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Tiles limited had the following balance sheet at the end of operation for 2015 and 2016 respectively. For the period ending 2016, Net income, Interest and taxes were $42,000, $10,000 and $25,000 respectively. Depreciation Expense was $18,000. Determine Tiles Ltd's FCF for 2016.
60,000
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For most students, the largest single cost of a college education is: a) The wages are given up to attend school, b) Tuition, fees, and books, c) Room and board, d) Transportation, parking, and entertainment.
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The common stock of NYL has a beta of 1.35 and an expected return of 13.2%. The risk-free rate is 4.60%. What is the market risk premium?
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Suppose that in the short-run a production function initially exhibits increasing MPL, but then eventually exhibits diminishing MPL. When the manager hires the 10th worker, the total output increases from 70 units to 76 units. Which of the following can be inferred based on this information? A. At 70 units, the averag...
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If both the actual and the expected exchange rate appreciate, _____. A) the real exchange rate remains unchanged B) the real exchange rate decreases C) the real exchange rate appreciates D) the real exchange rate depreciates
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The federal government subsidizes the production of corn, so that corn producers receive a price floor of $5.00 per bushel of corn. At the $5.00 price, 2.5 billion bushels of corn are sold each year. The equilibrium price is $3.50 per bushel. What is the social cost of this program? a) $4 billion per year b) $1.5 bi...
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Use Lagrange multipliers to find the point on the plane x - 2y + 3z = 6 that is closest to the point (6,5,4).
(41/7, 37/7, 25/7)
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The projected rate of inflation for the next year is 5.8%. All nominal interest rates are 6.4% per year. The projected real rate of interest is: a. -1.1% b. 0.6% c. 1.2% d. 11.6%
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The _____ of a security equals the _____. a. present value; sum of the present value of each of its cash flows. b. present value; cash flow in the period when the security matures. c. present value; highest of the possible prices at which the security could be sold. d. market value; sum of the market value of each ...
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$A$ is a $4 \times 7$ matrix with rank $4$. The matrix is row equivalent to: $$\left( \begin{array}{cccccc} 1 & 2 & 3 & 0 & 1 & 1 & 3 \\ 0 & 0 & 0 & 1 & 1 & 4 & 2 \\ 0 & 0 & 0 & 0 & 0 & 1 & 1 \\ 0 & 0 & 0 & 0 & 0 & 0 & 0 \end{array} \right)$$ Let $H = \{x \in \mathbb{R}^7 \mid Ax = 0\}$. Find a basis for $H$.
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If money demand decreases (due perhaps to increased use of credit cards), then with a downward sloping aggregate demand curve, an increase in the money supply will lead to: a. a larger decrease in the price level. b. a smaller decrease in the price level. c. no change in the price level. d. an increase in the price...
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When it is learned that a positive outcome follows the presence of a stimulus, the stimulus acquires __________, and the response that is elicited by the stimulus becomes ___________. a. excitation; a fixed action pattern b. contiguity; a fixed action pattern c. excitation; a reflexive behavior d. contiguity; a ref...
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What is the net area between f(x) = x-cosx and the x-axis over x in [0, 3π]?
(3pi)^2/2
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If the cost of direct materials is $100,000 and the cost of direct labor is $150,000 and the manufacturing overhead is $100,000 and the cost of goods sold is $450,000 and the ending inventory is $100,000 what is the cost of goods manufactured?
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Show the improper integral $\int_0^1 \frac{1}{x^3} \,dx$ does not converge by evaluating the limit $$\lim_{t \to 0^+} \int_t^1 \frac{1}{x^3} \,dx.$$
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Landram Corporation makes a product with the following standard costs: Inputs Standard Quantity or Hours Standard Price or Rate Direct materials 1.0 kilos $5.00 per kilo Direct labor 2.0 hours $20.00 per hour Variable overhead 2.0 hours $3.00 per hour In March the company produced 4,200 units using 8,900 kilos of dir...
