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According to the quantity theory of money, which of the following would cause inflation? A) an increase in the quantity of money B) an increase in prices C) an increase in velocity D) All of the above would cause inflation
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The single-rate method of allocating service costs a. allocates the total costs of the service department to the users of the service based on an activity base b. requires that the costs of a service department be allocated only to other service departments c. allocates a common pool of cost to many departments d. ...
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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.64 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,280,000 in annual sa...
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McGwire Company manufactures two types of office chairs, the straight back chair and the swivel chair. The company has the following information: Fixed manufacturing costs: $106,000 Unit contribution margin: straight back chair: $12; swivel chair: $31 Variable manufacturing costs per unit: straight back chair: $18; ...
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The personal tax rate on debt is 21% and the personal tax on equity is 10%. The corporate tax rate is 15%. There is a firm, initially with no debt and market value $3 billion. This firm decides to issue $200 million of perpetual risk-free debt paying the risk-free interest rate of 3%. The proceeds from the sale of debt...
E
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A company purchased materials on account. The standard price per pound is $6.00, and the standard quantity for the units produced is 2 pounds per unit. The total purchase was 10,000 pounds, and the material was purchased at $5.50 per pound. The actual production was 30,000 units, and the actual price per pound of the m...
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A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of $1,000, and makes semi-annual payments. If the price is $934.96, what is the annual nominal yield to maturity on the bond? A. 9% B. 16% C. 8% D. 10%
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One year ago, Marshall Laminating Company deposited $16,500 in an investment account for the purpose of buying new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today. How much will be available ...
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If capital is relatively abundant, then in Heckscher-Ohlin model, the country will tend to have a comparative advantage in production of _____. A. labor-intensive products B. capital-intensive products C. land-intensive products D. none of the above
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The current ratio a. equals the quick ratio plus inventory. b. is measured as current assets divided by current liabilities. c. is measured as the percentage of current assets to total assets. d. is measured as current assets divided by stockholder's equity.
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Find the derivative using first principles: e^sinx
e^sinx cosx
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Calculate the project's initial cash flow assuming the following: The equipment's cost is $360,000 and shipping and installation costs are $20,000. The equipment will be depreciated straight-line to zero over 8 years. $360,000 $380,000 $353,750 $26,250
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Which of the following is the correct formula for computing the profitability index? a. (PV of future cash flows) / (initial investment) b. discount rate / (PV of future cash flows) c. (initial investment) / (PV of future cash flows) d. (PV of future cash flows) / (present value of all costs) e. (PV of all costs) ...
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Lancer manufactures a variety of specialty tools for use in lighthouses. Management is considering the elimination of Product A60 from its product line and the reallocation of the eliminated product's manufacturing support department costs to its remaining products. What is the impact on operating income of each of the...
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Find the volume of the solid obtained by rotating the region bounded by y = (8-x), y = x, and the x-axis about the x-axis.
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Security Stock has expected return of 9% and a beta of 1.1. Vivre, Inc., stock has a beta of 0.65 and expected return of 8%. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
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Evaluate {eq}\displaystyle \lim_{0^+}(\tan 6x)^x{/eq}
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Owens Corporation has the following number of employees in its service departments and production departments: Department Number of Employees Service Department X 4 Service Department Y 8 Production Department A 18 Production Department B ...
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Let $X \sim N(0, 1)$. Find $E(X^4)$.
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Jim has foreign income. He earns $24,000 from Country A which taxes the income at a 20 percent rate. He also has income from Country B of $18,000. Country B taxes the $18,000 at a 10 percent rate. His U.S. taxable income is $88,000, which includes the foreign income. His U.S. income tax on all sources of income before ...
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Market power: A. is unlikely to exist in a competitive market. B. allows a firm to charge any price it wants for its output. C. arises when market conditions allow a firm to charge more than marginal cost and still sell some output. D. allows a firm to make positive economic profits in the long run.
