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Boenisch Company issues 7.5%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%, which implies a selling price of 105 1/2. Use the present value tables B.1 and B.3 in Appendix B. (Round all table values to 4 decimal places, and ...
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Which of the following series of commands will restrict Telnet access to the router? Options are: answer A Lab_A(config)#access-list 10 permit 172.16.1.1 Lab_A(config)#line con 0 Lab_A(config-line)#ip access-group 10 in; answer B Lab_A(config)#access-list 10 permit 172.16.1.1 Lab_A(config)#line vty 0 4 Lab_A(config-lin...
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Is the summation of an uncountable number of zeros, zero?
0
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A firm has net working capital of $680, net fixed assets of $2,726, sales of $6,300, and current liabilities of $980. How many dollars worth of sales are generated from every $1 in total assets?
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Which of the following is true? a. Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor. b. The departmental overhead rate is not usually based on measures closely related to production volume. c. The departmental overhead rate is most accurate in assignin...
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Scotty's Fish and Game Company, which began operations in 2022, provided the following information for 2022: Inventory, 12/31/22$10,000 Net income$80,000 Depreciation expense$10,000 Accounts payable20,000 Total assets300,000 Total liabilities100,000 Common stock (no par)120,000 Retained earnings30,000 Assumin...
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Cliff Co. purchased a machine on January 1, 20X5 for $21,000. The machine had an estimated useful life of five years and a salvage value of $1,000. The straight-line method of depreciation is being used. On January 1, 20X7, it was determined that the machine would last an additional 10 years from that date (for a total...
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Mark M. (age 45) and Debbie L. (age 43) have taxable income of $155,000 before considering any of the following. Their deduction for self-employment income is $5,000. If their taxable income is reduced by the following, determine their maximum child tax credit. Reduced by: Standard deduction $9,000 Dividends receive...
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If you visited Disneyland between 1955 and 1982, you could not go on most rides without buying a ticket for the ride - in addition to the ticket necessary to enter the park. The pricing strategy earned Disney lower profits than the current strategy of requiring visitors to purchase a ticket to enter the park but not re...
C
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Which of the following statements is true? A. An investment with a net present value of $1,000 will have an internal rate of return equal to the firm's discount rate. B. An investment with a net present value equal to zero will have an internal rate of return equal to the firm's discount rate. C. The internal rate o...
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Find the volume of the wedge cut from the first octant by the cylinder z = 9 - y^2 and the plane x + y = 3.
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Sapp Trucking's balance sheet shows a total of noncallable $30 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 9.00%. This debt currently has a market value of $40 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common...
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How will the following transaction affect the current ratio, debt-equity ratio, and net income, respectively? Sold equipment for cash at a loss. a. Increase, no effect, decrease b. No effect, increase, decrease c. No effect, decrease, decrease d. No effect, increase, no effect
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A government agency is planning a new office building close to its current headquarters. Four proposed sites are to be evaluated. Any of these sites will have to save the agency $700,000 per year since two of its current satellite offices will no longer need to be rented. The agency uses a 6% interest rate and assumes ...
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What is #int 2/(4+x^(2)) dx#?
arctan(x/2)+C
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What is the maximum (theoretical) efficiency of a power cycle operating at steady state between hot and cold thermal reservoirs at $1000\,^\circ R$ and $500\,^\circ R$, respectively?
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Which is not a common characteristic of organizations? A. They have inputs and outputs. B. They create a product or service. C. They have a unique life cycle. D. They are used to accomplish the same tasks over and over.
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The price of a European call which expires in 6 months and has a strike price of $30 is $2.00. The underlying stock's price is $29 and a dividend of $.50 is expected in 2 months and in 5 months. The term structure is flat with all risk free interest rates being 10%. What is the price of a European put option that expi...
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Pattison Corp. ended the year carrying $12,456,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Pattison Corp.?
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Aladdin Ltd sold inventory items (with a cost of $100,000) to its subsidiary Genie Ltd for $120,000. Half of the inventory items were sold by Genie Ltd to external parties before the financial year end. Ignoring taxes, which of the following statements is correct with respect to this transaction only? a. Consolidated ...
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Given a deck of 40 cards, with 4 suits of 10 cards each and cards numbered from 1 to 10, we draw 4 cards. Let the random variable N be the number of different suits. Compute $P(N=2)$. The solution provided is: Number of possible draws: ${40 \choose 4}=91390$ Number of positive outcomes: $4{10 \choose 3}*3*10+{4 \choose...