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Show that the constant function {eq}f(x) = x{/eq} is differentiable at {eq}x = 0{/eq} by using Definition 4.
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Fidelity Mutual invests $85,000 in 5-year tax-free municipal bonds. The bonds return 5.65% interest compounded continuously. Find the amount of interest earned by the fund at the end of 5 years.
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The belief that employees have a responsibility to supply information when it is requested by various stakeholders is called the: a. Reliability Principle b. Responsiveness Principle c. Self-Respect Principle d. Transparency Principle
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What is the intuition behind the inequality $$\frac{z-\tan{z}}{z^2} \ge \frac{1-\tan{1}}{2}$$ in the provided proof of $e^x>1+x$ for $x\in \mathbb{R}$, $x \neq 0$, and how does it relate to the use of the Mean Value Theorem (MVT)? What property of $f(z)=\tan{z}-z$ on $]0,1[$ does this inequality reveal, and why is it v...
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Max Company's relevant range of production is 5,600 units to 12,600 units. The unit costs when it produces and sells 9,100 units are given in the table. The units of production level change within the relevant range. Units of Production Units Produced and Sold 9,100 Variabl...
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The Simon Company incurs labor costs of $5,400 in February (payable in March) for work requiring 1,100 standard hours at a standard rate of $15 per hour. 1,200 actual direct labor hours were worked during February. The journal entry to record the labor costs for February would include a: a. $1,500 debit to Labor Cost ...
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Why is $\beta$ (in the context of the Implicit Function Theorem) defined as the minimum of a set of distances to the $x$-axis, and what does it actually tell us about the function $F(x,y)$?
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In which of the following situations can you say, without further information, that consumer surplus decreases relative to the market equilibrium level? a. Your state passes a law that pushes the interest rate (i.e., the price) for payday loans below the equilibrium rate. b. The federal government enforces a law that...
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Lansing Company's 2015 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2014 and 2015, follow. Calculate the cash payments for rent using direct method for the year ended December 31, 2015. LANSING COMPANY Income Statement For Year Ended December 31, 2015 ...
$3002
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Bacterial resistance to Beta-lactams may be mediated by all of the following except: A. Prevention of phagolysosomes formation B. Altered antibiotic target proteins C. Decreased intracellular uptake of the drug D. Active elimination of efflux pump E. Enzymatic destruction of the antibiotics
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Which of the following statements is correct? A. The book value method used to account for conversions of convertible bonds assumes that the issuance of convertible bonds and the act of conversion are two distinctly separate events. B. The market value method applied to the conversion of convertible bonds usually res...
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How do you find the integral of #1/(x^2+y^2)#?
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An exogenous decrease in the price level, holding everything else constant: A) Decreases aggregate demand and the IS schedule shifts left. B) Decreases aggregate demand and the IS schedule shifts right. C) Has no effect on aggregate demand and the IS schedule. D) Increases aggregate demand and the IS schedule shift...
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Information regarding the income statement for a firm with a December 31, 2018, year-end for the period January 1, 2018, through December 31, 2018, are given below: Particulars Amount Revenue$1,850,000 Expenses$1,520,000 Net income$330,000 Dividends$86,000 Dividends per share$0.21 Cost of Equity16.00% The cost of equ...
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If Special Relativity is correct, the Michelson-Morley experiment with equal arms of length L parallel and perpendicular to the earth?s motion should have transit times of: a. greater than 2L/c in both arms b. greater than 2L/c only in the parallel arm c. greater than 2L/c only in the perpendicular arm d. 2L/c in e...
d
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A company just starting a business made the following four inventory purchases in June: June 1 - 100 units at $350 June 10 - 400 units at $650 June 15 - 400 units at $700 June 28 - 370 units at $670 A physical count of inventory on June 30 reveals that there are 420 units on hand. Using the FIFO inventory method,...
