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A permanent increase in the price level in the current period, together with a higher expected price level in the future, might cause the short-run aggregate supply curve to shift: a. left, because the higher price level and expected price level would reduce the real wage and decrease employment. b. left, because the...
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What is wrong with the following calculation of the expected value of a binomial distribution without using the binomial theorem: $E[X] = \sum_{k = 0}^n k\cdot\binom{n}{k}\cdot p^k\cdot(1-p)^{n-k} = \sum_{k=0}^n k\cdot\frac{n!}{k!(n-k)!}\cdot p^k\cdot(1-p)^{n-k}$, assuming $\binom{n}{0} = 1$?
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Watkins Trucking Company has the capacity to produce 500,000 units per year. The company sells each unit for $225. Budgeted information is as follows: Revenues $111,750,000 Direct materials 58,125,000 Direct labor 17,625,000 Manufacturing overhead (fixed) 13,125,000 Manufacturing overhead (variable)13,125,000 ...
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If {eq}g(x) = \int_{1}^{x} \frac{1}{t^2} \, dt{/eq}, find {eq}g'(x){/eq}
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Frank and Harry are partners. Frank has a capital balance of $49,000 and Harry has a capital balance of $40,000. Bill invested a building worth $28,000 to the partnership for an ownership interest of 20%. Calculate Bill's capital in the new partnership. A. $23,400 B. $28,000 C. $12,000 D. $21,000
A
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1 Now we know that the demand curve a comes from how much the consumer likes a good only b comes from the preferences and budget of the consumer only c comes from the preferences of the consumer and the prices of the goods only d comes from the affordability and budget of the consumer only
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The company prepares, but does not yet pay, its first payroll of the New Year. Salaries total $10,000 and 7.65% is withheld from paychecks for FICA tax. Ignore all other payroll deductions. The journal entries will be: a. Debit wage expense $10,000 and credit wages payable $10,000; debit payroll tax expense for $765 a...
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How much more expensive is it to purchase a book (at retail) rather than buy it (at cost) during a sale at a specialty book store? Purchase 40 books and find out. To carry out this activity, you will need: - A typical college textbook (hard copy) at retail - A typical college textbook (hard copy) at cost (from the bo...
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Use Definition 7 to find {eq}\int_{-4}^4 (2x - 3)\;dx
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Suppose a monopoly firm faces a downward-sloping demand curve in a perfectly competitive market. If the monopoly firm charges the highest price for its product, which of the following is correct? A) Price will be higher than marginal revenue. B) There will be some consumer surplus. C) Quantity demanded will be very ...
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Question 5. 5. (TCO D) Animal Inc. leased equipment from Zoo Enterprises under a 5-year lease requiring equal annual payments of $63,000, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 5-year useful life and no salvage v...
$21,733
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If a firm uses the same company cost of capital for evaluating all projects (including high risk and low risk projects), then: A. low risk projects will be accepted that shouldn't be. B. high risk projects will be rejected that should be. C. the number of projects undertaken by the firm will decrease. D. a and c E...
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Which of the following costs are considered relevant in decision making? a. Sunk costs b. Fixed costs c. Variable costs d. Committed costs e. Both fixed and variable costs f. Neither fixed nor variable costs
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Convert the integral to polar coordinates and evaluate: {eq}\int^5_0 \int^{\sqrt {25 - x^2}}_x 2ydxdy{/eq}
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G&G Corporation acquired a 60% interest in the common stock of John's Inc., a subsidiary in a highly competitive industry. The fair value of the noncontrolling interest was $150,000 on the date of acquisition. During the current year, G&G Corporation sold merchandise to the subsidiary for $68,000. In turn, the subsidia...
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Consider a zero-coupon bond with the following features: face value of $1,000, annual interest of $100, and 10 years to maturity. Determine the price of the bond assuming an 8% yield to maturity.
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A stock has an expected return of 14.5 percent, its beta is 1.95, and the expected return on the market is 11 percent. What must the risk-free rate be?
7.32%
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Management is considering purchasing a new machine that would cost $458,291 and would have a useful life of 5 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $121,821 per year. The internal rate of return on the investment in the new machine is closest to:
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What is the profitability index (PI) of a project if the initial costs are $1.87 million and the project life is estimated as 3 years? The project will produce the same after-tax cash inflows of $699,326 per year at the end of the year.
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A company has a weighted average cost of capital of 7.5 percent, a before tax cost of debt of 5 percent, and a cost of equity of 10.5 percent. What is the company's debt-to-equity ratio?
