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Two partners at a company share the profits and losses according to their partnership agreement. James receives 20% of all profits in excess of $100,000. Tim receives a guaranteed salary payment of $20,000 plus 70% of the remaining profits. What is the distribution of the $125,000 profit this year? A. James $110,00...
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What is the probability of selecting the next 5 customers in a restaurant will order before the bell, given the average ordering rate of 15 customers per hour?
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The government imposed the same environmental standards on the energy producers that added the pollution control equipment to their plants. The costs of those two options were identical, but the market price of the tradable pollution permits exceeded that of the new equipment by $100 per ton. The firm's marginal cost o...
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If you know that the price elasticity of demand for MP3 players is 2.0, you also know that the price elasticity of demand for MP3 players in absolute value terms is: A. 0.5. B. 1.0. C. 2.0. D. 4.0.
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UMUC STAT Club wanted to estimate the study hours of STAT 200 students. Two STAT 200 sections were randomly selected and all students from these two sections were asked to fill out the questionnaire. This type of sampling is called: a) cluster b) convenience c) systematic d) stratified
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Given {eq}F(x) = \frac{1}{2}x^2{/eq}, {eq}X{/eq} is continuous. Find {eq}P(1<X<2){/eq}.
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Nelson Co. had an income of $125,000 in 2017. The market price for its ordinary share was $50 per share. The firm has 20,000 ordinary shares outstanding. In 2017, the firm's debt ratio was 30%, and its total interest paid was $50,000. The firm's tax rate is 40%. Compute the price/earnings ratio for 2017.
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Given that $x_n \in \mathbb R, \forall n \in \mathbb N^* $ and $\lim_{n\rightarrow +\infty}(x_n)=0 $ and $\lim_{n\rightarrow +\infty}(n\cdot x_n)=1 $, how to find $\lim_{n\rightarrow +\infty}(n\cdot \sum_{k=1}^n x_k)$?
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The importance of free will, whether it exists or not, for the scientific explanation of human behavior has been a question for centuries. Behaviorists have argued that A. since free will is a concept that can be defined operationally, it can be tested empirically. B. free will cannot be measured directly, but its ef...
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An electrical firm manufactures light bulbs that have a length life with mean equal to 800 hours, and a standard deviation of 40 hours. Find the probability that the average life of a random sample of 100 light bulbs is less than 810 hours.
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If an economy is operating at full employment: A. The AS curve is vertical B. The AS curve is upward sloping, but not wholly vertical C. The AS curve is horizontal D. an increase in autonomous expenditure will learn to no increase in equilibrium output E. an increase of $1,000 in government spending with a keynesi...
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A monopoly with identical marginal cost for all customers sets a price of $10. If it charges $10 per unit and one customer values the good at $7, then the consumer surplus from that transaction is...?
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The following are the Jensen Corporation's unit costs of making and selling an item at a volume of 2,100 units per month (which represents the company's capacity): Manufacturing: Direct materials$2.10 Direct labor$3.10 Variable overhead$1.60 Fixed overhead$0.40 Selling and Administrative: Variable$3.10 Fixed$0.80 ...
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Use a normal approximation with continuity correction to find the probability that there are fewer than 35 heads in 100 tosses of a coin that lands heads 60% of the time.
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Winchester 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 revenue $400,000 $400,000 Variable expenses $200,000 $240,000 It expects to have a total of $50,000 in fixed expenses next...
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Hess Distributors has a total book value of equity of $30.5 million and a market value of equity of $38.5 million. The firm also has debt outstanding with a book value of $5.5 million and a market value of $6.5 million. What is the capital structure weight of the equity?
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An organization which is composed of cells that can operate alone but that can interact with other cells to produce a more potent and competent business mechanism is referred to as a(n) A) re-engineered organization. B) virtual organization. C) modular organization. D) network organization. E) ongoing organization...
C
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Increase in output may reduce average fixed costs because of: a) greater flexibility of labor costs. b) division of labor and specialization. c) saving in output-related costs. d) none of the above.
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Whittier Inc. ended 2008 with $200,000 of before-tax unrealized losses on trading investments. The following data are also available: Taxable Income$1,400,000 Total Income$2,000,000 Tax Rate35% What is the amount of income tax expense? a. $480,000 b. $420,000 c. $560,000 d. $490,000 e. $455,000
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Hess, Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (5,800 units) $253,100 Variable expenses 135,800 Contribution margin 117,300 Fixed expenses 68,500 Net operating income $48,800 If the company sells 6,400 units, its contribution ma...