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A typical firm in this industry has a target capital structure that consists of 35% debt and 65% equity. The cost of capital for the firm is 11.1%. The firm's tax rate is 35% and the risk-free rate is 4.00%. The market risk premium is 5.00% and the equity beta of the firm is 1.15. What is the after-tax cost of debt ...
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What is the relationship between cash reserves held by individuals at commercial banks and commercial bank reserves? a) Cash reserves = Commercial bank reserves b) Cash reserves < Commercial bank reserves c) Cash reserves > Commercial bank reserves d) Cash reserves + Commercial bank reserves
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If the total fixed cost is $2000 and the total variable cost is $200Q, then the average fixed cost is: a. 200 b. 10 c. 200Q d. 2000/Q e. None of the above
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I need to compute the derivative of $$g(x,y) = \arctan\left( \frac{x+y}{1-xy} \right)$$ with respect to $y$ and show that it equals 1. I have made the substitution $z = \frac{x+y}{1-xy}$, so that $g(x,y) = \arctan z$. Then I computed the derivative of $z$ with respect to $y$ to be $$\frac{d z}{d y} = \frac{1-x^2}{(1-xy...
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Change to polar coordinates and evaluate (hint: use a sketch): {eq}\int_0^3 \int_0^x x + 2 dydx {/eq}
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Calculate the present value of the following payment stream if the interest rate is 11%. $15,000 today, followed by $5,000 payments per year for the next five years. a. $32,439 b. $38,122 c. $39,622 d. $35,385
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Statement of cash flows is/are: a. only one type of information useful to a cash flow analysis b. a statement showing where cash was from and its ending balance c. only a source of information for evaluating a company's liquidity and financial flexibility d. all of the above
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For the 2014 fiscal year, Sales for Randleman Inc. amounted to $115 million. 80% of these sales are on account. The company had a beginning balance in Accounts Receivable of $12 million and an ending balance of $13 million. What was the days to collect on average? a. 117 days b. 99 days c. 72 days d. 54 days e. 36...
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The price of a 3-year, zero-coupon bond, paying $100 at maturity, is $85. What is the yield to maturity of the bond? a) Less than 6% b) 6-7% c) 7-8% d) 8-9% e) More than 9%
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Consider a five-year project with the following information: Initial fixed asset investment = $793,130 Straight-line depreciation to zero over the five-year life Zero salvage value Price = $44 Variable costs = $37 Fixed costs = $183,755 Quantity sold = 97,341 units Tax rate = 40% Calculate the sensitivity of the OCF ...
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Compute $\displaystyle \lim_{x\to 0}\frac{\sin(x^2+x)-x}{x^2}$ by elementary means (derivatives of power functions and trigonometric functions, Chain Rule, Mean Value Theorem).
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A manager of a locally owned restaurant wants to determine what type of dining enticement customers prefer. Her staff randomly selected 150 customers and gave them a $50 coupon for the next time they came in. Then she told them to come back in a week and participate in an online survey. What type of bias is this? a. R...
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Shelf registration allows a firm to register multiple issues at one time with the SEC and then sell those registered shares anytime during the subsequent: a. 3 months. b. 6 months. c. 180 days. d. 2 years. e. 5 years.
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Suppose X is normally distributed with mean 6 and standard deviation 2. What is P(4 < X < 9)?
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If the government purchases $1000 in goods and services, the tax multiplier, given a marginal propensity to consume of 0.50, will equal: a) -1 b) 1 c) 2 d) -2
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When testing the hypothesis (at the 1% level of significance) that the average energy use has increased from the past value of 16.6, what is the critical value?
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Which of the following statements is false? a) PES is infinity all along any horizontal supply curve. b) PES is 1.0 all along any supply curve which passes through the origin. c) PED is zero all along any vertical demand curve. d) PED is -1.0 along any demand curve where spending would be the same at each price.
d
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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? A. Between $45 and $50. B. $50. C. Between $50 and $55. D. Between $55 and $60. E. $60.
