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The efficient markets hypothesis suggests that if investors react to new information in financial markets: a. Prices will quickly rise to new values. b. Prices will quickly fall to new values. c. Prices will adjust to the new information. d. Prices will not adjust to the new information.
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A firm has monopoly power in the first-degree price discrimination because it can: A. reduce price and still increase its revenue. B. practice price discrimination. C. raise price without reducing output. D. determine the price of its product.
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Braddock Construction Co.'s stock is trading at $20 a share. Call options that expire in three months with a strike price of $20 sell for $1.50. Which of the following is closest to the price of a call option that expires in three months with a $25 strike price? A) $0.50. B) $0.80. C) $1.00. D) $1.30. E) $2.25.
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A $1,000 par value bond matures in 14 years pays interest annually at a coupon rate of 8%, and is currently selling for $890.62. What is the bond's YTM?
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Initial Outlay: $4,000,000 Cash Flow In Period 1 - $1,546,170 2 - $1,546,170 3 - $1,546,170 4 - $1,546,170 The Internal Rate of Return (to the nearest whole percent) is: A) 10% B) 18% C) 20% D) 24% Please explain your solution.
C
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The specialty chemicals company begins April with $200,000 in ending inventory. During April the company purchases $300,000 in merchandise. By the end of April, the company's ending inventory is $150,000. What is the cost of goods sold at the gross margin percentage for April?
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The next dividend payment for Johnson & Johnson will be $1.50, and the dividend will be $2.50 in year 4. If the dividend is expected to grow at 5% per year thereafter, what is the expected dividend per share for the first year?
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Let $\phi \in \mathbb{R}$ be a constant and define a process $\{x_t\}$ by $x_t= e^{\frac{1}{2}t^2 + \phi t + Z_t}$, where $Z_t$ is a standard Wiener process (i.e. $E[Z_t] = 0$, $E[Z_t Z_s] = min(t, s)$). Find the autocorrelation function of $\{x_t\}$.
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Which of the following internal control activities most likely would prevent direct labor hours from being charged to manufacturing overhead? a) Periodic independent counts of work in process for comparison to recorded amounts. b) Comparison of daily journal entries with approved production orders. c) Use of time ti...
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Tiffany and Lisa are co-owners of a company that has been in business for five years. During the current year, the company made a profit and also bought and sold securities and sold inventory. Which one of the following statements is true? a. Neither partner is required to report their share of the profits on their p...
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Use the triple integral to find the volume of the solid enclosed by the paraboloid x = y^2 + z^2 and the plane x = 14.
98pi
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The adjusted cash flow is equal to the: A. increase in real cash flow divided by the change in the nominal interest rate. B. increase in the real cash flow. C. nominal increase in cash flow minus the increase in the price level. D. nominal increase in cash flow plus the increase in the price level.
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The results of an initial study showed that of 970 female statistics students, 228 had at least one tattoo. At the 99% confidence level, estimate the number of all female statistics students with at least one tattoo at other colleges and universities in the United States. (Round to the nearest whole number as needed.)
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Alpha Company acquired 80% of the common stock of Bravo Corporation at book value equal to fair value on January 2, 2010. During the year ended December 31, 2010, Bravo reported a net income of $200,000 and declared cash dividends of $60,000. What is the balance of the Investment in Bravo account at December 31, 2010...
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We would expect that a fall in labor supply will have a proportionately smaller effect on the market wage rate when: a. workers can easily be replaced by capital goods. b. the product is produced in a perfectly competitive industry. c. the product produced in the industry has very few substitutes. d. labor represen...
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Find the interest on $350 invested for 4 years at 6% compounded quarterly.
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After completing its capital spending for the year, Carlson Manufacturing has $1,000 extra cash. Carlson's managers must choose between investing the cash in Treasury bonds that yield 6 percent or paying the cash out to investors who would invest in the bonds themselves. If the corporate tax rate is 35 percent, what p...
