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How many units of the sale item should the store stock in order to have at most a 1 percent chance of running short of the item on the day of the sale, given that 43 percent of 1,462 customers will purchase the item, there is a one-item-per-customer limit, and customers make independent purchase decisions?
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Which of the following would have the least interest in insurance? a. An insurance company b. An individual who has a large amount of valuable property c. An individual with little or no insurable property d. Someone who anticipates a large loss e. Someone who is a risk-accepter
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A bond currently has a price of $1,050. The yield on the bond is 6.00%. If the yield increases 25 basis points, the price of the bond will go down to $1,030. The duration of this bond is _ _ _ years.
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Hubble Corporation has provided the following information for the month of January: Beginning cash balance = $27,000 Cash disbursements = $83,000 Cash receipts = $90,000 Ending cash balance = $22,000 The corporation's cash balance on January 1st was $38,000. The cash balance on January 31st was: a. $38,000 b. $2...
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A _____ allows an optimum currency area to be more likely to experience greater price stability. A. permanently flexible exchange rate B. permanently fixed exchange rate C. managed peg system D. currency board
B
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Jane goes to the bank and borrows $20,000. She repays the loan by making three annual payments of $8,000. The first payment is made at the end of the first year and the second and third payments are made at the end of the second and third years respectively. What is the annual effective rate of interest earned by the b...
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Determine if the series $\sum_{n=1}^{\infty}\frac{\arctan(n)}{n^3 + 5n^2 + 9}$ converges or diverges. Explain your reasoning.
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Given the following table (in millions of dollars) for a two-factor model: Factor Factor 1 Factor 2 Total Factor 1 returns 5% 6% 11% Factor 2 returns 7% -8% -1% Unsystematic returns 3% 3% 6% What is the expected return on a portfolio with an investment of $2 million in Factor 1 and $3 million in Factor 2?
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Assume that a lightning bolt can be represented by a long straight line of current. If the magnetic field strength is {eq}\rm 8.00 \times 10^{-5} \ T {/eq} at a distance of 25.0 m away from the bolt, and the bolt lasted for a total of 1.5 ms, what is the magnitude of the total electrical charge that was transferred by...
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Solve the initial-value problem {eq}y'' - 2y' + 2y = 0, \; y(0) = 2, \; y'(0) = 1{/eq}.
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Use a linear approximation to estimate {eq}\displaystyle \Delta f = f(3.02)-f(3) {/eq}, correct to four significant digits, for the function {eq}\displaystyle f(x) = \sin \left( \frac{\pi x}{2} \right) {/eq}.
0
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Which of the following statements is true about comparative advantages? a. A country must have a comparative advantage in at least one product. b. A country may have a comparative advantage in all products. c. A country cannot have a comparative advantage in all products. d. A country must have an absolute advantag...
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Which of the following correctly ranks the capital structure variables from high risk (component A) to low risk (component D)? a) Interest Coverage Ratio, Equity Multiplier, Debt Ratio, and Leverage Ratio. b) Leverage Ratio, Equity Multiplier, Debt Ratio, and Interest Coverage Ratio. c) Interest Coverage Ratio, Equi...
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James has borrowed $65,000 from the bank. He will be paying back the loan in 7 years and will pay interest at the rate of 3.25% per year compounded annually. What is the present worth of the payments the bank will receive from James?
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Assuming that the population standard deviation is 4, find the minimum sample size needed so that the confidence interval will have a margin of error of 0.3.
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Consider a game between two players with the following payoff matrix. Alternatives A B 1 2 1 2 L (4,5) (3,6) (5,3) (0,8) M (3,5) (2,6) (1,0) (4,8) R (5,2) (4,3) (4,2) (6,7) What is ...
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How would you find the volume bounded by the coordinate planes and by the plane 3x + 2y + 2z = 6?
3
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Johnson & Johnson has a current market value of $1,600 million, a cost of debt of 6%, and a tax rate of 40%. Johnson & Johnson also has a beta of 0.97. The risk-free rate is 5% and the risk premium on the market portfolio is 6%. Johnson & Johnson is considering building a new manufacturing plant that will cost $50 mill...
