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Upper Crust Bakers just paid an annual dividend of $3.10 a share and is expected to increase that amount by 4 percent per year. If you are planning to buy 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 12 percent at the time of...
$40.3
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ABC Company sold a delivery van for $10,000 cash. The company had owned the delivery vehicle for two complete years when it was sold. The estimated useful life of the vehicle was four years and the residual value was $0. Accumulated amortization at the time of the sale was $20,000. Which of the following correctly refl...
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A credit card statement shows an average daily balance of $850 for the last billing cycle. The APR is 14.4%. What is the finance charge?
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When done correctly, activity-based costing typically results in a more accurate assignment of overhead costs to products than results from traditional costing systems because of its: a. use of only one allocation base for allocating overhead to products. b. use of more allocation bases than traditional systems for a...
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As the firm increases its production, the average total cost _____ and the average fixed cost _____. a. increases; decreases b. is constant; is constant c. decreases; decreases d. decreases; increases
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Jasper, Inc. paid $1.5 million to acquire all the common stock of Summit Company on January 1, 2015. On that date, Summit had $300,000 of assets with a book value and fair value equal to each other and no liabilities. Jasper classified the investment in Summit as an Available-for-Sale Security. On December 31, 2015, t...
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Three coins are tossed twice. Let X denote the number of heads on the first toss and Y denote the number of tails on the second toss. Find the variance of (X-Y).
1.50
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Comparative advantage is the a) economic term for opportunity cost. b) concept that allows a country or firm to produce a good or service at a lower opportunity cost than another. c) concept that says that specialization and trade allow the world to produce more efficiently than if all countries remained self-suffic...
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The number of bank robberies in a large North American city over a period of {eq}10{/eq} days was {eq}32{/eq}. Using the Poisson formula, calculate the probability that there will be less than {eq}1{/eq} robbery in a {eq}1{/eq}-day period.
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A project has the following cash flows: Year 0: $10,000 Year 1: $25,000 Year 2: -$50,000 Year 3: $50,000 Year 4: $50,000 Year 5: -$100,000 Assume the firm's WACC is 8%. What is the MIRR for this project? a. 3.86% b. 5.66% c. 11.40% d. 3.13% e. 9.86%
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Which of the following is NOT one of the behavioral schools of thought? a. scientific management b. human relations c. quantitative d. organizational man
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If the cash flow of an annuity is decreased by a uniform amount each period, the present worth of the annuity is: a) decreased. b) increased. c) not affected. d) cannot be determined.
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The chief financial officer of a home health agency needs to determine the present value of a $10,000 investment received at the end of year 10. What is the present value if the discount rate is 12 percent?
$3,219.73
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Let $\mathcal{X} \subseteq \mathbb{R}^n$ be a nonempty convex set, and let $f:\mathcal{X} \rightarrow \mathbb{R}$ be a concave function such that $\max_{x \in \mathcal{X}}f(x) >0$. If $f(x^*)=\max_{x\in\mathcal{X}}f(x)$ for some $x^* \in \mathcal{X}$, is the following inequality always true? $$ \left| \frac{1}{\|x^*\|_...
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The cost of labor per unit of output is always $40, and the cost of capital per unit of output is always $20. Which is true of the cost function for q units of output? a) c = 500 + 20K + 40L. b) c = 20K + 40L - 500. c) c = 500K + 500L. d) c = 20K + 40L. e) c = 20K/q + 40L/q + 500.
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Which statement is true ex ante? A) Leverage normally increases the owner's income return (cash yield) if you pay market value for the property. B) Leverage normally increases the owner's income return (cash yield) if you pay more than market value for the property. C) Leverage normally increases the owner's total r...
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At Utopia College, the per-student costs of operating are $2000, while the number of additional students that can be admitted without reducing the quality of education is infinite. Utopia College is currently accepting 100 students. The current price (or tuition fee) is $5000. The price elasticity of demand for student...