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Which of the following are true concerning the financial statements? A. A debit to an asset account and a credit to a liability account both increase equity. B. Balance sheet accounts typically have credit balances. C. Net income is closed directly to Retained Earnings. D. An asset with a 4-year life span and a cos...
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Most of the stock price response to a corporate earnings or dividend announcement occurs within: A. about 30 seconds B. about 10 minutes C. 6 months D. 2 years
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A point charge of {eq}+6.0 \mu C {/eq} is {eq}10 \ cm {/eq} away from a second point charge of {eq}-7.3 \mu C {/eq}. Calculate the magnitude and direction of the force on the {eq}+6.0 \mu C {/eq} charge.
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One division of the Marvin Educational Enterprises has depreciable assets costing $3,760,000. The cash flows from these assets for the past three years have been: YearCash flows 1$1,320,000 2$1,388,000 3$1,572,000 The current (i.e., replacement) costs of these assets were expected to increase 25% each year. Marvin us...
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On January 1, 2013, an investor purchased for $66,210 a 9%, 10-year bond issued by Echo Ridge High School District on January 1, 2013. The bond has a face value of $65,000, pays interest annually on December 31, and has a call price of 102. The investor's required rate of return is 11%. The investor used the straight-l...
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Use cylindrical or spherical coordinates, whichever seems more appropriate. A solid sphere of radius {eq}a {/eq} has a spherical hole of radius {eq}\dfrac 12 a {/eq} drilled through its center. The hole makes an {eq}180^\circ {/eq} angle as it passes through the sphere. Find the volume of the resulting solid.
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Alpha's outstanding notes payable are $6,000 at March 1. This balance consists of a 6-month, 6%, $5,000 note payable to Eutour Bank dated December 31 and a 3-month, 9%, $1,000 note payable to the Pacific National Bank dated March 1. Alpha repays both notes on their maturity dates. What is the total amount Alpha will pa...
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Tom and Anita are married, file a joint return with an AGI of $165,000, and have one dependent child, Tim, who is a first-time freshman in college. The following expenses are incurred and paid in 2016: Tuition, fees and textbooks: $11,000 Room and board: $5,000 What is the maximum education credit allowed to Tom and...
$2,500
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The x-coordinate of the center of mass (X_cm) of a system of three particles is 2.0 m. The mass of particle 1 is 1.0 kg, and its x-coordinate is 0 m. The mass of particle 2 is 2.0 kg, and its x-coordinate is 3.0 m. The mass of particle 3 is 3.0 kg. What is the x-coordinate of particle 3?
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Let Y be a beta random variable with parameters a=1 and b=1, that is, Y has a Uniform(0,1) distribution. Use convolution to find the distribution of U = Y + (1-Y). Show that U has a uniform distribution by identifying the values u for which fU(u) > 0.
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Suppose the Fed decided to purchase $100 billion worth of government securities in the open market which are directly deposited into the banking system. What impact would this action have on the economy? (a) How will M1 be affected initially? A. Decrease by $100 billion B. No initial change to M1 C. Not enough inf...
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Does a linear system of type $(d_1,d_2)$ on a smooth projective curve $C$ have dimension at least $2$ and base points $P_1,\dots,P_r$ of type $(d_1 - 1, d_2 - 1)$? The linear system is defined as $\mathcal{L}(d_1P_1 + d_2P_2)$, where $d_1 > 1$ and $d_2 > 1$ are fixed integers and $P_1, \dots, P_r$ are fixed distinct po...
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JM Case Inc. has a market value of $5 million with 500,000 shares outstanding. The book value of its equity is $1,750,000. If the company repurchases 20% of its shares in the stock market and there are no taxes or transactions costs and all else remains the same, what should the market value of the firm be after the re...
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Suppose {eq}f{/eq} is a differentiable function whose cross-section for {eq}y = 4{/eq} is {eq}f(x, 4) = 4x^3 - e^{3x}{/eq}. Find {eq}f_x(1, 4){/eq}.
12 - 3e^3
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Let V and W be vector spaces, and let T : V → W be linear. Prove that the null space of T is a subspace of V , and that the range of T is a subspace of W . (Let the null space of T be defined as null(T) = {v ∈ V | T(v) = 0}.)
