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A manager believes his firm will earn a 17.90 percent return next year. His firm has a beta of 1.58, the expected return on the market is 14.20 percent, and the risk-free rate is 4.20 percent. Compute the return the firm should earn given its level of risk.
20%
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Timothy has a stock portfolio with a total value of $150,000. The portfolio consists of 30 shares of ABC (which has a price of $1,500/share), 120 shares of XYZ (which has a price of $1,000/share), and the remainder of his portfolio is invested in treasury bills. The portfolio has a beta of 2.12. Today, Timothy received...
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An airline knows that there is, on average, one person who shows up with a {eq}2000 {/eq}-mile add on every week, with a standard deviation of {eq}600 {/eq}. If the airline sells {eq}1030 {/eq} tickets per week for {eq}2000 {/eq}-mile add on, what is the likelihood of {eq}1030 {/eq} or fewer people showing up?
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The interest rate on an auto loan of $3,500 is 9% compounded monthly. What will the monthly payment be if the loan is to be paid off in 3 years?
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Find the limit: {eq}\lim_{x \to \infty} 24 \left ( 1 - \frac{1}{x} \right )^x{/eq}
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You are the money manager of a $1 million dollar portfolio. The portfolio consists of 4 stocks with an equal investment in each one. The betas of the 4 stocks are 1.25, -1.75, 1.00 and 0.75. The market's required return is 12% and the risk-free rate of return is 4%. Calculate the portfolio's required return.
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Evaluate the surface integral {eq}\displaystyle\iint_S \mathbf F \cdot d\mathbf S{/eq} for the vector field {eq}\mathbf F(x, y, z) = x \mathbf i - z \mathbf j + y \mathbf k{/eq} and the positively oriented surface {eq}S{/eq}, which is the part of the sphere {eq}x^2 + y^2 + z^2 = 36{/eq} in the first octant.
36pi
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How many moles of calcium hydroxide are in 50.0 mL of a 0.102 M Ca(OH)2 solution? A. 0.102 mol B. 0.0510 mol C. 0.0500 mol D. 5.10 mol E. 0.0051 mol
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Determine if the linear transformation T: R^{3} \rightarrow R^{3} defined by T(x,y,z)=(x,y,0) is an isomorphism. Explain your reasoning.
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Use Green's Theorem to evaluate \(\oint_C (3x - 4y)dx + (x + y)dy\) where C is the positively oriented boundary of the region between the circles \(x^2 + y^2 = 1\) and \(x^2 + y^2 = 9\).
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What is the moment of inertia of a hollow cylindrical shell of radius 20 cm, rotating about its axis, if the mass of the cylinder is 5 kg?
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John Green issued 10,000 shares of his $1 par value common stock for $6 per share. How should this transaction be recorded?
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Perception = Reality = _____. a. Behaviorism b. Cognitive Psychology c. Humanism d. American politics
B
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Show that a countable product of complete spaces is complete.
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Suppose you have a standard deck of 52 cards, with 4 cards in each of the 13 ranks. You draw 5 cards from the deck and keep them in your hand. What is the probability that you have a "boat" (1 pair and 1 three of a kind)? For example, 2 2 4 4 4, or 3 of spades, 3 of hearts, 6 of diamonds, 6 of hearts, and 6 of clubs.
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- Select the correct option to complete the sentence. HRM strategies at stage _____ of internationalization are designed to blend individuals of diverse backgrounds into a team sharing a vision and corporate identity. A) 2 B) 3 C) 4 D) 5
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Lee's Foods has provided the following information concerning a capital budgeting project: Investment required in equipment $55,000 Salvage value of equipment $10,000 Useful life of project 6 years Annual net cash inflows $14,000 The company uses a discount rate of 14%. The equipment will be depreciated to a $10...
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South Beach Company common stock currently sells for $39 and pays (year 0) a dividend of $2.50. Determine the implied growth rate for South Beach assuming that an investor's required rate of return is 14% and that the stock can be evaluated using a constant growth valuation model. A. 8.96% B. 6.19% C. 9.25% D. 14.8...
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Assume the following information for the month of August. June sales= $40,000; July sales = $65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month; 50% in the month following; 25% in the second month following; and 5% uncollectible. The beginning cash balance is...
$6,913
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What will be the output of the program? #include<stdio.h> #define MAN(x, y) ((x)>(y)) ? (x):(y); int main() { int i=10, j=5, k=0; k = MAN(++i, j++); printf("%d, %d, %d\n", i, j, k); return 0; } Options are: a. 11, 6, 11 b. 12, 6, 11 c. 11, 6, 6 d. 12, 6, 6
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Consider a competitive constant-cost industry. Each of the firms has a marginal cost curve represented by the equation MC = 2Q. The demand curve for this industry is P = 30 - Q. The equilibrium quantity in this market is _____.
