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Income is {eq}\$100 {/eq}, price of X is {eq}\$10 {/eq}, and price of Y is {eq}\$50 {/eq}. If the consumer maximizes her utility by purchasing 10 units of X, her marginal utility of Y must be: a. 10. b. 20. c. 30. d. 40.
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Which of the following is correct? a. The price elasticity of demand is always constant along the length of a linear demand function. b. The price elasticity of demand varies along the length of a linear demand function. c. The price elasticity of demand is not related to the length of a linear demand function. d. ...
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Given a curvilinear coordinate system in $R^3$ with parameters $(q_1,q_2,q_3)$, prove that the Jacobian of the transformation $J(\frac{x_1,x_2,x_3}{q_1,q_2,q_3})$ is equivalent to the product of the metric factors $h_1h_2h_3$, using tensor notation. The metric factors are given by: $h_{ij}^2=\frac{\partial x_k}{\partia...
J=h_1h_2h_3
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The Anderson Manufacturing Company has paid annual dividends of $.40, $0.50, and $0.65 for the past three years, respectively. The firm expects to pay a dividend of $1.00 next year. Anderson is projecting a long-term growth rate of 5% for the foreseeable future. What is the expected rate of return for a stockholder of ...
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Suppose that in the perfectly competitive market for the normal good gasoline, there is a simultaneous decrease in the income of consumers who purchase gasoline and an increase in the oil price (an input used in producing gasoline). With these changes, we expect? A. an increase in the price of gasoline and an increase...
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Why is my calculation of the Cost of Equity for a company with a stock price of $39.62, beta of 1.44, an expected market return of 10.31%, and a risk-free rate of 2.7% incorrect, given that I calculated it to be 14.18%, while the actual answer is 12.33%?
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Use Green's Theorem to evaluate the line integral. {eq}\int_Cxy\,\,dx + (x^2 + y^2) \,\,dy {/eq} {eq}C {/eq}: boundary of the square with vertices {eq}(0, 0), (0, 2), (2, 0) {/eq}, and {eq}(2, 2) {/eq}.
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Find the coefficient of variation for the fasting rates in Table 1, assuming that the units of fasting rates are milligrams of C20 units per deciliter of blood. Units of fasting rates are given in Table 1 along with their frequency. Fast Rate (milligrams of C20 units per deciliter of blood) Frequency 110-119 6 120-1...
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Find the inf(x+1/x) for x>0. Why is it incorrect to say inf(x+1/x)= inf(x) + inf(1/x) = 0+ 0= 0, given that inf(A+B)= inf(A)+ inf(B) and the graph of (x+1/x) for x>0 shows an infimum of 2 at x=1? What condition is not being met?
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If purchasing a share of stock provides the same expected return as other investments in the same risk class, then in the long run stock prices should: a. Go up. b. Go down. c. Stay the same. d. Jump up. e. Have no predictable trend.
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The mean area of offices in New York is 350 square feet with a standard deviation of 20 square feet. What is the probability of selecting a simple random sample of 50 offices in New York that has a mean area less than 360 square feet?
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A company has a beta of 3.0. If the market return is expected to be 13% and the risk-free rate is 4%, what is the company's risk-adjusted discount rate?
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Which of the following statements is true? a. The union-as-collective-voice view of the labor union holds that labor unions have a negative impact on productivity and efficiency. b. The traditional view of the labor union is that the union acts as a collective voice for workers and probably leads to lower quit rates ...
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Bonds have: a. Assets, interest rates, yield to maturity and market prices b. Asset holders, coupon interest payments, par value, market prices and maturity c. Assets, coupon interest payments, market prices, maturity dates and government regulations d. Par value, coupon interest payments, market prices and maturit...
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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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Consider the following scenario analysis: Rate of return Scenario Probability Stock fund Bond fund Bear market 0.2 -21% 16% Normal market 0.6 19% 8% Bull market 0.2 43% 12% Assume that a portfoli...
