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Company has an ROE of 18 percent and a payout ratio of 40 percent. What is its sustainable growth rate?
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Carter Co. owned 50% of Snider Corp. and 35% of Lande Corp. and Snider owned 25% of Lande. When Carter prepared consolidated financial statements, it should include: a. Snider but not Lande. b. Lande but not Snider. c. either Snider or Lande. d. Snider and Lande. e. neither Snider nor Lande.
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Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common...
E
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If the required return from an asset is 10%, and the asset has a 60% probability of yielding a 20% return and a 40% probability of earning a 5% return, you should: a) Not acquire the asset since the expected return of 32% exceeds the required return b) Purchase the asset since the expected return of 14% exceeds the r...
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A sample of 60 evening students reported the following average scores on the final examination in Principles of Economics, in the variable X, and their cumulative grade point average at the end of their freshman year in the variable Y: Var(X) = 25 Var(Y) = 25.25 Cov (X, Y) = 13.25 Estimate the expected scores on the ...
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Why is the current ratio not a perfect measure of liquidity? An alternative that is used is the quick ratio (acid-test ratio). How does the quick ratio differ from the current ratio? a) It uses net working capital instead of total assets. b) It uses cash, marketable securities, and receivables (net) instead of curren...
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Let {eq}g(x) = \int^{x}_0 \sin(2t^2)dt. {/eq} Use the fundamental theorem of calculus to evaluate g'(x) and g'(1).
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The forecasting method used to estimate the additional externally generated financing required to finance a firm's future growth. A. Financial planning B. Operating breakeven point C. Lumpy assets D. Spontaneously-generated funds E. Additional funds needed F. Operating leverage G. Sales forecast H. Projected ba...
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A company called Atlantic exists and has a current stock price of {eq}\$25 {/eq} per share. Suppose you have {eq}\$1,000 {/eq} to invest and consider these two possibilities; (1) use all {eq}\$1,000 {/eq} to buy shares in Atlantic long, or (2) use all {eq}\$1,000 {/eq} to buy call options on Atlantic with a strike ...
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The mean, median, and mode of three numbers are each equal to k. If none of the numbers is equal to k, what is the positive difference between the largest and smallest values of the three numbers?
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It is possible that when costs are increasing, the inventory method that will result in the highest gross profit figure is the a) LIFO method. b) FIFO method. c) average cost method. d) weighted average method. e) retail inventory method.
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Assume that individuals hold only demand deposits and no currency. The desired cash reserve ratio is 15 percent, and the desired excess reserve ratio is 5 percent. If the banking system does not hold excess reserves and the Fed purchases a $50,000 government security from a bank when the demand for currency increases b...
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How much will a person need to save each month in order to accumulate $5,500 in five years if they can earn 7% compounded monthly?
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A particular public good has the property that when its consumption increases from 50 units to 100 units a. both private and public provision will decrease. b. public provision will decrease and private provision will increase. c. private provision will decrease and public provision will increase. d. neither privat...
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Calculate the flux of the vector field F(x,y,z) = 3i+4j+8k through a square of side length 5 lying in the plane 2x+2y+4z=1 oriented from the origin.
575\sqrt{6}/6
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Where does the product rule of differentiation, $\frac{d}{dx}\left(f(x)g(x)\right) = \frac{df}{dx} g + f \frac{dg}{dx}$ come from? How do we derive it?
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Galindo Company uses a periodic inventory system and the average cost retail method. Information for 2012 is as follows: Purchases $610,000 Freight-in $40,000 Markups $50,000 Markups (perishable) $10,000 Sales $730,000 Estimated inventory (at retail) at 12/31/12 $144,000 Calculate the ending inventory at cost fo...
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Suppose that Beta Stock has an expected return of 12% and a beta of 1.25, whereas Delta Stock has an expected return of 16% and a beta of 1.50. Assuming that these stocks are in equilibrium, which of the following statements is correct? Select one: a. The expected return for a stock with a beta of .5 must be less tha...
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Private investment during a year includes: a. spending on plant and equipment plus capital formation b. spending on plant and equipment plus government spending plus household spending on stocks and bonds c. the value of inventories plus the values of stocks and bonds d. spending on plant and equipment, new housing...
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Consider a Poisson distribution with {eq}\lambda{/eq} = 4.0. Find P(X = 2).
