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How to evaluate $\lim \limits_{x \to {\infty}}\frac{x}{e^{xy}}$?
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Which of the following is not a common assumption underlying an analysis of the cost of debt and the cost of equity? a. The firm's cost of capital is the appropriate discount rate for the firm's cash flows. b. Markets are perfect. c. The WACC can be used to evaluate new projects. d. The firm's cost of equity capita...
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The chairman of Avon Products was paid $15 million in 2011 as salary and $260 million as profits from stock options. That year, Avon's operating income was $560 million, its profits before income taxes were $227 million, and its pre-tax profits available to common shareholders were $147 million. Avon's chairman: a. ea...
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Data provided Calculate the cost of goods sold under the perpetual inventory system. Beginning inventory $4,000 units Purchase 1 7,000 units $3.20 Purchase 2 14,000 units $3.50 Purchase 3 17,000 units $3.75 Purchase 4 6,...
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From one year to the next, inflation rises from 4 to 5 percent, while unemployment rises from 6 to 7 percent. Which of the following events could be responsible for this change? A.The central bank increases the growth rate of the money supply. B.The government cuts spending and raises taxes to reduce the budget defic...
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A manufacturer claims that fewer than 6% of its fax machines are defective. If in a sample of 100 such fax machines, 12% were defective, find the P-value for the test of the manufacturer's claim.
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(Ignore income taxes in this problem) The management of Favreau Corporation is considering the purchase of a machine that would cost $310,464 and would have a useful life of 5 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $84,000 per year. The internal rate ...
c
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Which of the following is a federal government excise tax? A) Federal income tax B) Federal estate tax C) Corporate tax D) Value added tax E) None of the above
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Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2015: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares$900,000 Paid-in capital in excess of par value$250,000 Retained earnings$300,000 Total$1,450,000 During 2016 the following transacti...
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You own a stock portfolio invested 40 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 10 percent in Stock T. The betas for these four stocks are 0.96, 1.24, 1.03, and 1.19, respectively. What is the portfolio beta?
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A company currently has a maximum production capacity of 30,000 units per month. The maximum amount of raw materials available per month is limited to 10,000 pounds. The company has two products: A and B. The selling price for each product is $10 and $50, respectively. Each unit of product A uses 2 pounds of raw mater...
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Asap Industries is considering switching from a traditional-costing system to an activity-based costing system. The company currently uses a traditional-costing system that uses machine hours to assign overhead to products. The company has identified the following activities and activity rates: Activity Activity Cost...
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The standard costs and actual costs for factory overhead for the manufacture of 2,836 units of actual production are as follows: Standard Costs: Fixed overhead (based on 10,000 hours) 3 hours @ $0.70 per hour Variable overhead 3 hours @ $2.00 per hour Actual Costs: Total variable cost $17,952 Total fixed cost $8,169 ...
b
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Factory Outfitters Inc. buys on 2/10, net 30 days. What is the nominal cost of not taking the discount, assuming a 360-day year? a. 22.1% b. 22.8% c. 23.5% d. 24.3%
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Which of the following statements is correct? a. When there is a technological advance that reduces the cost of a particular input, the resulting cost reduction will increase operating profit, but its effect on average fixed cost will be minimal, if any. b. Because average fixed cost and marginal cost are both calcul...
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What is the value of {eq}6P_0{/eq} if $8 million in dividend reinvestments were made in 2011 when the stock price was $6 per share?
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Let $X_1, X_2$ be iid. with distribution $N(\theta, 1)$. Consider the estimators $\hat{\theta_1} = X_1$ and $\hat{\theta_2} = \frac{1}{2}(X_1 + X_2)$. Find the value of $c$ that makes the estimator $\hat{\theta_3} = cX_1 + (1-c)X_2$ unbiased and then choose the value of $c$ so that the variance of $\hat{\theta_3}$ is a...
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Logan Company has two service departments, Systems Analysis (SA) and IT Support (IT). The main departments are Application Development (AP), Networking (NE), and Database (DB). The company has a simple structure and uses the step-down method to allocate costs. The step-down method, starting with the highest cost servic...
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Let $\mathbb F$ be a field with $16807=7^5$ elements. What is the cardinality of the set given by $\{a^7-b^7:a,b\in \mathbb F\}$?
16807
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What is the probability that the mean value of 100 randomly chosen homes is between $325,000 and $335,000, given that the price of homes in a small town in Mississippi is normally distributed with a mean of $325,000 and a standard deviation of $65,000?