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Which of the following is a characteristic of the price of stock? a) stock dividends are tax-deductible b) Because stock has no maturity, the price analysis is similar to that of debt c) stock is valued as a perpetuity d) none of these.
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Assume there is an equal amount of money in the domestic and foreign bond markets. If the domestic interest rate is 4% and the foreign interest rate is 5%, then: A) the domestic currency will appreciate and the foreign currency will depreciate B) the domestic currency will depreciate and the foreign currency will ap...
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Assume the American population is 15% Hmong. If you select 100 people, what is the probability of 12 or more Hmong?
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An investment will pay $1,000 at the end of year 1, $500 at the end of year 2, and $750 at the end of year 3. If your opportunity cost is 10%, what should the investment be worth today?
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A firm has just introduced a product in a market and would like to increase its market share by focusing on maximizing revenue in the current period. It has been estimated that the demand for the product is {eq}Q = 1500 - 75P {/eq}. Then to maximize revenue, the firm should charge A. {eq}P=$8 {/eq} B. {eq}P=$10 {/...
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Nelson Company produces golf discs which it normally sells to retailers for $6.70 each. The cost of manufacturing 5,000 golf discs is materials $12,000, labor $27,000, variable overhead $18,000, and fixed overhead $36,000, for a total of $93,000. Nelson also incurs a 5% sales commission ($0.34) on each disc sold. Brian...
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Company A leased equipment from Company B on January 1, 2014, for a five-year period expiring on December 31, 2018. The present value of the lease payments is $150,000. Under this lease agreement: * The lease qualifies as a sales-type lease. * The lease term is equal to 50% of the estimated economic life of the equip...
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A firm has two product lines with the following financial information: Product A Product B Sales $500,000 $900,000 Variable expenses 200,000 360,000 Contribution margin 300,000 540,000 Fixed expenses 250,000 300,...
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Demonstrating that there is a negative relationship between the price of a good and the amount purchased, other things equal, requires? a. upward sloping demand and supply curves. b. downward sloping demand and upward sloping supply curves. c. downward sloping demand and supply curves. d. downward sloping demand cu...
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Compared to the B2C(business to customer) process, the information search and alternative evaluation steps in the B2B(business to business) process are more: A. Decentralized B. Emotional C. Informal D. Objective
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Find the number of elements of the multiplicative group of $\mathbb{Z}_2[x] / (x^3 + x^2 + 1)$.
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Suppose that {eq}y = \frac{1}{3}x^3 - 4x^2 + 9x - 2{/eq}. Find the inflection point. A. {eq}(2.333, 0.556){/eq} B. {eq}(2.333, 2.444){/eq} C. {eq}(3.778, 2.222){/eq} D. {eq}(4.000, 5.000){/eq}
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Ace Inc. acquired a plant asset for $1,200,000 on January 1, 2016. It is expected to last 30 years, after which it will have a residual value of $240,000. If the company uses the straight-line method of depreciation, the balance in Accumulated Depreciation at December 31, 2018 will be a. $1,014,000 b. $102,000 c. $3...
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On November 1, 2016, Alpine Corporation had 78,000 shares of $30 par common stock and 5,000 shares of $100 par $6 cumulative convertible preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2016 or 2015. On February 1, 2015, Alpine sold 6,000 shares of common stock for $240...
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Given the following regression equation, which variable is the "dependent" variable?
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A long sheet of insulating material has an x-axis that is perpendicular to its surface. The x-axis runs through the center of the sheet. A Gaussian surface with a 1-m2 area is placed on the sheet with its axis aligned with the x-axis. This surface has a uniform charge density of {eq}4.1 \ \mu C/m^3 {/eq}. The insulati...
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If we expect a company to have earnings of $6 per share in the coming year and to grow at 4% in the foreseeable future, what would be the value of the common stock value to an investor requiring a 10% return?