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Enterprise Industries must replace an old riveter with a new, more efficient one. The old riveter is expected to last for another three years before it wears out. The new riveter costs $38,600 and it will have an operating cost of $8,300 per year and a $6,700 salvage value after three years. What is the annual worth co...
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A 5-year, $400,000, 6.5% bond was issued on January 1, 2014, for $427,733. The bond pays interest on June 30 and December 31. If the interest is adjusted at 6% per year, what is the carrying value of the bond on January 1, 2016? a. $425,177 b. $426,794 c. $434,459 d. $427,733
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Which of the following statements is incorrect? A. If a firm decreases the price of its product, its total revenue will decrease. B. The own price elasticity of demand is constant at all points along a linear demand curve. C. As the price of X falls and we move down an individual's demand curve for X, the money inco...
D
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Thomson, Inc., issued $100,000 of 10-year, 11.5% bonds dated December 1, 2012, for $101,351 on December 1, 2012. The bonds pay interest on June 1 and December 1. Assuming that the company uses the straight-line method of amortization, what entry is needed at June 1, 2013, to record the first interest payment? A. Date ...
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Consumer surplus: a. is always positive. b. for a particular unit of consumption is computed by taking the difference between quantity demand and quantity supplied. c. for all units consumed is the area below demand and below market price over all the units consumed. d. added to producer surplus provides a measure ...
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Which of the following statements is true? a. Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions. b. Monetarists advocate increasing the money supply by a constant rate year after year. c. Keynesians argue that the crowding-out effect...
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The risk-free rate is 2.54 percent and the market risk premium is 7.37 percent. What is the expected return on a stock with a beta of 1.28?
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Total factor productivity refers to: a. the miracle factors in the growth of the newly industrialized economies. b. the average productivity of all factors employed in an economy. c. a measure of the productivity of capital and technology. d. the returns to investment in human capital.
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I'm having a hard time computing the variance of the standard normal distribution($u=0$ and $\sigma=1$). $$Var(X)=\int_{-\infty}^{\infty}x^2 e^{-x^2/2}dx$$ I want to substitute $y -> -x^2/2$ Which means I should get to $$Var(X)=\int_{-\infty}^{\infty}-ye^ydy$$ But this doesn't compute to 1 and I'm stuck here. Am I doin...
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Assume that the marginal propensity is 0.50, and therefore, the multiplier is 2. According to the multiplier model, an increase in autonomous exports of 100 would raise the equilibrium level of income by 200. Explain how the multiplier process amplifies the initial shift in autonomous expenditures.
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Dorothea, Inc., began business at the start of the current year. The company incurred the following costs to prepare 5,000 units of inventory to sell at $200 per unit: Direct materials $40,000 Direct labor $20,000 Variable overhead $10,000 Fixed overhead ...
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Let {eq}R{/eq} be the region bounded by the curves {eq}y= x+2{/eq}, {eq}y= x^2{/eq}, {eq}x=0{/eq}, and {eq}x=1{/eq}. Use the shell method to find the volume of the solid generated when {eq}R{/eq} is revolved about the line {eq}x=3{/eq}.
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Evaluate the definite integral. ∫_0^1 2x e^{4x^2} dx
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Company L has a capital structure which consists of debt and equity. The debt requires an 8% interest rate and the equity has a 14% required return. Company L finances 40% of its assets with debt and 60% with equity. If next year's expected EBIT is $20,000, what will be the company's earnings per share? a. $2,900 b....
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All of the following are useful for understanding Profitability Index, except: A. The initial investment is included when calculating the present value of the future cash flows. B. A profitability index greater than 1 equals a positive NPV. C. The initial investment is excluded when calculating the present value of ...
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Which of the following is not an operating budget? A. cash budget B. production budget C. merchandise purchases budget D. sales budget E. budgeted income statement
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If actual expense is less than budgeted expense, then: a. this is considered a favorable variance. b. this is considered an unfavorable variance. c. a flexible budget would assist in addressing future revenue and expense planning. d. none of the above are correct. e. both (a) and (c) are correct.
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Bendix Electric anticipates a capital budget of $600,000 next year. The company has $200,000 in retained earnings available for investing in new projects. Required: If the company's target capital structure is 35% debt, 20% preferred stock, and 45% common stock, what is the company's net need for external financing n...
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Consider the following information for a project. Cost of new plant and equipment = $4,950,000 Shipping & installation costs = $450,000 Straight-line depreciation = 4 years $1,350,000 per year Net operating working capital = $630,000 Expected life of the project = 4 years Depreciation = straight-line Before-tax...
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Under the perpetual inventory method, the entry to record the purchase of merchandise is: A. Purchases XX Inventory XX B. Purchases XX Accounts Payable XX C. Merchandise Inventory XX Purchases XX ...
