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Wilson Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $53,000. The equipment will have an initial cost of $631,000 and have an 8-year life. The salvage value of the equipment is estimated to be $63,000. If t...
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Find the differential dy, and evaluate dy for the given values of x and dx. y = 5/x + cos(2x) x = π, dx = 0.25 dy =? dy=?
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Phil's Carvings, Inc. wants to have a weighted average cost of capital of 7.8%. The firm has an aftertax cost of debt of 4.6% and a cost of equity of 9.2%. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital?
0.4375
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Susan's Salsa, a small producer of hot sauces for restaurants and tables, has been experiencing fluctuations in its profits due to a highly variable demand for its best product. The demand data for the first 4 months of the year are as follows: Month Actual Demand Forecasted Demand Janu...
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A sample of 200 students at a university had the following characteristics: 64% were female, 5% were under 18 years old, 45% were either female or under 18 years old, 50% were either male or under 18 years old, 80% were neither male nor under 18 years old, 4% were male and under 18 years old. Use this information to f...
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How do you evaluate the integral $\int\frac{dx}{(2x+1)^{2}(2x^{2}+x+1)}$?
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An investment project will have the following annual impact on operating cash flow: Hurdle rate 7% Initial investment ($200,000) Life of the project 5 years Savings in wages $50,000 Additional depreciation $10,000 Marginal tax rate 35% At the end of its life, the project will be sold for its original cost...
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A company's net income for the year is $82,000. Its net cash flow from operating activities is $132,000. Its cash flow from financing activities is $200,000. What is its number of times interest is earned ratio?
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On July 1, 20X1, a company borrows $100,000 on a 5% note, due in one year. Assume accrued interest was recorded on December 31. What accounts would be impacted at the time of repayment of the note and interest on June 30, 20X2? a. Interest Payable, by $2,500. b. Notes Payable, by $105,000. c. Cash, by $100,000. d....
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Find the derivative of the function m(t) = 5t(2t^6-1)^5.
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The beta of Microsoft's stock is 1.20. Assuming the standard deviation of returns of Microsoft's stock is 22%, calculate the standard deviation of returns of a portfolio composed of Microsoft's stock and a risk-free asset.
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Can someone explain why it is that the Chinese Remainder Theorem guarantees the existence of exactly one x in {eq}Z_6 {/eq} that is a solution to the set of linear congruences: {eq}x \equiv 3 \pmod{2}, x \equiv 0 \pmod{3} {/eq}?
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Reuschel Company began 2011 with an inventory of 10,000 units at a cost of $7 per unit. During 2011, 50,000 units were purchased for $8.50 each. Sales for the year totaled 54,000 units, leaving 6,000 units on hand at the end of 2011. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Calculat...
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How do I evaluate the integral $\iint_S \nabla \times F \cdot N d \sigma$ for the surface given by $F=(y, -x, 0)$ over the region enclosed by $z = \sqrt{9 - x^2 - y^2}$ and $z=0$? I understand that $\nabla \times F = (0, 0, -2)$ and that I can write $d \sigma = \frac{|F|}{|F' \times F|}dx dy$, but I'm not sure how to p...
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You explain to your roommate Surya, who makes beaded headbands, about an economic theory which asserts that consumers will purchase more of a product at lower prices than they will at higher prices. She contends that the theory is incorrect because over the past two years she has lowered the price of her headbands and ...
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Is there any other way to find the limit $$ \lim_{n\rightarrow\infty}\left(1-\frac{2}{3}\right)^\frac{3}{n}\cdot\left(1-\frac{2}{4}\right)^\frac{4}{n}\cdot\left(1-\frac{2}{5}\right)^\frac{5}{n}\cdots\left(1-\frac{2}{n+2}\right)^\frac{n+2}{n} $$ besides using the gamma function or conversion to a product? Any suggestion...
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What is the pH of a 25.00 mL sample of 0.100 M {eq}NH_3 {/eq} after the addition of 25.00 mL of 0.100 M {eq}HClO_4 {/eq}? ({eq}K_b {/eq} for {eq}NH_3 {/eq} is 1.8 * 10{eq}^{-5} {/eq})
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How do you find the derivative of ln(2t)?
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A rental car company owns 180 cars. Each car is rented out 2/3 of the time for $35 a day. How many total days will all the cars be rented out in 1 year?
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A one-year subscription to a newspaper is being sold for $160. The publisher allows a 30-day money-back guarantee. Within this period of time, a consumer can return the newspaper without penalty. In the past, 15% of the subscribers have returned the newspaper. If the publisher would bear all the return costs, what is t...