$100
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Suppose you own a company and you recently purchased a small building next to your office for $200,000. You plan to lease out the extra space to your employees at $100 per month. Which of the following costs represents an explicit cost? A. The interest payments on your business mortgage B. The amount of money you cou...
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Which of the following is true about relevant costs? a. Sunk costs are relevant costs. b. Opportunity costs are relevant costs. c. Variable costs are relevant costs. d. Fixed costs are relevant costs.
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All Corporation has taxable income from operations of $500,000, dividends received of $50,000, and interest from U.S. government securities of $25,000. All also operates a retail store and is entitled to a $45,000 tax credit under the retailer's tax credit act. What is All's alternative minimum taxable income? a. $545...
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By what amount can a taxpayer reduce the basis of Section 1231 property from $500,000 to $300,000 for purposes of determining the gain recognized when selling for $400,000 under Section 1231? a. $100,000 b. $200,000 c. $300,000 d. $400,000
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Assume the following journal entries were recorded for the month of May: May 2 Accounts receivable 2,000 Sales revenue 2,000 8 Cost of goods sold 1,000 Inventory 1,000 18 Sales returns 500 Accounts receivable 500 22 Purchases 1,500 Accounts payable 1,500 28 Accounts payable 600 Purchase returns 600 31 ...
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What are the critical values for testing the hypothesis that there is a relationship between the age of employees and the number of sick days they take each year, given the data: Age, x: 18, 26, 39, 48, 53, 58 Days, y: 16, 12, 9, 5, 6, 2 and α = 0.05, with the options being: (A) .811 (B) .878 (C) .754 (D) .707
A
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Lions, Tigers, and Bears, Inc. (LTB) is evaluating a proposed capital budgeting project (project Delta) that requires an initial investment of $1,600,000. LTB's management has provided the following data for project Delta: * Project Delta will last for 5 years and will have a salvage value of $200,000. * The firm's d...
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Which of the following statements is correct? a. For most firms, operating at a level of output where the average total cost is declining will maximize profits. b. In the long run, a monopolistic competitor's average total cost will always be less than its minimum possible value. c. If a firm's average total cost ex...
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Jane identified $65,000 as a nonbusiness bad debt last year. In that tax year, before considering the tax implications of the nonbusiness bad debt, Jane had $130,000 of taxable income, of which $6,500 consisted of short-term capital gains. This year Jane collected $10,000 of the amount she had previously identified as ...
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Last year Jane identified $60,000 as a nonbusiness bad debt. In that tax year, before considering the tax implications of the nonbusiness bad debt, Jane had $120,000 of taxable income, of which $6,000 consisted of short-term capital gains. This year Jane collected $15,000 of the amount she had previously identified as ...
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A firm's sales for Year 4 are 2,000 units at $20 per unit. The revenue approach and the economic value added approach indicate the firm generated a return of 12% on sales. Given this information, the accounting profit for Year 4 is most likely: A. greater than $40,000. B. less than $40,000. C. $40,000.
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Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of a. liquidated damages b. quasi ...
B
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One of the advantages of the high-low method is that: A) a time series regression is performed to establish cost behavior. B) it is objective in that it uses only two data points. C) it is more accurate than the regression method. D) it is more accurate than the scatter method.
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In 2012, a company with $50,000 of net income and a 25% tax rate issued $20,000 of bonds. The company also had a common stock dividend of $6,000. Calculate the cash flow to stockholders. A) $6,000 B) $14,000 C) $3,000 D) -$6,000
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The amount of a financial lease, considering rent, capital costs, income taxes, and inflation, is most nearly equal to the: A. market value of the leased asset B. minimum lease payment factor C. present value of the asset multiplied by the minimum lease payment factor.