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Which of the following is not considered a cash flow from financing activity? A. Repayment of principal under long-term debt. B. Issuance of stock for cash. C. Payment of cash dividends. D. Conversion of bonds into common stock.
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Maynard, Inc., earned revenues of $58,000 and incurred expenses of $74,000. No dividends were declared. The correct entry to close Income Summary is: A. debit Income Summary $16,000; credit Retained Earnings $16,000. B. debit Retained Earnings $16,000; credit Income Summary $16,000. C. debit Income Summary $16,000; ...
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As a general rule, which of the following statement is true? A. The internal rate of return method focuses on cash flows. B. The net present value method will always give the same project accept/reject decision as the IRR method. C. The net present value method requires long, detailed cash flow forecasts, while the ...
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Voting on a federal funds rate target is done by _____. Achieving this target through open market operations is the responsibility of _____. A. the Board of Governors; the FOMC B. the FRBNY; the FOMC C. the FOMC; the FRBNY D. the Board of Governors; the FOMC
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The following information relates to Regency Manufacturing's overhead costs for the month: Static budget variable overhead: $14,200 Static budget fixed overhead: $5,600 Static budget direct labor hours: 1,000 hours Static budget number of units: 5,000 units Regency allocates manufacturing overhead to production ba...
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Presented below is the information related to the inventory of Jasper Company Units Total Cost Total Sale Price 48 $39 $47 110 $52 $56 138 $68 $68 142 $72 $72 78 $75 $80 Total 516 $474 $508 Determine the average cost per unit, using a perpetual inventory system.
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The following examples briefly describe the manufacture of two different products. Which costing method (job-order or process) would be the best method to use for each project? I. Steven Lawless manufactures Lawless Fine Wine Coolers. Steven once made the statement, "People can have any flavor of Lawless Fine Wine Coo...
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On January 1, 2005, Mr. 18K acquired a 60% interest in ABC Company on January 1, 2005 at book value of $100,000 and fair value of $120,000. During 2005, ABC reported a net income of $40,000 and a cash dividend of $10,000. What would be the Investment income for 2005, assuming that 18K uses the Cost method to account ...
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If the population of heights in a university is normally distributed, and we have a group of randomly selected students, what would be the probability that the average height of a random sample of 50 students will be less than 70 inches if we know the overall population mean and standard deviation are 75 and 10 inches,...
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In a perfectly competitive market, an increase in demand will, in the long run, generally cause _____. a. an increase in price b. an increase in market output c. an increase in the number of firms d. All of these
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The following information is available for Fishel Company. April 1 April 30 Raw materials inventory $10,646 $14,248 Work in process inventory 5,163 3,532 Materials purchased in April $97,605 Direct labor in April 80,082 Manufacturing overhead in April 179,740 Prepare the cost of goods manufactured schedule for th...
355456
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Last year Jane identified $50,000 as a nonbusiness bad debt. In that tax year, before considering the tax implications of the nonbusiness bad debt, Jane had $100,000 of taxable income, of which $5,000 consisted of short-term capital gains. This year Jane collected $10,000 of the amount she had previously identified as ...
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Cliff Manufacturing expects to produce 1,400 units in January and 2,200 units in February. It 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 $34,300. Clif...
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A 15.0 mL sample of 0.010 0 M AgNO3 (aq) is mixed with 15.0 mL of 0.002 00 M Cl - (aq). What percentage of the Ag+ remains unprecipitated? Ksp for AgCl(s) is 1.8 x 10-10
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A product's direct materials cost is $3 per unit, and its direct labor cost is $5 per unit. The product's variable manufacturing overhead cost is $2 per unit. The fixed manufacturing overhead cost is $60,000 in total (i.e., $1.20 per unit). The fixed selling and administrative expense is $54,000 in total (i.e., $1.08 p...
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Use a semicircle to estimate the area under the standard normal curve from $z = 0$ to $z = 1.5$. Show that this approximation is within 0.01 of the exact answer.