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Suppose that there is only one firm that produces a certain good and that there are two different types of people A and B. People A and people B value that good differently. The demand of people A is P = 60 - Q. The demand of people B is P = 40 - Q. The firm can either charge the same price in both markets or set diffe...
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Evaluate the limit: \(\displaystyle\lim_{(x,y)\to(0,0)} \frac{x^2y}{x^4+y^2}\)
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Which of these statements regarding DNA repair is true? A. All DNA polymerases have 3' to 5' exonuclease activity for proofreading B. The accumulation of mutations generally increases fitness C. There exist different species of DNA glycosylase which can each recognize specific mismatched pairs D. Cytosine can be co...
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What is the probability that the mean time of the sample is between 57 and 63 minutes, given that an airline knows that the standard deviation for wait times at the security checkpoint is 6 minutes and wait times are normally distributed, and the sample size is 50 passengers?
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Let $p(x)$ be an irreducible monic polynomial over a field $K$ such that $[K[x]/(p(x)):K]=n$. Let $L=K[x]/(p(x))$. Let $y$ be a root of $p(x)$ in an algebraic closure of $K$. Prove that $$[K(y):K]=\text{gcd}(\text{ord}(y),n)$$
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I can't understand the last step of solving the equation $(\sqrt 2-1)x=0$. How do they get $(\sqrt 2+1)x=2$?
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Which of the following options is correct? An open market operation decreases the money supply when the Federal Reserve a. sells bonds to banks, which increases bank reserves. b. buys bonds from banks, which increases bank reserves. c. buys bonds from banks, which decreases bank reserves.
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Find the accumulated value of an investment for which there is a perpetual continuous money flow of $4000 per year at an interest rate of 5%, compounded continuously.
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Find the limit (if it exists). Use a graphing utility to verify your result graphically. {eq}\lim\limits_{\theta \rightarrow 0} \ 2\theta\text{ csc } \theta{/eq}
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How much will you have in your retirement fund after 20 years (at age 65) if you start at age 45, save $2,000/year, earn 10% on your investments, and increase your savings by 3% annually?
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Use the limit definition of an infinite series to show that the geometric series \(\sum_{n=1}^\infty 2(\frac{4}{3})^{n-1}\) diverges.
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Toyota customers have a wide range of preferences. Some prefer the fuel economy of a hybrid (Prius), some prefer a family van (Odyssey), and others may prefer a large SUV (Highlander). This is an example of _____. a. horizontal differentiation b. segmentation c. vertical differentiation d. mass customization e. di...
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Let $x$, $y$, $z$ be complex numbers with the properties $|x|=|y|=|z|=1$ and $x^3+y^3+z^3=-xyz$. How many values can $|x+y+z|$ take? What is the greatest value of $|x+y+z|$?
2
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If a firm maintains an underwriting arrangement for the sale of equity securities, under what circumstances might it be considered a best efforts underwriting? A) when the firm's stock is performing well B) when the firm's management is generally well regarded C) when the firm is issuing a large number of shares D)...
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Neptune Pool Company is involved in a number of competitive bidding situations. The following costs are anticipated for a project to be bid for Trimex Manufacturing: Direct materials used, $680,000. Direct labor, $2,450,000. Allocated variable overhead, $570,000. Allocated fixed cost, $230,000. Which of these cost...
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On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 31,000 units were started. At the end of the month all started units were 75% complete with resp...
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A producer who uses a cost-based transfer price to charge a division manager for intermediate products or services might: A. encourage the division manager to minimize the demand for intermediate products and services B. encourage the division manager to maximize the demand for intermediate products and services C. ...
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Which of the following is the most liquid asset? a. a checking account b. a saving account c. a time deposit d. shares of common stock
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Let {eq}X_1, X_2, \dots , X_{100}{/eq} are iid random variables with common mean 50,000 and common variance 40,000. Find the probability {eq}P (X_1 + X_2 + \dots + X_{100}/100 \leq 50, 050).{/eq}
0.9938
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At December 31, 2008, the Vardeman Co. has a $100,000, 120-day note payable outstanding. The company has followed the policy of replacing the note rather than repaying it over the last three years. The company's treasurer says that this policy is expected to continue indefinitely, and the arrangement is acceptable to t...