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How do you use Riemann sums to evaluate the area under the curve of f(x)=cosx+0.5 on the closed interval [0,2pi], with n=pi rectangles using midpoints?
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Windsor Co. has fixed costs of $390,000, variable cost ratio of 40% and a target net income of $117,000. The company expects to sell 130,000 units. What is the contribution margin per unit?
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A zero-coupon bond that matures in 10 years sells for $242.25. The face value of the bond is $500. What is the bond's yield to maturity?
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How do you use the limit definition to find the slope of the tangent line to the graph y=(2)/(x^3 - 1) at (-1, 1)?
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A firm has net working capital of $480, net fixed assets of $2,205, sales of $6,100, and current liabilities of $810. How many dollars worth of sales are generated from every $1 in total assets?
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How do you find the surface area of the solid obtained by rotating about the x-axis the region bounded by y=sqrt(25-x^2)) and y=0 on the interval 3<=x<=4?
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The following information pertains to the Davenport plant for the month of May (all materials are added at the beginning of the process): Units Material Costs Beginning work in process 70,000 $35,000 Started in May 240,000 $100,800 Units complete...
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Sally is a senior engineer working on the development of a new product line that will be launched next month. She has worked very hard on this project because she wants to receive a promotion to project manager as soon as possible. As a result, Sally has put in extra hours working on the project and is currently under ...
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Assuming there is no beginning inventory, which of the following will be the same under absorption costing and variable costing? A. Reported income will be the same under both. B. Cost of goods sold will be the same under both. C. The net profit figure will be the same under both. D. Ending inventory will be the sa...
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Can we have production functions where labor and capital are not substitutes? For example, suppose we have a production function $$f(x_1, x_2)=2+\sqrt{x_1}-\sqrt{x_2}$$ Is it possible to have $$\frac{\partial f}{\partial x_1}\frac{\partial f}{\partial x_2}<0$$ where both partial derivatives are not negative. In other w...
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Assuming constant supply, a 10 percent increase in demand will cause a larger increase in equilibrium price than it would otherwise. In this situation, a. the change in supply will have had the greater effect on equilibrium price than the change in demand. b. the cross-price elasticity of supply and demand is greater...
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I don't know if this is a mathematical question or not, so please let me know if it isn't. If it is, how do I make my question more mathematical? Here it is. I have a mathematical formula which is given in the following format. M = (A+B)* C * [(1+D)^E-1] / D Where M, A, B, C, and D are known values. The variable I am s...
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Evaluate the integral: $\int_{1}^{2} \frac{\tan^{-1} x}{\tan^{-1} \frac {1}{x^2-3x+3}} dx$
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Suppose the own-price elasticity of market demand for retail gasoline is -0.8, the Rothschild index is 0.6, and a typical gasoline retailer enjoys sales of $1,900,000 annually. What is the price elasticity of demand for a representative gasoline retailer's product? Instruction: Round your answer to 2 decimal places.
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At a large public university, student aid administrators want to estimate the cost of textbooks during the fall term. A sample of 225 students revealed that the mean amount spent on textbooks was $120 and the sample standard deviation was $25. Determine the 95% confidence interval for the population mean. A) $118.40 t...
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Consider the stock of a one-product firm. The balance on the Income Statement is $100,000. Net Income is $50,000. Depreciation is $10,000. The cash flow from operating activities is $60,000. If there is a net decrease in Working Capital of $10,000, how much is the company's depreciation tax shield?
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You have just purchased an investment that generates cash flows of $500.00 per year for the next 15 years. You paid $5,000 for the investment. Calculate the internal rate of return for the investment. A. 5.50% B. 13.00% C. 7.31% D. 6.72%
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Druid Corp reported the following information for 2010: Pretax accounting income $450,000 Excess depreciation on tax return (36,000) Taxable income $414,000 The excess depreciation will be deducted in its entirety in 2011. The enacted tax rate in 2010 was 34% and the rate for 2011 and future years is 38%. Determine ...
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Staind, Inc., has 7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 9 percent, what is the current bond price?
871.65
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Geopolitical uncertainty drives oil prices higher that result in an aggregate supply shock. In response, the Federal Reserve increases its target interest rate. In the short run, relative to the short run equilibrium situation if the Federal Reserve undertakes no action, output (RGDP) _____ and the price level _____. ...
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A population proportion is estimated by the sample proportion. Which of the following statements is false? a. The sample proportion is not affected by the population proportion. b. The sample proportion is a random variable. c. The sampling distribution of the sample proportion may be approximated by a normal distri...