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Suppose you buy a bond with a face value of $1,000 and a coupon rate of 8% for $1,000 and sell it one year later for $900. What is your rate of return on this bond?
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Which one of the following is the rate at which a stock's price is expected to appreciate? A) Current yield B) Capital gains yield C) Dividend yield D) Coupon rate E) Total return
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Capital Budgeting Choices: Business Location Capital Investment Cost in $ Cumulative Investment Costs Net Present Value 1 25,000 25,000 27,500 2 28,500 53,500 35,000 3 32,500 86,000 35,000 4 ...
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Which one of the following statements is correct? A. Perpetuities are finite but annuities are not. B. Most loans are form of a perpetuity. C. A perpetuity comprised of $200 monthly payments is worth less than an annuity comprised of $200 monthly payments given an interest rate of 10 percent, compounded monthly. ...
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Partner A has a capital balance of $40,000 and devotes full time to the partnership. Partner B has a capital balance of $50,000 and devotes half time to the partnership. If no other information is available regarding distributions, in what ratio is net income to be divided? a. 1:1 b. 4:5 c. 1:2 d. 5:4
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Which of the following would cause both the equilibrium price and equilibrium quantity of number two grade potatoes (an inferior good) to increase? a. an increase in consumer income b. a decrease in consumer income c. greater government restrictions on agricultural chemicals d. fewer government restrictions on agri...
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Which of the following statements is false about the process of iteration? A. The iterative process may uncover issues that were previously undiscovered. B. The iterative process must occur before integration. C. The iterative process may involve additional data collection. D. An important part of the iterative pro...
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Suppose that the government wishes to balance the government budget by raising taxes. What effect will this have on investment? a. rise b. fall c. no change d. insufficient information
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For a normally distributed random variable, the probability of observing a z value between 1.6 to the right of the mean is 0.0548. What is the probability of observing a z value between the mean and 1.6?
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Standard rate for variable overhead is $4 per direct labour hour. Actual variable overhead costs are $77,700 and the actual rate for variable overhead is $3.30. Actual output is 3,400 units and standard direct labour time is 0.75 hour per unit. What is the variable overhead efficiency variance?
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How should I continue with the limit $$\lim_{z\to 0} \frac{z\cdot Re(z)}{\overline{z}}=\lim_{(x,y)\to (0,0)} \frac{(x+yi)\cdot x}{x-yi}=\lim_{(x,y)\to (0,0)} \frac{x^2+yxi}{x-yi}\cdot\frac{x+yi}{x+yi}=\lim_{(x,y)\to (0,0)}\frac{x^3+yx^2i+y^2xi-y^2x}{x^2+y^2}=\lim_{(x,y)\to (0,0)}\frac{x^3-y^2x}{x^2+y^2}+i\frac{yx^2+y^2...
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The rate of growth of the money supply is the best predictor of: A) short-term interest rates. B) long-term interest rates. C) the yield spread. D) the risk premium.
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With a constant coefficient of price elasticity of demand of 1/3, a one percent increase in price causes which of the following changes in total revenues? a. A decrease in total revenues of less than one-third of one percent. b. An increase in total revenues of less than one-third of one percent. c. A decrease in to...
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I know how to show it for $n = 2$. How do I proceed for a general $n$, especially in the induction step, considering there will be more terms?
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Find the Taylor polynomial of degree 2 for {eq}f (x) = \arctan (x) {/eq} centered at {eq}a = 0{/eq}.
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Evaluate the following limit, if it exists, by using the substitution {eq}t = (2x)^{\frac{1}{3}} {/eq}, and l'Hospital's Rule if needed: {eq}\lim_{x \rightarrow 0}\frac{(2x)^{\frac{1}{3}}-1}{(2x)^{\frac{2}{3}}+4} {/eq}.
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Which of the following is counted as investment in the U.S. GDP accounts? a. a developer purchases land for a shopping center. b. a household purchases durable goods such as a restaurant style stove. c. the government purchases an airplane factory. d. a business purchases a new airplane for executive travel.