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Evaluate the surface integral {eq}\displaystyle \iint_s z ds where {eq}\displaystyle S is the part of the plane {eq}\displaystyle 6x + 5y + z = 30 that lies in the first octant.
150\sqrt{62}
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Dawson Mfg. has paid annual dividends of $1.20, $1.35, and $1.45 over the past three years, respectively. The company expects to pay an annual dividend of $1.60 next year. The required rate of return is 12.25 percent. Using the dividend growth model, what is the expected value of this stock today? A. $6.76 B. $6.98 ...
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How do I show that $X'X = 2I$ for the matrix $X = \left(\!\!\matrix{1 & 1 & 0\cr 1 & 0 & 1\cr 0 & 1 & 1\cr}\!\!\right)$?
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Compute the taxable income for the current year for the Corporation using the following information: Net Income from operations is $500,000. Corporation income includes $100,000 of long-term capital loss. Corporation also has $75,000 of dividends received from 20% owned corporations. Select one: A. $325,000 B. $500,...
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An increase in _____ will cause an increase in aggregate demand in the _____ range of the aggregate supply curve. a) output; flat b) input prices; Keynesian c) the price level; horizontal d) the price level; vertical
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Assume that the discount rate is the same as the interest rate. You can calculate the present value of the cash flows to make the decision. If you are dealing with an annuity, then that is not required, but for free cash flow type of cash flows you have to use the discount rate or interest rate to discount the cash flo...
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Evaluate the integral by converting to polar: {eq}\displaystyle \int_0^4 \int_0^{\sqrt {16 - x^2}} x y\ dy\ dx{/eq}.
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An investor purchases a five-year, zero-coupon bond with a face value of $1,000 for $550. The investor's rate of return on the bond is: A. 8% B. 9% C. 10% D. 11%
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Which one of the following is probably the most successful means of finding venture capital? a. Internet searches b. Tombstone ads c. Newspaper advertisements d. Personal contacts e. Personal letters to venture capital firms
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A company has net income of $196,000, a profit margin of 7.6%, and an asset turnover of 1.4. It also has a debt ratio of 38% and a tax rate of 35%. The company's ROE is a) 14.09% b) 16.41% c) 12.58% d) 15.40% e) 16.95%
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Which of the following occurs when a company is able to sell its product to an increasing number of markets without increasing its per unit costs? a. economies of scale b. economies of scope c. experience curves d. All of these are correct.
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Given the prices and CPI for years 1, 2, and 3 below, compute the inflation rate from year 1 to year 3: Year Prices CPI 1 $500 200 2 $600 230 3 $800 270
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Information on Pruitt Company's direct-material costs for the month of July 2005 was as follows: Actual quantity purchased30,000 units Actual unit purchase price$2.75 Materials purchase-price variance-unfavorable (based on purchases)$1,500 Standard quantity allowed for actual production24,000 units Actual quantity us...
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Which of the following is false? a. For a normal distribution, the mean, median, and mode are all equal. b. For a normal distribution, the total area under the curve is always equal to 1. c. For a normal distribution, 99.7% of the data lie within three standard deviations to the right and left of the mean. d. For a...
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If $f'(x) = \sin'(x^5)$, then find $f'(x)$ from first principle.
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Convert the binomial probability to a normal distribution probability using the continuity correction. P(x = 50), where n = 90 and p = 0.55
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Determine the following limit: {eq}\lim_{(x, y) \to (-2, 1)} \frac{2x^2 + 5xy + 2y^2}{x^2 - y^2} {/eq}
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You are considering an annuity worth $150,000 that is currently sold by an insurance company. The annuity allows your wife, who will be receiving the payments, to withdraw $1,000 per month for 40 years. The insurance company is offering two different effective rates (EAR) for this annuity: 6.45% or 7.95%. What is the d...
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I have a vector field $$\vec{F}(x,y,z)=\frac{x \hat{x}}{(x^2+y^2+z^2)^{3/2}} + \frac{y \hat{y}}{(x^2+y^2+z^2)^{3/2}} + \frac{z \hat{z}}{(x^2+y^2+z^2)^{3/2}}$$ Solving this in Cartesian coordinates, I found that the divergence is 0. However, the process was tedious and error-prone. I tried converting the vector field to...
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Find the area of the portion of the plane 3x + 2y + z = 6 that lies in the first octant.
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Today you borrowed $20,000 on your credit card to purchase some furniture. The interest rate is 24.80 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $1,200 ? a) 2.08 years b) 2.43 years c) 2.75 years d) ...