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Which of the following is true? a. The income statement is a sub-set of the cash flow statement b. The income statement is the statement of financial position of a business c. The income statement is a summary of a business' financial activities for a given period of time d. The income statement is a comparison bet...
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If other things are the same, countries that save more will have A. lower interest rates and higher investment. B. lower interest rates and lower investment. C. higher interest rates and higher investment. D. higher interest rates and lower investment.
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What amount must be invested now, at 10.5% interest, to produce income of $12,000 per year forever?
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The following data are extracted from the equity section of the balance sheet of Ebbs Corporation: Dec. 31, Yr 6 Dec. 31, Yr 7 Common stock ($2 par value) $100,000 $102,000 Paid-in capital in excess of par 50,000 58,000 Retained earnings 100,000 104,600 During Yr 7, the corporation declared and paid cash dividends o...
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Wayne Company issued $20,000 of callable bonds at face value on January 1, 2013. The bonds carried a 2% call premium. If Wayne calls the bonds, this event would A. decrease equity by $400. B. decrease liabilities by $20,000. C. decrease assets by $20,400. D. all of these.
D
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Monetary policy has a _____ effect on aggregate demand in a(n) _____ economy, and fiscal policy has a _____ effect on aggregate demand in a(n) _____ economy. a. weaker; open; weaker; open b. weaker; closed; weaker; closed c. stronger; closed; weaker; open d. stronger; open; weaker; open
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The monthly mortgage payment, in dollars, for a family that borrowed $150,000 at 7{eq}\frac{1}{2}{/eq}% compounded monthly, is given by the formula {eq}y = \displaystyle\frac{2,496.98}{1 - \displaystyle\frac{1}{(1 + \displaystyle\frac{0.075}{12})^{12t}}} {/eq} where t is the number of years since the family obta...
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To reduce the inventory on hand to $1000, the cost of completed goods available for sale, must be: a. Less than $1000. b. Greater than $1000. c. Equal to $1000. d. None of these answers is correct.
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Consider an economy with a government deficit, domestic investment, private saving, and international trade. A devaluation of the country's currency will: a) increase the current account balance. b) decrease private saving in the long run. c) decrease domestic investment in the long run. d) decrease the government ...
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The forces of competition in markets with free entry and exit tend to eliminate wage differentials that arise from discrimination by: a) employers. b) customers. c) government. d) all of the above.
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A company wants to determine its reorder point (R). Demand is variable and they want to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days, the desired z value is 1.96, and the standard deviation of usage during lead time is 3, what is the desired value of R?
65.88
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A project with a 4-year life has an initial cost of $1,800,000 and a profitability index of 0.20. If the discount rate is 8 percent, what is the net present value of the project?
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Molten metal is poured into a casting cavity of width w = 3 in. and length L = 8 in. (perpendicular to the paper). The metal has a density of 0.26 lb/in.3 and a viscosity of 0.012 lb{s/in}.2. What is the minimum time required to fill the cavity if the entrance velocity is to be no greater than 5 in/s? Assume steady, fu...
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A 3-year Treasury security currently earns 3.85%. Over the next 3 years, the real interest rate is expected to be 2.17% per year, and the inflation premium is expected to be 0.73% per year. Required: What is the maturity risk premium on the 3-year Treasury security?
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After a large balloon burst loudly and suddenly at her birthday party, Cindy showed fear of balloons. In terms of the acquisition phase of classical conditioning, the balloon is the _____, and her fear is the _____. a. CS; US b. US; UR c. CS; CR d. CR; CS
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For which values of k does the series $\displaystyle \sum_{n=1}^{\infty}\frac{1}{n}(\frac{4}{3})^{n}(\zeta_{n}(k)-1)$ converge?
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Heath Foods's bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest annually and have a 12% coupon rate. What is their current yield?
9.93%
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Given the following information for the stock of Foster Company, calculate its required rate of return. Current price per share of common: $50.00 Expected dividend per share next year: $3.00 Constant annual dividend growth rate: 9% Risk-free rate of return: 7% Return on market portfolio: 10%
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Suppose the chance of damage to your property from a fire is 1% and the cost to replace it would be $200,000. Assuming you would be indifferent between insurance and your own funds, what is the most you would pay for insurance?
