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Which of the following is not one of the elements that make up price? (Multiple Choice) A) Market value added B) Book value C) Discount rate D) Risk E) The present value of all future cash flows generated by the firm
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Which of the following will shift the aggregate demand curve to the left? a. The government reduces personal income taxes. b. Interest rates rise. c. The government raises corporate profit taxes. d. There is an economic boom overseas that raises the incomes of foreign households.
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Jenna runs a small boutique in Capitola. She tells one of her suppliers that she is willing to pay $6 for a pair of wool hand warmers and not a dime more. On the basis of this information, what can you conclude about her price elasticity of demand for wool hand warmers? a. It is elastic. b. It is perfectly elastic. ...
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How do you find the P value when Z is known?
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Long term interest rates may not closely follow short term interest rates if A. people prefer to hold transactions accounts over cash. B. the required reserve ratio decreases. C. Lenders are reluctant to make loans. D. the Fed intervenes in the bond market.
C
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A company pays a $200 dividend and has a stock price of $10,000. Using a 3% discount rate, the company's dividend yield is _____. a. 20% b. 3% c. 3.05% d. 2.5%
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An example of an expense that would generally be classified as fixed is: a) sales salaries expense b) property tax expense c) president's salary expense d) store rent expense
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The founder of which CPA firm was the first well-known auditor to address fraud a. Arthur Andersen b. Deloitte and Touche c. KPMG d. PriceWaterhouseCoopers
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Consider a binomial tree. Each time step is one year, the stock price is $40, and the risk-free interest rate is 5%. Stock price movements are of 20%, so possible stock prices in each period are $48 or $32. What is the value of an option to buy 100 shares in one year with a strike price of $46?
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Data concerning the Northern Division of Winters Company for the most recent year appear below: Sales: $5,480,000 Variable costs: $2,610,000 Fixed costs: $1,630,000 Segment margin: $1,220,000 The company's minimum required rate of return was 12% and its average operating assets totaled $4,510,000. The manager of t...
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The mean cost of a five-pound bag of shrimp is 40 dollars with a variance of 36. If a sample of 43 bags of shrimp is randomly selected, what is the probability that the sample mean would be less than 42.5 dollars? Round your answer to four decimal places.
0.9968
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A firm that has total sales revenue of $1,000,000 and total fixed costs of $250,000 has achieved a break-even point. If its total variable costs increase by $100,000, it should: a. decrease its prices to avoid a loss. b. shut down production. c. increase its prices to ensure profitability. d. increase production to...
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North Central University is considering awarding a construction contract for its new athletic complex. The Biddings Committee has narrowed the possibilities to four companies; from this point forward, the contract will be awarded to the company with the lowest bid. The bids will be based on cost plus a profit as follow...
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From the following data concerning a product line, compute the contribution margin ratio. Sales - $40,000 Fixed costs - 10,000 Variable costs - 25,000 a. 12% b. 25% c. 36% d. 50%
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Which of the following statements regarding monetization is false? a. The amount of income the government derives from monetization is measured by the resulting increase in the monetary base. b. If used without limit, monetization provides absolute protection against equitable insolvency. c. In current times, issuin...
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Beckenworth had a cost of goods sold of $10,600 million, ending inventory of $2,766 million, and average inventory of $2,071 million. Its days' sales in inventory equals _____. a. 91.8 days b. 80.1 days c. 73.2 days d. 68.8 days e. 86.4 days.
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Valotta Corporation has provided the following data concerning an investment project that it is considering: Initial investment $690,000 Working capital $70,000 Annual cash flow $283,000 per year Salvage value at the end of the project $21,000 Expected life of the project 4 years Discount rate 11% The working ca...
a
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Find the limit of the following equation: $$\lim_{x\to \infty}\frac{\frac{1}{2}x^2-\sqrt{x^4+2x^3+4x^2+5x+6}}{\sqrt[3]{4x^3+7x^2+11x+15}+3x}$$
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Which one of the following statements is correct? a) Perpetuities are finite but annuities are not. b) An ordinary annuity is worth more than an annuity due given equal annuity payments, interest rates, and time periods. c) A perpetuity comprised of $100 monthly payments is worth more than an annuity comprised of ...