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An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she had total revenue of $200,000 and business expenses of $150,000. She made an a. implicit profit. b. economic loss. c. economic profit. d. accounting loss but not an economic loss.
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What is the probability that the average expenditures for 81 families is less than $6,100, given that the average expenditures on food and drink for families is $5,700, the annual expenditure is normally distributed, and the standard deviation is $1,500?
0.9918
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Which step would you recommend to an executive whose employees are experiencing resistance to a new bonus plan, especially during the recession, and how should she manage their concerns? A. Rethink the change B. Speed up the change C. Set tough long-term goals D. Avoid confrontation E. Listen supportively and build se...
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Which of the following is a temporary difference? A. Freight out recorded on the books but not included in the gross sales in the income statement for tax purposes. B. Trade discounts given for cash payment. C. Accrued warranty liabilities. D. Estimated losses on unexpired insurance policies.
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Consider an economy with a real output of $250 billion and a price level of 1.0. If government purchases increase by $20 billion in an economy with no crowding-out effect and no change in taxes, aggregate demand and equilibrium real output will a. increase by more than $20 billion, but by less than $50 billion. b. in...
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The management of Bischke Corporation is investigating an investment in equipment that would have a useful life of 12 years. The company uses a discount rate of 15% in its capital budgeting. Good estimates are available for the initial investment and the annual cash operating outflows, but not for the annual cash inflo...
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Cobrasoft is considering a project with the following cash flows: Year 0 ($38,000) Year 1 $18,750 Year 2 $17,500 Year 3 $16,250 The company uses the 3-year weighted average cost of capital when evaluating projects. The appropriate discount rate for this project is ...
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Compute the following limit: $$\displaystyle{\lim_{n \to \infty} \int_0^{\frac{\pi}{2}} \frac{(\sin(x))^{n}}{1-\sin{(x)}}\,\d x} .$$
0
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If P1 = $50, P2 = $55, Y1 = 2, Y2 = 4, and M = $200, then if goods 1 and 2 are the only goods in the market, what is the opportunity cost of one unit of good 1 in terms of good 2? a) 0.5 units of good 2 b) 2 units of good 2 c) 55 units of good 2 d) 50 units of good 2
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Which of the following do companies not need to know about differences in political and legal systems? A. If host government approval is necessary for making direct investments. B. If specific departments have the authority to give approval for business deals. C. If firms must hire outside consultants to teach them ...
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Which of the following sequences converge? a) {eq}a_n= \frac {n^5 + 4n + 1}{3^n - n^5} {/eq} b) {eq}a_n= \frac {3n^2 - 1}{n^3 - n + 5} {/eq} c) {eq}a_n= n cos(\frac {1}{n}) {/eq} d) {eq}a_n= ln (2n - 1) - ln(3n + 1) {/eq}
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Check all of the following that are true for the series {eq}\displaystyle \sum_{n=1}^\infty \frac{4-\cos \pi}{n} {/eq}. A. This series converges. B. This series diverges. C. The integral test can be used to determine convergence of this series. D. The comparison test can be used to determine convergence of this ser...
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Titan Football Manufacturing had the following operating results for 2010: sales = $18,580; cost of goods sold = $12,800; depreciation expense = $2,510; interest expense = $250; dividends paid = $640. At the beginning of the year, net fixed assets were $18,850, current assets were $2,890, and current liabilities were $...
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Let $n$ be an integer. Compute the limit $$\lim_{z\rightarrow 2n\pi i}\dfrac{e^z-1}{z-2n\pi i}$$ for complex number $z$.
1
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What is the correlation between the random variables X and Y defined by {eq}X = W + U,\ \ Y = W - U{/eq}, where {eq}U{/eq} and {eq}W{/eq} are independent with a common variance of {eq}\sigma^2{/eq}?
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Which department is usually held responsible for changes in the market price of the company's stock? A. marketing. B. production. C. finance. D. R&D.
