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Market value adds for a firm: A. equals the benefits to society created by the firm less the costs of that activity. B. is a long-term measure. C. is a short-term measure. D. is the same as economic value added.
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In a study of 420,019 cell phone users, 130 subjects developed cancer of the brain or nervous system. Test the claim of a somewhat common belief that such cancers are not affected by cell phone use. That is, test the claim that the rate of such cancer among users of cell phones is the same as that among those not using...
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Gruden Company produces golf discs which it normally sells to retailers for $6.87 each. The cost of manufacturing 18,500 golf discs is: Materials $9,250, Labor 28,305, Variable overhead 18,500, Fixed overhead 44,800, for a Total of $92,500. Gruden also incurs 6% sales commission ($0.41) on each disc sold. McGee Corpor...
$6,047
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Two surfaces are held fixed in a rigid orientation, and the only thing that can move is the magnetic field inside. The surfaces have a common boundary, which we call the aperture, and we use the symbol {eq}I_{aperture} {/eq} for the line integral of the magnetic field around the aperture. The surfaces have a common ar...
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You receive a loan for $10,000.00 with 5.5% interest. The terms of the loan state that you must pay the interest each quarter, and at the end of the 4th quarter, you must repay the $10,000.00. How much will your quarterly interest payments be?
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Why does $$\int_{-\infty}^{\infty}\left[\int_0^{2\pi} cos(3t)e^{int} dt\right]e^{-inx}dx =0$$ $$\int_{-\infty}^{\infty}\left[\int_0^{2\pi} cos(3t)e^{int} dt\right]e^{inx}dx =2\pi\delta_{n,3}$$
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An investor currently holds the following portfolio: Amount Invested 8,000 shares of Stock A $16,000 Beta = 1.3 15,000 shares of Stock B $48,000 Beta = 1.8 25,000 shares of Stock C $96,000 Beta = 2.2 The investor is worried that the beta of his portfolio is too high, so he wants to sell some stock C and add stoc...
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The market for shares sold outside the boundaries of the issuing company's home country is the: a) Eurocurrency market. b) international bond market. c) international equity market. d) Euroequity market.
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Twelve, Inc., is considering opening up a new convenience store in downtown New York City. The expected annual revenue at the new store is $600,000. To estimate the increase in working capital, analysts estimate the ratio of cash and cash-equivalents to revenue to be 0.03 and the ratios of receivables, inventories, and...
$84,000
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Choose the internal control procedure to the error, misstatement, or other problem that it is trying to detect or prevent. Use of prenumbered checks. A. The separation of duties is meant to safeguard assets. B. Prevention of unauthorized use. C. Ensures payment for goods or services actually received. D. Ensures t...
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$f(x,y)=\arctan(\frac{x}{y})$. Calculate $\frac{\partial f}{\partial x}$ and $\frac{\partial f}{\partial y}$. Find the largest domain in which f is differentiable.
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A particular fruit's weights are normally distributed, with a mean of 152 grams and a standard deviation of 20 grams. If you pick 25 fruits at random, what is the probability that their mean weight will be between 144 grams and 154 grams.
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In the recent financial statements, which of the following is the correct sequence of income statement items? A. Gross Profit, Net Sales, Cost of Goods Sold, Income from Operations. B. Cost of Goods Sold, Gross Profit, Net Sales, Income from Operations. C. Net Sales, Cost of Goods Sold, Gross Profit, Income from Ope...
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A medical researcher wants to determine, if the average hospital stay after a certain procedure is less than 13.96 days. The hypotheses for this scenario are as follows: Null Hypothesis: mu is greater than or equal to 13.96 Alternative Hypothesis: mu < 13.96 If the researcher randomly samples 23 patients that underw...
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In Millikan's experiment, an oil drop of radius 1.64 {eq}\mu {/eq}m and density 0.851 g/cm{eq}^{3} {/eq} is suspended in a chamber when a downward-pointing electric field of {eq}1.92 \times 10^5 \ N/C {/eq} is applied. Find the charge on the drop, in terms of e.
