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Let $X$ be a geometric r.v. with parameter $p$. Find the variance of $X$ using the fact that the moment generating function for $X$ is $M_x(t) = \frac{pe^t}{1 - qe^{t}} $. The provided solution attempts to calculate the variance as $M_x''(0)$, but obtains $\sigma^2 = \frac{-2p^2 + 5p - 2}{p^2}$, while the known varianc...
\frac{1-p}{p^2}
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The average cost function {eq}A(x) {/eq} (in dollars) for a product is {eq}A(x)=1.91x+101.72 {/eq} where {eq}x {/eq} is the number of units. How many units result in the smallest average cost? A. 5 B. 10 C. 20 D. 15 E. None of these.
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Suppose the total revenue received by a firm is $230,000 and its elasticity of demand (E_d) is -1.2. Based on this information we can conclude that: a. It should reduce its prices b. Its total costs are $115,000 c. Its total costs are $230,000 d. None of the above
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Changes in the federal funds rate influence the economy's growth rate through all of the following except: a. making it more or less attractive two people save. b. making it more or less expensive to borrow. c. making investment spending more or less attractive. d. altering the real interest rate when inflation is ...
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The management of Rolling Hills 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 5 years. The company uses a discount rate of 16% in its capital budgeting. The net present value of the investment, excl...
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Kingsolver, Inc. has the following inventory data: January 1, beginning inventory of 28 units at $9 January 10, purchases of 52 units at $11 January 20, purchases of 61 units at $13 January 25, sales of 37 units A physical count of inventory on January 31 reveals that there are 44 units on hand. Assuming that a p...
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Evaluate the integral {eq}\int^\sqrt \pi_0 \int^\sqrt \pi_y \cos (x^2) dxdy {/eq} by reversing the order of integration.
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ABC Corporation currently has 17,025 shares outstanding. If ABC Corporation were to complete a 5 for 1 split, how many shares would it have?
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Which of the following is true of indomethacin? a. It is equally effective as aspirin in treating osteoarthritis. b. It is equally effective as aspirin in preventing myocardial infarction. c. It is more effective than aspirin in treating osteoarthritis. d. It is more effective than aspirin in preventing myocardial ...
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The slope of a line showing the relationship between the real interest rate and the quantity of investment is: a. large and positive because investment is sensitive to changes in the interest rate. b. large and positive because investment is not sensitive to changes in the interest rate. c. flat because investment i...
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Which of the following statements is CORRECT for convertible bonds? A. Convertible bonds are bonds that are guaranteed to be converted into a stated number of common shares at any time the issuer selects. B. The value of a convertible bond is the sum of a regular bond value and a conversion value. C. Convertible bon...
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A firm that has 30 percent of the market and three competitors in the industry is in which type of market structure? a. perfect competition b. monopoly c. monopolistic competition d. oligopoly
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If the pound sterling appreciates against the U.S. dollar, England buys _____ U.S. goods, causing the U.S. aggregate demand curve to shift to the _____. a. fewer; right, b. more; left, c. fewer; left, d. more; right.
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When expressing proteins with multiple subunits in mammalian cells, which of the following approaches should be used? a. Each subunit can be cloned into separate vectors. b. Each subunit can be cloned separately into the same vector. c. Vectors containing artificial "operons" can be used. d. All of the above approa...
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So I have the numbers as listed below: n ln(n!) n*ln(n) 1 0 0 2 0.7 1.4 3 1.8 3.3 4 3.1 5.6 5 4.8 8.3 I'm looking to show that n! < n ^ n for n>1 using L'Hopital's Rule. My math is kind of bad, but what I've concluded is that: lim n->∞ ln(n!) / ln(n ^ n) = 1 So, can I prove that n! < n ^ ...
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The price of a frozen yogurt is $2.00, and the price of a doughnut is $1.00. If Johnny is maximizing utility and the marginal utility of the last frozen yogurt purchased is 30, then the marginal utility of the last doughnut purchased is: A) 15. B) 60. C) 30. D) 10.