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Find the volume of the parallelepiped determined by the vectors {eq}a, \; b, {/eq} and {eq}c {/eq}. {eq}a = \left \langle 1, 2, 2 \right \rangle, \; b = \left \langle -1, 1, 2 \right \rangle, \; c = \left \langle 3, 1, 4 \right \rangle {/eq}
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Which of the following is included in the pro forma balance sheet? a. change in cash b. sales forecast c. cash disbursements d. financing required
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If there is a return to scale in production and all factors of production are increased by 50%, then output will: a. increase, but by less than 50%. b. increase by 50%. c. increase by more than 50%. d. increase by exactly the average of the increases in each of the inputs. e. remain constant.
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How will increases in the following items affect return on investment (ROI)? Expenses - Inventory a. decrease - decrease b. decrease - increase c. increase - decrease d. increase - increase
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The difference between the selling price and the cost to acquire the item sold is known as a _____. A. contribution margin B. deferral margin C. realized margin D. profit margin E. markup margin
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Consider a coupon bond that pays annual interest, has a par value of $1,000, matures in five years, and is selling for $785. Calculate the annual interest rate implicit in this bond's price, that is, its yield to maturity.
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Which of the following creates the trade-off depicted by the Phillips curve? A. A rightward shift in the aggregate supply curve B. An increase in input costs that corresponds with an increase in unemployment C. An increase in output that corresponds with a decrease in the price level D. A leftward shift in the aggr...
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During an analysis of the Cash Flows from Financing Activities section of U.S. Robotics Inc.'s statement of cash flows, you notice that the amount of cash paid to bondholders was more than the amount of interest actually earned by the company. Which one of the following actions must have occurred to create this situati...
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Which of the following are associated with a restrictive short-term financial policy? I. large investments in marketable securities II. liberal credit terms for customers III. minimal cash balances IV. minimal credit sales A. I and III only B. II and IV only C. III and IV only D. I, II and III only
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How many zeros does the function $f(z)=z^3+z^2+4z+1$ have in the first quadrant?
0
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Imperial Petroleum bought a lease on oil rights for $650,000. The lease was valid for 15 years, and the company paid $75,000 for its acquisition. During 2012, it incurred expenses of $30,000 in connection with the lease. Which of the following would be the ending balance of the asset for 2012? a. $100,000 b. $325,00...
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The risk-free rate is 3.5 percent, and the market risk premium is 7 percent. Assume that the beta of a company is a constant 1.5. What is the cost of equity capital for a project?
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Consider a sequence of 4 vaults labelled as E = {1, 2, 3, 4}. A thief's location is modeled by a homogeneous Markov chain $(X_n)_{n∈{0,1,2,... }}$. The transition probabilities are: from vault 1 to 2 with probability 1; from vault 4 the thief stays in vault 4; from vaults 2 or 3, the thief goes left with probability 1/...
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Marshall, Inc., leased equipment to Gadsby Company on January 1, 2014. The lease is for a five-year period ending January 1, 2019. The first equal annual payment of $1,200,000 was made on January 1, 2014. The cash selling price of the equipment is $5,174,552, which is equal to the present value of the lease payments at...
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The Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $140,000. The project will produce 1,050 cases of mineral water per year indefinitely. The current sales price is $159 per case, and the current cost per case is $120. The firm is taxed at a rate of 36%....
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We wish to prove that $$I=\int_{0}^{\infty}e^{-2x}\ln\left({1+e^{-x}\over 1-e^{-x}}\right)dx=\color{red}{1}\tag1$$ Anyone with an interesting method to prove (1)?
1
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Which of the following situations would cause variable-costing income to be higher than absorption-costing income? a. Units sold equaled {eq}39,000 {/eq} and units produced equaled {eq}42,000 {/eq}. b. Units sold and units produced were both {eq}42,000 {/eq}. c. Units sold equaled {eq}55,000 {/eq} and units prod...
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What is the unit of the ratio 2.5e-5 * 1200/0.05? The answer given is in kg. Is it possible to get to this answer by forming a ratio?
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The variable overhead efficiency variance is the result of a. actual hours used at the standard rate. b. a difference between the actual hours and standard hours. c. differences in actual and standard overhead rates. d. actual overhead costs not being paid.
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Which of the following choices is correct? A) Due to price discrimination a monopolist can make higher profits than it could under perfect competition. B) First-degree price discrimination (PD) implies that the seller charges a price equal to the consumer's maximum willingness to pay for each unit consumed. C) A pur...