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A particle's position along a straight line is given by {eq}s= \left ( 10t+ \frac{20}{(t+1)} \right )m, {/eq} where t is in seconds. Determine the particle's maximum velocity and maximum acceleration, and the time at which the velocity and acceleration are zero.
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Heller Corporation (a processing and distribution company) had gross revenues of $150,000 from 2016 sales. It incurred a net operating loss of $200,000 from these sales for 2016. For 2017, Heller anticipates gross revenues of $250,000 from the sale of its product. Assuming a regular tax rate of 35%, how much of the $15...
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The Greater Corporation has issued 8%, 10-year bonds that have a $1,000 par value each. The bonds pay interest semiannually and have a market price of $1,050.50. Determine the yield on these bonds. a. 7.2% b. 8.0% c. 8.8% d. 16.0%
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How many one-euro coins can a machine with a capacity of 10 kg hold at most if the machine is filled to its maximum capacity? Each coin has a mass of 6.7 grams.
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While hiring a new worker, a firm will pay a little higher wage than the prevailing market rate if: a. the expected marginal revenue is positive. b. the market demand for a new worker is low. c. the labor market is less competitive. d. the supply of workers is very high.
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A long, straight power cable contains six wires, each carrying a current of 50.0 A. The distances between wires can be neglected. If four wires carry currents in one direction and the other two carry currents in the opposite direction, what is the magnitude of the field 5.00 mm from the cable?
4e-3 T
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Your company uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On July 15, 20X1, your company purchases a machine for $200,000 with a usefu...
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Which of the following is false? a) The cost of capital is the interest rate at which we can borrow money for a particular investment project. b) The cost of capital is affected by the firm's business risk and financial risk. c) In the presence of corporate and personal taxes, the after-tax cost of debt is rd (1 - T...
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A shift from US manufacturing to China will mean: A) a decrease in US exports. B) an increase in US imports. C) a decrease in US net exports. D) an increase in US net exports.
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On April 1, 2015, Ramos Company acquired 100 percent of the outstanding common shares of State Company by issuing 40,000 shares of $10 par value common stock having a market value of $16 per share. At that date, State had 5,000 shares of $10 par value common stock issued and outstanding and had been using the FIFO inve...
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If the interest rate is zero, the forward rate of the pound in one year: a. will be above the spot rate. b. will be below the spot rate. c. will equal the spot rate. d. None of the above is true.
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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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The monopoly's supply curve: a) shows how quantity supplied rises as price rises b) is found at the point of intersection of the MR and MC curves c) is a single point on its demand curve d) is accurately described by none of the listed options e) looks the same as that for a perfectly competitive firm, though the...
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Moerdyk & Co. has 9% coupon bonds outstanding that mature in 13 years. The bonds have a face value of $1,000 and a current yield of 8%. What is the bond price?
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Which of the following statements is (are) true? A. The operating cash flow provides useful information to the potential buyer of a firm, regardless of the financial structure of the firm. B. The operating cash flow provides useful information to the potential buyer of a firm only if the firm is all-equity-financed. ...
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A lead pellet that has a mass of 26.47 g is heated to 87.8 degrees Celsius. The pellet is then added to 63.3 g of water at 23.4 degrees Celsius, all within a coffee cup calorimeter. Calculate the final temperature of the water. The specific heat capacity of lead is 0.128 J/g. degrees Celsius and that of water is 4.18 J...
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Riders at Ninja Warrior Canada participate in the course of stunts and challenges. The price to participate in the event is a flat fee of $49.99 and includes all entry fees as well as the event ticket. The demand curve in the short run for the event ticket can be thought of as: a. perfectly inelastic b. relatively el...
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Use the function {eq}f{/eq} and the given real number {eq}a{/eq} to find {eq}(f^ {-1})' (a){/eq}. {eq}\displaystyle f (x) = \frac{x + 3}{x + 1},\ x \gt -1,\ a = 2{/eq}.