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The price elasticity of demand is equal to 10%. If the price of the product increases by 5%, by what percentage will the quantity demanded change? A. 50% B. 2% C. 0.5% D. 10%
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Dividends paid to preferred stockholders _____ the number of common stockholders. A. Do not affect the number of B. Increase the number of C. Decrease the number of D. Have no relationship with the number of
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Mr. Franklin also asks us to determine the required rate of return for the Alarm Clock Corporation. The dividend yield is 2.0%. If just paid the dividend of $2, and is expected to pay a dividend of $2.14 one year from now. Dividends are expected to grow at a constant rate indefinitely. What is the required rate of ret...
B
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What is the difference between $\mathbb{R}$ and $\mathbb{R}^{1}$?
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As compared to operating income computed using variable costing, operating income computed using absorption costing will tend to fluctuate more when: a. There is a high degree of predictability in demand. b. There is a steady increase in inventory. c. There is a large proportion of fixed manufacturing overhead costs...
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The G & B consulting firm, whose client list includes many of the largest companies in the United States and Canada, has the following capital structure, which it considers to be optimal: Debt 25% Preferred stock 15% Common stock 60% The interest rate on the company's new debt is 8.10%, the company's preferred stoc...
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The entropy of a system: a. can only increase during a spontaneous process b. can only decrease during a spontaneous process c. cannot change during a spontaneous process d. can increase or decrease during a spontaneous process
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What type of analysis should be done before making the investment decision? A. Static analysis B. Marginal analysis C. Simple analysis D. Dynamic analysis
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Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $208.90 per unit. Sales volume (units)15,50017,420 Cost of sales$1,271,000$1,428,440 Selling and administrative costs$617,700$658...
$292,200
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The act of giving an employee a bonus to remain with the company and achieve future goals is an example of a) employee stock options. b) interest-based negotiation. c) job security. d) profit sharing.
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Determine whether the sequence converges or diverges, and, if it converges, find {eq}\displaystyle \lim_{n \to \infty} a_n. {/eq} where {eq}a_n = \ln(3n^3 + n) - \ln(n^3 + 4n^2 + 1){/eq}
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Which of the following is likely to impose a large excess burden? a. A tax on land. b. A tax of 24 percent on the use of cellular phones. (This is the approximate sum of federal and state tax rates in California, New York, and Florida.) c. A subsidy for investment in "high-tech" cornpones. d. A tax on soda bought i...
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Find the volume of the solid enclosed by the surface z=xy and the planes x=1, y=0, y=x, and z=6.
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A firm currently has {eq}20,000 {/eq} shares of {eq}\$25 {/eq} par value common stock outstanding. The stock is selling for {eq}\$80 {/eq} per share. The firm wants to raise {eq}\$300,000 {/eq} by a stock offering to cover its cash needs for the coming year. If it decides to offer all issued and outstanding shares ...
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You are comparing two mutually exclusive projects. The crossover point is 12.3 percent. You have determined that you should accept project A if the required return is 13.1 percent. This implies you should: A) always accept project A. B) be indifferent to the projects at any discount rate above 13.1 percent. C) alway...
C
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A sample of gas (1.0 mol) is expanded adiabatically from an initial pressure and volume of 5.0 atm and 1.00 L to a final pressure of 1.0 atm and a volume of 5.37 L. During the expansion, the internal energy of the gas (1.0 mol) decreases by 500 J. Calculate the molar heat capacity of the gas for this process.
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Which one of these is a source of cash? A. increase in common stock B. decrease in notes payable C. increase in inventory D. decrease in accounts payable E. increase in long-term debt
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Suppose the beta of a company is currently 0.82. However, the board of directors would like to reduce the company's risk as perceived by the market. It has been determined the firm could change its operations in a manner to reduce its beta to 0.57. What does this new beta indicate to stockholders? A. Stockholders see a...