5e
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What is the tax shield for a firm with $20 million in interest expense and a tax rate of 38%?
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A citator will not indicate that the validity of a revenue ruling has been impacted by which of the following: a. Issuance of a later revenue ruling modifying the revenue ruling. b. Issuance of a later revenue ruling superseding the revenue ruling c. Decision by a court questioning or invalidating the authoritative ...
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A sample of a weak acid was analyzed by measuring the volume of base required to titrate the acid to the equivalence point. The same acid was then analyzed by the method of direct titration (to the phenolphthalein end point). The initial burette reading was adjusted to zero, and the titration was started directly with ...
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A tire company claims that the life of its tires has a normal distribution with a mean of 52,000 miles and a standard deviation of 14,000 miles. Find the probability that the life of a randomly selected tire will be at least 63,000 miles, given that the average life of the tires is less than 50,000 miles.
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If only fixed costs are included in opportunity cost, then which of the following would be true? a. Profit will equal zero at the quantity where marginal cost equals price. b. Profit will be negative when marginal cost exceeds price. c. Total revenue will equal total variable cost at the quantity where marginal cost...
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Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $560,000 and have traceable fixed operating costs of $570, 000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $...
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The population of nontraditional students (aged 25 or older) at a university has a mean GPA of 3.5 with a standard deviation of 0.4. What is the probability that the mean GPA of a sample of 40 nontraditional students is less than 3.35?
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If P(B | A) = 0.25 and P(A and B) = 0.15, then what is P(A)?
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For a perfectly competitive firm, a. the short-run supply curve is the portion of the marginal cost curve that lies above the short-run average variable cost curve. b. the short-run supply curve is the portion of the marginal cost curve that lies below the short-run average variable cost curve. c. the short-run supp...
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A cone with height h = 8 ft and base radius r = 4 ft is full of water. Find the work required to pump half the water out of the cone.
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The quantity of labor supplied is: a. generally unrelated to the wage rate. b. inversely related to the wage rate. c. unaffected by changes in the wage rate. d. directly related to the wage rate.
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Find the linear equation of the plane through the point (-4, 2, 5) and perpendicular to the line represented by the vector equation {eq}r(t) = \left \langle 1 + 2t, - 4 - t, 6 + 2t \right \rangle.
2x-y+2z=0
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A firm has the following cost structure: Total fixed costs $200,000 Total variable costs $5,000 at 1 unit; $15,000 at 2 units; $25,000 at 3 units Find the average total cost (ATC) and average variable cost (AVC) when the firm produces 2 units.
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What is the maximum value of the function f(x, y) = x^2 - 2y^2 on the triangle with vertices at (0, 0), (3, 0) and (3, 4)?
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Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive payments of $10,000 a year forever, starting when he retires. If he can earn 6.5% annually, how much does your grandfather need to invest to produce the desired cash flow?
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Use the conclusion of the integral test to determine whether the series converges or diverges. {eq}\displaystyle \sum_{n=1}^{\infty} \frac{2n}{(n^2+1)^2} {/eq}
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How can I evaluate $\sinh{(i \pi/2)}$ using the power series definition $\sinh{(z)} = \sum_{n=0}^\infty \frac{z^{2n+1}}{(2n+1)!}$?
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Why might "switching costs" be an entry barrier that leads to market power? a. When consumers are devoted to their brand, they do not accept price increases for it. b. Consumers lock in a low price which prevents new competition. c. Consumers bear additional costs in switching to a higher-priced brand. d. Consumers...
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Bridges Corporation's income before income taxes was $50,000 in 2010. Included in income before income taxes is a $20,000 installment sale of merchandise that will be paid in equal annual installments of $5,000 beginning in 2011. The proper tax treatment of this transaction is to include $5,000 of the installment sale ...