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Assuming that test preparation course increases student's SAT score by 30 points, how many students would have to take the test preparation course so that the school can be 99% confident that the average test score of the students who take the course is higher than 825? Assume that the average score on the SAT is 800 p...
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Ned's Niche, a specialty coffee wholesaler, purchased a computerized engraver for $2,358. The engraver has an 8-year life and no salvage value. For financial reporting purposes, Ned's Niche employs straight-line depreciation. For tax purposes, the company follows MACRS depreciation with the statutory rate percentages a...
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In examining the invoices issued by a company, an auditor finds that the dollar amounts of invoices have a mean of $1,732 and a standard deviation of $298. What is the probability that for a sample of 45 invoices, the average invoice is less than $1,600?
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A realtor wishes to know what proportion of household occupants in the region own their home (as opposed to rent) within 0.07 at the 5% level of significance. How big a sample must be collected, if the true proportion is known to be at most 0.4?
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Which of the following best explains the slope of the aggregate demand curve? a) As the interest rate rises, investment spending decreases. b) A rise in the price level decreases exports and increases imports. c) When the price level rises, purchasing other goods requires a smaller amount of money. d) All of the an...
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Suppose a 5.00 mL solution of 0.0812 M {eq}Ca(OH)_2 {/eq} is titrated with 0.0532 M {eq}HCl {/eq}. Calculate the pH at the equivalence point.
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Kanawa corporation has invested in a machine that cost $63,000, that has a useful life of twelve years and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life and cost. It will have a payback period of seven years. Given these ...
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According to an estimate, the annual cost of smoking in the U.S. is $156 billion, or $1,900 for the average smoker. An ad campaign aims to persuade U.S. smokers to cut back on their tobacco use by emphasizing the price of the smoking-related costs to U.S. society as a whole. Which is the least effective strategy for co...
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If you owned a large number of m&ms, what would be the probability that the average number of m&ms in a sample of 100 would be fewer than 820, given that the mean number of m&ms in a package is 850 with a standard deviation of 10?
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Which of the following represents the present value of a perpetual stream of $1000 annual payments that begins five years from today if the discount rate is 11 percent? Assume that the first payment occurs at the end of Year 5. a) $7,940.20 b) $8,371.42 c) $8,723.46 d) $9,181.74 e) $9,648.20
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The dividend growth model: A) can be used to evaluate preferred stock. B) values a stock based on the present value of all expected future dividends. C) requires that the dividend grows at a constant rate forever. D) values a stock based on the present value of all expected future dividends. E) can be used to valu...
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A firm is considering moving from the United States to Mexico. The firm pays its U.S. workers $12 per hour. Current U.S. workers have a marginal product of 40, whereas Mexican workers have a marginal product of 10. How low would the Mexican wage have to be for the firm to reduce its wage cost per unit of output by movi...
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Calculate the mean and variance for each of the following stocks, and then compare their means and variances. Stock Price Year 1 Price Year 2 Price Year 3 Price Year 4 Price Year 5 Recession 10 8 7 6 10 Normal Growth 18 18 19 ...
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Which of the following is correct? a. When marginal revenue equals marginal cost, the firm maximizes profits. b. Marginal cost is the change in total cost that results from producing each additional unit of output. c. When marginal revenue exceeds marginal cost, the firm can increase profits by producing more output...
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Why is the answer to finding the smallest number of terms to achieve 2 decimal places accuracy in the Taylor series for $e^{0.2}$ centered at 0, which is 4, instead of 3, given the formula $\frac{0.2^n}{n!} ≤ \frac{1}{100}$ and the result of the calculation being $\frac{0.2^4}{4!} < \frac{1}{100}$ while $\frac{0.2^3}{3...
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If the price of a good is reduced from $2.00 to $1.80 and as a result, the quantity demanded increases from 100 to 120, then the total revenue will: a) remain the same. b) increase. c) decrease. d) More information is needed to answer this question.
