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Monthly deposits of $480 were made at the end of each month for eight years. If interest is 4.5% compounded semi-annually, what amount can be withdrawn immediately after the last deposit? A) $59,876.05 B) $55,246.47 C) $52,200.36 D) $62,378.23
B
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How many samples need to be taken to estimate the proportion of people in favor of Candidate A to within plus or minus .05 of the actual proportion with 90% confidence, assuming a preliminary sample shows that two-thirds of those surveyed favored Candidate A? a. 1,500 b. 312 c. 1,624 d. 1,040
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In accounting, revenues and expenses are matched: a) When cash is received or paid b) When revenue is realized or expense is incurred c) Based on estimates d) Based on the number of products sold
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Find the coefficient of the term {eq}x^{10} {/eq} in the expansion of the power series {eq}(1+x)^{1/2}{/eq}.
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For the asset costing $14,000 with a useful life of six years and no anticipated salvage value, the depreciation charge for year four using MACRS would be?
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Given $x \in \mathbb R$ and $p,q \in \mathbb N$, consider the equation $$(x^2-2x)^{(p+q)}+(x^2+2x)^{(p-q)} = 2.$$ How to find the number of solutions in this equation?
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(Ignore income taxes in this problem.) Given the following data: -Cost of equipment $61,982 -Annual cash inflows $10,000 -Internal rate of return 15% The life of the equipment must be:
19 years
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The formula for a one-sector, two period, log-linearized DSGE model using the New Keynesian approach is as follows: y1 = c1 + i1 + g1 p1 = p0 + i1 + m1 y2 = c2 + i2 + g2 p2 = p1 + i2 + m2 i1 = r1 - \pi^e i2 = r2 - \pi^e c1 = \beta E_t (c2(1-\frac{1}{\pi}) + \frac{1}{\pi} (p2 - p1 + r2 - r1)) g1 = g2 = g m1 = m2 = m ...
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Deflated Ball Inc (DBI) reported the following information in the Accounts Receivable section of their end-of-year 2015 financial statements: Accounts Receivable $100,000, Allowance for Doubtful Accounts (1,600). During 2016, the following occurred: Payments on A/R by customers $89,300 Credit sales $130,000 Write-of...
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You have an opportunity to invest in an ethical project that will cost $5,000. The project will return $3,000 at the end of year 1, $3,000 at the end of year 2, and $1,000 at the end of year 3. What is the payback period of the investment? Assume that all cash flows are received at the end of the year. a) 1.75 years. ...
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Given three points $A$, $B$, $C$ in $\mathbb{R}^2$, where $d(A,B)=\leq \epsilon$, $d(A,C)=\leq \epsilon$, $d(B,C)=\leq \epsilon$, where $\epsilon$ is a small constant, for a given point $D$, can we say that the point $\text{arg min}_{X\in \mathbb{R}^2} \sum_{i\in \{A,B,C\}}d(X,i)^2$ is close to $D$ if $$d\bigg(\text{ar...
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Why is the Laplace transform of $e^{at}$, which is $\dfrac{1}{s-a}$, the stable part and not the unstable part? For example, in a system with transfer function $\dfrac{1}{(s-1)(s+1)}$, why is $\dfrac{1}{s-1}$ the unstable part, even though its Laplace transform is $e^t$ and not $e^{-t}$?
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What is the minimum $r = B/A$ such that for all closed convex curves (with area $A$), there always exists a centrally symmetric convex curve (with area $B = A \cdot r$) circumscribed about it?
2
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Use the following data to calculate the minimum energy required to remove an electron from a level n = 1 of a hydrogen atom. {eq}\lambda = 94.97\ nm {/eq} Energy of photon = _____ kJ/mol.
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The expected effects of an increase in transfer payments and an equal increase in taxes on real GDP and the budget balance are: A. equal change in both; equal change in both B. no change in real GDP; no change in the budget balance C. equal change in both; no change in the budget balance D. no change in real GDP; e...
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Use implicit differentiation to find the derivative with respect to x of y where x + y = √(x2 + y2).
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A portfolio is composed of two stocks A and B. Stock A has a standard deviation of return of 34%, while stock B has a standard deviation of return of 18%. Stock A comprises 60% of the portfolio while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is .0484, what is the correlation coe...