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Wilson company purchased a machine on January 1 for $12,000. The machine had a 10-year life and a $1,000 salvage value assigned to it. Calculate the depreciation expense for the first two years using the straight-line depreciation method. a. $1,000 b. $1,100 c. $1,800 d. $2,100
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Assume that an economist states that, she believes the Federal Reserve should have the freedom to conduct monetary policy as it best sees fit in order to moderate recessions and promote full employment and price stability. All of the following are true about this economist EXCEPT A. she does not agree with all other ...
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Which of the following statements is true of the optimal capital structure? a. It is found by determining the debt-equity mix that maximizes expected EPS. b. It simultaneously maximizes EPS and minimizes the WACC. c. It minimizes the cost of equity, which is a necessary condition for maximizing the stock price. d. ...
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If the market price is below the equilibrium price, then which of the following is not correct? a. Producer surplus will be higher than at equilibrium. b. There will be a deadweight loss. c. The market will not be at equilibrium. d. There will be excess supply in the market.
a
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The Green Parrot Corp. manufactures birdcages. Its variable manufacturing overhead is assigned on the basis of direct labor hours. Its standard cost card per cage for variable manufacturing overhead is as follows: Standard DL hours 0.5 hours Standard variable overhead rate $20 per hour During the month of July, 2,0...
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Consider the following data on the selling price of homes in Concord, NH, and the number of times they are listed before being sold for the corresponding price. The data is as follows: | Price (X) | # Listings (Y) | |-----------|----------------| | 113,000 | 122 | | 104,000 | 158 | | 112,000 ...
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Determine a firm's return on investment for the most recent year, given the following information: Sales revenue: $38,352,000 Gross profit: 25% of Sales Administrative expenses: $1,534,000 Interest expense: 10% of Long-term debt Selling expenses: 18% of Sales Tax rate: 30% Long-term debt: $6,450,000 Total asset...
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Under Stage III, when various units of the company optimize their sales and profits without regard to the overall corporation, the organization may be experiencing a A) crisis of leadership. B) crisis of control. C) crisis of autonomy. D) crisis of decentralization. E) crisis of empowerment.
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The weights of the fish in a certain lake are normally distributed with a mean of 19 lb and a standard deviation of 6. If 4 fish are randomly selected, what is the probability that the mean weight will be between 16.6 and 22.6 lb?
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Which of the following is a valid interpretation of Keynes' law? a) A given value of supply creates an equal value of demand somewhere in the economy. b) Each time goods are produced, it represents income for someone. c) In the long run, supply and demand grow at the same rate. d) Demand creates its own supply. e)...
d
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Do private colleges charge their students a higher price for an education? The following data represent the 4-year tuition and required fees for a sample of private colleges in a region. Assume that the data are normally distributed. Calculate a 95% confidence interval for the variance of the tuition and fees for the c...
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The rule for maximizing utility states: a. The consumer should purchase all items that provide marginal utility, b. The consumer should purchase all items for which marginal utility per dollar is positive, c. The consumer should purchase all items for which marginal utility is positive, d. The consumer should spend...
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The IQ test scores are normally distributed with a mean of 100 and a standard deviation of 15. Given a class with 25 students, what is the probability that the class' average IQ score is between 85 and 115?
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Which of the following is not a criticism of O'Bannon? a. It does not account for the fact that some college athletes do not receive a salary equal to market value, but most do. b. It does not consider the fact that some college sports have many players who make significant contributions to the performance of the tea...
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ABC Inc. borrows money at 12%, sells bonds at 8%, and the purchasers of common stock require 16% rate of return. If the company has borrowed $20 million, sold $30 million in bonds, and sold $50 million worth of common stock, what is the Weighted Average Cost of Capital (WACC)?
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Consider a taxi station where taxis and customers arrive in accordance with Poisson processes with respective rates of one and two per minute. A taxi will wait no matter how many other taxis are present. However, an arriving customer that does not find a taxi waiting leaves. Find the average number of taxis waiting.
1
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Using implicit differentiation find the partial derivative of z with respect to x, where x^2+y^2+z^2=3xy+3yz+3xz.