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Use the following information to answer this question. - The current price of the bond is $1000. - There are 10 years to maturity. - The bond pays interest of $80 annually. - The market interest rate is 9%. The amount of the coupon interest is $80 and the current price of the bond is $1,000. If the market interest...
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When a price ceiling is not binding, it means that: a. the equilibrium price is above the ceiling price. b. the equilibrium price is below the ceiling price. c. the ceiling price has no effect on the market. d. buyers can obtain all they want at the ceiling price. e. None of the above.
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A company had credit sales of $5.0 million for the year and estimates their bad debts to be 1% of net credit sales. Accounts receivable has a $450,000 balance and the allowance for doubtful accounts has a credit balance of $3,000 prior to bad debt adjustment. The entry to adjust the books for bad debts will be: a. An...
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After all revenues and expenses, temporary (or nominal) accounts, and permanent (or real) accounts, which of the following is the correct order of closing the books? A. Income and expenses accounts first; then, dividends and other legal claims accounts. B. Dividends and other legal claims accounts first; then, income...
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Given the following information for a company that manufactures long-lasting athletic shoes, use the value chain analysis format to compute total costs per unit. Manufacturing Department Cost of direct materials $1.15 Cost of direct labor $2.45 Manufacturing Overhead per unit $1.80 Marketing Department Sales comm...
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Accounting income in 2012 for Kingston Manufacturing was $487,000. The following items are included in operating cash flows for the year: Depreciation: $97,000 Increase in inventory: $48,000 Decrease in accounts payable: $24,000 Interest paid: $22,000 Kingston Manufacturing's tax rate is 30%. Based on this informa...
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If real GDP is $2,000 billion when the price level is 80 and $2,100 billion when the price level is 100, then the GDP deflator is _____ when real GDP is $2,000 billion. A. 80 B. 84 C. 100 D. 108
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You apply overhead to completed jobs based on the following formula: Expected use of cost driver Units of cost driver at capacityCost of cost driver at capacity Overhead allocation rate$150000150000 A completed job has a cost of $450 and is sold for $775. The company allocates 40% of its overhead to its finished go...
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The perspective that explains learning as a mental expectancy of an upcoming association between two events is known as: a. the law of effect. b. the interactional view. c. the informational view. d. latent learning.
c
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How many digits does $2^{1000}$ have, and what is the first digit? Compute the variance of the first 500 digits. I understand that the number of digits can be found using $\lfloor 1000 \cdot \log_{10}(2) \rfloor + 1$, which gives 301 digits, and the first digit can be found using $\lfloor 2^{1000} \cdot 10^{-\lfloor 10...
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According to the marginal productivity theory of factor distribution: a. Each factor of production should receive a price equal to its marginal revenue product. b. A factor of production should receive a price equal to the sum of its marginal physical product and its contribution to the firm's demand for other factor...
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Find the slope of the graph of the function (x^2)(y^2)-(4x)(3y) = 24 at the point (3,2)
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After a large balloon burst loudly and suddenly at her birthday party, Cindy showed fear of balloons. In terms of the acquisition phase of classical conditioning, the balloon is the _____, and her fear is the _____. a. CS; US b. US; UR c. CS; CR d. CR; CS
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The U-shaped total product curve and the law of diminishing returns are not concerned with: a. Negative marginal productivity of labor. b. The fact that as additional labor is added to the production process, at some point a point of diminishing returns will eventually be reached. c. Output's increasing at a decreas...
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How is the Information Dimension $D_a = -\lim\limits_{r \to 0} \frac{l_a(r)}{lnr}$ calculated, specifically how is the value -0.8927 obtained from the entropy values $l_a(r)=(1.3741,0.6930,0.6385,0)$?