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Paycheck, Inc., has a market-to-book ratio of 2.9. The company's net income is $4.12 million, and the company has 3.1 million shares of stock outstanding. The company's earnings per share is $1.38. If the benchmark PE is 12, what is the target stock price in one year?
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The stock price of Classic Industries is $60.26, and the expected dividend at the end of the year is $1.67. If the expected growth rate for the stock is 5%, then what is the expected return for the stock?
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A bank can generate excess reserves if: A. The excess reserve ratio is greater than zero. B. The required reserve ratio is less than zero. C. The required reserve ratio is less than the actual reserve ratio. D. The required reserve ratio is greater than the actual reserve ratio.
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What is the total cost of producing 10 pairs of shoes under the given cost function C(x) = 10,000 + 5x?
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XYZ Company leased equipment to West Corporation under a lease agreement that qualifies as a finance lease to West but not as a result of a bargain purchase option or a title transfer. The present value of the lease payments is $740,000. The expected economic life of the asset is seven years. The lease term is five yea...
$148,000
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Company uses the periodic inventory system and reports the following information for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 200 $3 12 Purchase 360 $5 23 Purchase 74 $7 30 Inventory 124 Using the weighted average method, what is the amount allocated to t...
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Let {eq}Z_1,...,Z_n {/eq} be independent and identically distributed random variables with distribution {eq}N(0,1) {/eq}. Then prove that {eq}\frac{\sum_{i = 1}^n Z_i^2}{n} {/eq} converges in probability to 1.
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The last-in, first-out (LIFO) inventory method generally results in a higher net income in periods of falling prices. A. True B. False
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If you were to perform a chi-squared test on this data, what would be the expected count in the normal/developed cell?
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Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method to account for units and costs. Its work in process T-account for the Mixing Department for Jun...
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The following information is available for the month of October from the First department of the Vaughn Corporation: Units Work in process, October 1 (40% complete) 7,500 Started in October 32,000 Transferred to Second Department in October 33,000 Work in process, October 31 (80% complete) 6,500 Materials ar...
38,200
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Consider a firm with EBIT of $150,000 and a corporate tax rate of 20%, using the presented formula calculate the firm's cost of equity when the debt-equity ratio is 0%.
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Universal Manufacturing Company uses a departmental overhead rate based on machine hours to allocate manufacturing overhead to its three departments. Which of the following statements are true? I. Universal Manufacturing Company uses a simple costing system and an arbitrary allocation base to allocate overhead cost to...
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How to solve complex integral $\int_\gamma \frac{1}{z^2-2z} dz$ with $\gamma (t)= e^{it}$ $\ 0<t<2\pi$?
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Consider the case where X is the amount of money Jane receives from her job. Let Y denote the number of months it will take for Jane to get fired. Assume that Y is uniformly distributed on the interval [0,1] and that X and Y are independent. Jane's utility function for her wealth is u(W)=W, where W is the amount of mon...
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A firm selects 200 expense reports at random to audit. What is the probability that more than 40 of these 200 sampled reports will be incorrect when, in fact, only 10% of the firm's reports are improperly documented?
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The Balfour Company issues $100,000, 10% bonds at 106 on September 1, 2016. The bonds are dated January 1, 2016 and mature ten years from that date. Straight-line amortization is used. Interest is paid annually each December 31. Compute the bond carrying value as of December 31, 2022.
101800
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Using Green's Theorem, calculate $\oint _{c}F\cdot dr$ if F=$\left\langle x^2+y^2,-2xy \right\rangle$, and C is the triangle with vertices $(0,0),(1,0),(1,2)$. I computed the curl of F to be 4 and the area of the region to be 1, so the result should be 4. However, my parameterization of C as $r(t)=\left\langle t,2t \ri...