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Baker Manufacturing expects to produce 1,900 units in January and 3,200 units in February. Baker budgets $40 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $38,750. B...
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The price of a stock is $58 per share. How many shares of the stock can you buy for $3,782?
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Bill's Boards is now in the final year of a project. The equipment originally cost $23.5 million, of which 80% has been depreciated. Bill's can sell the used equipment today for $9 million and its tax rate is 35%. What is the equipment's after-tax salvage value?
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A ground state hydrogen atom absorbs a photon of light having a wavelength of {eq}93.77\ nm. {/eq} It then gives off a photon having a wavelength of {eq}1100\ nm {/eq}. What is the final state of the hydrogen atom?
3
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Rabobank expects to evaluate 100 bank accounts receivable in their current year-end financial statements. The estimated total balance of accounts receivable is $10 million. The critical misstatement is $100,000. The tolerable misstatement is $300,000. The acceptable risk of incorrect acceptance is 5 percent. Determine ...
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You own a stock portfolio invested 30% in City Steel stock, 25% in Forever Ready stock, and 45% in GSYW stock. The betas for these three stocks are 2.58, 2.81, and 0.95, respectively. What is the portfolio beta? (Round the answer to 2 decimal places.)
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An asset with a 7-year tax life that was purchased for $75,000 four years ago appears on the firm's books as follows: Historical cost $75,000 Less: Accumulated depreciation (5 years) 58,712 Book value $16,288 The firm is considering the sale of this asset at its fair market value of $17,000. If the firm sells the ass...
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The annual direct labor cost is $300,000 and the annual indirect labor cost is $200,000. The company allocates indirect labor based on the direct labor cost percentage of the total labor cost. The direct labor hours for a job are 50, and the direct material is $100 and the desired profit margin is 20%. What is the tota...
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The common stock of Andy's Sporting Goods sells for $25.40 a share. The company recently paid its annual dividend of $1.30 per share and expects to increase this dividend by 3 percent annually. What is the rate of return on this stock?
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If float is predicted to increase because of bad weather, the manager of the trading desk at the New York Fed bank will likely conduct _____ open market operations to _____ reserves. A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain
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A proposed project has a positive NPV when evaluated at the company cost of capital. If the firm employs debt in its capital structure, will the project remain acceptable after evaluation with the WACC? A. Yes, using the WACC will increase the NPV B. No, using WACC will decrease the NPV C. The project may now become...
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A policy that results in slow and steady growth of the money supply is an example of: a. a practical monetary policy b. a passive monetary policy c. an active monetary policy d. an easy monetary policy
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How do you find the limit of (x^3-sinx)/tanx as x approaches 0?
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Calculate the maximum shear stress in a thin-walled cylindrical pressure vessel whose inside diameter is 3 m and whose walls are 15 mm thick. The vessel is filled with a fluid whose density is 780 kg/m3 and whose pressure is 10 bar.
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Find the Laplace transform of the function f(t) = e^(-200t) * u(t), where u(t) is the unit step function, if the transform exists.
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Julie Lambert has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Lambert account for the cash received at the end of the engagement? a. No entry is required when the engagement is concluded. b....
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What is the radius of convergence for the power series where $a_n = (-1)^n\frac{(x-1)^{2n}}{(2n)!}$?
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The vertical long-run aggregate supply curve indicates that: a. outputs greater than the long-run supply constraint cannot ever be achieved. b. an increase in output prices will not expand an economy's output capacity once people have adapted to the higher price level. c. in the long run, inflationary policies canno...
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Use Partial Fractions: {eq}\int \frac{4x^3 - 17x^2 + 17x - 10}{(x - 1)^3} \, \mathrm{d}x{/eq}
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Why is the signature of a permutation of $n$ elements not always $\text{sgn}(\sigma) = (-1)^{n(n-1)/2}$?
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Suppose that $X_1, \dots, X_n$ is a random sample from a normal distribution with unknown mean $\mu$ and variance $\sigma^2 = 2$. Calculate the number $n$ that is required so that $P (0.98 < \bar{X} < 1.02) = 0.95$, assuming that $\mu = 1$.
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Using the time value of money tables, calculate the following: The amount that a person would have to deposit today in order to be able to take out $500 a year for 10 years from an account earning 8 percent.
$3,355.04
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According to the study by Cottrell, Newby, and Gora (1994) (discussed in the assigned chapter reading), which of the following is true about the primary deficit? a. It tends to increase during periods of economic growth. b. It tends to decrease during periods of economic growth. c. It is the best predictor of overal...
