described by the inverse demand and supply functions: (Demand) {eq}p = 70 - Q {/eq}; (Supply) {eq}p = 10 + 1/2Q {/eq}. Suppose the government implement a tax of t = 15 per unit and assigns the legal incident of the tax to producers, determine the equilibrium quantity.
30
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IFG Corp. is considering replacing an existing piece of equipment. The new equipment would have a cost of $7,100 and would have a ten year life. Unfortunately, the old machine is five years old and will have no salvage value when it is retired. The straight-line method of depreciation is used for both machines. If the ...
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Evaluate the integral. {eq}\int_0^6 \frac{8}{\sqrt[3]{(144 + t^3)^2}} \, \mathrm{d}t {/eq}
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Use Green's Theorem to evaluate {eq}\int_C \frac{x}{x^2 + y^2} dx + \frac{y}{x^2 + y^2} dy, \ where, \ C: 3x^2 + 4y^2 = 12{/eq}
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Which of the following statements is false? A. If the sample size is larger than 120, the t distribution is almost the same as the standard normal distribution, so the t distribution can be used in the same manner as the standard normal distribution. B. When using the t distribution for a sample size of 12, you shoul...
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For a competitive firm, when output is zero: a. marginal revenue equals marginal cost. b. marginal cost equals average total cost. c. total revenue is zero. d. price equals average total cost.
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What is the way to find a function $f$ such that for a stochastic process, for example $e^{B_T}$ we can write: $e^{B_T} = E[e^{B_T}] + \int_{0}^{T}f(t)dB_t$?
$f(t) = e^{B_t}$
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If the price of bottled water is $2.00 and the marginal cost of producing it is $1.50, then: a. Bottled water is being produced in an increasing-cost industry. b. Society will realize a net gain if less bottled water is produced. c. Resources are being under-allocated to bottled water. d. Resources are being over-a...
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What is the elasticity of domestic investment with respect to the real interest rate: a. E > 0 b. E = 0 c. E < 0 d. E = 1
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The appropriate discount rate for the following cash flow stream is 8 percent compounded quarterly. What is the present value of the cash flows today? Year Cash Flow 1 $700 2 $900 3 $1,000 4 $1,350 5 $1,850
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The Beta of the market portfolio is: a. 1. b. between 0 and 1. c. greater than 1. d. equal to the standard deviation of the market portfolio.
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Which of the following statements about the p-value approach are true? (Check all that apply. If none applies, do not check any.) A. It yields different results than the rejection region method. B. It yields the same conclusions as the rejection region method. C. It takes full advantage of the information available ...
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If the Fed targets the interest rate, a. it can then set the money supply at whatever value it wants b. it must increase the money supply if the interest rate is above its target c. it must decrease the money supply if the interest rate is above its target d. none of the above is correct
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Compute the probability that the sample mean is less than 61 when a normal population has a mean of 60 and a standard deviation of 3 and you select a sample of 36.
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Why is the ratio of capital to output (capital stock) always higher in poor nations than in rich nations?
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What is the limit (if it exists)? Or prove it does not exist. Specifically, is the following derivation using L'Hopital's rule valid: $\lim_{x \rightarrow 0} \dfrac{e^{2x} - e^{-2x} - 2}{x \sin(x)}$ becomes $\lim_{x \rightarrow 0} \dfrac{2e^{2x} + 2e^{-2x}}{\sin(x) + x\cos(x)}$ which evaluates to 4?
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Find the sample size needed so that the confidence interval will not exceed a certain percentage of the population standard deviation. Given: - Confidence level: 95% - Population standard deviation (\(\sigma\)): 5 - Margin of error (E): 2 Find: - Sample size (n)
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Determine whether the taxpayer in the following situation has realized income. Explain why there has or has not been a realization, and determine the amount of income to be reported. During the current year, Valu-Rite Electronics sells gift cards for a total of $200,000. In the same year, customers use the gift cards ...
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How can I show that $\lim_{n\rightarrow\infty}{\displaystyle\sum_{i=1}^{n}{\frac{F_n}{2^n}}}=2$, where $F_n$ is the n-th number in the Fibonacci sequence, using limits without finding a closed form for the sum?