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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.61 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,050,000 in annual sa...
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According to the new Keynesian model, expansionary monetary policy can be effective if it is a) anticipated. b) unanticipated. c) both of the above. d) neither of the above.
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A newspaper report states that, on average, the customer service division of a commercial bank receives 6.3 calls per hour on weekdays. Assuming a Poisson distribution, what is the probability that the division receives 5 calls in one hour on a weekday? a. 0.167 b. 0.079 c. 0.011 d. 0.215
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How large of a sample is needed in order to be 95% confident that the sample proportion will not differ from the true proportion by more than 4%?
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One division of the Marvin Educational Enterprises has depreciable assets costing $4,090,000. The cash flows from these assets for the past three years have been: YearCash flows 1$1,340,000 2$1,412,000 3$1,596,000 The current (i.e., replacement) costs of these assets were expected to increase 25% each year. Marvin us...
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During the month of February, Selma Company purchased $100,000 in inventory. They also recorded the following beginning and ending inventory amounts: February 1, 2014 February 28, 2014 Ending merchandise inventory $ 12,000 $ 8,000 Assuming the inventory is reported at FIFO, the cost of the merchandise sold is: a. ...
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The expected net cash inflows associated with a new project, X, are shown below. Find the MIRR assuming a discount rate of 10% and a reinvestment rate of 12%. Year Cash inflows 0 -$85,000 1 $20,000 2 $30,000 3 $50,000 4 $60,000 5 $60,000 A. 3.16% B. 5.96% C. 12.11% D. 14.40% E. 9.67%
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Consider supply and demand in the market for privately-owned apartments in Moscow. What market outcomes do you predict in this market if the University of Idaho eliminates the requirement that freshmen must live on campus? a. Price and quantity will both decrease b. Price and quantity will both increase c. Price wil...
b
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If $\epsilon_y = 2 \epsilon_x$ and the demand function is $Q = aX^3Y^2$, then is it possible to calculate the cross price elasticity?
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If $|x+1|+|x+2| > 1$, then $x \in \mathbb R$. Is my attempt at proving this statement correct, where I defined cases based on the critical points $x = -2, -1$ and showed that $1$ being negative does not make $x+1$ and $x+2$ not strictly positive? $x \in (-\infty,-2)\cup(-2,-1)\cup(-1, \infty)$ $x<-2 : -(x+1)-(x+2) > ...
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Hester Co., in addition to offering a warranty on their product for 6 months, also offers a 100% satisfaction guarantee for 12 months. For products sold in 2014, the following were true: - Cost of replacement or repairs under the warranty was $100,000 - The estimated future frequency of warranty claims was 1% of sale...
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Nelson Inc., which uses FIFO, has provided the following information for the month of May: Beginning inventory of direct materials: 5,500 units Beginning inventory of finished goods: 15,500 units Production during May: 86,500 units Ending inventory of direct materials: 6,500 units Ending inventory of finished good...
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Suppose you know that expected return on the market portfolio is 10% and the standard deviation is 20%. Assume there are no arbitrage opportunities. Consider two portfolios P1 and P2. The expected return on portfolio P1 is 15% with standard deviation of 25% and the standard deviation of return on portfolio P2 is 10%. W...
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Pluto Incorporated provided the following information regarding its single product: Direct materials used $240,000 Direct labor incurred $420,000 Variable manufacturing overhead $160,000 Fixed manufacturing overhead $100,000 Variable selling and administrative expenses $60,000 Fixed selling and administrative expense...
A
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Determine if Rolle's theorem can be applied to the function {eq}\displaystyle f(x) = (x+5)^{(3/5)} {/eq} on the interval {eq}\left[-10,\ 0\right].\ {/eq} If Rolle's theorem can be applied, find all values {eq}c{/eq} in the interval {eq}\left(-10,\ 0\right){/eq} such that {eq}f'(c) = 0.{/eq} If Rolle's theorem cannot be...