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You work for the consulting firm of Tuttle and Hedges, LLC. A new client has recently purchased a needle-punching machine for scrap leather imported from Malaysia. The client is currently using it to produce a new type of luxury handbag and has experienced huge increases in revenue. As a result, the company is consider...
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Dick Boe Enterprises, an all-equity firm, has a corporate beta coefficient of 1.5. The financial manager is evaluating a project with an expected return of 21 percent, before any risk adjustment. The risk-free rate is 10 percent, and the required rate of return on the market is 16 percent. The project being evaluated i...
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Horace Corporation, which has a 12% cost of capital, is evaluating an expansion of its operations to include a large retail store that is being built and fully financed in a city three hours away from Horace's parent company. Expenses will include $100,000 for installation and $500,000 for employee training. The expan...
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The following schedule shows the relationship between the amount of money that the Fed has in the banking system and the amount of money available in the economy. Cash held outside banks $100 Currency held outside banks $500 Demand deposits and other checkable deposits $5,000 The value of the monetary multiplier is 1...
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Integrate: {eq}\displaystyle \int \frac {\tan(x)}{\ln(\cos(x))} {/eq}
-ln|ln(cos(x))| + C
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If you are standing at {eq}x=2 {/eq} and traveling to the right, when you reach {eq}x=10 {/eq}, you have moved 8 units to the right. What is the distance between {eq}x=2 {/eq} and {eq}x=10 {/eq} along the function shown? a. 8 units to the right b. 8 units up c. 8 units down d. more information is needed
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Jensen and Sons Corporation has sales of $250,000, a net income of $10,000, and the following balance sheet: Cash $ 3,500 Accounts Receivable 29,000 Inventories 70,000 Total current assets $102,500 Fixed assets 260,000 Total assets $362,500 Accounts payable $40,000 Long-term debt 110,000 Common stock 3...
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Stocks, Inc., has a marginal tax rate of 34%. The stock has a beta of 1.22, the risk-free rate is 3.6%, and the market risk premium is 7.3%. The company recently paid a dividend of $.91 and expects earnings per share to grow at a constant rate of 3.9%. Determine the cost of retained earnings for Stocks, Inc. (Show work...
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The so-so strategy in oligopoly involves: a. keeping prices at a high level. b. cutting prices to avoid a price war. c. cutting prices just enough to avoid others cutting prices. d. keeping prices at a low level.
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Consider the following linear regression model: {eq}Y = \beta_{1} + \beta_{2}X + u. {/eq} Given n = 20, {eq}\sum X = 315, \beta_{1} = 10.25, \beta_{2} = 12.5, \sum u = -10.0, \sum u^{2} = 1000, \sum X^{2} = 10,750, \sum (Y - \hat{Y})^{2} = 300, {/eq} and {eq}\sum (Y - \bar{Y})^{2} = 500. {/eq} Then the standard ...
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How do you evaluate #( ( 1 + 3x )^(1/x) )# as x approaches infinity?
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The fact that a regression line has slope that is statistically different from zero means: a. The predictor variable is not a significant predictor of the criterion variable. b. The sample value of the population regression coefficient is statistically different from zero. c. The sample regression coefficient cannot...
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Kreuser Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $204.20 per unit. Sales volume (units)14,35016,780 Cost of sales$1,147,000$1,304,840 Selling and administrative costs$491,300$528,0...
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Janik Co. has a project that will reduce expenses by $16,000 per year for 3 years of its life. The project's cash inflows represent salvage value. Janik is replacing an old piece of equipment. The old equipment has a book value of $10,000 (original cost of $25,000 and accumulated straight-line depreciation for 3 years)...
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Which of the following is the least risky method for calculating a firm's cost of equity? A) CAPM B) DCF C) Bond Yield plus Risk Premium D) All three approaches are equally risky
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You are considering buying a share of stock in a company. The company is expected to pay a dividend of $2.10 next year, and the dividends are expected to continue to grow at a rate of 4% forever. The risk-free rate is 4%, and the market risk premium is 9.4%. If the company's beta is 0.85, what is the most you would be...
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Banes Co. incurs $350,000 of overhead costs each year in its three main departments, machining ($200,000), inspections ($100,000) and packing ($50,000). The machining department works 4,000 hours per year, there are 500 inspections per year, and the packing department packs 500 orders per year. Information about Banes'...