35%
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The median time taken to complete a certain test is 40 minutes. The distribution of times is positively skewed with very a few individuals completing the test in under 20 minutes, and the mean time is 60 minutes. If I select a sample of 50 students, the sampling distribution of the mean will have a standard deviation o...
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If we have a 4D space with coordinates (t, x, y, z) and a spacetime interval given by $\Delta s^2 = c^2\Delta t^2 - \Delta x^2 - \Delta y^2 - \Delta z^2$, why does integrating $\int ds$ along a timelike path from $(t, x, y, z)$ to $(t + \Delta t, x + \Delta x, y + \Delta y, z + \Delta z)$ yield $s = \int_{t'}^{t} \sqrt...
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Find the number of sides for a regular polygon with a given exterior angle. The regular polygon has an exterior angle of 72 degrees. Number of Sides: _____
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Given marginal cost is equal to marginal revenue, a firm can: a. Maximize profit b. Only minimize total cost c. Only maximize total revenue d. Both maximize profit and minimize total cost
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Assume the random variable X is normally distributed with mean = 60 and standard deviation = 16. find P(X < 38).
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Bliley Plumbers pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.20 a share for three years commencing three years from today. After that time, the company plans on paying a constant $1 a share dividend indefinitely. How much are you willing to pay to buy a...
$3.66
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If you deposit a traveler's check in your checking account, by how much does M1 change? a. Increases by $100. b. Decreases by $100. c. Not enough information. d. No change.
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Yoder Incorporated has 3,600,000 shares of common stock outstanding on December 31st, 2014. An additional 800,000 of common stock were issued on April 1st, 2015, and 400000 more on July 1st, 2015. On October 1st, 2015, Yoder issued 20000, $1,000 face value, 8% convertible bonds. Each Bond is convertible into 20 shares ...
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Can I use L'Hopital's rule on a two-sided limit if the one-sided limits are not equal to each other, but the function is differentiable everywhere and I know the two one-sided limits are not equal, even though the function does not have a two-sided limit at $x=0$?
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The cost of long-term debt: debt has a yield to maturity of 8% and its market value is $250 million, the cost of long-term debt is a) 4% b) 6.8% c) 8% d) 10%
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On July 1, 2001, ABC Corp. sold a restaurant to a competitor for $360,000, which was the restaurant's book value at that date. ABC Corp. had been in the business of buying and selling restaurants for the past several years. On July 2, 2001, ABC Corp. purchased a different restaurant for $270,000. ABC Corp. should repor...
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What is the current equivalent of a series of $500 per quarter for 7 years if the interest rate is 8% per year compounded monthly? a. $10,640 b. $10,622 c. $5,525 d. $2,603
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What is wrong with the following reasoning when finding the probability that the value of X is less than 5, given the density function $f(x)=\frac{x}{50}$ for $0<x<10$? The incorrect calculation leads to a probability of 1, which is not possible: $P(X<5) = F(5)-F(0)=1-\frac{5}{10}=\frac{1}{2}$. Why is this calculation ...
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Danielle Medical Supply Corporation has the following schedule for its pension fund at the end of 2011: ContributionPretax Accounting IncomeTaxable Income Year 1$ 60,000$ 150,000$ 100,000 Year 2$100,000$ 200,000$ 130,000 Year 3$150,000$ 350,000$ 170,000 Danielle has no other differences between its pretax acco...
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You are going to test the claim at least 60% of women do the income taxes for their household. If you use a significance level of 0.05, what will the critical number be for your rejection region?
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How do I solve the integral $\int_{-1}^1 e^{a^2 x^2}e^{-y^2}\operatorname d y$ given that I know $\int_{-1}^1 e^{-y^2}\operatorname d y=\sqrt \pi\operatorname {erf}(1)$, and that the result should be $\frac{1}{2a}e^{a^2} \sqrt \pi \operatorname {erf}(a)$?