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In portfolio theory, the variance of a portfolio of securities: A. Varies inversely with the correlation between securities. B. Varies inversely with the number of different securities in the portfolio. C. Is a weighted average of the variances of the individual securities. D. Is a weighted average of the variances...
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Earl's Sporting Goods has sales of $3,640, total assets of $3,150, and a profit margin of 3%. The firm has a turnover ratio of 1.8. What is its ROE?
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There are four alternative scenarios which have equal probabilities for given stock prices (high, low, flat). The returns for a stock in these scenarios are +10% if prices go high, +5% if prices go flat, 0% if prices go low, and -5% if prices go unchanged. The stock's standard deviation is:
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The LIFO inventory method: a. can be used by all three of the inventory cost flow methods. b. is not a FIFO inventory cost flow method. c. cannot be used by all three of the inventory cost flow methods. d. is the most common inventory cost method.
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Which of the following statements correctly describes the short-term response towards a drop in government transfers? A. The FE curve stays unchanged. B. The FE curve shifts to the right. C. The FE curve shifts to the left.
A
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This question translates a supply and demand schedule for an output to demand for pollution. Suppose the output is kwh of electricity, and each kwh of electricity generates 0.5 tons of CO2. The supply and demand schedules for electricity are as follows: Quantity of Electricity (kwh)Demand for Electricity (WTP)Supply ...
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James Company signed a contract to have Bozy Associates construct a manufacturing facility at a cost of $5,600,000. It was estimated that it would take three years to complete the project. Also on January 1, year 1, to finance the construction cost, James borrowed $490,000 payable at the end of 8 years, with an interes...
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Find the WACC for a firm with the following characteristics: Debt that has an average yield to maturity of 7.5%, a total market value of $140 million, and a coupon rate of 7.5%. The firm has 30 million shares of stock outstanding with a price of $20 per share, a beta of 1.15, and a tax rate of 35%.
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In a period of falling prices, which inventory method results in the lowest income tax expense? A. LIFO B. FIFO C. Average Cost D. Specific Identification
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A decrease in business investment spending due to increased consumer confidence in the future will cause the AE curve to A. increase and the slope of the curve will become flatter. B. increase and the slope of the curve will become steeper. C. decrease and the slope of the curve will become flatter. D. decrease and...
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I am trying to prove that the sequence $(a_n)_{n\geq1}$ where $a_n = \sqrt[n]a$ for $0<a<1$ converges to $1$. So that $$\lim_{n\to\infty}\sqrt[n]a=1$$ I have managed to prove it for $1 \lt a$, using the fact that : $$\sqrt[n]a = \theta_n + 1 \implies a = (\theta_n + 1)^n \implies a = \sum_{k = 0}^n \binom{n}{k} \theta_...
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Determine the missing amount for each of the following items: Assets = Liabilities + Equity a. ? = $190,000 + $50,000 b. $475,000 = ? + $136,000 c. $930,000 = $490,000 + ? d. ...
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Use Green's theorem in the vector form to calculate the outward flux {eq}\phi = \oint_c \vec{F}\cdot \vec{n} ds for {eq}\vec{F} = (y^2 - x^2) \vec{i} + 2xy \vec{j} and C the triangle with vertices (0, 0), (3,0) and (0,6).
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Consider the following three project alternatives with a 5-year planning horizon: Project AProject BProject C Capital cost$8,000$12,000$18,000 Life10 years10 years10 years Salvage Value$1,000$1,000$1,000 Annual Benefit$6,000$7,500$9,000 Annual O&M Costs$2,500$2,000$1,000 Use a MARR of 9% per year and a study period o...
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Suppose you are interested in testing the hypothesis H_0: μ = 42.5 against H_1: μ < 42.5. If X is normally distributed with an unknown variance, which of the following statements is/are correct? (a) You should use the t-distribution to find the critical value and the p-value. (b) You should use the t-distribution to f...
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A company's stock has a beta of 0.30, the expected return on the market is 12%, and the risk-free rate is 4%. What must the risk-free rate be if the expected return on the stock is 15%?