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Braxton Corp. has no debt but can borrow at 6.2 percent. The firm's WACC is currently 8 percent, and the tax rate is 35 percent. If the firm converts to 20 percent debt, what is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
7.21%
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A bond with a five percent coupon (assuming annual coupon payments) has a current yield of 4.5%. If the market interest rates do not change, then what is the relationship between the bond's yield to maturity and its coupon rate? a. The bond's yield to maturity is equal to the coupon rate b. The bond's yield to maturi...
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I want to borrow $60,000 for 6 years at an annual interest rate of 8%, and I can afford only $8,500 in principal payments each year. My bank agrees to allow me to skip making interest payments the first two years, as long as I make the principal payments at the end of Years 3 through 6. What will my total interest expe...
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If money demand decreases due to greater use of credit cards, which of the following would most likely happen under a neutralization policy? a. The money supply would decrease, real GDP would not change, and neither would the interest rate. b. The money supply would increase, real GDP would not change, and neither wo...
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Which of the following is the correct journal entry to record the adjustment for interest expense on a zero-coupon bond? A. Dr. Interest Expense; Cr. Unearned Interest B. Dr. Interest Expense; Cr. Cash C. Dr. Cash; Cr. Interest Expense D. Dr. Unearned Interest; Cr. Interest Expense
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An organization can select a wide variety of quantitative or qualitative risk treatment options. In selecting risk treatment options, which of the following is true? a) A firm should only use quantitative options. b) A firm should only use qualitative options. c) A firm should use a combination of quantitative and q...
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The Real Business Cycle Theory: a. Is true for all of these answers, b. Denies the role of the FED in macroeconomic stabilization, c. Focuses on productivity shocks to the economy, d. Is a supply-side school of thought. e. Denies demand-side effects on the macroeconomy.
c
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What is the probability that a financial manager earns more than $51 per hour, given that the mean hourly pay rate for financial managers in the East North Central region is $48.93 with a standard deviation of $2.76 and pay rates are normally distributed?
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You are testing {eq}\displaystyle H_0: p = 0.15 \text{ vs. } H_A: p > 0.15{/eq}. If the sample size is {eq}\displaystyle n = 200{/eq} and {eq}\displaystyle \hat{p} = 0.17{/eq}, what is the margin of error for the 95% confidence interval?
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Which of the following would not appear on a company's statement of cash flows? a. Decrease in cash b. Increase in cash c. Purchase of a long-term asset d. Financing activity e. Investing activity.
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In a perfectly competitive industry, the supply curve is $P = 3Q$. The market demand curve is $P = 20-Q$. Each firm has a marginal cost curve $MC(Q) = 4Q + 5$. There are 10 firms in the industry. What is the total welfare associated with the perfectly competitive market outcome? Select one: a. $116.7 b. $120.7 c. $...
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Given a project with a positive NPV, the plot of the project cash flow using discounted cash flow analysis will have which of the following characteristics? A. positive net present value, the plot of the project cash flow using discounted cash flow analysis will have the following characteristics: B. The horizontal l...
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A neutral solid conducting cylinder rotates about its axis with angular speed 1600 rad/s. In addition, there is an external magnetic field of induction B directed along the cylinder's axis. What must the magnitude of the magnetic field in Teslas so that no electric field is created inside the conductor? Hint: The mate...
9.09e-9 T
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Selecting talent form the large pool of resources in the organization is challenging. Which of the following statements is not important in order to make successful predictions regarding high potential? A. Ability to see into the future and anticipate the types of future leaders. B. Ability to accurately assess curre...
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In the context of the three major theories of leadership, which one of the following statements is true? A. The trait theory explains how leaders emerge and gain power. B. The behavioral theory focuses on the decisions leaders make. C. The situational theory states that no one leadership style is effective in all si...
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How do you find the area of an equilateral triangle with a side of 10 cm?