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One of the steps in the costing of a product is to assign overhead costs to the cost object. As a general rule, overhead costs are assigned to the cost object using which of the following? A. An allocated rate based on estimated overhead costs and estimated allocation base activity. B. Estimated overhead costs divided ...
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Assuming that $f$ is differentiable for all $x$, if $f(1)=f(2)=0$ and $f(3)=6$, find the value of the integral $$ \int_{1}^{2} f'(f(x)+x)\,dx $$. Also, how do we know that $f(x)+x$ is always increasing?
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Delaney Company is considering replacing equipment which originally cost $600,000 and which has $420,000 accumulated depreciation to date. A new machine will cost $790,000 and the old equipment can be sold for $8,000. What is the sunk cost in this situation ? a) $172,000 b) $180,000 c) $188,000 d) $290,000
b
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Company ABC sells Product A, Product B, and Product C. The sales mix is 4:1:2, respectively. If the sales price for each product is $20A, $30B, and $10C, and the variable cost per unit for each product is $15A, $15B, and $5C, what is the weighted average unit contribution margin? Select one: a. $16 b. $12 c. $10 d....
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Maximum velocity u is given by the equation: {eq}u = \frac{1}{R} \sqrt {\frac{P}{\rho }} \sqrt {2g + \frac{P}{\rho u^2} } {/eq} Find {eq}\frac{\mathrm{d} u}{\mathrm{d} P} {/eq}.
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How many real solutions are there to the equation $x = \sqrt{2} + \sqrt{2} + \sqrt{2 - x}$, and what is the sum of these solutions? Could you please provide a hint on how to solve this equation?
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The table below shows four different degrees of discrimination in the water market in the town of Springwater. Under which of the following circumstances will the number of gallons supplied equal 60? A. Perfect competition. B. A single-price monopoly. C. Two-price discrimination. D. Three-part pricing. E. First-d...
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You have the following cash flows. Your discount rate is 6%. What is the present value of these cash flows? Cash Flows Period 1 $100 Period 2 -$200 Period 3 $50 Period 4 $100 Period 5 $500 a. $383.45 b. $418.2...
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Find the probability that a sample of 9 cans will have a mean amount of at least 12.12 oz, assuming cans of Coke are filled so that the actual amounts are normally distributed with a mean of 12.00 oz and a standard deviation of 0.11 oz.
0.0005
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Assume that your firm's marginal tax rate is 40% and that the average tax rate is 25%. Your firm has total outstanding debt of $2,000,000. The After-tax Weighted Average Cost of Capital (WACC) is: a. Less than 3% b. Between 3% and 5% c. Between 5% and 10% d. Between 10% and 15% e. Greater than 15%
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Your manager notes that you calculated the multifactor productivity for April as 4.81. She asks you what that means. You reply: a. "For every $4.81 in revenue, we cover all labor, overhead and material costs." b. "For every $1 in revenue, we produce 4.81 units." c. "For every $1 spent in operations, we produce 4.81...
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According to the short run aggregate supply curve (SAS), firms respond to a reduction in aggregate demand by: A. cutting prices. B. cutting production. C. cutting production and prices. D. cutting neither production nor prices.
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Use the limit process to find the area of the region bounded by the graph of the function {eq}x^4{/eq} and the {eq}x{/eq}-axis over the specified interval {eq}[0, 1]{/eq}.
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The goal of _____ is to determine the firm's long-run survival by evaluating its ability to earn an adequate return on its investments. A. HR planning B. Financial planning C. Strategic planning D. Risk management
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Find all values of \(p\) for which the integral \(\int_{- \infty}^{0} e^{(p - 1)x} \, \mathrm{d}x\) converges.
p > 1
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The following data were collected for the reaction of NO with O{eq}_2 {/eq}. What is the rate law for this reaction? Rate = ??? [NO] mol/L [O{eq}_2 {/eq}] mol/L Rate mol/Ls 0.0125 0.0253 1.42 0.0248 0.0253 5.65 0.0125 0.0506 2.83
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Select the first correct reason why the given series diverges: \(\displaystyle \sum_{n=1}^\infty \ln(1+\frac{1}{n})\) A. Comparison with a divergent p-series B. Diverges because the terms do not have limit zero C. Diverges by Alternating Series Test D. Divergent geometric series E. Diverges by Limit Comparison Tes...
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Determine the probability that the project will take more than 10,000 hours to complete. ActivityExpectedTime(hours)Std. Deviation(hours) A1000100 B650100 C700100 D40050 E80075 ActivityPredecessorsActivity Duration A01000 B0700 C01000 D0650 E1600 F2, 4800 G3800
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If the absolute value of the slope of the demand curve is 0.25, price is $8 per unit, and quantity demanded is 12 units, then demand for this good is: a. inelastic. b. unit elastic. c. perfectly elastic. d. elastic.