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The true discount on a bill of Rs.540 is Rs.90. The banker's discount is: A. Rs. 60 B. Rs.108 C. Rs.110 D. Rs. 18
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Monopolistic competition is different from perfect competition in that monopolistically competitive markets: a. allow for positive economic profits in the long run. b. allow for positive economic profits in the short run. c. involve competition that is all about efficiency: minimizing average cost. d. involve non-price...
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A firm's earnings per share (EPS) have increased by 15%, 23%, and 48% over the last 3 years. If the company maintains the same growth trend, what EPS growth rate should be expected in the fourth year?
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The market value of equity for Jensen Supply is $670,000. The market value of debt is $330,000. The required rate of return on equity is 17%, and the rate on debt is 9%. What is the firm's weighted average cost of capital if the tax rate is 34%? a) 10.22% b) 9.70% c) 11.67% d) 14.05%
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A minimum wage that is set above the equilibrium wage will result in: a. a surplus of labor, b. a decrease in unemployment, c. a lower equilibrium wage, d. some employers hiring only willing workers, e. a and d.
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Two information needs make campaign measurement necessary. Which answer includes both? A. Provide a trackable call to action and assure each campaign component is executed as planned. B. Provide inputs to subsequent marketing strategy and prove the marketing department's contribution to the organization. C. Demonstr...
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Your firm plans to buy a machine that will cost $10,000 today and produce cash flows of $4,000, $2,000, and $3,000 at the end of Years 1, 2, and 3, respectively. At Year 0, your firm's opportunity cost of funds was 10% and its marginal propensity to consume (MPC) is 0.6. Answer the following questions: What is the NPV...
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Produces the highest gross profit when costs are decreasing a. LIFO b. Weighted average c. FIFO d. None of the above
A
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Schumann Shoe Manufacturer is considering whether or not to refund a $70 million, 10% coupon, 30-year bond issue that was sold 8 years ago. It is amortizing $4.5 million of flotation costs on the 10% bonds over the issue's 30-year life. Schumann's investment bankers have indicated that the company could sell a new 22-y...
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What is the interest rate if the present value of a 2-year annuity is $1,500 and the annuity pays $1,000 per year? a. less than 0% b. 0% - 5% c. 5% - 10% d. 10% - 15% e. 15% or more
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A particle of mass m and charge q is initially at rest at the origin. At t=0, a uniform electric field {eq}E = E_0(1-x/L) {/eq} is applied in the x-direction, where {eq}E_0 {/eq} and L are constants. The particle (A) starts moving as soon as the field is applied. (B) stays at rest. (C) travels with a constant velocit...
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What happens if you try to calculate the beta of a portfolio that contains a stock with a beta of 1 and another stock with a beta of 1.2? Is there a coefficient of variation for beta?
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For the function f(x, y, z) = y^3 - 27xz^2 + 2x^2z, identify the independent variables and dependent variables, and find the partial derivative of f with respect to x.
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Suppose we have an urn containing $a+b$ balls, $a$ of them are black, $b$ of them are white. We start to take out balls without replacement. After $n$ steps we notice that the first $n-1$ are black, while the $n$-th one is white. Calculate the probability of the $n+1$-th step.
\frac{b-1}{a+b-n}
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Suppose that in a certain country the probability of political instability is 20%. What is the probability of at least three years of political instability in a row within the next five years?
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The eigenvalues of A and B are the roots of the polynomials 4x^2 - 7x + 2 and 4x^2 - 3x + 3. Determine the eigenvalues of A+B. Select one: a. 2, 1, 3, 2/3 b. 2/3, 1, 3, 2 c. 1/2, 3/4, 3, 3/2 d. 7, 5, 5, 6
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On January 1, 2016, the NTC Corporation placed a used rental truck in service. The truck had been owned by NTC for 3 years. The cost of the truck was $56,000 and it was sold for $51,000. NTC used the straight-line method of depreciation. The following information is taken from the General Depreciation List for 6-year p...