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Let X1,...,Xn be n iid Geom(p) random variables. Show that 1/n times the sum from i=1 to n of Xi is a consistent estimator of 1-p. Please show all steps.
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Indicate whether each of the following statements is true or false and explain your answer. a. In the short-run equilibrium of a monopolistically competitive firm, price will always be greater than average total cost. b. Unlike a perfectly competitive firm, a monopolistically competitive firm can earn positive econom...
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In perfect competition, a. a firm can increase profit by raising price. b. each firm in the industry faces a downward sloping demand curve. c. firms are price takers. d. each firm in the industry produces a different product.
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Calculate the arc length for the curve \(\gamma(t)=(\cos^3t, \sin^3 t)\), where \(t \in [0,2\pi]\).
6
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Use the key of Igneous Rock Composition to determine the type of magma based on the following chemical composition: 47% SiO2, 10% Na2O, and 15% CaO. Then determine the name of the Igneous rock based on its texture (fine-grained) and mineral composition (Quartz, Biotite, and Augite).
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I need to find out whether or not the integral $\int^1_0 x \tan(x) \, dx$ converges, if it does, then to what value does it converge.
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Which of the following bonds will have the greatest percentage increase in value if all interest rates fall from 8 percent to 7 percent? a) a 25-year bond with a 10 percent coupon b) a 25-year bond with a 5 percent coupon c) a 5-year zero-coupon bond d) a 5-year bond with a 10 percent coupon e) a 5-year bond with ...
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Company had gross sales of $300,000 during the year and the cost of its inventory was $250,000. It did not take any discounts on its purchases. Company returned $2,000 of merchandise to its suppliers during the year. If Company's gross profit margin was 10% under FIFO, what was its gross profit margin under LIFO? a. 9...
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The aging of the accounts receivable approach to estimating uncollectible accounts does not: A. take into consideration the existing balance in the Allowance for Doubtful Accounts. B. utilize a percentage of probable uncollectible accounts for each age group of accounts receivable. C. stress the relationship between...
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A robotic space probe of mass 7600 KG is traveling through space at 120 m/s. Mission control determines that a change in course of 30.0 degrees is necessary and instructs the probe to fire rockets perpendicular to its direction of motion. If the escaping gas leaves the craft's rockets at an average speed of 3200 m/s, w...
142.5 kg
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Which of the following would result in an increase in the cost of equity capital, assuming all else held constant? a. an increase in the dividend growth rate b. a decrease in the dividend growth rate c. an increase in the equity market risk premium d. an increase in the equity beta
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For the following problem, we are given the numbers of passengers by income group for a random sample of airline passengers. Test the hypothesis that the proportions of the various income groups in the full population of airline passengers are the same as the ones given in the table below. Use {eq}\alpha{/eq} = 0.01. ...
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What will be the output of the program? #include<stdio.h> #include<string.h> #define MAN(x, y) ((x)>(y)) ? (x):(y); int main() { int i=10, j=5, k=0; k = MAN(++i, j++); printf("%d, %d, %d\n", i, j, k); return 0; } Options are: answer A 12, 6, 12; answer B 12, 6, 0; answer C 11, 6, 11; answer D 12, 6, 11
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The purchase of a cell phone could be a function of a change in a person's social and cultural values. This is called a(n): a. social influence on the purchase decision process. b. physical surroundings influence on the purchase decision process. c. psychological influence on the purchase decision process. d. perso...
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Lasers, Inc. common stock is expected to pay a $3.00 dividend at year-end. The stock currently has a price of $30 a share and it's dividend is expected to grow at a constant rate of rS. Assuming that the market is in equilibrium, which of the following statements is correct? A) The price of the stock is expected to de...
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What is the present value of a perpetuity making quarterly payments in arrears in the amount of $9,102 per quarter, and the appropriate annual rate of interest is 10.8%?
$337,111.11
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Assume that an economist states that, she believes the Federal Reserve should have the freedom to conduct monetary policy as it best sees fit in order to moderate recessions and promote full employment and price stability. All of the following are true about this economist EXCEPT A. she does not agree with all other ...
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Identify the related transaction assertion to the following question: Have all of the items that are related to a contract or agreement been recorded? A. Occurrence B. Completeness C. Accuracy D. Classification E. Cutoff
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Bill-Owens earned his income last year by painting houses. He spent $12,000 of his income on food, clothing, and other consumption goods and services. He paid $2,000 to his former landlord (who was also his boss) in rent and gave his brother $1,000 in interest on a loan. What was his gross income for last year? A) $12,...