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The unemployment rate is calculated by the Labor Department as the number of people in the labor force who are out of work divided by _____, multiplied by _____. a) total employment; 10 b) the labor force; 100 c) total employment; 100 d) the labor force; 10 e) total employment; 50
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You are going to test the claim at least 60% of women do the income taxes for their household. If you use a significance level of 0.05, what will the critical number be for your rejection region?
-1.645
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Sketch the plane curve and find its length over the given interval. r(t) = a\cos^3 ti + a\sin^3tj , [0,2\pi]
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The Issac Co. just issued a dividend of $4.10 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $65 a share, what is the company's cost of equity?
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What is the maximum number of components into which 100 planes can divide 3D space? (Assuming the planes are arranged so as to divide the space into as many components as possible.)
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Materials price variance is the difference between the _____. a. actual cost and standard cost of the quantity of materials purchased b. actual cost and standard cost of the materials used c. actual cost and standard cost of the quantity of materials expected to be used d. actual cost and standard cost of the quant...
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What does it mean for a company to repurchase its shares? A. The company repurchases the shares from their current owners and pays them cash. B. The company buys back its own shares from the open market and destroys the shares. C. The company buys back its own shares from the open market and cancels them. D. The compan...
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A fair coin is tossed three times. Let Y be the random variable that denotes the square of the number of heads. What is E[Y]?
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Find the probability that the sample mean weight of 100 bags of chips was greater than 13.2 ounces, given that the amount of corn chips dispensed into a 13-ounce bag by the dispensing machine has a normal distribution with a mean of 13.5 ounces and a standard deviation of 0.1 ounce.
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Which of the following business operations has both product and period costs? a) A dry cleaner b) A retail watch company c) A department store d) A car manufacturer e) A human resources consultant
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M&M Proposition I with tax implies that: A. the value of a firm is inversely related to the amount of leverage used by the firm. B. a firm's cost of capital is the same regardless of the mix of debt and equity used by the firm. C. a firm's cost of equity increases as the debt-equity ratio of the firm decreases. D. ...
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Use the following information to answer the question(s) below: Taggart Transcontinental pays no dividends, but spent $3 billion on share repurchases last year. Taggart's equity cost of capital is 11% and if the amount spent on repurchases is expected to grow by 5% per year. Taggart currently has 2 billion shares outst...
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Let $X = \max(U, V)$ where $U, V$ are independent random variables. Are there other ways to find $f_{X}(x)$ (the pdf of X)? Specifically, why is $F_{X}(x) = F_{\max(U, V)}(x) = F_{U}(x)F_{V}(x)$ incorrect, and how do we correctly derive $F_{X}(x)$ from the given hint $U + V \leq X$ if and only if $U \leq X, V \leq X$?
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Amy and Chris have three children and are unclear whether they can claim their children as dependents. Assume Amy and Chris provide all the support not provided by the children. Information on the children is as follows: Peter, age 25, who served in the military immediately after high school, is a full-time college se...
c
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Maxine produced 300 units of a good in one day. The total cost of producing 300 units was $600, of which $300 was the cost of the first 100 units. Then the average total cost was {eq}\rule{2cm}{0.15mm} {/eq} per unit, and the average fixed cost was {eq}\rule{2cm}{0.15mm} {/eq} per unit.
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Which of the following is not correct? a) Dividends cannot be paid from new capital introduced in the form of fresh issue of shares. b) Cash dividend paid from the company's profit is a source of funds for the company. c) Dividends paid are added to total reserves in the balance sheet. d) Cash dividend paid from th...
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Assume you are to receive a 20-year annuity with annual payments of $7,000. The first payment will be made at the end of year 19. Assume that the appropriate discount rate is 7.00%. What is the present value of this annuity?
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On July 10, 2014, Johnson Corporation signed a purchase commitment to purchase inventory for $305,000 on or before February 15, 2015. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2015, and the inventory was purchased for cash at the contract price. On the purchase date of Febr...