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The 90% confidence interval for the slope beta1 in the simple linear regression model is (0.50, 0.85). At the 1% significance level, can we conclude that beta1 is negative? Why or Why not? a. Yes, because 0 is greater than 0.85 b. No, because 0 is greater than 0.85 c. Yes, because 0 is not greater than 0.85 d. No, bec...
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Assume all markets are perfectly competitive. There are only two firms in the market and each has a zero marginal cost of production. Firm A has an average cost of $1,000. Firm B has an average cost of $1,000, but if it makes a positive contribution to total output, its average cost will fall to $750. The demand for th...
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The 2017 financial statements for Growth Industries are presented below: Income Statement For the Year Ended December 31, 2017 Sales $598,000 Costs 363,000 EBIT $235,000 Interest expense 32,000 Taxable income $203,000 Taxes (at 35%) 71,050 Net income $132,450 Dividends $66,225 Addition to retained ...
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What is the journal entry for recording interest expense for a zero-coupon bond? a. debit Cash and credit Discount on Bonds Payable b. debit Interest Expense and credit Discount on Notes Payable c. debit Interest Expense and credit Cash d. debit Cash and credit Interest Payable
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The traditional (or marginal) contribution margin ratio equals to: a. Variable cost ratio minus fixed cost ratio b. Contribution margin divided by variable costs c. Contribution margin divided by sales revenue d. Variable costs divided by contribution margin
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Solve the initial value problem: x^2y"+3xy'+2y = 0, y(1) = 1, y'(1) = 0.
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Price Company has provided the following data for the month of July. There were no beginning inventories; consequently, the direct materials, direct labor, and variable manufacturing overhead applied listed below are all related to July production. Units produced 3,000 units Units in ending inventory (complete as to ...
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Suppose that the number of cases of influenza in Harris County (with a population of 4.7 million people) in a given year follows a Poisson distribution with mean 100. Find the probability that the number of cases in a given year is at least 120.
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Clover researched and found that most firms in the market currently experience costs such that TC = 40 + 71Q - 11Q2 + 3.4Q3. Determine whether or not you should enter this market. a. Competitive firms maximize profits when PP is below MC but is greater than ATC; since Clover is producing output where this occurs, then...
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Statement 1: A rise in investment demand (I), accompanied by an equal fall in government expenditure (G), does not change the equilibrium output. Statement 2:: A rise in investment demand (I), accompanied by an equal fall in government expenditure (G), does not shift or twist the Aggregate Demand Curve. Pick the corr...
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A product is associated with a _____ if it is a significant factor of production (e.g., capital goods, oil, and natural gas) and its demand is not affected by changes in consumer preferences. A. derived demand B. homogenous demand C. level demand D. relationship demand E. gross demand
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What are the eigenvalues of the differential operator {eq}L = - \frac {d^2} {dx^2} + x{/eq} on the space of polynomials of degree less than or equal to 2 with {eq}L^2f (x) = f (x) \; \text{for} \; x \in \mathbb{R}{/eq}? Compute {eq}L(y){/eq} for each of the following {eq}y(x){/eq}, and then compute the inner product {e...
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How much overhead cost would be assigned to Product X81J using the ABC costing system? (Round your final answer to two decimal places.) Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost PoolsActivity Rate Setting up batches$76.70 p...
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______ cycle is an integral part of production. a. Financial b. Operating c. Materials handling d. Conversion
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Sally has a marginal propensity to consume (MPC) of 0.75. If her income increases by $2,000, her consumption will increase by: a) $500 b) $750 c) $1,250 d) $1,500 e) $1,750
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Evaluate the Riemann sum for {eq}\displaystyle f (x) = x^3 - 6 x{/eq}, for {eq}0 \le x \le 3{/eq} with six subintervals, taking the sample points, {eq}x_i{/eq}, to be the right endpoint of each interval and explain.
-3.9375
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Suppose the Fed purchases government bonds through open-market operations. All other things remaining equal, this is likely to? a. increase the price level and eventually decrease the interest rate and investment spending. b. increase the price level and eventually decrease the demand for money as well as goods and s...
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An analyst has gathered the following information about ABC Inc.. Annual dividend paid over the past year 2.00 Year end stock price 40.00 Equity beta 0.60 Market risk premium 12% Risk-free rate 10% The risk-free rate is expected to remain constant over the life of the stock. ABC's dividends and earnings are expected ...
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Maximize: P=2x-3y subject to: 2x+y<=6 x-2y<=10 2x-y>=0 x,y>=0 Find all intercepts and provide the solution.
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MRTS is 2, MPK is 6, and MPL is 4. If the price of K increases by $4 per unit and the price of L decreases by $2 per unit, the new optimal solution is to hire: A) 0 more units of L and 2 less units of K. B) 1 more unit of L and 2 less units of K. C) 2 more units of L and 1 less unit of K. D) 4 more units of L and ...