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In long-run equilibrium, the price level in an economy with sticky wages and prices: a. will be constant, but the level of output will be above the full-employment level of output. b. will be constant, and the level of output will equal the full-employment level of output. c. will rise if there is an increase in the...
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The Global Bond Fund is a mutual fund that specializes in bonds issued by governments and municipalities all over the world. The fund currently has a total investment of $140 million. Its portfolio composition is as follows: Required: Calculate the duration of the fund's portfolio. Country Investment...
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The Reed Division reports the following operating data for the past two years: Year 1Year 2 Margin 20% ? Turnover2.0 2.5 Average operating assets?$210,000 Net operating income$44,000 ? Stockholders' equity $80,000 $125,000 Sales? ? The return on investment at Reed was exactly the same in Year 1 and Year 2. Average ...
$110,000
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Let C be the curve y = x^4 from (0, 0) to (1, 1). F(x, y) = (10x + y, x). Calculate \int_C F \cdot d \sigma.
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Which of the following is an account that is shown on the balance sheet for a merchandiser but not on the balance sheet of a service business? A) Unearned Revenue B) Sales Discounts Forfeited C) Estimated Returns Inventory D) Cost of Goods Sold
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Evaluate $\int_{0}^{1} \frac{1}{\cos^{-1}(x)}$ dx. My solution: We let $x=\cos(t)$, then $dx=-\sin(t)dt$. When $x=0, t=\frac{\pi}{2}$ and when $x=1, t=0$. Thus, $$\int_{0}^{1} \frac{1}{\cos^{-1}(x)} dx=\int_{0}^{\frac{\pi}{2}} \frac{1}{t} \sin(t) dt$$ We can integrate by parts, taking $u=t$ and $dv=\sin(t) dt$, we have...
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Assume that during January 2018, the allowance for doubtful accounts for the New York office of United Industries was determined to have a credit balance of $62,130 before adjusting and closing entries. The net sales for January were $298,290. From this information, what adjusting entry (or entries) should be recorded ...
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If a firm pays its suppliers early to receive discounts, and it invests in marketable securities as a result, this would be an example of: a) True cash flow from operating activities. b) Flotation cost. c) A cash flow from financing activities. d) A cash flow from investing activities. e) None of the above.
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_____ refers to the differences in products that are produced and marketed by a single firm at any given time. A) Change B) Criticality C) Nonuniformity D) Variety E) Differentiation
D
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In an economy with no income tax, output is 100 units, and there are no exports. If investment increases by 10 units, by how much will aggregate demand increase? A) Aggregate demand will increase by more than 10 units. B) Aggregate demand will increase by 100 units. C) Aggregate demand will increase by exactly 10 un...
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Which of the following is the most appropriate interpretation of "Income effects create a trade-off between consumption goods and savings". a. An increase in income would cause an increase in consumption, thereby decreasing the supply of goods for savings. b. If individuals save less and consume more, more income wou...
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The government hikes taxes. If the Fed does not fully accommodate this type of fiscal action, then interest rates will do what, as aggregate demand changes? a. contractionary; increase b. expansionary; increase c. expansionary; decrease d. contractionary; decrease
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Find the moment of inertia about the x-axis of a thin plate of constant density δ = 8 bounded by the coordinate axes and the line y = x + 2.
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Which one of these is a sunk cost? A. a monthly lease payment on a class B. a fee paid to the city for the use of the street and sidewalk C. the cash price of the current salvage market for an old press D. all of these
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Sooner Industries charges a price of $111 and has a fixed cost of $414,000. Next year, Sooner expects to sell 16,600 units and make an operating income of $153,000. What is the contribution margin ratio? Express the contribution margin ratio as a percentage, rounded to two decimal places.
30.77%
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A project has a discounted payback period that is equal to the required payback period. Given this, which of the following statements must be true? a. The project's internal rate of return must equal the required return. b. The project must have zero net present value. c. The project must have a profitability index ...
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A single-price monopolist maximizes profit by producing the quantity at which marginal revenue equals marginal cost. If the monopoly can perfectly price discriminate, then _____. (a) it would set price equal to marginal cost to maximize economic profit (b) economic profit would be negative (c) it would produce the q...