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Consider a 5-year, zero-coupon bond with a face value of $1,000. If the bond has a YTM of 6.5%, what is the price of the bond? a) $713 b) $743 c) $766 d) $792 e) $813
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Big Bubba Corporation recently declared a dividend on its preferred stock. The dividend amounted to $1.00 per share. The company's stock currently sells for $40.00 per share. The required rate of return on the stock is 12.5%. Big Bubba Corporation also has common stock outstanding. The required rate of return on the s...
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Heston Company produces its product through a single processing department. Direct materials are added at the beginning of the process. During June, the company started 26,000 units and completed and transferred out 19,000 units. June's beginning WIP inventory consisted of 7,500 units for 100% complete with respect to ...
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Given a series of 3-month moving average of a time series, if the actual value for March is 12 and the actual value for January is 16 and the value of the moving average for February is 14, what would the value of the moving average be for March?
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Find the triple integral of the function {eq}f(x, y, z) = x^2 + 4y^2 + z{/eq} over the region {eq}W{/eq}, where {eq}W{/eq} is the rectangular box , {eq}2 \leq x \leq 5, 1 \leq y \leq 4, -1 \leq z \leq 0{/eq}.
364.5
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You are considering an investment in Justus Industries stock, which is expected to pay a year-end dividend of $2.57. Justus has a beta of 1.20, the market risk premium is 7.50%, and the risk-free rate is 2.25%. Justus currently sells for $42.00 a share, but the stock price is expected to grow at a constant rate. What i...
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Kitty Corporation, a manufacturer of small appliances, has provided the following information: Favorable direct materials price variance: $2,352 Unfavorable direct labor efficiency variance: $12,376 Unfavorable direct labor rate variance: $1,276 Favorable direct materials efficiency variance: $226 Additional infor...
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All of the following are advantages of the corporate form of organization except a. Ability to raise large sums of equity capital. b. Limited liability of stockholders. c. Ease of ownership transfer. d. Separation of ownership and management.
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Which of the following is true? Select one: a. In the short run, demand for business-to-business products and services is inelastic or not affected much by price changes b. In the short run, demand for business-to-business products and services is elastic or significantly affected by price changes c. For products th...
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I am given a continuous income stream f(t) = 2100. The rate of interest is 6%, compounded continuously. The present value of the income stream after 10 years is: a. $11,693.45 b. $12,593.72 c. $13,584.63 d. $16,593.72 e. $17,693.45
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The common stock of Dayton Repair sells for $43.95 per share. The stock is expected to pay $2.34 per share next year when the annual dividend is distributed. The company increases its dividends by 1.85 percent annually. What is the market rate of return on this stock?
7.17%
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Which of the following statements is true? a. The short-run average cost curve is always U-shaped. b. The marginal cost curve and the average cost curve intersect when average cost is minimized. c. The minimum point of the short-run average cost curve occurs at a smaller quantity than the minimum point of the long-r...
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Assume that the law firm in Question 42 is organized as a sole proprietorship rather than as a partnership. If the owner incurs a net operating loss in 2012, the firm's deductible expenses will be: a) $100,000. b) $75,000. c) $50,000. d) zero.
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Which of the following choices is correct? a. Corporate culture, selected information systems and infrastructure, and the business processes supported by information systems all work together to form an organization's competitive advantage. b. Strategic information systems can give an organization a competitive advan...
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Riley Company had net income for 2018 of $4,200,000. During 2018, accounts receivable increased by $440,000 and accounts payable increased by $420,000. Depreciation expense was $320,000 and there was a loss on the sale of equipment of $40,000. During 2018, dividends paid were $100,000 and the company declared and issue...
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Dick Boe Enterprises, an all-equity firm, has a corporate beta coefficient of 1.5. The financial manager is evaluating a project with an expected return of 21 percent, before any risk adjustment. The risk-free rate is 10 percent, and the required rate of return on the market is 16 percent. The project being evaluated i...
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How do I derive the term $e^{\frac{-2Nk}{n}}$ in equation (2.13) of the Erdős-Rényi paper "On the evolution of random graphs," given that I can already derive the term $(\frac{2N}{n^2})^{k-1}$ and I know that ${n \choose k}\sim\frac{{n^k}e^{-\frac{k^2}{2n}-\frac{k^3}{6n^2}}}{k!}$?