-0.8927
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The financial statements of a company providing service for government entities show the following: 2015 2014 Current assets $255,000 $210,000 Net investment in plants, property and equipment 530,000 480,000 Other assets 145,000 105,000 Liabilities (including debt) 470,000 400,000 Equity 460,000 395,000 Cu...
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Find the smallest value of a > 0 such that if x > a then |(x^3 - x - 2)/(x^3 - x^2 + 1) + 1| < 0.01.
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From the following types of risks: A. Damage to reputation B. Information technology (IT) C. Credit D. Competition E. Capital investment and/or shareholder requirements. Of the above risks, the following are Strategic Risks: a. B, D, and E b. A, D, and E c. B, C, and D d. A, B, C, D, and E
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If a stock is currently selling at $20.80 per share and a three-month call option with a strike price of $20 has a premium of $2, what is the hedge ratio if the stock price rises to $22.40?
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An investor is offered the choice of buying a 2-year, $1,000 face value bond selling for $950 with a coupon interest rate of 9%, paid semiannually, or a 10% coupon rate for the first year, selling for $956.85. Which of the following statements is correct? a. Both bonds should be accepted since both produce a yield to...
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The following were among Gage Co.'s 2005 costs: Normal spoilage $5,000 Freight out 10,000 Excess of actual manufacturing costs over standard costs 20,000 Standard manufacturing costs 100,000 Actual prime manufacturing costs 80,000 Gage's 2005 actual manufacturing overhead was: a. $40,000 b. $45,000 c. $55,000 d. ...
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What is the WACC for a firm with equal amounts of debt and equity, a beta of 2, 25% coupon rate on outstanding debt with a yield to maturity of 4.25%, and a tax rate of 35%?
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Monopolistic competitors do NOT have to consider: a. the demand of their competitors b. only one price for its product c. non-price competition d. a down-sloping demand curve
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What type of organizational structure promotes specialization of labor and allows rapid decision making? A) Divisional structure by product B) Functional structure C) Divisional structure by customer D) Strategic business unit E) Matrix structure
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A project's internal rate of return: A. Is the interest rate at which the net present value of the project is equal to the cost of capital. B. Can be used to rank mutually exclusive projects with different required investment outlays. C. Does not take account of differences in the sizes of the projects. D. Is the i...
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Use triple integral to find the volume of a solid in the 1st octant enclosed by z=y, y^2=x and x=1 and sketch the region.
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How do you get from $$P = \frac{aa^Ta}{ba^Ta}$$ to $$P = \frac{aa^T}{a^Ta}$$?
P = \frac{aa^T}{a^Ta}
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Suppose the marginal cost curve first gets steeper as output increases due to economies of scale, and then flatter due to diseconomies of scale. This suggests that _____. A) the LRAC curve first gets steeper as output increases, and then flatter B) The LRAC curve is U-shaped C) the LRAC curve is downward sloping D)...
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RSU Co. has a capital structure of 50% common stock and 50% debt. The cost of common equity is 12%, and the pre-tax cost of debt is 8%. The relevant tax rate is 35%. What is the firm's WACC? 8.8% 9.01% 9.5% 10.5% 11.2%
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A 2-year, $1,000 bond with a 9% coupon rate (coupon is paid annually) has a 6% current yield. The bond can be called in 1 year at a call price of $1,090. What is the bond's duration?
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What will be the amount of the deposit, if the central bank requires a reserve ratio of 12% on deposits and the banking system holds no excess reserves? A) $25,000 B) $240,000 C) $246,000 D) $366,000 E) none of the above
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Changes in the federal funds rate influence the economy's growth rate through all of the following except: a. making it more or less attractive two people save. b. making it more or less expensive to borrow. c. making investment spending more or less attractive. d. altering the real interest rate when inflation is ...
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Solve the initial-value problem {eq}\displaystyle \; {y}' = \frac{\sqrt{1 - y^2}}{t}, \; y(1) = 0 {/eq}.
y = sin(ln|t|)
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Consider the sugar crystals in a teaspoon of sugar. Using water, how could you most efficiently separate the sugar crystals from the water? A. Let the water evaporate and the sugar will be left in the container. B. The sugar crystals will settle to the bottom and the water can be poured off. C. The sugar crystals will ...