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The _____ is a statistical method that may be used to determine whether a ceiling effect exists. a. negative binomial b. zero-inflated model c. normal distribution d. right-skewed distribution
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What is the interest expense on a $50,000, 6%, 5-year installment note issued on October 1, 2018, with an annual payment of $10,000 due on October 1 of each year beginning October 1, 2019? a. $3,000 b. $2,700 c. $1,500 d. $2,850
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The free cash flow model, as compared to other models, tends to be most helpful when valuing a share of stock in: A. a firm that pays dividends that increase at a constant rate of growth. B. various firms having similar growth opportunities. C. a non-dividend-paying firm that has external financing needs. D. a firm...
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Consider a homogeneous Poisson process with inter-arrival times $T_i$, which follows the exponential distribution with rate $\lambda$. Let $N(t)$ denote the number of arrivals by time $t$. Suppose I start monitoring the arrivals from time $t$ onwards. Let $U_t$ denote the time I need to wait for an arrival. Now suppose...
e^{-λx}
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The investment center manager receives a bonus based on the center's ROI. The bonus would most likely to decrease if the manager: a. shifts funds from low-return investments to high return investments b. increases the amount of debt financing c. encourages product returns in the current period d. reduces the total ...
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Find the residues of the function $f(z)=\frac{z^2}{(z-1)(z-2)(z-3)}$ at the poles $z_1=1$, $z_2=2$ and $z_3=3$.
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Sally has saved $8,000 and plans to buy a 6-year certificate of deposit (CD) that earns 4% annual interest compounded continuously. What will be the value of the CD when Sally matures it?
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How many isomorph classes of abelian groups of order 400 are there?
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What is the radius of convergence of Σ (1/(n*ln(n)^4) for n=2 to ∞)?
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Grow On, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $4.60. You believe that dividends will grow at a rate of 16% per year for years one and two, 12% per year for years three and four, and then at a rate of 8% per year thereafter. If you expect an annual rate of return of ...
a
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Evaluate the limit: {eq}\lim_{x\rightarrow \infty} (\frac{12}{ln x}) (\frac{x}{x-10}){/eq}
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A company reports beginning inventory of $1,460, purchases of $7,000, ending inventory of $1,000, sales revenue of $5,000, sales returns of $250, and gross profit of $1,500. Operating expenses are $200. The inventory turnover is _ times.
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A buyer's master plan for making the long-term purchase of raw materials at a fixed price is a(n): A. formal source agreement. B. contract for purchase. C. open purchase order. D. quantity purchase agreement.
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South Penn Trucking is financing a new truck with a loan of $10,000 to be repaid in 5 annual end-of-year installments of $2,504.56. What annual interest rate is the company paying?
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Find the number of connected components in the complement of a graph G with 20 vertices and 80 edges. Suppose G has 12 connected components.
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Bonds outstanding that pay a 5% semiannual coupon, have a 5.5% yield-to-maturity, and a face value of $1,000. The current rate of inflation is 4%. What is the real rate of return on these bonds?
1.44%
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Use the graph of the function {eq}f(x) = x^3 {/eq} to find the points {eq}(a,b) {/eq} at which the graph of the function {eq}f(x) = x^3 {/eq} is closest to the point {eq}(1.1,0.5) {/eq}.
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Let {eq}\Phi{/eq} (u,v)=(7u+6v,7u+6v) be a map from the uv-plane to the xy-plane. Describe the image of the line v=4u under {eq}\Phi{/eq} in slope-intercept form. y=
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A company is considering the purchase of a new machine for $64,000. The machine would produce annual cash inflows of $34,000 and annual cash outflows of $13,000. The machine would have a useful life of 10 years with no salvage value. For financial accounting purposes, depreciation would be recorded using the straight-l...
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Lilac Corporation is considering an expansion project. The necessary equipment could be purchased for $29,568,000, and shipping and installation costs are another $38,895. The project will also require an initial $250,000 investment in net working capital. What is the project's initial investment outlay?
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Let A = y ax + z ay + x az. Find the flux of A through the surface y = 1, 0 < x < 1, 0 < z < 2.
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"The competitive market outcome is equitable." Is this statement generally considered to be correct? Given the various views of equity in society, at least some would agree that this statement is A. correct because the competitive market outcome rewards those who are most able and work the hardest. B. incorrect bec...
B
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The _____ is always U-shaped. a. explicit costs b. implicit costs c. fixed cost d. variable cost e. average fixed cost f. average total cost g. marginal cost h. diminishing marginal product of labor i. increasing marginal product of labor
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Prior to 2001, it was generally accepted accounting practice to use which of the following methods to calculate income tax expense? a. Deferred method. b. Interim accrual method. c. Percentage of completion method. d. Current rate method.