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If {eq}r \enspace and \enspace s {/eq} are independent random variables, then a. the variance of {eq}r + s {/eq} equals the variance of {eq}r {/eq} minus the variance of {eq}s {/eq}. b. the variance of {eq}r + s {/eq} equals the variance of {eq}r {/eq} times the variance of {eq}s {/eq}. c. the variance of {eq...
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All else equal, a project's NPV increases when there is a(n): a. decrease in the total amount of capital invested b. decrease in the discount rate c. increase in the initial cash flow d. increase in the time it takes to recover the initial investment e. increase in the required rate of return
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The step-down method of allocating service costs: A. Is the simplest method all allocating service costs. B. Ignores the fact that the service department may offer services to other service departments. C. Allocated first to the other services department and then the operating department.
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You are the financial manager for a company that makes organic fertilizer, The revenue side of the firm has been relatively constant, with sales flat at $100 million per year, but expenses have been increasing. Operating expenses have increased from $75 million to $100 million and cash expenses have increased from $12 ...
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The Leon Company had the following budgeted sales for the first half of the current year: Cash Credit Jan. $70,000 $340,000 Feb.$50,000 $190,000 Mar. $40,000 $135,000 Apr. $35,000 $120,000 May $45,000 $160,000 Jun. $40,000 $140,000 The company is in the process of preparing a cash budget and must determine th...
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Consider the following production function: {eq}F(K, L) = K^{0.4}L^{0.8} {/eq} Does this function have decreasing, constant, or increasing returns to scale? Justify your answer. a) Increasing returns to scale, because {eq}0.4 + 0.8 = 1.2 {/eq} b) Decreasing returns to scale, because {eq}0.4 + 0.8 = 1.2 {/eq} c) ...
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Variable x1, in the optimal solution for the following linear programming problem, is found to be 40 units. The sensitivity range for this variable's coefficient is 0 to 2. If the coefficient of this variable increases by 25% to 80, what will happen? Min: 40x1 + 30x2 st: 2x1 + 2x2 >= 100 3x1 + 4x2 >= 150 x1, x2 > ...
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MNO has a capital structure, based on current market values, that consists of 30% debt and 70% equity. If the return on equity for MNO is 15%, and the return on debt is 7.5%, what is the company's weighted average cost of capital if the corporate tax rate is 35%? Select one: a. 13.06% b. 11.25% c. 9.4% d. 16.83%
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Bonds Payable ..............................250,000 Discount on Bonds Payable..... 18,750 Cash ..................................................... 225,000 Gain on Bond Retirement ............ 12,500 What is the stated interest rate on the bonds? A. 8%. B. 6%. C. 9%. D. 5%.
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I am a {eq}401(k) {/eq} shareholder with a {eq}15\% {/eq} required return. If the {eq}401(k) {/eq} plan has {eq}\$300 {/eq} in annual operating expenses and this amount is tax-deductible, what is my after-tax return? a. {eq}11.50\% {/eq} b. {eq}12.50\% {/eq} c. {eq}13.50\% {/eq} d. {eq}14.50\% {/eq} e. {eq...
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Jekyll Company collected $500 on account. What impact will this transaction have on the firm's current ratio? a) Not enough information is provided to answer the question. b) Increase it. c) Decrease it. d) No impact.
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When analyzing a company's ability to meet its long-term debt, which of the following would be the most useful? a) Debt Service Coverage ratio b) Working Capital c) Cash Flow d) Current Ratio e) Return on Assets
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Peachtree Company uses a periodic inventory system and has the following data available from inventory, purchases, and sales for the month of January. Units Unit Cost Total Cost Inventory on January 1 50 $18 $900 Purchase on January 8 210 20 4,200 Purchase on January 21 80 24 1,920 Sale on January 10 140 32 Sale o...
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Jester's R' Us Inc., a publically traded company, has assets on its balance sheet of $113.21 million and liabilities of $74.05 million. The firm also has 3.4 million common shares that are currently trading for $19.63 per share. Estimate the firm's market-to-book ratio.