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The stage of deep sleep dominated by delta waves on an EEG, and during which events such as bedwetting and sleepwalking occur is a. REM sleep. b. Stage 1 NREM sleep. c. Stage 2 NREM sleep. d. Stage 3 NREM sleep. e. Stage 4 NREM sleep.
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Output, price level, and unemployment are likely to change in which of the following ways, respectively, if the U.S. Congress increases business taxes at the same time that the Federal Reserve conducts an open market sale? Output Price Level Unemployment A. Decrease Indeterminate Increase B. Decrease Decrease ...
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Prior to a small increase in their product price, an amusement park was selling 20,000 tickets on average per day and charging $5 per ticket. After the increase, they sold an average of 18,000 tickets per day while charging $6 per ticket. What is the elasticity of demand for tickets, given these prices? Round to 1 dec...
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Suppose the supply curve for a good is upward sloping (initially). If the government shifts from a $2 tax per unit sold, collected from the sellers, to a $2 tax per unit sold, collected from the buyers, what would be the impact? A. Supply would decrease and demand would increase. B. Supply would increase and demand w...
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Why does my calculation of $\int_C\frac{1}{z} dz$ along a semicircular contour in the upper half-plane of the complex plane, where $C$ is the union of the diameter $[-R, R]$ on the real axis and the semicircle $|z|=R$ in the upper half-plane, yield a result of $\pi i$, even though the function $f(z)=\frac{1}{z}$ is not...
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If Congress increases taxes at the same time that the Fed decreases the money supply, which of the following will be true in the short run? a) The level of employment may increase, decrease, or remain unchanged. b) The level of employment will decrease. c) The level of employment will increase. d) The interest rate...
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During the three years following the financial crisis of 2008: a. Reserves more than doubled and the M1 money supply increased even more rapidly, b. Reserves more than doubled, but the M1 money supply increased much less rapidly, c. Reserves fell by almost 50 %, but the M1 money supply continued to grow at a steady ...
b
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If the demand for a good is relatively elastic, then an increase in price will cause: A. a decrease in total spending B. an increase in total spending C. no change in total spending D. an initial decrease in spending, but higher spending after that
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Find the volume of the solid formed when the graph of the region bounded by {eq}y=e^x \text{, } y=0 \text{, } x=0 \text{, } X=2 {/eq} is revolved around the x-axis.
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When price is greater than average cost, a monopolist will: a) Produce the quantity at which price equals marginal cost and charge the corresponding price. b) Produce the quantity at which price equals marginal cost and increase price above that level. c) Produce the quantity at which marginal revenue equals margina...
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Evaluate the integral {eq}\int_0^{\infty} \frac{x}{e^x-1} dx{/eq} using the calculus of residues. (Hint: consider the contour which is the rectangle with vertices 0, R, R + 2 \pi i, 2 \pi i.)
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Assume that Jackson Company, a multi-product firm, had the following information concerning one of its products: DateTransactionUnitsCost/unit 1/1Beginning Inventory2,400$16 2/4Purchase3,400$24 2/20Sale3,900$41 4/2Purchase4,400$31 11/4Sale3,600$45 Compute the cost of the 11,100 units that remain in the ending invento...
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Weiss Corporation reported the following information at December 31, 2016: Preferred stock, $40 par, 10,000 shares authorized, issued, and outstanding; cumulative; nonparticipating; callable at par value $400,000 Common stock, $4 par, 500,000 shares authorized 400,000 Additional paid-in capital Common 300,000 Retai...
B
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Future Value of Multiple Annuities Assume that you contribute $230 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $330 per month for another 20 years. Given a 12.0 percent interest rate, what is the value of your retirement plan after 40 years? a. $1,140,215 b. $1,435,6...
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Determine whether the integral $$ \int_0^2 \frac{1}{\sqrt[3]{2 - x}} dx $$ is convergent or divergent, and evaluate the integral if it is convergent.
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Why is $f(x,y,z)=\frac{xy}{x^2+y^2+z^2}$ continuous? How is it so that $\lim_{(x,y,z)\to 0}f(x,y,z)=f(0,0,0)=0$?