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Yolanda took $5,000 from her checking account and put the money in her wallet. A. Neither M1 nor M2 changed. B. Both M1 and M2 were reduced by $5,000. C. M1 and M2 both rose by $5,000. D. M1 went down by $5,000, but M2 was unchanged.
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The expected economic loss from a recession when the aggregate demand (AD) curve is less elastic (more steep) than the aggregate supply (AS) curve is _____. A. reduced by employment insurance B. magnified by minimum wages C. reduced by the use of contractionary fiscal and monetary policies D. magnified by a trade d...
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Newage Company has a P/E ratio of 15 times. The earnings per share are $1.88. The dividend per share is $0.88. What is the percent change in price for a 2 percent change in dividend yield? A. 100% B. 200% C. 300% D. 400%
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Foreign outsourcing and offshoring locations tend to be defined by all of the following except: a. how automated a production process can be made b. centralized value chain activities c. the relative labor costs d. the transportation costs involved
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An excise tax of $2 is placed on a jar of Honey. Honey producers end up bearing only $0.40 of the tax. The demand curve for honey is: A. elastic B. unitary elastic C. inelastic D. income elastic
C
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The output of an open economy with a flexible exchange rate will decrease if: a. aggregate demand in this country increases. b. this country becomes less productive. c. domestic investment increases. d. this country's exchange rate depreciates.
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Uniform Supply accepted a $10,000, 90-day, 8% note from Tracy Janitorial on October 17. If the note is dishonored, but Uniform Supply intends to continue collection efforts, what entry should Uniform Supply make on January 15 of the next year? (Assume no reversing entries are made.) (Use 360 days a year.) a. Debit Cas...
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Which of the following lease agreement terms would not indicate that the asset is expected to be returned at the end of the lease? a) the asset ownership has been transferred to the lessee b) the lease has an option to purchase the asset from the lessor c) the noncancelable lease term is the major part of the estima...
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Suppose the population of the United States is 300 million and the population of Mexico is 100 million. The production of laptops in the United States requires 10 workers, while the production of laptops in Mexico requires 20 workers. Assuming that the workers in the United States work only two hours per day, and the w...
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A company is considering purchasing a machine that costs $500,000 and is estimated to have no salvage value at the end of its 10-year useful life. If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expenses are expected to be $38,000. The str...
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Bay Area Supplies had 60,000 shares of common stock outstanding at January 1. On May 1, BayAreas Supplies issued 31,500 shares of common stock. Outstanding all year were 30,000 shares of nonconvertible preferred stock on which a dividend of $4 per share was paid in December. Net income for the year was $290,100. Bay A...
B
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If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, then: a. the order will likely be rejected. b. the order will likely be accepted. c. fixed costs are not relevant. d. only variable costs are relevant.
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RCA Corporation has $50,000 available for short-term financing on a 12-month basis. The company has the option of utilizing a $50,000 line of credit with a 15% interest rate and a 10% commitment fee on the unused portion or borrowing funds through a revolving credit agreement with a 15% interest rate and a 2% non-suspe...
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Find the pH during the titration of 20.00 mL of 0.1000 M triethylamine {eq}((CH_3CH_2)_3N, pK_b = 3.35) {/eq} with 0.1000 M hydrochloric acid at each of the following points. (a) before the addition of any HCl (b) after the addition of 15 mL of HCl (c) at the equivalence point
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The management of Londo Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 4 years. The company uses a discount rate of 13% in its capital budgeting. The net present value of the investment, excluding th...
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Activity analysis and job evaluation is used to determine _____. a. an employee's relative worth compared to other employees b. the components of an organization's culture c. the efficiency of business processes d. job descriptions and job specifications
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Which one of the following statements is most correct? A) Real options change the size, but not the risk, of projects' expected NPVs. B) Real options change the risk, but not the size, of projects' expected NPVs. C) Real options can reduce the cost of capital that should be used to discount a project's expected cash...
C
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If the government imposed a minimum wage that was below the equilibrium wage, a. unemployment would exist. b. everyone who wanted a job at the minimum wage would be able to get one. c. there would be a surplus of labor. d. the unemployment rate would rise. e. none of the above
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Yolanda's Yarn Shop had the following transactions during 2014. (1) Issued $30,000 of par value common stock for cash. (2) Recorded and paid wages expense of $10,000. (3) Acquired land by issuing common stock of a par value of $50,000. (4) Declared and paid a cash dividend of $1,000. (5) Sold a long-term investmen...