0.29
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DreamWorks Corporation acquired a trademark in exchange for 3,000 shares of $1 par value common stock. Which of the following best describes this transaction? a. Operating activity. b. Investing activity. c. Financing activity. d. Significant non-cash activity. e. Intangible activity.
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The outlay cost of any activity at any point in time is the: A. sunk cost. B. marginal cost. C. short run cost. D. long run cost. E. opportunity cost.
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Assuming that crowding out is not an issue, if Congress increases business taxes at the same time that the Federal Reserve conducts an open market sale, output and price level are likely to change in which of the following ways? (Output/Price Level) A. Decrease/Increase B. Decrease/Indeterminate C. Decrease/Decrease...
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I have to choose between Stock A and Stock B. The expected returns and standard deviations of these two stocks are as follows: Stock A has an expected return of 20% and a standard deviation of 25%. Stock B has an expected return of 25% and a standard deviation of 27%. The coefficient of variation is a standard measu...
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If the total vector space is n-dimensional and its orthogonal complement is m-dimensional, is it possible that $m + n = 2^n$? For example, if the total vector space is 3-dimensional and its orthogonal complement is 5-dimensional, this would mean that $3 + 5 = 2^3$ (i.e., $2^n$), which is not possible. However, we know ...
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If $\lim_{\Delta x \to 0} \frac{\Delta x(2x + \Delta x)}{\Delta x}$ $=$ $\lim_{\Delta x \to 0} 2x + \Delta x$ $=$ $2x$, then aren't we performing division by zero while evaluating the limit? How is this possible? What is a limit, explained intuitively?
2x
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A firm has 30 million shares outstanding. You estimate the firm's average return for the last five years to be 10% and have identified a regression equation with a beta of 1.34. The market value of the firm's debt is $500 million. The five-year government bond rate is 1.5%, and the average return on the S&P500 is 7%. T...
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If events {eq}A {/eq} and {eq}B {/eq} are independent, then events {eq}A {/eq} and {eq}\overline{B} {/eq} must also be independent. Select one: a. True b. False
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How many years will it take to double your money at an annual compound interest rate of 4.37 percent? a) 12 years b) 15 years c) 17 years d) 19 years
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I'm confused by the process in which these residues are evaluated. For example, for the residue of $sin(1/z)$ at $z=0$, it is given that the Laurent expansion of $sin(1/z)$ is $(1/z)-\frac{1}{6}(1/z)^{3}+...$ so the residue at $z=0$ is $1$. For the residue of $f(z)=sin(z)/z^{2}$ at $z=0$, it is given that the Laurent e...
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A company is analyzing a potential project which involves purchasing $350,000 of fixed assets and an additional $30,000 of net working capital. The project is expected to last four years and is expected to generate annual sales of $150,000, annual operating costs of $80,000, and annual depreciation of $30,000. At the e...
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Since the 1980s, it has generally been the view that money supply a) is completely controlled by the central bank. b) cannot be controlled by the central bank. c) is completely controlled by the Treasury. d) cannot be controlled by the Treasury.
a
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Two separate costs for a company were initially found to be $350,000 and $250,000 respectively. Later, it was discovered that the $350,000 cost had been counted twice. If the company records the adjusted total, the correct reporting for each cost would be: A. cost 1- $350,000 cost 2- $250,000 B. cost 1- $350,000 cost...
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If the sales department of a major department store failed to report the actual selling price of a particular brand of shoes, then a. actual operating expenses would be over-stated. b. gross profit would be under-stated. c. cost of goods sold would be over-stated. d. inventory would be over-stated.
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High Adventure Industries has these direct materials costs: Beginning inventory, January 1 - $16,000 Direct materials purchased during January - $79,000 Ending inventory, January 31 - $13,000 The cost of direct materials issued to production during January was _____.
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Consider the following statements and evaluate if they are TRUE or FALSE: 1. As a country industrializes, its consumption pattern tends to shift towards more high-tech products and away from basic goods. 2. The factor price equalization theorem states that when countries engage in free trade, the prices of both facto...
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The following market information was gathered for the Blender Corporation: The firm has 1,000 bonds outstanding, each selling for $1,100 with a required rate of return of 8.00%. It has 5,000 shares of preferred stock outstanding, selling for $40.00 per share and the preferred stock has a required rate of return of 11...
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Barry, Dan, and Edith together form a new corporation; Barry and Dan each contribute property in exchange for stock. Within two weeks after the formation, the corporation issues additional stock to Edith in exchange for property. Barry and Dan each hold 10,000 shares and Edith will receive 9,000 shares. Which transacti...