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Suppose an analyst estimates that the market price of a stock is fairly valued. Which of the following statements most likely correct? a. The stock is expected to have a return equal to the required rate of return. b. The stock is expected to have a return equal to the market's required rate of return. c. The stock ...
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Which type of unemployment do you think is most prevalent in the United States, and what might account for its prevalence? a) frictional unemployment. b) structural unemployment. c) cyclical unemployment. d) This is an issue of great interest to economists because all types of unemployment are equally prevalent in ...
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The crystal necklace shoppe will pay a dividend of $1.20 per share next year. Today, the stock is priced at $4.10 a share and has a beta of .78. The market risk premium is 7.8% and the risk-free rate of interest is 2.2%. What is the expected growth rate of the dividends?
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The following amounts were reported by Burke Company before adjusting its immaterial overapplied manufacturing overhead of $8,000. Raw Materials Inventory = $40,000 Finished Goods Inventory = $60,000 Work in Process Inventory = $100,000 Cost of Goods Sold = $730,000 Compute what amount Burke will report as cost of...
722000
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A tank of gasoline (n = 1.40) is open to the air (n = 1.00). A thin film of liquid floats on the gasoline and has a refractive index that is between 1.00 and 1.40. Light that has a wavelength of 655 nm (in vacuum) shines perpendicularly down through the air onto this film, and in this light the film looks bright due to...
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One of your valued suppliers is implementing a JIT inventory system and is willing to share some of the inventory costs with you. This would have the effect of: a. Decreasing the total variable cost. b. Decreasing the contribution margin. c. Increasing the contribution margin. d. Increasing the breakeven point. e. Decr...
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Which of the following is most likely to be the case in the long run for a firm? a. The firm earns only a normal profit. b. The firm earns zero economic profit. c. The firm earns a profit equal to or greater than zero. d. The firm earns a profit equal to zero or more.
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You observe the following information: GBP spot rate: $1.6 US 1-year interest rate: 4% 1-year forward rate: $1.5 UK 1-year interest rate: 6% Which of the following is true? a. Interest Rate Parity holds and the GBP is expected to appreciate in value by about 6%. b. Interest Rate Parity holds and the GBP is expec...
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If there is an increase in marginal product, it must be that: a. average product is increasing. b. total product is increasing. c. marginal cost is decreasing. d. none of the above
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ABC Inc. just paid its first annual dividend of $2 a share. The firm plans to increase the dividend by 7.3 percent per year indefinitely. What is the firm's cost of equity if the current stock price is $65 a share?
10.60%
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Alpha Company purchased a $1,000, 5%, 5-year bonds at 103 and was held to maturity. The straight line method of amortization is used for both premiums and discounts. What is the net cash received over the life of the bond investment?
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Find the volume of the solid in R^3 bounded by y^2+z^2 \le 1 and x \le 2z.
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Allocating common fixed costs to segments a. will never decrease a segment's contribution margin b. will never decrease a segment's net operating income c. will never increase a segment's contribution margin d. will never increase a segment's net operating income
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Long-term debt that is expected to be refinanced at a maturity of less than one year should be reported on the balance sheet as: a. current assets b. long-term debt c. current liabilities d. not reported
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A monopoly uses two-part pricing, with a price of $100 per unit and a $2,000 annual membership fee. If its constant marginal cost is $20 per unit, its markup of price over marginal cost per unit is _____. A) 50% B) 150% C) 250% D) 300%
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Equilibrium in the Multiplier Model occurs at the income level at which the aggregate expenditures function intersects the: A.horizontal axis. B.vertical axis. C.Aggregate Supply Curve. D.Aggregate Production Curve.
D
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A firm has an investment project that will reduce expenses by $10,000 per year for 3 years. The project's cost is $15,000. If the asset cost of capital is 10%, what is the project's approximate NPV?
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New Mexico Partnership is liquidated, and the following book and fair value information for the noncash assets has been collected: Book value Fair value Inventory $182,000 $164,000 Land 970,000 1,240,000 Buildings 1,200,000 1,750,000 Machinery 494,000 290,000 The partnership was liquidated in the following order: a....