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Given the following data: Cost of stock $50 per share Expected dividend $5 per share (D) Growth 6% Calculate the required rate of return to the nearest whole percentage. a. 12% b. 16% c. 10% d. 11%
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In the long run, economic profits are: a. always zero in monopolistic competition. b. never zero in monopoly. c. always positive in monopoly. d. never negative in oligopoly.
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Blaine Company had the following data for the month: Variable costs per unit: Direct materials $4.00 Direct labor 2.40 Variable overhead 1.80 Variable selling and administrative expenses 0.30 Fixed costs per month: Fixed overhead $1,...
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How do you find the limit of #sqrt(x+6)-sqrt(4x+25)# as x approaches infinity?
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When someone buys a ticket for an airline flight, there is a 0.0977 probability that the person will not show up for the flight. A certain jet can seat 8 passengers. Is it wise to book 10 passengers for a flight on the jet? Determine whether or not booking 10 passengers for 8 seats on the jet is a wise decision. Selec...
B
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Two long wires carry currents i1 and i2 perpendicular to the xy-plane. Wire 1 has current i1 = 5.00 A in the positive x direction, and it is at y1 = 4.00 mm . Wire 2 has current i2 = 4.00 A in the positive x direction, and it is at y2 = -4.00 mm . At what point on the y-axis is the magnetic field zero if the two curre...
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A firm will maximize its profits by producing the output at which: a. MR = MC b. P = MC c. P = AC d. TR - TC is greatest
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G&K is a computer manufacturing center that has a product-based organizational structure. Its teams are broadly categorized into laptop services, desktop services, and handheld services according to the specific kind of products each of them deals with. Further, it is segregated based on geographic segmentation. This i...
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Metroplex Company exchanged 4,000 shares of common stock, which it had purchased last year for $40,000, for 10,000 shares of Tootsie Roll common stock in which it held a 20% ownership interest. In the exchange, no fair value was determined for the Tootsie Roll shares. At the time of the exchange, the fair market value ...
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The country of Smallville has a perfectly competitive market for a product with a current equilibrium price of $25 per unit. The market consists of 1,000 identical buyers, each with a demand function given by {eq}Q = 20 - 2P {/eq}, and 1,000 identical sellers, each with a supply function given by {eq}Q = 2P - 20 {/eq...
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Galbraith Co. is considering a four-year project that will require an initial investment of $12,000. The base-case cash flows for this project are projected to be $15,000 per year. The best-case cash flows are projected to be $22,000 per year, and the worst-case cash flows are projected to be -$1,500 per year. The comp...
D
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What is the largest cash flow the firm could receive and remain liquid, assuming it can exchange short-term securities for cash?
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Assume that you are the chief financial officer of Pets, Inc., and want to estimate the company's WACC, which currently reflects an 8 percent before-tax component cost of debt. The risk-free rate is 5 percent, the market risk premium is 6 percent, and the firm's tax rate is 30 percent. First assume that the firm is an ...
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As a financial manager, an analyst's estimate of the company's return on equity (ROE) and its sustainability are key inputs to the discounted cash flow model. If an analyst overestimates a company's return on equity and its sustainability, then the discounted cash flow model will: a. under value the firm. b. over val...
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The "labor force" consists of: A. employed workers only B. unemployed workers only C. those working in the private sector D. employed and unemployed workers
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Company A has a beta of 0.9, while Company B's beta is 1.4. If the risk-free rate is 5.5% and the market risk premium is 4.5%, by how much is the expected return on Stock B above that on Stock A?
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Find the probability $P(Y<2)$ if $Y$ has a moment generating function $M_Y(t) = (1-p+pe^t)^5$.