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Runder Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space use...
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Suppose there is a decrease in the expected future interest rate. This will cause which of the following to occur? A. Both the IS and LM curves shift left in the current period. B. The IS curve shifts right in the current period. C. The IS curve shifts left in the current period. D. The LM curve shifts up in the cu...
B
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Riverbed Company's cost formula for its motor vehicle expense is $5,540 per month plus $575 per mile. For the month of February, the company planned for activity of 840 miles, but actually drove 790 miles and incurred motor vehicle expenses of $5,675. The cost formula established for motor vehicle expenses would alloca...
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Hunt company experienced the following costs in 2011 and 2012: Year Materials handling costs Number of parts handled 2011 $ 45,000 450,000 2012 $ 50,000 475,000 If Hunt had used the number of parts handled as the only cost driver, by ...
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I've been reading that you can't take the derivative of a complex function componentwise, so I thought I'd try taking the derivative of the absolute value function componentwise and see where it gets me. $$f(x)=|x|= \sqrt{x^2}$$ $$f'(x) = \frac{x}{\sqrt{x^2}}$$ $$f'(x) = \frac{x}{|x|}$$ So for values of x where x > 0...
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Determine the weighted average cost of capital for the Black Hill Inc. Project. Black Hill Inc. management is considering raising the firm's debt capital. The before-tax cost of debt is measured to be 12%, and the company currently has a target capital structure of 40% debt. The corporate tax rate is 35%.
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Use a computer algebra system to approximate the iterated integral. {eq}\displaystyle \int_0^{\frac{\pi}{2}} \int_0^3 \int_0^{\cos \theta} (6 \cos \phi) \rho ^2\ d \rho\ d \theta\ d \phi {eq}
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CompuTronics, a manufacturer of computer peripherals, has excess capacity. The company's Utah plant has the following per-unit cost structure for item no. 89: Variable manufacturing $40 Fixed manufacturing $15 Variable selling $8 Fixed selling $11 Traceable fixed administrative $4 Allocated administrative $2 Th...
a
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A bond has a $1,000 par value and an 8% coupon rate. The bond has three years remaining to maturity and a 10% yield to maturity. The modified duration of this bond is: a) 2.78 years b) 2.40 years c) 2.22 years d) 2.50 years
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$80,000 in annual taxes on real property are payable by December 10. Is the tax considered an excise tax if the payment is made on December 31? a. Yes, because the tax is a governmental charge and the payment is made after the due date. b. Yes, because the tax is based on an activity (ownership of property) that occu...
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At an output level of 74,000 units, you calculate that the degree of operating leverage is 1.4. The output rises to 76,000 units. What will be the percentage change in operating cash flow?
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How many times will the while loop in the following pseudocode execute? var X = 1 WHILE (X < 100) X = X * 2 A. 6 B. 7 C. 8 D. 9 E. 10
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A shareholder of a firm has: a. a call option on the equity of the firm. b. a call option on the assets of the firm. c. a put option on the equity of the firm. d. a put option on the assets of the firm.
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Let S be the part of the plane 4x + 3y + z = 3 which lies in the first octant, oriented upward. Find the flux of the vector field F = 3 i + 3 j + 3k across the surface S.
9
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A company has 2 processing departments. Conversion costs are applied to the product in Department 2 on the basis of units transferred in from Department 1. The following information relates to Department 2: Cost of direct materials transferred in from Department 1$5,700 Conversion costs during this period transferred...
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Find the minimal polynomial of $\sqrt 2 + \sqrt 3 $ over $\mathbb Q$ and find its degree.
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If the cash flow estimates of a project include only project revenues and project costs, the IRR is known as the: a. real IRR. b. nominal IRR. c. external IRR. d. internal IRR.
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A company had net operating income of $1,040,000 in 2013 and net cash flow provided by operating activities of $1,090,000 in the same year. If total cash outflow for the year was $1,930,000, then what was the amount of cash flow from financing activities?
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The series {eq}\displaystyle \sum_{n = 2}^{\infty} \frac{8}{n^2 - 1} {/eq} converges. True or False.
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Sperazza Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company budgeted production of 5,700 doors. Actual production was 6,100 doors. According to standards, each door requires 5.4 machine-hours. The actual machine-hours for the month were 33,790 machine-...
b
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Dividend payments of ABC company are expected to grow at an 8 percent annual rate indefinitely. The company just paid a dividend of $0.50. What is the current value of ABC common stock if the required rate of return is 12 percent?