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Candice is using the circular flow diagram to identify a particular aspect of her economic theory for her Macroeconomics class. The actions she took were to use the circular flow diagram, apply math functions to predict economic actions, and identified the economic aspects and associations used in the model. What actio...
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In the electricity meter reading example, if the number of significant digits in the meter reading is 7, and the 7th significant digit should be rounded up by 1, why is this rounding not considered a random event? A) The rounding decision is based on a fixed rule, not a random process. B) The rounding decision is bas...
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Under the CAPM, which of the following events would affect the required return for a company's equity? a) The beta of the company changes. b) The market risk premium changes. c) The risk-free rate changes. d) All of the above affect the required return.
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What is the present value of $7,000 to be received at the end of each of 20 periods, discounted at 5% compound interest?
$87,234
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For $f,g:\mathbb R \to \mathbb R$, where $g$ is differentiable, show that $\int_0^1 f'(g(x))g'(x) \, dx=\int_{g(0)}^{g(1)} f'(y) \, dy$. What properties can I use? Can I use the Fundamental Theorem of Calculus?
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Use the definition of an improper integral to calculate {eq}\int_0^5 \frac{3x^2}{\sqrt{25 - x^2}} dx{/eq}
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Calculate the determinant of the matrix \[\begin{vmatrix} x & 10 & y \\ 0 & x+y & x-y \\ z & 12 & w \end{vmatrix}\] given that $x, y, z, w$ are non-zero.
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In which of the following did the Securities and Exchange Commission (SEC) take the most forceful action? a. Statements of Financial Accounting Concepts (SFACs) b. Statements of Position (SOPs) c. Accounting Research Bulletins (ARBs) d. Staff Accounting Bulletins (SABs) e. Accounting Principles Board (APB) Opinion...
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The monetary policy actions of the Federal Open Market Committee (FOMC) occur: a. daily. b. weekly. c. monthly. d. quarterly.
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Which organizational structure is Spano-Corp using? A) U-form B) matrix C) M-form D) functional
C
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Which of the following statements concerning the capital structure of a firm is correct? a. The firm's WACC increases as its tax rate increases. b. The optimal capital structure generally increases the WACC. c. The optimal capital structure maximizes the stock price. d. The company's beta primarily affects its capi...
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James Corp. has a machine that cost $138,000 and has accumulated depreciation of $86,000. It will have no trade-in value. It is expected to be sold for $49,000 cash. The company plans to buy a new machine for $176,000 cash and will have an additional $4,000 for the purchase of the new machine. What is the additional co...
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How do you find the limit of (x ^ 3)(e ^ (-x ^ 2)) as x approaches infinity?
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A circular coil enclosing an area A = .01 m{eq}^2 {/eq} is made of 200 turns of copper wire. Initially, a uniform magnetic field of magnitude B = 1.10 T points upward in a direction perpendicular to the plane of the coil. The direction of the field then reverses in a time interval Δt. Determine how much charge enters ...
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Currently, Anderson Inc., uses a job-costing system that applies manufacturing overhead on the basis of direct labor hours. Last year, the company used $76,000 in raw materials and incurred $64,000 in direct labor hours. The labor rate is $16 per hour. The company incurred $108,000 in actual manufacturing overhead cost...
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Coefficient of resistance is the ratio of: A. actual velocity of jet at vena contracta to the theoretical velocity. B. area of jet at vena contracta to the area of orifice. C. loss of head in the orifice to the head of water available at the exit of the orifice. D. actual discharge through an orifice to the dieoret...
C
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In a perfectly competitive industry, in the long run, we would expect: a. higher prices and lower profits. b. higher prices and higher profits. c. lower prices and higher profits. d. lower prices and lower profits.
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At a bar, the price of 2 domestic pints of beer is $6.00, while 2 pints of imported beer cost $8.00. An economist would suggest that the price difference is likely due to: a. Different demand, different supply. b. Different demand, same supply. c. Same demand, different supply. d. Same demand, same supply.
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Select the drug stimulating the protective function of the mucous barrier and the stability of the mucous membrane against damaging factors: a) De-Nol b) Sucralfate c) Misoprostol d) Omeprazole
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The random variables X1, X2, and X3 are independent with a common variance of 20. If a random variable Y is defined by Y = 4X1 - 2X2 + X3 then what is Var(Y)? (a) 20 (b) 40 (c) 120 (d) 160
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You have just been hired as the financial manager for a new firm and your boss tells you he is considering buying a new company car that will cost $30,000. The dealer offers you 4% APR financing for 48 months (with payments made at the end of the month). Assuming you finance the entire $30,000 and finance it through t...