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In a certain firm, there is a 0.3 probability that no increase in sales will be realized for a promotional campaign and a 0.5 probability that a $50,000 increase in sales will occur. What is the expected increase in sales for this campaign? A. $25,000 B. $40,000 C. $50,000 D. $100,000
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Which of the following are considered outside users of financial accounting information? a. banks b. managers c. owners d. employees
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The difference between the fair value of the consideration exchanged and the book value of the net assets acquired in a business combination is usually recorded as: a. Excess Value. b. Goodwill. c. Share Premium. d. Additional Paid-In Capital.
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_____ enhance coordinated focus on the marketplace but make integration across highly autonomous divisional units difficult to achieve. a. Functional structures b. Divisional structures c. Dynamic structures d. Vertical structures e. Geographical structures
b
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Suppose the market demand curve for a good is given by {eq}Q^D=200-50P {/eq} and the marginal cost of production for a typical firm in the market is {eq}MC=2Q {/eq}. Assume that this is a constant-cost industry. What is the equilibrium market price? A. {eq}P=2.00 {/eq} B. {eq}P=4.00 {/eq} C. {eq}P=5.00 {/eq} ...
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Gontier Corporation stock currently sells for $64.48 per share. The market requires a return of 9 percent on the firm's stock. If the company maintains a constant 4.5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?
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What is the probability that a certain brand of flashlight will last between 60,500 and 62,000 miles, given its life is normally distributed with a mean of 60,000 miles and a standard deviation of 500 miles?
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Zoom Enterprises expects that one year from now it will pay a total dividend of $5.5 million and repurchase $5.5 million worth of shares. It plans to spend $10.5 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's e...
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Use a double integral to find the volume of the solid bounded by y = x, y = 16, and z = 64 - x - y.
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Stringer Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. The entry to record this transaction includes a: A. debit to Cash for $10,000. B. debit to Paid-in Capital in Excess of Par for $27,500. C. debit to Common Stock for $10,000. D. credit to Gain on Stock $37,50...
E
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Under US GAAP, periodic cash interest payments made during the period are reported in the statement of cash flows as a(an): A. operating activity B. investing activity C. financing activity D. Any of the above at the discretion of management.
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Given the following regression equation and information on the independent variables, which of the following would be the correct prediction for y, when X1 = 200 and X2 = 20? a) y = 5,650 b) y = 725 c) y = 400 d) y = 875
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Statement A: First-degree price discrimination works to increase a firm's profits by converting consumer surplus into revenue for the firm, while third-degree price discrimination increases a firm's profits by more accurately assessing the willingness to pay of different groups of consumers. Statement B: First-degree ...
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There is one Acme Coal Mining Firm in the country of Atrocian. It is a monopoly, as there is no close substitute for Acme's coal. So it charges the highest possible price for its product. This higher-than-competitive price will A. decrease consumer surplus. B. increase producer surplus. C. leave consumer surplus unc...
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The amount by which the change in operating profit changes when the sales level changes is called the: a) vertical difference b) vertical range c) unit contribution margin d) contribution margin ratio e) contribution margin in dollars
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A firm had after-tax income last year of $2.1 million. Its depreciation expenses were $0.5 million, and its total cash flow was $2.1 million. What happened to net working capital during the year? (Write the answer in millions rounded to 1 decimal place.)
0.5
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Which of the following is not a similarity in the accounting treatment for depreciation and cost depletion? A) The estimated life is based on economic or productive life. B) Both depreciation and depletion are based on time. C) The rates may be changed upon revision of the estimated productive life used in the origi...
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Using the dividend irrelevance theory, which of the following actions by a firm will increase the firm's stock price? a) Repurchasing stock. b) Offering a stock dividend. c) Increasing the regular dividend. d) Increasing the size of the special cash dividend.