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A(n) _____ is a special journal in which purchases of inventory and related activity are recorded. A. purchase journal B. sales journal C. cash disbursements journal D. cash receipts journal
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Which of the following statements concerning the FIFO method is FALSE? A. The FIFO method tends to give a lower net income in periods of rising prices. B. The FIFO method assigns current period costs to the units sold. C. The FIFO method uses the physical flow of units to assign costs to the equivalent units produce...
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Calgary Corporation stock currently sells for $84 per share. The market requires a 13 percent return on the firm stock. If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?
$5.55
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Calico Corporation is considering a project which will require an initial after-tax cash outlay of $50,000 and after-tax operating cash inflows of $7,000 in year 1, $15,000 in year 2, and $29,000 in year 3. The NPV of the project is $36,147. The cost of capital for this project is: A) between 0 percent and 12 percent....
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If Canada imposes tariffs on all of its imports, _____. A) both exports and imports will decline B) exports will increase, while imports will remain unchanged C) exports will decline, while imports will remain unchanged D) neither exports nor imports will change
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Operating leases are recorded on the financial statements of: A. The lessor only. B. The lessee only. C. Both the lessee and lessor. D. Neither the lessee nor the lessor.
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For any $t>0$, find the value of $$\lim_{x \to \infty}\frac{1}{x} \int^{x}_{t}\frac{dy}{1+\lfloor \log_2 y \rfloor}.$$
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For a given percentage change in price that results in a smaller percentage change in the quantity of output demanded, we would expect: a. average total cost to rise and marginal cost to decline. b. marginal cost to rise and average total cost to rise. c. both marginal cost and average total cost to rise. d. margin...
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Evaluate the circulation of {eq}\overset{\rightarrow}{G} = xy\overset{\rightarrow}{i} + z\overset{\rightarrow}{j} + 5y\overset{\rightarrow}{k} {/eq} around a square of side 5, centered at the origin, lying in the yz-plane, and oriented counterclockwise when viewed from the positive x-axis. Circulation = {eq} \int_{C} \...
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Which of the following statements is true? a. The investor's basis in the partnership interest is increased by any contribution made to the partnership. b. The investor's basis in the partnership interest is equal to the amount actually paid or the fair market value of property transferred. c. The investor's basis i...
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Calculate $D(\int_6^{-t}(1 + x^2)^{3/2}dx)$
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Which of the following statements is incorrect? a. A decrease in the average collection period, other things held constant, will increase the cash flow from assets. b. If no assets are sold, ROE will always increase when the debt ratio is reduced, other things held constant. c. Raising the firm's tax rate will reduc...
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The solution of the differential equation {eq}xy'+y=x{/eq}, satisfying the condition {eq}y(1)=1{/eq}, is a) {eq}y=x \ln x+x{/eq} b) {eq}y=x \ln x-2x+3{/eq} c) {eq}y=x \ln x+3x-5{/eq} d) None of the above
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Tri-State Bank and Trust (TB&T), a local bank, is evaluating the profitability of credit sales made to all its customers, many of whom are small, local businesses. The accounts receivable manager believes there are two categories of credit customers: those who present no bad debts and those who do. To aid in the evalua...
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Using Okun's rule of thumb, if trend growth is 3 percent and the unemployment rate rises by 0.5 percent, output would be expected to have: a. fallen by 1 percentage point. b. risen by 1 percentage point. c. fallen by 2 percentage points. d. risen by 2 percentage points.
a
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Riverbed, Inc. is an all-equity firm that has 50,000 shares of stock outstanding. The company has decided to borrow $1 million to buy out the shares of a deceased stockholder who holds 2,000 shares. What is the total value of this firm if you ignore taxes? a. $25.7 million b. $23.6 million c. $25.2 million d. $24.8...
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A company planned to produce 3,000 units of its single product, Titactium, during November. The standard specifications for one unit of Titactium include 6 pounds of materials at $.30 per pound, and 2 hours of direct labor at $8.00 per hour. Actual production in November was 3,100 units of Titactium. The accountant com...