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At the end of its 5-year economic life, WTI Oil Company is considering the sale of one of its production facilities. The facility was purchased for $75 million five years ago and has a net book value of $22 million. The asset is being depreciated on a straight-line basis over a ten-year life. Assuming the company is in...
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Kinkless Corporation has just paid a dividend of $2.50. The expected growth rate on dividends is 8%. What is the current price of this stock if the required rate of return is 12%?
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If a firm has a net profit margin of 5.3%, a debt ratio of 50%, a current ratio of 1.3, a dividend payout ratio of 42%, and an asset turnover ratio of 1.1 times, then what is its ROE?
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The objective of financial reporting is to provide information that is useful in predicting a firm's future: A) product lines. B) financing and investing activities. C) economic resources and cash flows. D) economic resources and obligations.
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During expansions, the labor force participation rate tends to: A. rise, but not by as much as the employment-population ratio. B. rise by more than the employment-population ratio. C. fall whereas the employment-population ratio rises. D. none of the above.
A
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Roosevelt Company sold some machinery to Dixie Company on January 1, 2012, for $850,000, which represented a 30% profit margin on cost. However, the agreement required Dixie to pay $140,000 per year plus 7% of the amount sold each year over $1,100,000. The cash selling price would have been $830,000. The first payment ...
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Galindo Corporation produces a part used in the manufacture of one of its products. The unit product cost is $25, computed as follows: Direct materials$9 Direct labor14 Variable manufacturing overhead2 Fixed manufacturing overhead8 Unit product cost$25 An outside supplier has offered to provide the annual requirement...
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The perfect or optimal outcome with regard to externalities is achieved when: a. marginal private benefits equals marginal private costs, b. marginal social benefits equals marginal private costs, c. marginal social benefits equals marginal private costs plus marginal external costs, d. marginal social benefits equ...
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Molteni Motors Corporation uses the weighted-average method in its process costing system. During a particular month, 5,700 units were started into production in Department P. They were transferred to Department Q, in process costing terms, at the end of the month. At the end of the month, there were 300 units in proce...
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I tried solving the following limit: $$\lim_{n\to\infty} n\sin\frac{1}{n}$$ and I arrived at: $$\lim_{n\to\infty} n\cdot \sin\frac{1}{n} \cdot \frac{\sin\frac{1}{n}}{\frac{1}{n}}$$ I separated $\frac{\sin\frac{1}{n}}{\frac{1}{n}}$ because I know that it equals 1 when $n\to\infty$. However, Wolfram says that the limit i...
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Sometimes ................. is used to refer to the strategic formulation, implementation and evaluation, with .................... referring only to the strategic formulation. A) strategic planning; strategic management B) strategic planning; strategic processing C) strategic management; strategic planning D) stra...
C
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The "short run" in macroeconomics is a period in which prices: A) change by a lot. B) are determined by changes in the supply. C) reflect the equilibrium price. D) do not change or change very little.
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It is possible that when the money supply rises, interest rates may _____ if the _____ effect is more than offset by changes in income, the price level, and expected inflation. A) fall; liquidity. B) fall; risk. C) rise; liquidity. D) rise; risk.
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From a standard deck of 52 cards, 13 cards are dealt. What is the expected number of pairs of adjacent cards which have the same value? For example, in the sequence, 3, 3, 4, 7, 2, 2, 2, 5, 6, 8, 4, 9, 9, there are 3 such pairs.
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The speed of the chemical reaction known as the citric acid cycle can be increased by which of the following mechanisms? A) Decreasing the ADP concentration. B) Increasing the ratio of ATP to ADP. C) Increasing the concentration of a key intermediate. D) Removing a key intermediate as soon as it is produced. E) No...
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If you had to solve the following equation (with x being a vector): \[ x = \mathrm{argmax}_x \log \mathrm{det} (I+R^TR)+ \sum_{i=1}^N (x_i-\hat{x}_i)^2 \] with constraints $x_i\in \{0,1\}, \sum_{i=1}^N x_i =K$, where $\hat{x}_i$ and $R^TR$ are given, and $\log \det (I+R^TR)$ is constant, what would you do to solve this...
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When the Fed _____ the money stock, the money supply curve shifts to the _____ and the interest rate _____, everything else held constant. A) decreases; right; rises. B) increases; right; falls. C) decreases; left; falls. D) increases; left; rises.