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You are considering investing in one of two well-diversified portfolios. Portfolio A has an expected return of 14% and a beta of 1.20, while Portfolio B has an expected return of 9% and a beta of 0.65. Assuming you are a rational risk-averse investor and the risk-free rate is 4%, which of the two portfolios should you ...
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Which one of the following statements is correct concerning the dividend yield on a stock? a. The dividend yield on a stock is generally the same as the dividend discount model rate of return. b. The dividend yield on a stock is the annual dividend divided by the par value of one share. c. The dividend yield on a st...
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A merchandising company has beginning inventory of 50 units with a total cost of $500. The following transactions take place 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 ...
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Integrate the function f(x,y) = x + y over the curve C: x^2 + y^2 = 25 in the first quadrant from (5,0) to (0,5).
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Suppose the market demand curve for a good is given by {eq}Q_D = 100 - 2P {/eq} and the market supply curve is given by {eq}Q_S = 2P {/eq}. In addition to market supply and demand, this market also faces an external supply curve given by {eq}Q_S = 50 + \dfrac 12 P {/eq}. What is the equilibrium price in a perfectly ...
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Which of the following statements is false? A. The union-as-protective-threat view holds that labor unions have a negative impact on productivity and efficiency. B. The traditional view of the labor union is that the union acts as a collective voice for workers and probably leads to lower quit rates (among employees)...
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Fresh Dairy, Inc., is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested. Gelato is not notified of Fresh Dairy's performance within a reasonable time. Gelato A. must assume that Fresh Dairy has started to perform B. must c...
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Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an 11 percent return and can be financed at 6 percent with debt. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a 15 percent return but would cost 17 percent to finance through common equity....
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How do I calculate the expected value of the benefit of the Savage Attacker feat in Baldur's Gate, given a 1d10 damage die: $$E[|A_1-A_2|]$$ where A1 and A2 are independent rolls from a discrete uniform distribution U(1,10), and Savage Attacker lets you reroll an attack and choose the better of the two attacks?
3.3
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Which of the following is not among the criteria for classifying a lease as a capital lease? A. The agreement specifies that ownership of the asset transfers to the lessee. B. The agreement contains a bargain purchase option. C. The noncancelable lease term is equal to 90% or more of the expected economic life of th...
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Calculate {eq}\int\int_{D}(4x - 2y)dxdy {/eq} where D is the region between the lines {eq}y = x, \enspace y = 4x {/eq} and the parabola {eq}y = x + 2y - 5 {/eq} (y-axis is the vertical axis).
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A firm's current assets equal $500,000, its fixed assets equal $200,000, its current liabilities equal $250,000, and its long-term liabilities equal $500,000. The firm has $125,000 in equity. What is the amount of the firm's total debt?
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Zellars, Inc.'s most recent balance sheet and income statement are given below: Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $370 $340 Accounts receivable 420 400 Inventory 250 280 Prepaid expenses 20 20 Total current assets $1...
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A stock just paid a dividend of $1.50, has a beta of 1.6, and a P/E ratio of 19. The risk-free rate is 2.25% and the market risk premium is 6%. The expected inflation rate is 2.25%. What is the expected return on this stock?
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$$\lim_{n\rightarrow\infty}\int_0^1 \int_0^1 \cdots\int_0^1 {n \over x_1+x_2+\cdots+x_n} \, dx_1 \, dx_2 \cdots dx_n$$
2
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Assume the population in a certain country is $10$ million, and the number of fatalities due to automobile accidents in a single year is $3000$. Suppose an insurance company collects data on $5$ thousand accidents in this country and computes an average of $2$ fatalities per accident. What is the probability that the i...
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Suppose you know {eq}\displaystyle \sum^{45}_{x=0} f(x) = 160 {/eq}. What is the value of {eq}\displaystyle \sum^{9}_{x=0}f(5x) {/eq} assuming {eq}\displaystyle f(5n) = f(n) {/eq} for all {eq}\displaystyle n \geq 0 {/eq}?