4p^5-15p^4+20p^3-10p^2+1
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If a country shifts from a closed economy to one in which it allows free trade, then it is likely that: a) domestic production will increase and domestic consumption will decrease. b) domestic production will decrease and domestic consumption will increase. c) both domestic production and domestic consumption will i...
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Chastain Company issued 1,000 shares of preferred stock for $30 per share. The stock has a par value of $25 per share. The journal entry to record this transaction would include a: a. credit to Cash for $25,000. b. credit to Common Stock for $30,000. c. credit to Paid-In Capital in Excess of Par-Common for $5,000. ...
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According to rational expectations theory, a policy that lowers the price level today A. will have no effect on real GDP because people will adjust their behavior today. B. will have no effect on real GDP because people will not change their behavior until the price level returns to its previous value. C. will have ...
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According to CAPM, the expected return for a stock with a beta of 0.9 when the risk-free rate is 6% and the market return is 12% is: a. 6.60% b. 10.40% c. 12.00% d. 14.40% e. 16.80%
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A group of parents is using individual funds to start an independent alternative school and they hire a teacher for the school. How would the GDP be affected by this teacher's salary? A. It would not be counted because the school is not public. B. It would not be counted because the school is a private enterprise. C...
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Two information needs make campaign measurement necessary. Which answer includes both? A. Provide a trackable call to action and assure each campaign component is executed as planned. B. Provide inputs to subsequent marketing strategy and prove the marketing department's contribution to the organization. C. Demonstr...
B
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Eva sold a building used in her business for $45,000. She had purchased it for $40,000 and deducted depreciation of $12,500. What is the amount and character of Eva's gain or loss recognized on this sale? a. $12,500 ordinary income b. $17,500 25% gain c. $12,500 ordinary income; $5,000, 1231 gain d. $12,500 25% ga...
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Gene Metlock deposits $2,000 in the First State Bank. The bank pays 8% compounded annually, and makes annual deposits for 10 years. How much will be on deposit at the end of year 10? A. $28,635.66 B. $29,333.80 C. $29,649.91 D. $27,922.85
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NewAgeCompany acquired 100% of the voting stock of NewLifeCompany. On the date of acquisition, NewLife's plant, a depreciable asset with a ten year remaining useful life, had an original cost of $500,000 and a book value of $200,000. NewAge has an 8% return on assets. At NewLife's production level of 200,000 units, it...
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Suppose that in an attempt to protect workers, Congress imposes legislation that makes it more difficult and time consuming to reduce workers' nominal wages. How would SRAS and LRAS be affected by this change? A) the SRAS curve would become steeper and the LRAS curve would remain unchanged B) neither curve would be a...
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A company has 5,000 shares of common stock outstanding. The company's net income is $1,000 and its dividend payout ratio is 50%. The company's stock has a market price of $50 a share. The tax rate is 40%. What is the price-earnings ratio? (Do not round intermediate calculations.) Price/earnings ratio _?
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Miguel Corporation owns machinery with a cost of $400,000 and accumulated depreciation of $10,000. It is estimated that the machinery will generate future cash flows of $350,000. The machinery has a fair value of $280,000. Miguel should recognize a loss on impairment of: a. $30,000. b. $70,000. c. $-0-. d. $110,000...
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Suppose market interest rates rise by 30 to 55 percent. Assuming that the average yield to maturity of U.S. Treasury Bonds rises, which of the following is true? a. Prices of all types of bonds would rise, the largest increase would be for long-term corporate bonds. b. Prices of all types of bonds would fall, the lar...
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Should an investor buy a stock with a beta of 1.4 if the risk-free rate is 3% and the expected return for the market is 8%?
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The Winding Road Hotel uses a job-costing system for its restaurant. The restaurant has a single dining room that can seat 90 people. The Winding Road Hotel employs wait staff and kitchen staff to prepare meals in its restaurant. The wages of wait staff and kitchen staff consist of fixed and variable components (see ta...
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