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The risk-free rate is 7.20%. Stock A has a beta of 0.70, while Stock B has a beta of 1.20. Which of the following statements is correct? A. If Stock A's beta was less than 0.70 and Stock B's beta was greater than 1.20, then Stock A would have a lower expected return than Stock B. B. If expected inflation increased by...
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Assume the labor force participation rate is 55%, the working-age population is 200 million, and 20 million people are unemployed. What is the unemployment rate? a. 9.1% b. 10% c. 11% d. 11.1%
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A particular individual has the utility function {eq}U = min(X, Y) {/eq}. Their current income is $100, and the prices of X and Y are both $5 and $2 respectively. If the price of Y rises to $5, how much income is needed to ensure the individual is as well-off as they were before the price change? a) $50 b) Between $...
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Given $z=\arctan \frac{y}{x}$, prove that $x \frac{\partial z}{\partial x}+y \frac{\partial z}{\partial y}=0$
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Lucas Company has the following information for the year ended 12/31/11, and 12/31/12: 12/31/12 12/31/11 Inventory $65,000 $57,000 Net Cash Flow from operating activities $83,000 $69,000 Net Cash Flow from investing activities $85,000 $65,000 Net Cash Flow from financing activities $68,000 $56,000 Calculate Free Ca...
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For this study, the set of 954 customers is a: A: Statistic B: Population C: Parameter D: Sample
B
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Suppose the Fed purchases a $100,000 government security from a bank when the required reserve ratio is 10 percent and there are no excess reserves in the banking system. As a result, the money supply can increase by: A. $1,000,000. B. $10,000. C. $100,000. D. $990,000. E. $1,010,000.
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What is the cash flow for year 1 for a company with EBIT of $100 million, depreciation expense of $25 million, and taxes of $35 million? The company increased its inventory by $15 million, while accounts payable and other current liabilities increased by $5 million and common stock decreased by $5 million. a. $55 mill...
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Peterson Inc. sells its product for $80. In the first month of operations, it had sales of $680,000. Manufacturing costs are as follows: Variable Fixed Direct material $280,000 - Direct labor 100,000 - Factory overhead 150,000 $125,000 Selling and administrative expenses are as follows: Variable Fixed 1/5 of sales - 35...
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Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 16,000 hours and the total estimated manufacturing overhead was $456,600. At the end of the year, actual direct labor-hours for the year were 13,200 hours and the actual manu...
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Today, you borrowed $20,000 on your credit card to buy some furniture. The interest rate is 24.78 percent compounded monthly. How long will it take you to pay off this loan if you are making monthly payments of $1,200? a. 1.78 years b. 2.09 years c. 3.03 years d. 8.73 years e. 11.77 years
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Using iterated integration, find the volume of tetrahedron bounded by the coordinate planes and the plane, 6x + 7y + z - 42 = 0.
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Suppose the yield on a two-year Treasury bond is 5.0%, the yield on a five-year Treasury bond is 6.0%, and the yield on a five-year corporate bond is 6.8%. The market expects that inflation will average 2.5% over the next 5 years (IP5 = 2.5%). Assume that there is no maturity risk premium (MRP = 0) and that the annual ...
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Consider a t distribution with 20 degrees of freedom. Find the value of c such that P(t ≤ c) = 0.01. Round your answer to at least three decimal places.
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Find the sample size, n, needed to estimate the percentage of adults who have consulted fortune tellers. Use a 0.03 margin of error, use a confidence level of 95%, and use results from a prior poll suggesting that 16% of adults have consulted fortune tellers.
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Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,300. The division sales for the year were $938,800 and the variable costs were $461,000. The fixed costs of the division were $504,000. If the backpack division is dropped, 40% of the fixed co...
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Which of the following statements are true for a monopolist? A. It can raise its price without losing any sales because it is the only supplier of a good for which there are no close substitutes for consumers. B. It can earn positive economic profit in the long run. C. It always charges a price that is lower than it...