D
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A firm pays its assembly line workers $20 per hour. Current workers have a marginal product of 40 units per hour, and these workers are very productive. In searching for a worker, the firm has to spend an average of $30 per worker. The wage rate in the region is $25 per hour. To reduce its wage cost, the firm wants to ...
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A firm uses a single input x to produce output y. The price of output is $50. The price of input x is $20, and the marginal product of x is 10. The marginal cost of production is (MC): a. 2 b. 10 c. 50 d. 100 e. none of the above
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Which of the following events would cause a shift in the short-run Phillips Curve? a. expectations that the price level will increase in the future b. a decrease in the price level c. an increase in net exports d. an increase in the capital stock
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Use generating functions to determine how many four-element subsets of {1,2,3,4,...,15} contain no consecutive integers.
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Determine the extreme values of the function {eq}\displaystyle f(x, y) = x^2 + 2y^2 - 4x - 4y{/eq} on the region bounded by the parabola {eq}\displaystyle y = 6 - x^2{/eq} and the line {eq}\displaystyle y = 1{/eq}.
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Why is $\lvert \Bbb{Q} [\sqrt[n]{2}] : \Bbb{Q} \rvert = n$ when $\Bbb{Q} [\sqrt[n]{2}]$ is formed by adding only one element, namely $\sqrt[n]{2}$, to the field of rational numbers, when I thought that the degree of an extension field formed by adding just one element to a given field was one?
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By his time, the scientist had conducted _____ of his career's work. A. more than a quarter B. more than a half C. more than three quarters D. more than three fifths
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Calculate the percent change in quantity demanded when the price of good X increases from $1.45 to $1.75 and the quantity demanded decreases from 500 to 350 units. (Remember: this is a percent change, so you do not round your answer.)
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Company A is considering a project that will require an initial outlay of $20,000. The project will produce cash inflows of $5,650.00 in year 1; $8,780.00 in year 2; and $5,210.00 in year 3. Company A uses the internal rate of return method to evaluate projects. If the appropriate discount rate is 12.00%, should Compan...
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The relationship between contribution margin and contribution margin ratio is: A. Sales revenue - contribution margin = contribution margin ratio. B. Contribution margin + fixed costs = contribution margin ratio. C. (Contribution margin / fixed costs) x 100 = contribution margin ratio. D. (Contribution margin / sal...
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Determine whether the function {eq}f(x) = x^4 \sin\left(\frac{1}{x}\right){/eq} is continuous at {eq}x = 0{/eq}.
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Based on the following information, compute cash flows from investing activities under GAAP. Cash collections from customers: $830 Purchase of used equipment: 215 Depreciation expense: 215 Sale of investments: 480 Dividends received: 100 Interest received: 215
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Evaluate the integral $$\int_{|z|=\frac{1}{2}}\frac{\pi \cos (\pi z)}{z^2+2z}dz$$ using the Cauchy formula. The answer provided is $2\pi i(\pi \cos{\frac{1}{2}}-2\pi \cos{\pi})=2\pi i(-2+\pi\cos{\frac{1}{2}})$. However, I'm confused about why the residue at $z=0$ is $\pi\cos{\frac{1}{2}}$ and not $\pi \cos{\frac{1}{2}}...
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Tech Company purchased a machine that will be depreciated by the straight-line method over its estimated 6-year life. The machine will have no salvage value. It will generate cash inflows of $9,000 each year over the next 6 years. Tech Company's required rate of return is 16%. If the net present value of this investmen...
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Galindo Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operation. DRCR Cash$180,000 Common stock$25 par value$157,500 Paid-in capital excess of par value, common stock$22,500 b) Organiz...
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Find the weighted average of a student's course grades in a four-course sequence if the student receives grades of 90, 85, 70, and 100 with weights of 3, 2, 3, and 2, respectively.
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What percentage of variation in the dependent variable is not explained by the independent variables in the regression equation Y = 39.26 + 2.34X1 - 7.51X2, given an R² of 0.48?
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Coca-Cola is a _____ organization and PepsiCo is an example of a _____ organization. A) multiple-business; single-business B) single-business; multiple-business C) multiple-business; multiple-business D) All of the answer choices are correct. E) None of the answer choices is correct.
B
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Margaret's color-mixing machine is not perfect. The variance of the redness of her mixing machine's output is 0.18. The mixing machine outputs are normally distributed. If you randomly select 100 batches of color output from the machine and compute the average redness of those batches, what is the standard deviation of...