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Assuming the dividend for Henry's Specialty Corporation stock will be $5.80 this year and the required rate of return on the stock investment is 22%, what is the maximum price an investor should pay to purchase the stock?
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ZFC has a profit margin of 6%, a total asset turnover ratio of 0.7, and a debt-to-equity ratio of 1.36. The firm is considering an increase in debt to raise the debt-to-equity ratio to 1.78 while leaving the profit margin and total asset turnover unchanged. What will be the firm's new ROE if the cost of debt is 8% and...
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Money is transferred continuously into an account at the constant rate of $900 per year. The account earns interest at the annual rate of 6% compounded continuously. How much will be in the account at the end of 8 years?
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Artisan's is considering leasing a new computer. The lease terms include five annual payments of $1,650 with the first payment occurring at the lease signing. The computer would cost $8,500 to buy and would be depreciated straight-line to a zero salvage value over 5 years. The actual salvage value is negligible because...
C
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The long-run aggregate supply curve (LRAS) is Y = Yf, which depends on the amount of resources and the level of technology innovation. If a country has more resources and better technology, which of the following is true? A. The LRAS curve will shift to the right. B. The SRAS will shift to the right. C. The SRAS wil...
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In the long run, for a firm with increasing returns to scale, an increase in the scale of operation will necessarily result in: a. an increase in the average fixed cost. b. a decrease in the average fixed cost. c. no change in the average fixed cost. d. a decrease in the average total cost.
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You are a consultant to a firm evaluating an expansion of its current business. The cash flow statements for the company are shown below. Based only on the incremental free cash flow information, which is the relevant cash flow for making your decision, should the company proceed with the expansion? Why or why not? ...
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$$f(x,y) = 6e^{-x}e^{-3y},$$ $x \gt 0, y \gt 0$ Let U = X + Y and V = X − Y. Find the joint pdf $f_{U,V}(u,v)$.
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At December 31, prior to adjusting and closing the accounts, the records of Pinks Inc. showed the following balances: Plumbing equipment $165,000; Accumulated depreciation-plumbing equipment $32,000; and Cash $37,000. An analysis of the equipment shows that it will last three more years with a remaining fair value of...
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Suppose the exchange rate changes so that fewer Japanese yen are required to buy a dollar. We would conclude that a. the Japanese yen has depreciated in value. b. U.S. citizens will buy fewer Japanese imports. c. Japanese will demand fewer U.S. exports. d. None of the above will occur.
b
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Last year an investment fund had a market value of $80 million. The fund sold securities at a time when the selling price was $47 per share. At the time of the sale, there were 1.7 million shares in the fund. The fund made a total of $3,900,000 from these sales. At the same time, new investors put $10 million into the ...
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Given that {eq}y^{\prime \prime }-\left( y^{\prime }\right) ^{2}=0, \ y\left( 0\right) =-1, \ y\left( 1\right) =2, \ and \ \int_{-1}^{2}y\left( t\right) dt=1. {/eq} What is the value of y(1/2)?
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To be able to charge different prices for a good/service a firm must: A. control a significant amount of industry B. vary the price elasticity for its goods/services between locations. C. not resell goods from one location to another.
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Which external growth strategy involves two or more corporations joining in a stock exchange and from which only one corporation survives? A) mergers B) strategic alliances C) diversification D) acquisitions E) concentration
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Lily Corp. reported income before taxes for its first year of business of $1,070,000, including depreciation on new equipment, purchased in January, for $545,000, with no salvage value and 5-year useful life (for tax purposes depreciation was 30% of the cost). Warranty expenses were $78,000, of which only $18,800 was p...
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Financial statements of Rukavina Corporation follow: Rukavina Corporation Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $34 $31 Accounts receivable 86 82 Inventory 45 41 ...
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Amster Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $301,020. At the end of the year, actual direct labor-hours for the year were 17,400 hours, manufacturing overhead for the year was under-applied by $17,400, and th...
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If the Fed increases the supply of money in the market, bond prices will {eq}\rule{0.5in}{0.3pt} {/eq} and interest rates will {eq}\rule{0.5in}{0.3pt} {/eq}. a) fall; rise b) rise; rise c) rise; fall d) fall; fall
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Let $f:\mathbb{R}\to\mathbb{R}$, $f(x)=x^{2}+x$. Which of the following is true ? A. $\lim_{x\to 1^+}(f(f(x)-x))=2$ B. $f$ is uniformly continuous on $\mathbb{R}$ C. $\lim_{x\to -\infty}f(x)\cdot f(\frac{1}{x})=1$ D. $f$ is injective on $\left(-\frac{1}{2},\infty\right)$
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