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Toro Corporation has the following information: Net income $250,000 Depreciation 55,000 Increase in working capital 40,000 Increase in long-term debt 60,000 Decrease in notes payable 7,500 The amount of cash generated from operating activities by Toro was: a. $155,000 b. $147,500 c. $305,000 d. $220,000
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On June 1, 2020, ABC Company issued $430,000 of 9%, 5-year bonds. The bonds were issued at 103, pay interest on January 1 and June 1. Use this information to calculate the amount of bond discount or premium to be amortized with each interest payment. If this is discount amortization, enter as a positive number. If this...
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Which of the following statements is correct for a firm that can price-discriminate? a) It should adjust prices so that customers with price-elastic demand pay higher prices than those with inelastic demand. b) It should adjust prices so that customers with price-elastic demand pay lower prices than those with inelas...
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Find the limit (if it exists). If the limit does not exist, then explain why. Use a graphing utility to verify your result graphically. {eq}\displaystyle \lim_{t \to \infty } \left ( \frac{1}{3t^2} - \frac{5t}{t + 2} \right )
-5
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Which of the following is not one of the four basic financial statements required in annual reports on Form 10-K? A. Balance Sheet B. Income Statement C. Cash Flow Statement D. Statement of Shareholders' Equity
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Use the information below to answer the following question. Suppose that all prices rise by 5 percent and that velocity remains unchanged. If real GDP grew by 5% in the current year, then: Variable 2004 2005 2006 M 100 102 104 V 5 5 5 ...
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The annual interest paid divided by the price is called the: a. yield to maturity. b. coupon rate. c. coupon factor. d. discount interest. e. spot interest rate.
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Consumption C = $1.0 + 0.80YD Investment = $1.5 Government purchases = $2.2 Net exports = -$0.1 Taxes = $0 Government transfer payments = $0 (all values are in billions of dollars) Refer to the table above. Suppose that all of the information given in the table remains the same except that taxes increase by $1.0 ...
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One corporation has a five-year zero-coupon bond outstanding with a $1,000 par value and a 6.50% yield to maturity. An investor purchases one of these bonds. A second firm has a five-year zero-coupon bond with a 7.50% yield to maturity and a $1,000 par value. The investor purchases one of these bonds. The market's re...
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Bill Inc. common stock is expected to pay a $2.32 dividend at the end of the year and is in a risk class that requires an 8.5% required return. If this dividend is expected to grow forever at a 4.2% rate, what is the estimated value of Bill Inc.'s common stock?
$53.95
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On January 1, 2018, Landwehr Corporation issues $100,000 of 10% bonds. The bonds pay interest semi-annually on June 30 and December 31 and mature in 10 years. The market rate for similar bonds is 10%. The entry for the June 30, 2018 interest expense will include: a. a debit to Interest Expense for $5,000. b. a credit...
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Suppose to have a linear programming problem. It is known from the optimal solution that allowable decrease of the right-hand side d1 is equal to 20. Initial value of d1 is 100. Choose the correct statement: a) If we change the initial value of d1 to 80 the optimal basis will change b) If we change the initial value...
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What is the value of pKa for a weak acid whose {eq}[A^-] {/eq} is equal to its {eq}[HA] {/eq}?
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Two years ago, Simon purchased a 20-year maturity bond with a coupon rate of 9% for $957.02. If he sold this bond for $927.91, what is his nominal holding period return, rounded to the nearest hundredth of a percent?
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Show that the series $$\sum_{n=0}^{\infty} \frac{f^{(n)}(0) x^n}{n!}$$ for $f(x) = \arctan(x)$ only has odd terms.
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Edwin is a plant manager and is adept in framing corporate policies for hiring and training. Which of the following dimensions of intellectual ability does his skill reflect? A. spatial visualization B. deductive reasoning C. inductive reasoning D. verbal comprehension E. perceptual speed
D
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Evaluate the line integral {eq}\int_C \vec F\cdot d\vec r{/eq} where {eq}C{/eq} is the curve formed by intersecting the cylinder {eq}x^2+y^2=4{/eq} and the plane {eq}3x+4y+z=12{/eq} in the direction from {eq}(0,2,4){/eq} to {eq}(2,0,6){/eq}, and {eq}\vec F= \langle 5x,5y,z\rangle{/eq}.