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When testing the hypothesis that the average energy use has decreased from the past value of 16.6, the critical value at the 5% level of significance is (Round your answer to two decimal places.) State the rule of decision for the test. Select one: a. If t > 1.645, do not reject the null hypothesis. b. If t < -1.645, ...
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Earley Company uses a periodic inventory system and sells 553,000 units during the year. Given the following information, what is the ending inventory? Units Unit Cost 1/1 34,000 $11.50 1/27 83,000 $12.70 7/11 72,000 $13.90 10/4 ...
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Kendall Company has sales of 1,500 units at $50 a unit. Variable expenses are 40% of the selling price. If total fixed expenses are $35,000, what is the degree of operating leverage?
4.50
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Which of the following is the correct journal entry to record the issuance of bonds? A. Debit Cash, and credit Bonds Payable. B. Debit Cash, and credit Interest Payable. C. Debit Cash, Interest Expense, and Loss on Bond Discount; credit Bonds Payable. D. Debit Bonds Payable, Interest Expense, and Loss on Bond Disco...
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ABC Inc. is interested in minimizing their inventory cost. If the annual demand is estimated at 1,000,000 units, the ordering costs is $75 per order, the holding cost is $0.25 per unit, and the lead time for ABC Company was given as 2 days, what is the reorder point? A. 8,000 units B. 24,500 units C. 16,500 units D...
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Find the residues of the function {eq}f(z) = \dfrac {z^3} {z^4 + 1} {/eq} at its poles.
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Let $p>1$, and $k$ is a positive integer more than $1$. Prove: $$\sum_{n=2}^{\infty}\frac{(\ln n)^k}{n^p} \le \frac{k!}{(p-1)^{k+1}}$$
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You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 30 percent in Stock T. The betas for these four stocks are 0.60, 1.20, 1.80, and 1.90, respectively. What is the portfolio beta?
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"At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987). Five years ago, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal). Holding all else equal, we can conclude that, over the past five years: a) Huffy's average variable cost decreased. b) Huffy's a...
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If production is not equal to sales during a period, income under absorption costing will: A. be higher than income under variable costing. B. be lower than income under variable costing. C. may be higher or lower than income under variable costing. D. be the same as income under variable costing.
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The senior management of a company has asked you to evaluate the profitability of their current asset management practices. You have gathered the following data for 2015: Inventory $60,000 Accounts receivable $40,000 Total assets $600,000 Net sales (all credit) $1,000,000 Cost of goods sold $450,000 Net ca...
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If $x \in \mathbb R$ is the generator of an ideal, what does it mean to "take $\mathbb Z [x] / (x)$ and $\mathbb Z [x] / (100, x)$"? How does this help in finding a generator of the ideal? Specifically, what are $a$ and $b$ in the equation $100c + x d = a \in \mathbb Z$?
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Suppose that the price level and the money wage rate are both fixed. In this case, if there is a simultaneous decrease in taxes and an increase in government spending, which of the following would be true? a. Output would increase, but it is impossible to say whether the price level would rise, fall or remain unchange...
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Hiltai, Inc., has the following cost formula for its transportation expense on its monthly income statement: Transportation expense = $1,600 + $0.40 per delivery. March's activity was planned for 600 deliveries, but actual activity was 610 deliveries. The actual transportation expense for the month was $365. In March...
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Good Corporation was organized on January 2, year 1, with 100,000 authorized shares of $10 par value common stock. During year 1 Good had the following capital transactions: > January 5 - issued 75,000 shares at $14 per share. > December 27 - purchased 5,000 shares at $10 per share. Good used the par value method t...