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An {eq}\rm 8.0\ \Omega {/eq} resistor and a {eq}\rm 12\ \Omega {/eq} resistor are connected in series to a battery. The voltage across the {eq}\rm 12\ \Omega {/eq} resistor is measured to be {eq}\rm 1.8\ V {/eq}. What is the voltage of the battery?
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Suppose that last week the Fed made an open-market sale of government securities to a large bank in the amount of $1 million. Which of the following would explain how the money supply could be unchanged as a result of this action? A. If the bank immediately loaned all of its excess reserves to a customer. B. If the b...
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According to modern corporate finance, which is NOT among the four most important economic principles of finance? A. Conservation of value. B. Diminishing marginal return. C. Diminishing marginal utility of wealth. D. Depreciation of value. E. Positive marginal utility of wealth.
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How does Knuth/Graham/Patashnik's Concrete Mathematics go from $(r-k){r \choose r-k}$ to $r{r-1 \choose r-k-1}$ using $(5.6)$? If using the RHS of $(5.6)$ with $r$ as $r$, what would be the $k$ in the LHS and why?
$r{r-1 \choose r-k-1}$
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Does the exponent $n^2$ of the series $$ \sum_{n=0}^\infty 2^n\cdot x^{n^2} $$ affect the radius of convergence? The ratio test gives: $$ \lim_{n \to \infty} \Bigg|\frac{2^{n+1}\cdot x^{(n+1)^2}}{2^n\cdot x^{n^2}}\Bigg|=\lim_{n \to \infty} \Bigg|2x^{2n+1}\Bigg|=0 $$ Assuming the exponent doesn't affect the outcome, the...
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Your firm is considering an investment project with the following cash flows: Cost of investment: {eq}\$440,000 {/eq}. Revenues (Year 1): {eq}\$400,000 {/eq}. Operating expenses (excl. depreciation): {eq}\$240,000 {/eq}. Depreciation expense: {eq}\$80,000 {/eq}. Tax rate: {eq}30\% {/eq}. All cash flows are shown i...
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The income statement of Pro Football Inc. for 2012 included the following items: Interest revenue$125,000 Salaries and wages expense$197,000 Insurance expense$19,300 The following balances have been extracted from Pro Football Inc.'s balance sheets: December 31, 2012 December 31, 2011 Interest receivable$17,300$12...
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Which of the following statements is false? a. $4,000 is the cost of a college education. b. $4,000 is the cost of a bachelor's degree. c. $4,000 is the cost of a university education. d. $4,000 is the price of higher education. e. $4,000 is not the price of higher education.
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You are considering a three-year project with projected net income of $6,500, $10,450, and $12,775 in each of the three years of the project's life, respectively. The initial cost is $25,475, and the required rate of return for the project is 16%. What is the internal rate of return (IRR) for the project?
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During _____ of the organizational innovation process, new ideas are generated and tested. A) Stage 1 - setting the agenda B) Stage 2 - setting the stage C) Stage 3 - producing the ideas D) Stage 4 - testing and implementing the ideas
C
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If other factors are held constant, then a) interest rates in both the U.S. and Europe will rise when expected future spot rates of the dollar decline against the euro. b) the euro interest rate must rise if the Federal Reserve makes an open market sale of U.S. government securities. c) interest rates in both the U....
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What is the after-tax cost of debt for a firm if its 6%, annual coupon, 10-year bond is selling for $980? a. 6.04% b. 6.14% c. 7.79% d. 7.83% e. 8.04%
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The pension plan of Donaldson Co. has a defined benefit formula with the following parameters: Basis for salary increase: years of service Pension benefit: 2% x years of service x final salary The projected benefit obligation was $100,000 at the beginning of the year. The discount rate is 8%. At the end of the year,...
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Suppose a profit-maximizing monopolist faces the following demand curve: Price: $25 $22 $17 $12 $8 $2 Quantity: 0 1 2 3 4 5 The monopolist has total fixed costs of $10 and has a constant marginal cost of $7. At the profit-maximizing level of output, what is the monopolist's profit?
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If the cost to produce each unit is $12 and you are selling the units for $10 each, and you incur $60 in additional fixed costs, how many units must you sell to break even?