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Which of the following terms refers to the continuous process of gathering and evaluating information about variables and events around the world that may pose threats or opportunities to the firm?A) business process reengineering B) PEST analysis C) environmental assessment D) fundamental analysis
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A company has both current and long-term debt. The company's current ratio is 2.5 and its quick ratio is 1.3. The company has both enough current assets to cover its current liabilities and enough quick assets to cover its current liabilities. The company makes a note payment on the long-term debt. What will be the eff...
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According to Fred Luthans and his associates, managers involved in traditional management activities undertook which of the following tasks? A) motivating B) socializing C) decision making D) training E) politicking
C
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What is the smallest number of samples needed to estimate the true average with a 95% confidence interval and a margin of error of 0.05, given that the standard deviation is 1.7?
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I need to determine the convergence of the following summation: $$\sum_{k=1}^{\infty}\frac{(-1)^k}{(\log k)^{\log k}}$$ I suspect that the ratio and root tests will not be useful. I have shown that $(\log k)^{\log k}\ge k$ which means that $$0<\frac{1}{(\log k)^{\log k}}\le\frac{1}{k}$$ We know that $\sum_{k=1}^{\infty...
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Urbana Corp. acquired 100% of the common stock of Soldner Inc. on January 1, 20X6. Urbana owns 60% of the common stock of Soldner. Soldner Inc. sold land with an original cost of $150,000 and a book value of $200,000 to Urbana for $180,000 on January 1, 20X6. Urbana sold the land to a non-affiliate for $250,000 on July...
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A company has the following beginning inventory and purchases for the month of January. On January 26, the company sells 360 units. Units Unit Cost Beginning inventory on January 1 320 $6.00 Purchase on January 9 90 6.40 Purchase on January 25 200 6.60 The company uses a periodic inventory system and there were 250 u...
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Assume the risk-free rate is 6.2 percent and the market risk premium is 7.6 percent. Your stock, which has a beta of 1.3, has earnings that are expected to grow at a constant rate of 4 percent per year. The most recent dividend on the stock was $1.50. What is the intrinsic value of the stock?
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Evaluate: {eq}\lim_{x\rightarrow 4^+} (\sqrt{x-4})^{\sin \pi x}{/eq}
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Which of the following statements is CORRECT? a. PFDs generally have a lower yield to maturity relative to their Z-score counterparts b. PFDs generally have a lower yield to maturity relative to other types of bonds with the same maturity c. PFDs have more default risk than corporate bonds with the same maturity d....
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In a narrow sense, the term interest rate usually refers to A. the rate on short-term government securities B. the rate on long-term government securities C. the rate on interbank loans D. the rate on a specific loan E. None of the above
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When the Net Present Value of a project exceeds the minimum return hurdle, the project should be: A. accepted B. rejected C. evaluated further for its Profitability Index D. evaluated further for its Internal Rate of Return
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You have $3,000 to deposit. Regency Bank offers 6 percent simple interest, whereas King Bank offers 6 percent interest compounded annually. You plan to deposit your funds for 4 full years. Which bank offers you the best deal? Show your work. a. Regency Bank b. Both banks offer the same deal. c. You should not depos...
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Find the area of the region bounded by the graph of r = 3(1 + cos(θ)) and r = 3(1 - cos(θ)).
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Assuming that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $3...
9.69%
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When workers experience wage increases that keep pace with inflation, a potential negative impact of this situation would be: A. they spend all of their additional income. B. they buy less of everything. C. they save more. D. They are less able to make purchases with their current money holdings. E. their marginal...
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Assume that the real risk-free rate is 3.50 percent and that inflation is expected to be 2.00 percent this year, 4.20 percent next year, 2.80 percent in year 3, and 3.00 percent thereafter. The maturity risk premium is estimated to be equal to 0.05 x (years to maturity). What is the yield on a 10-year Treasury note?
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Let $k$ be an odd integer and let $a,b \in \mathbb{Z}$ such that $gcd(a,b) = 1$. Prove that: $gcd(a + bk, b) = 1$
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