0
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The government cuts taxes. If the Fed does not fully accommodate this type of fiscal action, then interest rates will do what, as aggregate demand changes? a. contractionary; decrease b. expansionary; decrease c. expansionary; increase d. contractionary; increase
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A consumer has the utility function U(x,y)=50xy. The prices of good x and y are both $10 and the consumer has a budget of $120. How many units of good y will he consume in equilibrium? A) 3 units B) 4 units C) 6 units D) 12 units E) none of the above
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Evaluate the limit: {eq}\displaystyle \lim_{x \rightarrow 0} (1 + \ln x)^x
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If inflation unexpectedly rose, would the demand for stocks increase, and thus drive up the stock price? a. Yes. b. No.
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Set "A" for machine 1252, set "B" for machine 1275, set "C" for machine 1290, and set "D" for machine 1201. The solution to this problem will be one of the four machines. The options are: Machine 1252: Since the marginal product of labor is positive, the marginal cost of production must be negative. Machine 1275: Sin...
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Which of the following computes the growth in purchasing power? A) growth of money + growth of prices B) (1 + real rate)/ (1 + nominal rate) C) (1 + inflation rate)/ (1 + nominal rate) D) growth of money / growth of prices
D
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When sales rise and other things are held constant, the _____ will decrease. A) amount of net working capital B) amount of short-term debt C) amount of discretionary fixed assets D) amount of long-term debt E) amount of operating cash flow.
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A company had a beginning cash balance of $29,000 and an ending cash balance of $46,000. The company's income statement for the year reported net income of $51,000. What is the amount of cash received from customers during the year? Choose the correct answer. a. $68,000 b. $42,000 c. $80,000 d. $51,000
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Xtreme Sales has the following errors in its year-end financial statements. As of Dec. 31, 2012 As of Dec. 31, 2013 Ending inventory $32,000 understated $46,000 overstated Depreciation Exp. $7,000 understated On December 31, 2013, a fully depreciated machine was sold for $35,000 but the sale was not recorded until Jan...
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You work for a company that makes cell phones and have the opportunity to put together a research study about whether people prefer to buy their cell phone online or in the store. The company would like to use the results of your study to market its new cell phone with either an online or in-store advertisement, depen...
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Windsor Corporation on April 1 sold some equipment to Ash Furniture Company. The original cost was $160,000; the accumulated depreciation to the date of sale was $40,000; and the selling price was $105,000. The sales transaction was recorded for Windsor but not for Ash. This transaction: a. increased net cash flows fr...
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For the samples summarized below, test the hypothesis that the two variances are equal, at α = 0.05 Sample1 Sample2 Sample variance 25 10 Sample size 8 18 a. Accept the hypothesis because the test value 6.25 is greater than the critical value...
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Calculate the iterated integral {eq}\int\int_{D} \int 3x^2 \cos y dA{/eq}, where D is the rectangle defined by {eq}0 \leq x \leq 2, 0 \leq y \leq \pi{/eq}.
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Consider a town in which only two residents, Mike and Leah, own wells that produce water safe for drinking. Mike and Leah can pump and sell as much water as they want at no cost. For them, revenue equals profit. The table below shows the town's demand schedule for water. If the market for water were perfectly competit...
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Carr Corporation manufactures a single product that goes through one processing operation. All raw materials are introduced at the start of work on the product. The company uses the weighted-average method to account for units and costs. Its work in process T-account for the first processing operation for June follows:...
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Find the derivative of the integral {eq}\displaystyle \int_{x^2}^{x^3} \sin (t^4) \ dt {/eq}.
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Find an antiderivative of {eq}\displaystyle f(x) = \frac{1}{x +2} - \frac{1}{x +3}
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Assuming conservation of momentum, what is the energy of each {eq}\gamma {/eq}-ray produced in the decay of a neutral at rest pion, in the reaction {eq}\displaystyle \pi^0 \to \gamma + \gamma {/eq}?
67.5 MeV
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Which of the following statements is CORRECT? a. The greater the number of compounding periods per year, the higher the future value of $100. b. An annual nominal rate of interest of 8% is equal to an effective rate of 8%. c. An annual nominal rate of interest of 8% is equal to a stated rate of 8%. d. The effective...