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Suppose the price of a stock today is $67. Over each of the next six months it is expected to go up by 10% or down by 10%. The risk-free interest rate is 3%. What is the option delta of a call option with an exercise price of $60?
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Bacterial resistance to Beta-lactams may be mediated by all of the following except: A. Prevention of phagolysosomes formation B. Altered antibiotic target proteins C. Decreased intracellular uptake of the drug D. Active elimination of efflux pump E. Enzymatic destruction of the antibiotics
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What is the accumulated depreciation at the end of 2011? 2010 2011 Cost of computer $2,000 $3,000 Yearly depreciation $300 $450 End-of-year value $1,700 $2,550 a. $1,700 b. $2,550 c. $1,500 d. $3,600 e. $3,000
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A firm is considering two alternatives that have no salvage value, shown in the table below. A B Initial Cost $10,900 $5,900 Uniform Annual Benefits 2,200 1,900 Useful Life (in Years) 9 5 Assume that at the end of five years, an...
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Gardner Electric has a current assets of $700,000 and total assets of $3,500,000. Its current liabilities (excluding notes payable) are $400,000, and its long-term debt (including notes payable) are $1,500,000. The company's current assets are equally divided into fixed assets and working capital. Current assets were p...
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The American Auto Association reports that the mean price per gallon of regular gas is 3.10$ with a population standard deviation of 0.20$. You have reason to believe that the mean price of regular gas is higher in your area. You place 16 gas stations in your area and compute the mean price for 16 gallons of regular ga...
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From 1990 to 2014, the supply of college graduates increased by about: a. 5% per year. b. 10% per year. c. 15% per year. d. 20% per year.
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A share of stock is a _____ option on the assets of the firm with a strike price equal to _____. A) put option, face value of debt B) call option, market value of equity C) call option, face value of debt D) put option, market value of equity
C
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The price elasticity of demand can be computed as A. {eq}(p/q) / (dp/dq). {/eq} B. (dp/dq) / (p/q). C. (dp/p) / (dq/q). D. (dq/q) / (dp/p).
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Which of the following loans are likely to have the highest effective interest rate? a. A mortgage loan with an interest rate of 6.5 percent and monthly payments. b. A discount interest loan with a 10 percent interest rate. c. An amortized loan with an interest rate of 8 percent and monthly payments. d. A simple in...
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An analysis of market demand and supply in a monopolistically competitive industry is given as: Demand P = $100 - 0.1Q Marginal revenue MR = $100 - 0.2Q Supply P = $20 + 0.2Q Marginal cost MC = $20 + 0.2Q The number of firms in the market is 100. What is the average price of a firm's product? a) $40.0 b) $50.0 c...
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For two securities (A and B), the following data is given: Standard Deviation Cov(A, B) Security A 0.20 Security B 0.15 0.03 Assume that the risk-free rate is 4.50 percent and that the market portfolio has a required return of 10 percent. Security A has a beta of 0.75 and security B has a beta of 1.50. Assume ...
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Sutton's Market, a monopoly that provides water for a small community, currently charges $12 per unit of water for 1 million units. It plans to reduce the price to $8 per unit. The purpose of the price decrease is to increase: a. demand, b. deadweight loss, c. revenue, d. social welfare. Explain your answer.
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All production costs have been steadily rising in the Donner Company for several periods. The company maintains large work in process inventories. Donner Company's cost per equivalent unit computed using the FIFO method would be: a. the same as that computed under the weighted-average method. b. higher than that comp...
b
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The current market price of Smith Corporation's 6% coupon, 5-year maturity, noncallable bonds is $1,030.52. The bonds have a par value of $1,000 and a yield to maturity of 5.872%. If the yield to maturity remains constant, what will be the market price of the bonds in 3 years? a) $1,027.28 b) $1,034.29 c) $1,054.24 ...
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