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Consider the following payoff matrix: A B Right Left UP (a,b) (c,d) DOWN (e,f) (g,h) For Up Right to be the only Nash Equilibrium, which of the following choices is correct. a. a>e, g>c, b>d, h>f b. a>e, c>g, d>b, f>h c. a>e, c>g...
c
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Sebastian received a raise this year so his income climbed from $45,000 to $52,000. Last year Sebastian purchased 2 sunglasses. This year he has purchased 7 sunglasses. Assuming that all of the other things remain constant, what type of a good are sunglasses and what type of income elasticity of demand does Sebastian h...
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Baker Company applied overhead to work-in-process at the rate of $12 per machine hour. A review of the company's perpetual records at the end of the year showed the following selected information: Amount of overhead in Work-in-process inventory account on December 31 $8,000 Amount o...
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Acme, Inc. has a current capital structure of 30 percent debt and 70 percent equity. Its current before-tax cost of debt is 6 percent, and its tax rate is 35 percent. It currently has a levered beta of 1.10. The risk-free rate is 4 percent and the risk premium on the market portfolio is 7 percent. Acme wants to consid...
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The yield to call for a callable bond is: a) Less than the yield to maturity b) The interest rate the bond is expected to pay c) Equivalent to the yield to maturity if the bond is held to maturity d) The interest rate that the bond will pay, assuming it is held to maturity
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For any $x>0$, show that $$\frac{x}{1+x^2} \le \tan^{-1}(x) \le x$$ hence prove that $\lim_{x \to 0} \tan^{-1}(x) = 0$.
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The blending department of Luongo Company has the following cost and production data for the month of April. Compute the equivalent units of production for conversion costs for the month. Costs: Work in process, April 1 Direct materials; 100% complete $100,000 Conversion ...
17400
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The Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $140,000. The project will produce 600 cases of mineral water per year indefinitely. The current sales price is $147 per case, and the current cost per case is $112. The firm is taxed at a rate of 35%. B...
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The Gormley Group, Inc., has just paid a dividend of {eq}\$2.55 {/eq}, and its common stock currently sells for {eq}\$72 {/eq} a share. A required return of 11 percent applies to the stock. What is the growth rate associated with the dividend? (Round the answer to 2 decimal places.)
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According to the VRINE model, what are the two criteria that must be satisfied in order to sustain a competitive advantage? A) inimitability and exploitability B) value and exploitability C) inimitability and nonsubstitutability D) value and rarity
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The efficient frontier: A. intersect once or twice with the indifference curve that refers to the best complete portfolio. B. is always below (south-east of) the best CAL, or at most tangent to it. C. is always tangent to the indifference curve that refers to the best complete portfolio. D. All of the provided answ...
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The required rate of return on Wistful's stock is 10.2%, and the stock is expected to pay a $2.25 annual dividend. The stock has a beta of 1.1, the market risk premium is 7%, and the risk-free rate is 3%. What is the expected price of Wistful's stock 3 years from today? A. $29.83 B. $30.26 C. $27.44 D. $26.45 E. $...
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For the following, find the area in the appropriate tail of the t distribution. t = 2.797 and n=25.
0.005
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If you work for a large electric utility company and the CEO is asking your management group to rank the various resources in its fleet according to their cost, you should: a. Rank them according to their MARR. b. Rank them according to their salvage value. c. Rank them according to their first cost. d. Rank them a...
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The beginning inventory was $5,000 and the ending inventory was $7,000. The net income was $12,000 and the non-cash expenses included depreciation of $3,000. The total cash flow was?
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How much interest will you pay during the first year on a $500,000, 8%, 15-year mortgage? a. $100,000.00 b. $30,000.00 c. $36,000.00 d. $42,000.00
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How would you evaluate the following integral without using L'Hopital? $$\lim_{x\to 0} \frac{(1+x)^{1/x}-e}{x}$$ Is there another way to evaluate the original limit?
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Find the equation for the tangent line to the graph of $r=1+\cos(\theta)$ at $\theta=0$.
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If workers actively demand pay increases when the price level is rising and are willing to accept pay cuts when the price level is falling, then the short-run aggregate supply curve would be: a. negatively sloped. b. nearly vertical. c. nearly horizontal. d. positively sloped as usual. e. always shifting to the ri...
b
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A company wants to find out the necessary sample size when estimating the mean selling price of residential properties. In particular, the company wants to be within $8,000 of the actual mean, with a 95% confidence level. The company estimates the population standard deviation is $220,000. Which of the following is the...