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The process of using long-term debt to acquire fixed assets is known as: A. leasing B. capital budgeting C. financial accounting D. working capital management
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Evaluate the definite integral: {eq}\int^{2}_1 4lnx/x^2 \;dx{/eq}
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In a monopoly: a. marginal revenue equals price. b. marginal revenue always exceeds price when output is increased. c. marginal revenue is always less than price when output is increased. d. marginal revenue equals price when output is increased. e. none of the above.
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A firm changes its credit terms from 2/10 net 30 to 3/10 net 30. How will this change affect the firm's financial statements? a) Increase expenses, increase assets. b) Increase net income, increase equity. c) Increase net income, decrease assets. d) Decrease expenses, increase assets.
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Which of the following is generally excluded from gross income? a. Partnership income b. Disability benefits c. Rewards d. Dividends e. None of the above
b
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For the perfectly competitive firm, price equals marginal revenue (MR), which equals average revenue (AR), which equals {eq}\_\_\_. a. {eq}P {/eq} b. {eq}MC {/eq} c. {eq}MR {/eq} d. {eq}AR {/eq}
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Your firm would like to evaluate a proposed capital budgeting project (project Delta) that requires an investment of $1,511,687 and has estimated net cash flows of $698,021 in one year and $1,476,854 in two years. If your firm's WACC is 14.00%, what is the approximate Internal Rate of Return for the project? Do not rou...
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Assume that the risk-free rate is 3.5% and the market risk premium is 4%. Required: What is the cost of equity for a firm that has a beta of 1.5?
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For 2016, Fidelity Company has net income of $450,000 and total assets of $2,000,000. For 2017, Fidelity Company will have net income of $480,000. The firm's CFO is considering two plans to finance the $450,000 in assets. The firm plans to maintain its current debt-equity ratio of 25%. The first plan is a mix of 35%...
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Assume that the market value of the equity of a firm is $500 million, and the market value of the debt is $1 billion. Suppose you know that the cost of debt capital for a firm is 6%, the risk-free rate is 3%, and the beta of the equity is 1.5. What is the return on equity (ROE)?
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Five years after an accident, you received $100,000 to pay the medical expenses incurred at the time of the accident. What is the present value (at the time of the accident) of the payment? Assume interest rates are 9%. a. $153,900 b. $68,100 c. $65,000 d. $70,800
c
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Which of the following statements is most correct? A. If a bond's Yield to Maturity exceeds its coupon rate, the bond's current yield must also exceed its coupon rate. B. If a bond's Yield to Maturity exceeds its coupon rate, the bond's current market price must also exceed its maturity value. C. If two bonds have t...
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The following information is available on the manufacturing costs of the best-selling product of Diva Company: Variable manufacturing costs $15 per unit Fixed manufacturing cost per year $600,000 Diva desires a profit of $25 per unit. The markup percentage on absorption cost...
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Which of the following is/are used as first line drugs in treating asthma? a. Albuterol b. Formoterol c. Terbutaline d. Salmeterol e. All are true f. A & C are true
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Safford Mutual Funds has a beta of 1.6. The risk-free rate is 4.5% and the expected market return is 9%. What is the required rate of return for Safford? (Show work).
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Firm-wide cash flow equals: A. Taxes + Interest paid + Dividends B. Operating cash flow + Interest paid + Dividends C. Taxes + Operating cash flow + Dividends D. Taxes + Interest paid + Operating cash flow
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What is the integral of (x-2)/(x-1) from 0 to 2?
2
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How do you use the ratio test to test the convergence of the summation (n+1)/n^3 from [1,∞)?
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Which of the following is NOT an influence on consumer values? A. Functionality of a product B. Personality of a consumer C. Popularity of a product D. A consumer's religion
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What percentage of the variation in the dependent variable, utility, is explained by variation in the independent variable, advertising? a. 100 percent b. about 50 percent c. about 18 percent d. not enough information
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Adams Company currently has 5,000 shares of its $10 par value common stock outstanding. Net Income this year was $300,000 and the company plans to declare a $1.60 per share cash dividend this coming December. If the company decided to repurchase its common stock rather than declare a cash dividend, how many shares of ...
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A mutual fund manager expects her portfolio to generate a return of 20% this year, a 35% chance that the return will be 40%, a 40% chance that the return will be 15%, and a 25% chance that the return will be 5%. What is the expected return on the portfolio?
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The cost pass through is: A) The highest under perfect competition and the lowest under monopoly. B) The lowest under perfect competition and the highest under monopoly. C) Higher under Cournot duopoly than under perfect competition and than under monopoly. D) The same across different market structures.