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The Sales Database of a shopping center company in Klang Selatan contains records for all customers who have made purchases during the past year. The records are categorized by customer's name, number of visits to the shopping center, category of purchases (Household goods, Furniture and Appliances, and Electronic Equi...
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The net income reported on the income statement for the current year was $525,000. Depreciation recorded on fixed assets and amortization of patents for the year were $50,000 and $6,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: ...
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What is the standard deviation of a portfolio of two stocks given the following data: Stock A has a standard deviation of 30%, Stock B has a standard deviation of 18%, the portfolio contains 60% of stock A, and the correlation coefficient between the two stocks is -1?
10.8%
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Sunland expects cash sales for July and August of $320,000 and $340,000, respectively. The company expects 35% of its sales to be collected in the month of the sale and 65% of its sales to be collected in the following month. What is the amount of the company's expected total cash receipts for August?
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How do you compute direct labor efficiency variance? a. actual cost - standard costs b. (actual quantity x standard price) - standard costs c. standard costs - actual costs d. actual cost + standard costs
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There is a constant supply of wind power, that will generate $10 per hour of electricity. The only costs are a one-time development cost of $250,000 (at time 0), and an annual maintenance cost of $20,000. The firm's discount rate is 5%. The project has a 10 year life. What is the NPV of this project? (Do not round int...
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An ideal gas expands such that its pressure increases linearly with volume. The expansion occurs in such a manner that the product of pressure and volume changes as pV=2V-10.0. Determine the work done during this process if the initial volume is 10.0 L and the final volume is 20.0 L
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Fly-by-Night Airlines has decided to enter the challenging business of transporting passengers door-to-door between Los Angeles and New York City. It has leased one of the new super-efficient Boeing Dreamliners for $4 million per year, and the company will purchase 1,000,000 of seats at $100 per seat and one million of...
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Two bond indexes of the same market tend to give the similar total return indications even if their composition is quite different. All of the following are reasons for this EXCEPT: a) because all bond prices tend to move up or down when interest rates move down or up b) because there are twists in yield curves that ...
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According to the table, the marginal cost of the 6th unit is: TC FC VC 0 $100 $100 $0 1 $150 $100 $50 2 $175 $100 $75 3 $210 $100 $110 4 $240 $100 $140 5 $275...
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You are to conduct a market test of a new product at the introduction stage of its life cycle. a. 2,000 consumers in the first quadrant of the market (who could be receptive to the product), b. an initial investment of $50,000 and $3,000 in market testing expenses, c. a maximum of $100,000 to spend on market testing...
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Susan Cabinet shop has total budgeted variable overhead of $220,000. Actual variable overhead for the period also amounted to $220,000. The overhead is based on direct labor hours. Other data on the two types of cabinets are as follows: For M: Budgeted hours per unit 10 Budgeted production 100 Actual hours per unit ...
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Ralston Co. began the year with a $38,000 balance in the Accounts Receivable and a $5,000 balance in the Allowance for Doubtful Accounts. The company estimates that 2% of Accounts Receivable is uncollectible. After the adjusting entry is recorded, what is the balance in the Allowance for Doubtful Accounts? a. $860 b...
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What is the most conservative estimate of the sample size that would limit the margin of error to within 0.05 of the population proportion for a 95% confidence interval?
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By choosing a suitable dissection of $[0, 2]$ show that $\int^2_0 3x + 4 dx$ exists and determine its value. I chose a uniform dissection $D_n = (0,2/n, 4/n,..., \frac{2(n-1)}{n},2)$. Am I correct? Is there a dissection I could use that would make solving this question easier? I then got $m_i = \frac{6(i-1)}{n} +4 , M_...
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If it is desired to test {eq}H_0 \ : \ \mu = \mu_0 {/eq} versus {eq}H_1 \ : \ \mu > \mu_0 {/eq} using {eq}\alpha {/eq} = 0.05, which of the following might be a reasonable test statistic: Select one: a. {eq}Z = \dfrac{\bar{x} - \mu_0}{\sigma / \sqrt{n}} {/eq} where {eq}\sigma {/eq} is unknown. b. {eq}Z = \dfra...