B
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Suppose the own price elasticity of market demand for retail gasoline is -0.6, the Rothschild index is 0.5, and a typical gasoline retailer enjoys sales of $1,800,000 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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Casper, Quattrone, and Solis share profits and losses in a 5:3:2 ratio, respectively. The partnership's statement of financial position shows the following information: Current Asset $115,000 Noncurrent asset $420,000 Liabilities $280,000 Additi...
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Compute the price of the stock if the required return is 13.5%, the growth rate is 7.1%, and the current dividend is $2.03.
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Fidelity Fund (FF) has the following information regarding its service department charges for the year ended 12/31/09: Allocated to Production Department Allocated to other Service Department Bookkeeping $60,000 $3,000 Cafeteria 4,000 11,000 Housekeeping 3,500 7,000 Receivables Collection 50,000 20,000 Insurance 2,5...
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Suppose a study is conducted to compare how life-satisfaction is related to income in two different countries. One is a developed country with a high per capita GDP, and the other is a lower- income country with a low per capita GDP. The correlation between life satisfaction and income in the developed country is .5, w...
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A bookkeeper has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction: a. Credit another asset account for $1,500. b. Credit another liability account for $1,500. c. Credit an expense account for $1,5...
e
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A firm's beta as computed by external rating agencies like Standard and Poor's: a. is the same as the beta calculated using Excel's SLOPE function b. is not the same as the beta calculated using Excel's SLOPE function c. will always be less than the beta calculated using Excel's SLOPE function d. will always be gre...
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You have just signed a 10-year, zero-coupon corporate bond with a face value of $50 million for a price of $30 million. With the maturity value in the bond stated at 10%, the bond's current yield is: a. 5.78%. b. 6.67%. c. 7.66%. d. 8.83%. e. 10%.
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The price of a certain commodity is a function of supply and demand. If the price is $1.80 per unit when x = 800 units and 3 units increase in the price causes a 750 unit decrease in demand, what is the demand function?
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You own a portfolio equally invested in a risk-free asset and two stocks. The first stock has a beta of 1.47 and an expected return of 12%, and the other stock has a beta of 1.8 and an expected return of 14%. Your portfolio has a beta of 1.54. What is the weight of the risk-free asset?
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What is the expected return on X's stock if the expected return on the market portfolio is 12.50%, the risk-free rate is 3.70%, and the beta of X is 1.40?
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If a company retires preferred stock: a. the number of outstanding shares will increase. b. total stockholders' equity will increase. c. the company can record a gain or loss on retirement of stock. d. total stockholders' equity will decrease.
d
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The following information is available for the month of October from the First Department of the Vaughn Corporation: Units Work in process, October 1 4,000 Started in October 28,000 Transferred to Second Department in October 25,000 Work in process, October 31 7,000 Materials are added at the beginning of the...
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Suppose that you take $60 in currency out of your pocket and deposit it in your checking account. If the required reserve ratio is 12%, what is the largest amount (in dollars) by which the money supply can increase as a result of your action? Include the $60 as part of the new money supply and assume the bank does not ...
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A tank contains 1500 L of brine with 12 kg of dissolved salt. Pure water enters the tank at a rate of 10 L/min. The solution is kept thoroughly mixed and drains from the tank at the same rate. How much salt is in the tank after 20 minutes?
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Galbraith Co. is considering a four-year project that will require an initial investment of $7,000. The base-case cash flows for this project are projected to be $14,000 per year. The best-case cash flows are projected to be $26,000 per year, and the worst-case cash flows are projected to be -$4,500 per year. The compa...
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If a person is randomly chosen from a group of people where males and females are equally likely, what is the probability of selecting a female? (Hint: Since males and females are equally likely the proportion of females in the group must be _____) A) 0.25 B) 0.5 C) 1.00 D) 2
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If the sequence converges to $a$ then how do I prove the sequence to the $n$th power converges to $0$?
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In the numerator of the sustainable growth rate formula, net income is divided by: A. Assets. B. Retained earnings. C. Total debt. D. Sales.
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Find the determinant of the 3x3 matrix. -1 3 0 2 -2 3 4 -3 5
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A small bagel shop, a typical example of a microeconomics business firm, is most likely to: (a) earn positive economic profits in the short run (b) produce an output level where {eq}MC = MR {/eq} only if its fixed costs are sufficiently small (c) fail in the long run if the price of its product is less than the min...
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Calculate the area of the surface S, where S is the portion of the plane x + 2y + 5z = 6 that lies inside the cylinder x^2 + y^2 = 9.
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Paycheck Company makes two types of office chairs, Modelo A and Modelo B. It provides the following information: The company's direct labor rate is $17.00 per hour. Direct Material Direct Labor Number of Units Modelo A $15 per unit $6 per unit 8 units Modelo B $...
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