B
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Which of the following factors move the demand curve for Canadian dollars and the supply curve for Canadian dollars in opposite directions? A. The interest rate differential increases or decreases. B. Canadian imports increase or decrease. C. The world demand for Canadian exports increases or decreases. D. The expe...
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The Baltimore Corporation is an all-equity firm that has 400,000 shares of stock outstanding. The company has decided to borrow $1,200,000 to repurchase 150,000 shares of the stock from the estate of a deceased shareholder. What is the value of this firm if you ignore taxes? A. $2.4 million B. $1.6 million C. $1.8 m...
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Countercyclical monetary policy in the AS/AD Model involves: A. contractionary monetary policy no matter what the level of unemployment. B. expansionary monetary policy no matter what the level of unemployment. C. contractionary monetary policy during periods of high unemployment and expansionary monetary policy dur...
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If your initial monthly payment of $1000 is going to a savings account that pays 3% interest per year compounded monthly, how much money will be in the account after 2 years?
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Show that the function f(x) = 5x^2 - 2x - 7 has a zero in the interval (-1, 2). Write the second Taylor polynomial of f(x) at x = 1. Find an upper bound for the error in using this quadratic polynomial to approximate f(x) in the interval (-1, 2).
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Give an estimate of the parameter λ of a Poisson distribution (using the method of moments), given that the following sample is obtained: 2, 3, 3, 3, 3, 3, 2, 4, 5, 2, 0, 0, 1, 4, 1, 5, 2, 1, 2, 0. It's easy to see we can equate λ to the arithmetic mean of the sample, and we get: $$ \lambda =\frac{46}{20} = 2.3$$ Howev...
2.3
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The forward rate includes expectations of the future spot rate and a term premium that is positively related to A) the interest rate difference between the two countries. B) the magnitude of fluctuations in the spot rate. C) expected capital movements between the two countries. D) All of the other three choices are...
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A common stock currently has a beta of 1.7, the risk-free rate is 7% annually, and the market return is 12% annually. The stock is expected to generate per-share benefits of $6.70 during the coming period. A pending lawsuit has just been dismissed and the beta of the stock drops to 1.4. The new equilibrium price of the...
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Total assets are $74,000 and owner's equity is $42,500. What is the amount of the current liabilities?
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Assume that required returns are based on the CAPM. Your boss is considering investing in one of two mutually exclusive projects. Project A has an expected return of 14%, a beta of 0.7, and a standard deviation of 11%. Project B has an expected return of 14.8%, a beta of 1.4, and a standard deviation of 13.5%. The risk...
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If all of your genes were expressed, you would make: A. a variety of proteins, mostly polypeptides B. only one polypeptide C. only one type of mRNA D. a variety of polypeptides
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West Chester Automation has an inventory turnover of 16 and an accounts payable turnover of 11. The accounts receivable period is 36 days. What is the length of the cash cycle?
25.63 days
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Which of the following is true regarding the distribution of real GDP per capita from 1950 to 2001? A) Real GDP per capita was not equally distributed from 1950 to 2001. B) Real GDP per capita was evenly distributed from 1950 to 2001. C) There was a significant increase in real GDP per capita from 1950 to 1990, and ...
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As the director of capital budgeting you are evaluating two mutually exclusive projects: Year Project X Project Y 0 -100,000 -100,000 1 40,000 10,000 2 40,000 30,000 3 30,000 40,000 4 20,000 60,000 What is the MIRR for project X, if the discount rate is 10% and the reinvestment rate is 12% a. 5.770...
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The estimate of the population proportion should be within plus or minus 0.03, with a 95% level of confidence. The best estimate of the population proportion is 0.22. How large a sample is required?
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If RY (aka Long Term Real Interest) equals 4%, INFLATION expectations are 3% and there is a 2% risk premium for longer maturity securities, then the nominal rate for 10 Year Treasury Bonds (aka Long Term interest rate) is? A. 4% B. 7% C. 9% D. 11%
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When reviewing a budget, which of the following items may be adjusted first? A. Final expenditures B. Cash balance C. Revenue D. Actual expenditures
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Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs. If variable costs decrease by $1 per unit, the new breakeven point is: a. None of these answers are correct b. 492 units c. 1,539 units d. $11,765 in total sales ...
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After evaluating a capital project, an accountant must: a) Ignore all relevant cash flows. b) Evaluate the project from an accounting perspective. c) Determine whether or not the project earns the company's desired rate of return. d) Determine if the project is profitable. e) Consider only incremental cash flows.
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