$e^{\frac{-2Nk}{n}}$
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The cost of merchandise sold reported on the income statement was $680,000. The accounts payable balance decreased by $36,000, and the inventory balance decreased by $45,000 over the year. Determine the amount of cash paid for the merchandise.
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Haley's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: 12.25% Year 0: -1,000 Year 1: 300 Year 2: 300 Year 3: 300 Year 4: 300 Year 5: 500 a) 175.89 b) 230.91 c) 191.47 d) ...
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You are given the following information about a firm's cash flow for 2012: Sales $250 Costs 195 Depreciation 25 Taxes 15 Interest expense 20 Total cash flow $28 The amount of interest expense for the firm in 2012 was: A. $50 B. $35 C. $25 D. $20
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Compute the profitability index of a capital budgeting proposal with the following cash flows if the required rate of return is 12%: Initial outlay = $45,000 Inflow 1 = $8,000 Inflow 2 = $10,000 Inflow 3 = $30,000 Inflow 4 = $35,000 a. 5.15 b. 5.32 c. 4.26 d. None of these answers is correct.
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A monopolist faces the following inverse demand function: {eq}P = 100 - Q {/eq}. The monopolist's marginal costs are $50. If this were a competitive industry, what would the equilibrium price and quantity be?
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Determine the probability that a sample of 5 high performance tires will have an average life of more than 40,000 miles, given that high performance tires have a normally distributed life with a mean of 50,000 miles and a standard deviation of 7489.64 miles.
0.9986
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Let $P(x)=(x+a_1)(x+a_2)\cdots(x+a_n)-1$, where $a_i$ are non-zero distinct integers. Prove that there exists no $b\in \mathbb{Z}$ such that $P(b)=0$. Show that $$\frac{n!}{2}\leq \left|\sum_{i=1}^{n}a_i\right|.$$ Hence prove that there exists exactly one integer $c$ such that $$\left|\sum_{i=1}^{n}a_i-c\right|\leq \fr...
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Which of the following is true about the effective interest rate and the nominal interest rate? a. The effective rate of interest is always higher than the nominal rate when interest is compounded quarterly. b. The effective rate of interest is always higher than the nominal rate when interest is compounded monthly. ...
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Marie Casavantes has completed her first year of work as controller for the New Mexico Furniture Corporation. Marie is considering an expansion of the company's line of office chairs and has been assigned the task of evaluating the proposal to expand the line. The controller has gathered the following data: 1. The de...
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A functional organizational structure focuses on? a. departments b. products c. customers d. strategic business units
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The Lost Timber Company was organized on January 2, 2015. At the end of 2015, the company had the following balances: Cash $2,000 Accounts receivable 1,500 Equipment 3,000 Accounts payable 500 Common stock 5,000 Retained earnings 2,000 During 2016 the company completed the following transactions: Gave stockholders ...
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Which of the following factors do not influence a firm's P/E ratio? a. Past earnings. b. Shares outstanding. c. Volatility in performance. d. None of these.
d
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Consider the linear regression model, {eq}y_i = \beta_1 + \beta_2x_i + u_i{/eq}, and assume that it satisfies the first four Gauss-Markov assumptions (in particular, {eq}E(u_i|x_i) = 0{/eq}). The slopes from two different regressions are given by: {eq}Slope\ in\ first\ regression = (1.2)/(0.4) = 3 {/eq} {eq}Slope\ ...
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The minimum annual lease payment for capital lease accounting purposes is based on: a. The lower of present value of the minimum lease payments or fair value of the leased asset b. The fair value of the leased asset c. The minimum lease payments d. The lower of present value of minimum lease payments or minimum lea...
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Which of the following is NOT a use of funds? A. Payment of dividends. B. Purchasing of stock. C. Purchase of a building. D. Sale of equipment.
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What is the probability that three people in a room of 40 share the same birthday? How do I reason through this problem?
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I purchased a piece of equipment for $50,000 which requires an interest rate of 10% per annum over a 5 year period. If the buyer makes 5 equal end-of-the-year payments (5 equal installments) of the total amount (including interest) due when the loan is made, what would those payments be?
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Calculate the average square distance travelled for a random walk of 10 steps, if the probability of going forward on each step is twice the probability of going backward.