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Let {eq}\mathbf F(x,y,z) = 3yz^2 \mathbf i + 3xz^2 \mathbf j + 2x^2 yz \mathbf k {/eq} and let D be the region between the spheres {eq}x^2 + y^2 + z^2 = 1 {/eq} and {eq}x^2 + y^2 + z^2 = 9 {/eq}. Use the divergence theorem to find {eq}\iiint_D div \mathbf F dV {/eq}.
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What is the amount that each of these intangible benefits could have for SunStar? a. The first party (the rest of the shareholders) could have avoided paying a share of the dividend required to pay the ex-dividend price. In other words, each of the 9,000,000 shares would not have received a $2 dividend. b. The second...
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You work for a firm in the appliance industry. The firm is considering a new project with a cost of $7 million. The project will generate cash flows of $3 million in year one and $4 million in year two. After year two, the cash flows decline by 30%. The discount rate is 12%. What is the internal rate of return for the...
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How long will it take $5,000 to reach $6,000 if it is invested at 12% interest compounded quarterly?
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When the monopoly is maximizing profit, A. its resources are not being used efficiently. B. its price is equal to that charged by the perfectly competitive firm. C. it is actually incurring a loss. D. it is earning above-normal profit. E. its price is higher than that charged by the perfectly competitive firm.
E
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The gain on the sale of a depreciable asset should be: a) Added to income before income taxes. b) Added to the net income. c) Added to the carrying value of the asset when computing book value for income statement purposes. d) None of the above.
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Which of the following should not be considered an opportunity cost of attending college? a. money spent on living expenses that are the same whether or not you attend college b. lost salary c. business lunches d. interest that could have been earned on your money had you put the money into a savings account instea...
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Which of the following best defines the conversion period? a. The length of the operating cycle b. The period between paying suppliers and collecting receivables c. The length of time it takes to convert cash into marketable securities, then to inventory, and back to cash d. The period between receiving a purchase ...
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The strategic decisions associated with the organization are the choice of a system and the choice of the type of system needed for which system type? A) Marketing B) Human resources C) Information D) Financial-accounting E) None of the answer choices is correct.
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Why does the substitution $x=yz$ in the integral $\int_{-1}^1 \int_{-1}^1 \int_{-1}^1 \frac{1}{1+x+y+z}\,dx\,dy\,dz$ change the result to $2ln(2)$ instead of $4ln(2)$? What is wrong with my approach, given that I get $4ln(2)$ by integrating over the domain of $x,y,z \in [-1,1]$?
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Assume that the terminal value of an investment is $27,500. This purchase has a cost of $50,000 with a marginal tax rate of 13%. This investment has an annual depreciation of $4,000. It is required at least a 10% pretax rate of return on capital. What is the present value of after tax terminal value after 4 years? A) ...
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Ostling Inc. expects to pay out $1.25 of EPS in its first year, and its WACC is 11.00%. Ostling follows a policy of paying out 75% of earnings as dividends. What is the growth rate for its dividends?
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Ames Company produced 10,000 units during the year. Its Variable Manufacturing overhead costs were {eq}\$50,000 {/eq} and its Fixed Manufacturing overhead costs were {eq}\$100,000 {/eq}. The standard variable manufacturing overhead cost per unit is {eq}\$10 {/eq} and the standard fixed manufacturing overhead cost pe...
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In 2013, Bill Company had total credit sales of $2,000,000. On January 1, 2013, accounts receivable was $1,320,000 and the allowance for doubtful accounts had a credit balance of $30,000. During 2013, $42,000 of uncollectible accounts receivable were written off. Past experiences indicate that 2% of net credit sales be...
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