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Use the Divergence Theorem to evaluate the surface integral {eq}\int \int F * N dS where {eq}F=\left \langle {2x,3y,6z} \right \rangle and {eq}S is the sphere of radius {eq}8.
22528\pi / 3
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Given the equation $$\frac{\sqrt{2}}{2} = \frac{1}{2}\pi \cdot \frac{2^{3/2}}{\sqrt{\pi} \cdot \sqrt{\Gamma(5/2)}}$$, how can we simplify the right side to prove the equality, especially focusing on simplifying $2^{3/2} / \sqrt{\Gamma(5/2)}$?
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Find the linearization of the function {eq}z=xy{/eq} at the point (-2, 64)
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A put option has a strike price of $60 and expires in 1 year. The option has a standard normal distribution z = 0.51 based on a risk-free rate of 5%. The current stock price is $61.20. The put option should have a price of _____ per share.
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A firm has current assets of $150,000, net fixed assets of $300,000, current liabilities of $70,000, and long-term debt of $40,000. How much is the firm's total assets? a. $450,000 b. $460,000 c. $490,000 d. $470,000
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Export-led development refers to _____. A. a country's efforts to promote its exports in order to reduce its trade deficits B. a policy to promote domestic production of goods that would otherwise be imported C. a program to promote industries with export potential D. decreases in infrastructure development due to ...
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User costs will be incorporated into a market if: A. interest rates are positive. B. discount rates are zero. C. resource owners foresee future shortages. D. government intervention is eliminated. E. discount rates are positive.
C
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Sports Corp has 9.4 million shares of common stock outstanding, 5.4 million shares of preferred stock outstanding, and 1.4 million bonds. If the common shares are selling for $25.4 per share, the preferred share is selling for $12.8 per share, and the bonds are selling for 98.08 percent of par, what would be the weight...
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The short-term market interest rate is 10%, but the expected one-year inflation rate is 5%. Given the expected real rate of return on a one-year government bond is 6%, what does this imply about the slope of the yield curve?
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The next dividend payment by Dizzle, Inc., will be $1.84 per share. The dividends are anticipated to maintain a growth rate of 3.90 percent forever. Assume the stock currently sells for $27.90 per share. What is the required return?
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Brutus Corp. acquired Caesar Inc. on January 1, 2006, for $500,000 when the fair value of the net assets of the subsidiary was $400,000. What is the balance in the investment account at December 31, 2006, if Brutus Corp. has recorded $80,000 of net income and $30,000 of dividends during 2006?
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Which of the following statements is true of management? a. It functions effectively when departments work independently. b. It is concerned with only the concerns of top-level managers. c. It is not effective in an organization with a wide span of control. d. It is an organizational function that entails planning,...
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A stock has an annual return of 10.2 percent and a standard deviation of 60 percent. What is the smallest expected gain over the next year with a probability of 5 percent?
-88.5%
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Christie, Inc. purchased a building on January 2, 2013, at a cost of $1,680,000. It was estimated that the building would have a useful life of 15 years, with no residual value. On October 1, 2013, Depreciation expense on this building is: a. $112,000 b. $134,400 c. $89,600 d. $11,200 e. None of the above
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Assuming that $\det(A) = 0$, prove that $\det(AB) = \det(A)\det(B) = 0\det(B) = 0$.
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Which of the following is an example of a sunk cost? a. cost of purchasing raw materials b. wage to security staffs c. wages payable to skilled laborers to make a product d. cost of an alternative investment
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Suppose we use the FFCF approach to find a firm's WACC, and we don't have access to the firm's free cash flows. Which of the following defines earnings before interest, tax, and amortization (EBITDA)? (a) $$EBIT + amortization$$ (b) $$\dfrac{CFFA}{(1-T_c)}$$ (c) $$CFFA - amortization$$ (d) $$CFFA(1-T_c)$$ (e) $$EB...
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Betty is contemplating purchasing shares in Daily Bugle Corp. and holding them for 2 years, at which time she will sell them. The market price of these shares is expected to be $36.50 in two years (after the second dividend.) The next two annual dividends are expected to be D1=$1.00 and D2=$1.20. The first dividend wil...
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