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What amount must be invested now at an 8% interest rate to produce a perpetual income of $2,100 per year?
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Urbana Company signed a one-year lease on April 1, 2016, and paid the $22,800 total year's rent in advance. Urbana recorded the transaction as a debit to Prepaid Rent and a credit to Cash. What adjusting entry should Urbana make on December 31, 2016 (no previous adjustment has been made)? a. Rent Expense5,700 Prepa...
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If the market is in equilibrium, which of the following statements is correct? Select one: A. The beta of a typical stock in the market is {eq}b = 1 {/eq}. B. The price of a typical stock in the market is {eq}P_0 = \$38 {/eq}. C. The dividend yield on a typical stock in the market is zero. D. The expected return ...
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Which of the following statements is true of a normal distribution? a. The variance is always equal to the mean. b. The mode is always greater than the mean. c. The median is always greater than the mode. d. The median is always equal to the mean. e. The mode is always less than the mean.
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Which of the following is an example of a cost that is easily eliminated if production is reduced or ceased altogether? a) variable cost b) opportunity cost c) explicit cost d) All of the above e) Only a and b f) Only b and c
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Calculate the area under the normal curve between z = 0.65 and z = 1.35.
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We would like to test the hypothesis: {eq}H_o: \mu = 100 {/eq} {eq}H_a: \mu > 100 {/eq} We choose alpha = 0.05, and we choose a random sample of size 25. The sample has a mean of 105 and a standard deviation of 15. The test statistic would be _____ .
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My textbook says that if $A$ and $B$ are disjoint, so $P (A \cap B) = 0$, then $P(A \mid B) = P(B \mid A) = 0$. Why does $P (A \cap B) = 0$ necessarily imply that $P(A \mid B) = P(B \mid A) = 0$?
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As the demand for a good increases, its marginal rate of technical substitution: a. Increases. b. Decreases. c. Remains constant. d. Could go either up or down.
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The relationship among NPV, PI, and IRR is such that: A. The higher the IRR, the higher the PI, and the higher the NPV. B. The higher the IRR, the lower the PI, and the higher the NPV. C. The lower the IRR, the higher the PI, and the lower the NPV. D. The lower the IRR, the higher the PI, and the higher the NPV.
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Let $f$ be a function defined from $(0,\infty)$ to $\mathbb{R}$ such that $ \lim_{x \rightarrow \infty } f(x) = 1$ & $f(x)=f(x+1)$ for all $x \in (0,\infty)$. Then what can you say about $f$? A) continuous and bounded B) bounded but not necessarily continuous C) neither necessarily continuous nor necessarily bounded D)...
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The expected value for the entire project is computed by: a. multiplying each activity time estimate by its probability and summing these products. b. summing all activity times in the critical path. c. computing the expected times for all activities and then summing those times. d. summing the expected activity ti...
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Let R be the region bounded by the ellipse {eq}4x^2 + 25y^2 = 400{/eq} and T be the transformation {eq}T(u,v) = (x,y){/eq} given by {eq}x=5u, y = 2v{/eq}. Find the Jacobian of T.
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Problem 15-2 Unlevered Beta Counts Accounting has a beta of 1.55. The tax rate is 35%, and Counts is financed with 35% debt. What is Counts' unlevered beta? Round your answer to two decimal places.
1.15
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Using the following information, compute the operating cash flow. Net Income: $65,000 Depreciation: $17,000 Increase in Working Capital: $4,000 Decrease in Working Capital: $3,000 Capital Expenditures: $25,000 Change in Long-Term Debt: $10,000 Additional information: Inventory increased by $3,000 Accounts rece...
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The slowest growing of a company's ratios is usually its: a. asset growth. b. debt growth. c. equity growth. d. sales growth.
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The long-run average unemployment rate in an economy is 5 percent. Which of the following is true about this rate? a. If the unemployment rate were to fall below 5 percent, the inflation rate would rise. b. If the unemployment rate were to rise above 5 percent, the inflation rate would rise. c. If the unemployment r...
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Providence Corporation makes an equity-method investment in Southampton Inc. at a purchase price of $3.5 million cash, representing 30% (at book value) of Southampton Inc. During the year, Southampton reports net income of $995,000 and Providence receives $685,000 of cash dividends from Southampton. At the end of the y...
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A nation's balance of payments can be calculated by: a) summing its current account and its capital account. b) summing its current account, capital account, and its official settlements. c) summing its current account, capital account, and net foreign investment. d) summing its current account and capital account,...
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