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The owner of Showtime Movie Theaters, Inc. wants to have an after-tax net income of $5,000 per year from the two theaters in the Tampa and St. Petersburg areas. The Tampa theater has an annual gross income of $150,000 and annual fixed costs of $81,000; the St. Petersburg theater has an annual gross income of $160,000 a...
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Suppose {eq}\vec{F} (x, y) = (y + 6) \vec{i} + (x^2 - y) \vec{j} {/eq} and {eq}C {/eq} is the counter-clockwise oriented sector of a circle centered at the origin with radius 3 and central angle {eq}\frac{\pi}{3} {/eq}. Use Green's Theorem to calculate the circulation of {eq}\vec{F} {/eq} around C.
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Marginal revenue product is: (a) total revenue minus total product. (b) the change in total revenue due to a one-unit increase in a variable input. (c) total revenue minus total cost. (d) none of the above.
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A call option is currently selling for $3.80. It has a strike price of $40 and 6 months to maturity. What is the price of a put option with the same strike price and expiration date as the call option? The current stock price is $43, and the risk-free interest rate is 4.5%. Do not round intermediate calculations and ro...
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A quick ratio that is about equal to the current ratio indicates that a. inventories represent a large portion of current assets. b. the company has a low inventory turnover. c. inventories represent a small portion of current assets. d. the company has a high inventory turnover.
c
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Which of the following is true about the Poisson distribution? A) The mean is equal to the variance. B) The random variable of interest is continuous. C) The mean is greater than or equal to 0. D) The random variable of interest is always a count.
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Compute a 95% confidence interval for μ assuming x = 100, n = 1000, s = 20, and the data have an approximately normal distribution. Then determine whether the stated claim of μ = 105 is supported. We have shown, using a small sample, that the population mean is less than 105.
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Metro City collected taxes of $4,500,000 during the current year. The city remitted to the state the taxes collected of $3,500,000. In addition, Metro granted a total refund of $200,000 to taxpayers. What should the entry be to record the payment of the taxes to the state?
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Two microphones, 3.0 m apart, pick up the sound of a source emitting sound at 1024 Hz. The source is moving in a direction parallel to the line joining the microphones. When the source is equidistant from the microphones, the signals picked up by the microphones interfere constructively. At that instant, the angle betw...
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Adverse selection: a. is generally considered to be unavoidable. b. affects the accuracy of insurers' predictions. c. creates a random pattern of insured exposures. d. has little effect on the operation of the insurance mechanism. e. more than one of the above.
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Find the outward flux of the vector field \mathbf F = \langle x^3,y^3,z^2\rangle across the surface of the region that is enclosed by the circular cylinder x^2+y^2=5^2 and the planes z=0 and z=7.
15575\pi/2
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Initially the equilibrium price was $50. At this price the elasticity of demand was 0.4, and the elasticity of supply was 0.8. What will be the equilibrium price after the introduction of a $10 tax, payable by the sellers? Show your work. A. Between $45 and $50. B. $50. C. Between $50 and $55. D. Between $55 and $6...
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You're linking Inventory to Cost of Goods Sold (COGS) in order to project it over a 5-year period. Over the past 3 historical years, Inventory as a percentage of COGS was 10% on average. What does that mean? A. It means that, on average, the company goes through its Inventory balance and sells off all its Inventory 10...
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Which of the following is a long term effect of PPIs? a. Osteoporosisb. Pneumoniac. C-diffd. All of the above
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Dividends are expected to grow at a constant rate of 5% in the foreseeable future. The dividend yield is 10%. What is the market's expected rate of return? a. 5% b. 10% c. 15% d. Cannot be determined from the information given
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In the United States today, most employers: A) subsidise employees' retirement savings. B) provide very good healthcare coverage. C) provide very good paid vacation and personal leave. D) are heavily regulated with regard to wages and hours worked.
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