20
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The research and development department of an industrial firm is experimenting with additives that increase the wear life of certain machine parts. The lifetime of a standard part used in these machines is normally distributed with a mean of 100 hours and a standard deviation of 20 hours. A random sample of 16 parts wi...
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Smith Corporation's 15-year bonds have an equilibrium rate of return (YTM) of 6 percent. The bonds have an annual coupon payment and a $1,000 par value. Its tax rate is 30 percent. What is the after-tax cost of debt for the company? a) 6.7% b) 7.3% c) 9% d) 4.2%
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If the price of long-distance telephone service increased from 50 to 75 cents per minute and the quantity demanded decreased from 100 to 80 minutes per month, the price elasticity of demand for long-distance telephone service is _____ in the _____ interval. a) more elastic; price range of 60 to 75 cents. b) more inel...
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Watson Oil, Inc. is considering a project that will produce cash inflows of $87,000 a year for three years followed by $51,000 in year four. What is the internal rate of return if the initial cost of the project is $159,000?
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A 5.00-mol sample of {eq}CH_4 {/eq} gas is maintained at constant pressure of 1.00 atm and is heated from 27{eq}^o {/eq} C to 127{eq}^o {/eq} C. Find the work done by the gas. A) 37.2 L {eq}\cdot {/eq} atm B) 2.54 kJ C) 3.38 kJ D) 37.2 kJ E) 2540 L {eq}\cdot {/eq} atm
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In hypothesis testing, which of the following statements is false? a. Large P-values suggest the alternative hypothesis is false. b. Large P-values suggest the null hypothesis is true. c. Small P-values suggest the alternative hypothesis is true. d. Small P-values suggest the null hypothesis is false. e. Large P-v...
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Which of the following characteristics do crossover rate(s), IRR, and MIRR all have in common? a. They all consider the time value of money. b. They all use accounting cash flow measures. c. They all ignore the time value of money. d. They all assume a single sign in the cash flow stream. e. They all consider the ...
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As part of an investment analysis, a stock analyst wants to determine the contribution made by the current assets and fixed assets in the average annual increase of the firm's total assets. She decides to evaluate the assets in four-year periods, with the first year of each four-year period as the base year. The table ...
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The Griswold Co. had a net income of $63,000 and depreciation expense of $7,000 last year. If the firm's cash flow from operating activity was $60,000, what was the firm's total cash flow?
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Use a double integral to find the area of the region between the graphs of y=x and y = \frac{1}{2} x^2 on the interval 0 ≤ x ≤ 3.
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Which of the following statements is false? a. The annual net cash flow is equal to the net income plus depreciation expense. b. The annual net cash flow cannot be equal to net income if a long-term asset was purchased during the year. c. The annual net cash flow is used to compute the cash payback period. d. The a...
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Which of the following types of preferences always result in no dead-weight loss with a tax? A) Perfect Substitutes (Flat Indifference Curves) B) More is Better C) Transative Preferences D) Perfect complements (L-shaped Indifference Curves)
D
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The weekly demand for propane gas (in thousands of gallons) has a mean of 2.2 and a standard deviation of 0.5. The weekly demand is approximately normally distributed. What is the probability that the average demand for a year (52 weeks) is between 1.8 and 2.4 million gallons? (Note: a year is considered 52 weeks.)
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Evaluate {eq}\iiint_E \sqrt{x^2+y^2}\,dv {/eq}, where E is the region that lies inside the cylinder {eq}x^2+y^2=1 {/eq} and between the planes z=2 and z=10.
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Operating leverage is important because: A. A firm with a low operating leverage makes more money than a firm with a higher operating leverage when sales are falling. B. Higher operating leverage means more fixed costs relative to variable costs. C. The concept allows management to make capacity planning decisions t...
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Land acquired by issuing stock Select one: A. Assets increase; no effect on liabilities; stockholders' equity increases B. Assets increase; liabilities increase; no effect on stockholders' equity C. Assets increase; no effect on liabilities; no effect on stockholders' equity D. Assets increase; liabilities decreas...