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You are looking at a one-year loan of $10,000. The interest rate on a one-year loan is 9 percent plus three points. What is the EAR? 9.22 percent 9.27 percent 9.31 percent 9.33 percent 10.22 percent
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Vega Company estimates its plant asset cost, accumulated depreciation, and estimated life remaining for each of its plant assets at the end of 2018 as follows: Product AProduct B Plant assets cost$5,600,000$1,300,000 Accumulated depreciation4,500,000600,000 Estimated life remaining 10 years8 years Assuming a 12% ra...
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Let $f(x)$ be a twice differentiable function such that $f(1-x)=f(x)$ and $\displaystyle\int^{2}_0 \cos(2x)f(x)\:dx=0$. Then what is the value of $\displaystyle\lim_{x\to1/2}\dfrac{\sqrt{2x-1}}{\cos(\pi x)}\log(1+x) \displaystyle\int^{\cos(\pi x)}_0 \dfrac{f(t)}{\cos^2(\pi x)-\cos(2t)}\:dt$?
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Compared to FIFO, the LIFO inventory method results in: a. Higher gross profits during periods of falling prices. b. Higher net income during periods of falling prices. c. Higher earnings per share (EPS) in the long run. d. Lower asset values during periods of falling prices. e. a and b.
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MATERIALS: two circular disks of different sizes (one small and the other large) and a thin spindle with two spaced holes in it, cross section close enough to the corresponding ones of the two disks so that the disks can be held together by the two thin nuts. When the disks are inserted into the spindle in this way it ...
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A trial balance will not balance if: (a) a correct journal entry is posted twice. (b) the purchase of supplies on account is debited to Supplies and credited to Cash. (c) a $100 cash dividend is debited to Dividends for $1,000 and credited to Cash for $100. (d) a $450 payment on account is debited to Accounts Payab...
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On January 1, 2013, Evergreen Company leases an asset from Rocky, Inc. The asset leased is a special computer server with an estimated useful life of 6 years. The lease agreement specifies six annual payments of $220,000 beginning January 1, 2013, the inception of the lease, and at each December 31 thereafter through 2...
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Find to three decimal places the value of t when t has a t distribution with 6 degrees of freedom and P(t < t0) = 0.10.
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Staley Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company budgeted sales of 4,000 doors. Actual sales for the month were 4,250 doors at an average selling price of $780. According to the company's flexible budget, sales for the month should have totale...
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Which of the three price indexes measures the average price level of the largest total number of goods? (a) The consumer price index (b) The GDP deflator (c) The producer price index (d) Each price index accomplishes the same task.
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The firm has a target total asset base of $1,000,000, and it currently has total debt outstanding of $100,000. If the firm's average tax rate is 40%, how much firm value is generated per dollar of equity financed? a. $0.33 b. $0.50 c. $1.20 d. $1.50 e. $1.67
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Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide a return of 11% and can be financed at 8% with debt. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a return of 15% but would cost 17% to finance through common equity. Assume debt and common...
12.5%
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Dani Rodrik points out that a. an economy more open to foreign trade and investment faces a more inelastic demand for unskilled workers. b. employers and consumers can more readily replace domestic workers with foreign workers by investing abroad or buying imports. c. globalization increases job insecurity. d. fina...
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Assume that your stock portfolio consists of $25,000 of Intel stock and $35,000 of Coca-Cola stock. Your portfolio's beta is 1.10. Now suppose you sell all of your holdings in Intel and replace them with an equal investment in Caterpillar stock. The beta of Caterpillar stock is 1.46 and that of Coca-Cola stock is 0.63....
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Jorge invested $1,000 at 5% annual interest for five years, and $2,000 at 7% annual interest for five years. How much more money does he have at the end of five years if the interest is compounded quarterly compared to compounded annually? a. $22.56 b. $40.97 c. $133.33 d. $162.68
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When the aggregate demand curve intersects the short-run aggregate supply curve to the left of the full-employment level of output, A. the economy is in a recessionary gap. B. unemployment will be greater than 5%. C. the economy is not at potential GDP. D. All of the above. E. Only A and C.
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If your school's administrative board is considering eliminating the middle class for a price cut on its student meals, which of the following outcomes might you expect? a. A reduction in total school food sales. b. An increase in total school food sales. c. No effect on total sales. d. An increase in long-run sale...
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Find the average value of f(x) = x^4 on the interval [1, 5].
156.2
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After an economic recession, Congress passes legislation and the Federal Reserve takes actions to increase aggregate demand, thereby increasing the growth rate. The economy is now at its new long-run equilibrium. Congress decides to enact legislation to increase government spending even more, knowing that the economy i...
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