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Consider the following information in connection with the question(s) that follow: Cash receipts from customers $60,000 Cash payments to suppliers 42,000 Cash payments for wages to workers 13,000 Cash payments for interest 2,000 Cash payments for income taxes 5,000 Cash payments to bank on note payable 10,000 Cash pa...
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The figure below represents the supply and demand for pounds of lard in the United States, assuming that the United States has an open economy and that the exchange rate between U.S. dollars and British pounds is fixed at $2/pound. Refer to the figure. If the price of U.S. dollars in terms of pounds is higher than $2 ...
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The local chamber of commerce wants to build a convention center for which they have requested that the Council approve a $10 million tax-supported bond issue. The chamber estimates that the convention center will generate $2 million in additional tax revenues annually. The Chamber of Commerce is assuming that the dem...
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The variance of $z = x + y$ is $2 \sigma^2$. The average of $z$ over many measurements is $2 \langle x \rangle$. Why is the standard deviation $\sigma_z = \sqrt{2} \sigma$ and not $\sigma_z = 2 \sigma$ as might be expected from the average? Furthermore, what does this imply for measuring $\langle x \rangle$ as an error...
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An investment has an installed cost of $567,382. The cash flows over the four-year life of the investment are projected to be $196,584, $240,318, $188,674, and $156,313. If the discount rate is infinite, what is the NPV?
-$567,382
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Assuming the linear cost function {eq}c(x) = Ax + B, what does the B represent? a. Fixed cost b. Cost of the x-th item c. Cost of the first item d. Total variable cost e. Variable cost
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Find the value today of a 10-year ordinary annuity that pays out $10,000 per year given a discount rate of 20%. Value=$_____.
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Tanzania Company has outstanding 10,000 shares of $10 par value common stock. During the current fiscal year, they declared cash dividends of $50,000. The balance in the Retained Earnings account was $55,000 at the beginning of the year. What is the balance in the Retained Earnings account at the end of the current fis...
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Determine the value of b such that P(-1.5 ≤ Z ≤ b) = 0.9428.
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How can I calculate the probability that a number x, which is random, is less than or equal to 0.6 in a distribution where $-0.2<w<0.8$ and $w=2.2x - 0.3$, with $x$ uniformly distributed between 0 and 1? Specifically, how can I find the value of $x$ such that $w=0.6$ and integrate from $0$ to that value, given that the...
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Use a 0.05 significance level to test the claim that the mean tar content of filtered 100 mm cigarettes is less than 21.1 mg, which is the mean for unfiltered king size cigarettes, given a sample of 25 filtered 100 mm cigarettes with a mean of 19.0 mg and a standard deviation of 3.65 mg. What do the results suggest, if...
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Today is April 30, 2015. Houston Broilers has gross income of $10 million for Year 1. The corporation expects its net income for Year 1 to be 6% of sales. The company's gross fixed assets were $38 million at the end of Year 1. The firm expects its gross fixed assets to be $42 million at the end of Year 2. The company's...
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To construct a confidence interval for the population mean, what must be true about the distribution of the sample? a. normal b. uniform c. binomial d. approximately uniform
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Which of the following are duties of the Board of Governors of the Federal Reserve System? a) Setting margin requirements, the fraction of the purchase price of the securities that have to be paid for with cash. b) Setting the maximum interest rates payable on certain types of time deposits under Regulation. c) Regu...
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A moving charge +q creates an electric field of magnitude {eq}E_1 {/eq} at a distance {eq}r_1 {/eq} from the charge. A second charge -2q is placed a distance {eq}r_2 {/eq} from the first charge. At what distance from the first charge will the net electric field be zero, if {eq}r_2 {/eq} is much greater than {eq}r_1...
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Evaluate the integral $$\int_{0}^{\infty} \int_{1}^{\infty} \left( \frac{\cos (\log x)}{x^2} \right)\left(\frac{\cos y}{y^2+1}\right) \mathrm dy \mathrm dx$$
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