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While hiring a new worker, a firm will pay a higher wage than the prevailing market rate if a) the labor market is less competitive. b) the supply of workers is very high. c) the market demand for the new worker is low. d) the expected marginal revenue is positive.
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Use a double Riemann sum with n = m = 2 and sample points in the lower right corner to approximate {eq}\int \int_R (4x+3y^2)dA , where , R=[0,6]\times[0,4] {/eq}
576
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Byers Company produces two types of office chairs, Model A and Model B. It estimates the following results for next year. Model A Model B Sales $500,000 $420,000 Variable expenses $240,000 $210,000 Fixed expenses $50,000 $50,000 Assume that Byers can manufacture only one type of chair next year. If the chair with the...
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Humble Corporation owns 80 percent of the common stock of Simplex Company, which it acquired on January 1, 2013, at book value equal to fair value. On July 1, 2013, Humble sold merchandise that cost $30,000 to Simplex for $40,000. One-fourth of this merchandise remained in Simplex's inventory on December 31, 2013. Assu...
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A stock priced at $33 just paid a dividend of $3.20. If you require a return of 18% for this stock, what is the minimum growth rate you would require from this stock?
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Find the volume of the solid obtained by rotating about the x-axis the region bounded by 6x=y^2, x=0, and y=0.
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Let $X_1, X_2$ be i.i.d. with $P(X_1=x) = 1/2$ for all $x \in \mathbb{Z}$. Find $$E( \max(X_1, X_2) - \min(X_1, X_2) | X_1 + X_2 = 5)$$
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Let S be the positively oriented surface of the {eq}2 \times 3 \times 4{/eq} box which lies in the first octant with a corner at the origin. Suppose F is the vector field {eq}F = \left\langle 3x + y^4, 3x^2 + 4z, 5x^5 + 3y - z \right \rangle.{/eq} Compute the flux of F through the surface S, i.e. compute the surface in...
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At December 31, the IRR of a $150,000 project is 16%, the discount rate is 14.60%, and the company's tax rate is 34%. The expected net cash flows are $45,000 in year 1, $50,000 in year 2, and $50,000 in year 3. What is the company's net income in year 2? a. $36,900 b. $33,000 c. $22,188 d. $29,500
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Frank owns a gas station. He reports the following income in calculating his federal income tax: Taxable Income $30,000 Frank received a $10,000 dividend from a 20%-owned corporation (Frank is not in the 35% tax bracket). Which statement is correct? a. The taxable income is $30,000 because the dividend is taxed at t...
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With the benefit of hindsight, most people would say the Fed missed a big opportunity in ___, when inflation was close to zero and its policy rate was very low. A. early 1990 B. early 1980 C. both early 1990 and early 1980 D. neither early 1990 nor early 1980
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Why does the $dt$ in Ito's general formula match the upper limit of the integral, $t$, in the expression: $$ f(t, B_t) = f(0,0) + \int_0^t \frac{df}{dx}(s, B_s) dB_s + \int_0^t \frac{df}{dt}(s, B_s) ds + \frac{1}{2}\int_0^t \frac{d^2f}{dx^2}(s, B_s) ds $$ Specifically, why am I having trouble understanding why I should...
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After adjusting for the foreign tax credit, Jim's income tax on all sources of income is $11,000. Jim's U.S. tax due on the $20,000 of foreign income is a) $11,000. b) $6,500. c) $4,000. d) $3,000.
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The weights of bowling balls are normally distributed with a mean of 11.5 pounds and a standard deviation of 2.7 pounds. A sample of 36 bowling balls is selected. What is the probability that the average mean weight of the sample is less than 11.22 pounds?
0.2676
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Given a firm's demand function, {eq}P=200-0.50Q {/eq} and its average cost function, {eq}AC=50+0.5Q {/eq}, calculate its profit-maximizing level of output.
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What is the probability that at least 35 but not more than 39 children become sick, given that 44% of school children develop nausea and vomiting following holiday parties and the sample size is n = 36?
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A company currently uses 10,000 direct labor hours and $160,000 of overhead. Overhead is allocated on the basis of direct labor hours. Fixed overhead is estimated to be $90,000 for the year. Variable overhead is budgeted to be $12 per direct labor hour. The company is considering an activity-based costing system in wh...
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