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If a bank receives a deposit of $50,000, and the legal reserve requirement is 20 percent, then the money supply a. decreases by $20,000 b. increases by $100,000 c. increases by $200,000 d. remains unchanged
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How to show the existence of the limit $\exp(-x) \rightarrow 0 $ for $x \rightarrow \infty$ just by having the pure series definition of the exponential function?
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A waterbed with dimensions of 1.4 meters by 1.7 meters by 0.23 meters is filled with water to 23 cm below the top of the bed. What is the mass of the water in the waterbed (in kg)? [mass density of water is 1000 kg/m^3]
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Which of the following items is not an example of other revenue and expenses? a) the loss on the disposal of a significant line of business b) a loss on the sale of equipment c) an uninsured loss due to a flood d) a loss due to the write-down of inventory
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For which combination of the signs on X and Y is the correlation coefficient most likely to be zero? a. Both X and Y have positive signs. b. X has a positive sign and Y has a negative sign. c. X and Y both have no sign. d. X has a negative sign and Y has a positive sign.
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Mace Company had a balance in its inventory account of $50,000 on January 1. During the year, the company made purchases of $200,000 and had sales of $230,000. A physical count of inventory on December 31 revealed that there was $42,000 of inventory on hand. Assume that no inventory shortages or overages have been iden...
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Which of the following statements is true regarding equity theory? A. Equity theory is an example of a normative theory. B. When a person perceives the ratio of their inputs to outcomes to be favorable, they are more likely to be satisfied and may even outperform expectations. C. Equity theory focuses on employees' ...
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The slope of the flexible budget line is the: a. selling price per unit b. variable cost per unit c. fixed cost per unit d. contribution margin per unit e. operating profit per unit
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Capital Budgeting Choices: Business Location Capital Investment Cost in $ Cumulative Investment Costs Net Present Value 1 25,000 25,000 27,500 2 28,500 53,500 35,000 3 32,500 86,000 35,000 4 ...
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Which is the best definition of coordination: a) Co-ordination is the process of influencing the activities and decision making of people in the organization b) Co-ordination relates to providing a sense of unity and stability in the organization c) Co-ordination is the process of integrating the activities of diffe...
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The following values are from a table of random digits. Select one row and then three columns (so you have three values) and determine the sample standard deviation of those values. Determine the sample standard deviation of the values 493; 776; 999 a) 200.2 b) 232.1 c) 172.2 d) 199.9
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Company A has a beta of 1.4, and an expected return of 12%. If the market return is expected to be 10%, what is the risk-free rate? a. 4% b. 2% c. 8% d. 0.5% e. 5%
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I'm trying to integrate $\frac{e^{\frac{1}{\sqrt{x}}}}{x^2}$ with substitution. I went with $u = \frac{1}{\sqrt{x}}$ so $du = \frac{-1}{2\sqrt{x^3}} dx$. Then I ended up with $\frac{-2e^u}{u^3} du$. What am I doing wrong?
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Which of the following events would cause a movement along the short-run aggregate supply curve? A. An increase in net exports B. Expectations that the price level will increase in the future C. An increase in the capital stock D. A decrease in the price level
D
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Uchida's optical imaging research showed that as the length of the carbon chain increases, the area of activation is _____. a. ​randomly distributed across the glomeruli b. ​located more to the right c. ​more centrally located d. ​located more to the left
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How can I determine the pointwise limit of the function sequence $$f_n(x)=\left(1+\frac{x}{n}\right)^n$$ defined on $\mathbb{R}$? I know that for $x=0$, the limit is 1, and I am looking for a hint to proceed.
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A store manager wants to know the demand for a new type of T-shirt. She sets up a kiosk in the mall. This type of data collection is called: a. a structured questionnaire. b. a global market assessment. c. secondary data. d. the V-shaped model. e. a sample survey.
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Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started, completed, and sold only two Jobs during March-Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all direct materials are added at the beginning o...
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How does the separation of ownership and management in large, diversified firms help to reduce agency problems? Why might this separation still result in some amount of agency conflict?
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A discount factor A- is the reverse of compounding future cash flows B- performs the reverse function of discounting interest rate C - All of the above D - None of the above
A
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The common stock of Flavorful Teas has an expected return of 16.6 percent, while the risk-free rate is 5 percent and the expected return on the market is 11 percent. What is the beta of this stock?
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