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A university law school has decided to accept an average of 1,450 freshmen per year. The dean of admission has determined that the best predictor of success in law school is the LSAT score. The dean has set a minimum LSAT score of 120, and the LSAT distribution of those with scores this high is given by: f(x) = 14 - 0...
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Solve the initial value problem by means of the method of Laplace transforms, showing all steps, including the transform of the forcing function, the intermediate steps in the algebraic manipulations, and the final inversion of the Laplace transform. Use the convolution theorem when it applies. y'(t)+y(t)=t; y(0)=1
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Company A and Company B have the same asset base and the same level of risk. Company A finances 60 percent of its assets with debt and 40 percent with equity. Company B, on the other hand, finances 40 percent of its assets with debt and 60 percent with equity. Which of the following is true? A. Company A has a higher...
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If the current price level is below the long-run equilibrium price level, then _____. a. output is less than potential GDP b. The quantity of output demanded is less than the quantity of output supplied c. there is a deflationary gap d. All of the above
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You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.44 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?
1.56
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There are two types of stock in a corporation: common stock and preferred stock. The holders of preferred stock have a preference over the holders of common stock with respect to the payment of dividends and the distribution of any liquidated assets during the dissolution of the company. However, preferred stock usuall...
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If the Fed conducts an open market _____, the money supply curve will shift _____ and the price level will _____. A. sale; rightward; fall B. purchase; rightward; rise C. purchase; leftward; fall D. sale; leftward; rise
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The long-run aggregate supply curve is vertical because _____. a. in the long run, output depends only on the quantity of inputs that are actually used b. in the long run, output depends only on the quantity of inputs that are available c. in the long run, output does not depend on the price level d. All of the abo...
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The population mean = 23 and sample standard deviation = 4. Evaluate the probability of a sample of size 39 yielding a sample mean greater than 23.5, given a population size of 1600.
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The Dayton Company has 30,000 shares of $10 par value common stock issued and outstanding. This stock was issued several years ago, at a price above the $10 per share par value. During the current year, the board of directors declared a 30% stock dividend, so that 9,000 new shares were issued to the stockholders when t...
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Consider the function {eq}y = \frac{x^{5}}{5} - \frac{4x^{4}}{4} + 9{/eq}. Use the Second Derivative Test When applicable to find the relative extrema if they exist. Give the answer in the format of {eq}(x, y){/eq}.
(4,-42.2)
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A sample of 45 adults is​ selected, and the sample mean​ wage/price index for these adults is computed. If the sample mean is 2.10 and the sample standard deviation is 3.32 find the 90% confidence interval for the sample mean.
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If the Fed reduces the discount window interest rate to 2.50%, and if reserve requirements are increased, this is an example of: a. contractionary monetary policy. b. contractionary fiscal policy. c. expansionary monetary policy. d. expansionary fiscal policy.
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Eggers Company reports the following for the year: Book Income before taxes $900,000 Temporary difference: Warranty expense, included in book income before taxes 120,000 Accrued product warranty, per tax law 105,000 Assume the enacte...
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What is the probability that the mean amount of Coke in 24 randomly chosen cans will be less than 11.9 oz., given that cans of Coke are filled so that the actual amounts are normally distributed with a mean of 12.00 oz. and a standard deviation of 0.11 oz.?
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Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 103, what is the amount of gain or loss on redemption? a. A gain of $17,000 b. A gain of $20,000 c. A loss of $20,000 d. A loss of $17,000 e. A gain of $3,000
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Determine the length of the cardioid r = 2 + 2 cos(θ).
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On the R-S model starting from a point E, if r increases and q increases, the new point will definitely be _ the original point E. a. to the left below b. to the left above c. to the right below d. to the right above e. it will be to the right of E but the precise location of "above, below or parallel to point E" ...
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A company made a deposit in a bank account at the end of each year for the last 10 years. There were no other transactions involving the account. The company can now withdraw an equal amount of money over the next 5 years. The effective annual rate of interest is 8%. Approximately how many X dollars would be closest to...
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According to financial executives' views about dividend policy, the following statement is the most frequently cited one: I) We try to avoid reducing the dividend II) We try to maintain a smooth dividend stream III) We look at the current dividend level IV) We are reluctant to make a change that may have to be reve...
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