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The Fratilo Co. had three operating segments with the following information: Pens Pencils Erasers Sales to outsiders $11,200 $5,600 $8,400 Intersegment revenues $840 $1,400 $1,960 In addition, revenues generated at corporate headquarters are $1,400. What is the minimum amount of revenue that each of these segments ...
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Which of the following is not correct? A. It is possible that a cost can be expensed even if its entire life extends beyond one period. B. It is possible that an expense be recognized even if the cost of the item purchased was spread over several periods. C. It is possible for the cash paid by a business during an a...
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Bill purchased a call option on European corn futures. The strike price was 650, the premium was 30, and the contract size is 5,000 bushels. The option expires in April and Bill closes his position in December. During the life of the option, the highest price of the corn futures was 685 and the lowest price was 620. If...
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Wolsey Industries Inc. has the following department wise information for June: Department Product (A) Product (B) Machine hours 3,000 2,000 Number of direct labour hours 600 400 Material X $10,000 $20,000 Material Y $20,000...
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A perfectly competitive market is one where: a. all firms have the same technology b. firms have no barriers to entry c. individual buyers and sellers have no market power d. firms cannot earn economic profit in the long run e. none of the above
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The comparative method can be used to estimate the effect of inflation on interest rates by comparing interest rates on domestic and foreign instruments. Suppose the interest rate on Polish zlotys is 11% versus the U.S. rate on dollars at 9%. If the expected appreciation of the zloty against the dollar is 1%, what does...
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Consider a monopolist who faces the following demand function: {eq}P=10-Q {/eq}. Which of the following statements is true about the elasticity of demand {eq}(\varepsilon) {/eq}? Hint: Note that {eq}\varepsilon = \left ( \frac{dQ}{Q} \right ) \left ( \frac{P}{dP} \right) {/eq} a. {eq}\varepsilon = 1+ \frac{10}{Q} ...
b
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Plasma is the liquid component of blood which carries red blood cells, white blood cells, and platelets. The typical mean density of human plasma is {eq}\displaystyle \rho_{plasma} = 1.025 \ \frac{g}{cm^3} {/eq} and the typical density of the whole blood is {eq}\displaystyle \rho_{blood} = 1.060 \ \frac{g}{cm^3} {/eq...
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Jester Corporation's most recent income statement appears below: Sales (all on account)$620,000 Cost of goods sold$350,000 Gross margin$270,000 Selling and administrative expense$170,000 Net operating income$100,000 Interest expense$20,000 Net income before taxes$80,000 Income taxes (30%)$24,000 Net income$56,000 The...
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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 1.15 and the beta of the portfolio is 1.65, what is the beta of the other?
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Houston Stokers can buy a new machine for $20,300, or lease it for $2,500 per year, payable at the beginning of each year. The machine has a 10-year life. The firm's cost of equity is 16 percent and its tax rate is 40 percent. The machine is eligible for 100 percent bonus depreciation. What is the difference between th...
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Which of the following statements about a 99% confidence interval is correct? Select all that apply. a) In repeated sampling, 99% of intervals constructed using this method would contain the population mean. b) In repeated sampling, 99% of sample means would be contained in the interval. c) 99% of the observations i...
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Comstat's contribution income statement utilizing variable costing appears below: Comstat Company Income Statement For the Year ended December 31, 2007 Sales ($28/unit) $840,000 Less variable costs: COGS 420,000 Selling & Admin 72,000 Contribution Margin 348,000 Fixed overhead 80,000 Fixed Selling & Admin 90,000 N...
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Assume that a U.S. company buys goods from a British company for 100,000 pounds when the exchange rate is $1.50 per pound. The payment for the goods is made one month later when the exchange rate is $1.60 per pound. This transaction caused a: a) $10,000 foreign exchange loss reported on the income statement. b) $10,0...
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Which of the following is not among the usual financial ratios used in evaluating the financial performance of an investment center: A) Return on investment B) Rate of return on capital C) Earnings before interest and taxes D) Economic value added
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The endocrine system is not affected by: A) any part of the nervous system. B) paracrine signaling. C) endocrine glands and hormones. D) neurosecretory cells.
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