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Stock A has a beta of 1.6, while stock B has a beta of 0.9. It is possible that: A. Stock A has more total risk than stock B. B. Stock A has higher expected return than stock B. C. Stock B would be a better addition to a portfolio than stock A. D. All of these choices are possible.
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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) More centrally located c) Located more to the left d) Located more to the right
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Drugs R Us is a seasonal company with the following information given. Cash Sales: 40% of Sales = $1,600,000 Credit Sales: 60% of Sales = $2,400,000 Collection Period: 30 days Days of Inventory on Hand: 60 days Days of Payable: 50 days Sales: $4,000,000 Cost of Goods Sold: 80% of Sales = $3,200,000 What is the a...
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How large should n be so that the Midpoint rule approximation to {eq}\int_{0}^{1} e^{x^3} dx {/eq} is accurate within 0.00001?
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Suppose that there are three different kinds of people on the market for gasoline: "own users" (people who drive their own cars), delivery drivers, and taxis. "Own users" have an elasticity of demand for gasoline of -0.4, delivery drivers have an elasticity of demand for gasoline of -0.7, and taxis have an elasticity o...
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Arts and Crafts, Inc. will pay a dividend of $3 per share in 1 year. It sells at $80 a share, and firms in the same industry provide an expected rate of return of 12%. What must be the expected growth rate of the company's dividends?
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I'm trying to find the limit without L'Hospital's Rule: $$\lim_{x\to\infty} \frac{x - \frac{3x}{e^x + 1}}{x - 2}$$
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You are considering investing $2,000 in a stock portfolio. The 3 stocks in the portfolio comprise of the following investment amounts $750, $500, $750. The betas for these 3 stocks are 1.2, -1.3 and 1.0, respectively. The current risk-free rate is 7.1 percent and the market risk premium is 9 percent. Determine the beta...
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The current stock price for a company is $62 per share, and the company just paid a dividend of $5.40 per share. The required rate of return is 13.5 percent. Applying the dividend growth model, what is the growth rate for this stock?
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Your firm is considering purchasing a machine with the following annual, end-of-year, book investment accounts. Purchase Date Year 1 Year 2 Year 3 Year 4 Gross investment $55,000 $55,000 $55,000 $55,000 $55,000 Less: Accumulated depreciation 0 13,750 27,500 41,250 55,000 Net investment $55,000 $4...
19.27%
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What is the required return using the capital asset pricing model if a stock's beta is 1.3 and the individual, who expects the market to rise by 11%, can earn 3.4% invested in risk-free Treasury bill?
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A manufacturer has a monthly fixed cost of $70,000 and a production cost of $11 for each unit manufactured. The units sell for $30 apiece. What is the cost function?
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A firm's marginal tax rate is 34 percent. The firm's tax-protected debt has an after-tax cost of 7.81 percent. If the firm's cost of equity is 14.23 percent and its target capital structure is 54 percent debt, its weighted average cost of capital is _____.
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Which of the following does not minimize ordering costs when using JIT purchasing? A. Reducing the number of vendors. B. Negotiating long-term supply agreements. C. Making less frequent payments. D. Maintaining a safety stock. E. Eliminating inspections.
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Universal Common stock is currently selling for $35.86 per share. The company's net income in 2017 was $295 million with 125 million shares outstanding. In 2018, Universal expects its net income to increase by 21% and its total number of shares to remain unchanged. What is Universal's projected EPS for 2018?
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Given the following Cash Flows, complete the table below. What is the Payback Period? Year Cash Flow Cumulative 0 -12,000 1 0 2 10,000 3 20,000 4 30,000
2.1 years
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Consider a mass-spring-dashpot system with mass m=2kg, spring constant k=10N/m, dashpot constant c=10N.m/s, and forcing function f(t)=20N with initial conditions x(0)=x'(0)=0m. Obtain the maximum amplitude of the oscillations.
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