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Which of the following will result in a decrease in the break-even point? a. increasing the sales price per unit b. decreasing the contribution margin per unit c. decreasing total fixed costs d. increasing the sales volume
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Power has a negative impact on the behavior of followers because it: a. focuses their attention on themselves. b. makes them disloyal and disengaged. c. reduces the value of upward communication. d. All of these choices are correct.
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Plowman Company reported the following information for 2010: Net Income$80,000 Depreciation expense30,000 Loss on disposal of a long-term investment6,000 Cash dividends paid3,000 Increase in cash35,000 Cash from operations200,000 Determine if the statement is correct or not. The cash paid for dividends was $3,000.
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The cash flows for three independent projects are given below: Year Cash flow Project X Cash flow Project Y Cash flow Project Z 0 -$50,000 -$150,000 -$60,000 1 10,000 50,000 15,000 2 20,000 50,000 30,000 3 3...
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Find the slope of the tangent line to the curve 3x^2y - \pi \cos(y) =4\pi at the point (1, \pi).
-2\pi
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Find the limit: {eq}\lim_{x\to 0} \frac{\log_4(1+x)}{e^x - 1} {/eq}
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I know that the sum of $\sum_{i=1}^\infty \frac{1}{i^2}$ equals $\frac{\pi^2}{6}$. I am unsure how to use this fact to evaluate the sum $\sum_{i=1}^\infty \frac{(-1)^i}{i^2}$. Could someone explain how to proceed, please?
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Evaluate the surface integral {eq}\iint_{\sigma} y dS where {eq}\sigma is the portion of the plane {eq}z = x+y inside the elliptic cylinder {eq}4x^2+9y^2=36 which lies in the first quadrant.
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After graduating from college, Taylor decided to move back into his parents' basement and live off of his savings. Taylor works full time at a financial firm and stays up-to-date with the latest economic news in the Wall Street Journal. He is considering several personal and government policies that he thinks will impr...
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A 4-bus system with two PQ buses and one PV bus is shown below. The parameters of the system are given in the table. The system is to be solved by the Newton-Raphson method with the initial estimates {eq}{\rm{V}}2\left( 0 \right) = 1 + j0\text{ p.u,} {/eq} {eq}{\rm{V3}}\left( 0 \right) = 1 + j0\text{ p.u,} {/eq} {eq}\t...
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In a binomial experiment with {eq}n = 300, \; p = 0.5{/eq}, find the probability that {eq}\hat{P}{/eq} is greater than 60%.
0.0003
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Which of the following entries correctly reflects the entry for recording the wages of all workers? A) Wage Expense Work in Process Inventory B) Work in Process Inventory Manufacturing Overhead Wages Payable C) Work on Process Inventory Wages Expense Cash D) Direct Labor Expense Indirect Labor Expense Wages ...
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The market for corn in Colorado consists of 100 identical buyers and 10 identical sellers. The demand function for one buyer is {eq}q = 5 - 0.5p {/eq} and the supply function for one seller is {eq}q = -5 + 0.5p {/eq}. The market equilibrium quantity is _____. a. 450 b. 350 c. 490 d. 500
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What is the present value of $1,000 a year for five years at a discount rate of 15 percent? Do not round intermediate calculations. Round your answer to 2 decimal places.
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What activity or activities is the construction of a college dormitory classified as? a. operating activity b. investing activity c. financing activity d. noncash investing and financing activity
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In the long run, a firm can cover all of its costs through a. only the production effect. b. only the scale effect. c. either the scale effect or the production effect. d. both the scale effect and the production effect.
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Johnson Corporation just paid a dividend of $4.63. The expected growth rate on dividends is 8 percent. What is the current price of this stock if the required rate of return is 10 percent?
250.02
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Find the period of the function y = 5 sin(2x).
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A piston-cylinder device initially contains 1.3 kg of air at 500 kPa and 350 K. The air is first compressed at constant pressure until the volume is reduced by 10%, and then it is heated at constant volume until the temperature reaches 500 K. Find the work output and heat transfer input for the process.
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To keep the price on a certain commodity at a minimum, which of the following should be avoided? A) Asking the production department to produce less than is actually needed B) Incentivizing production managers to produce as much as possible C) Paying commissions to salespeople on sales volume D) Having salespeople ...
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Suppose the Federal Reserve reduces the required reserve ratio. If the economy is operating with full employment and aggregate demand is relatively flat, fiscal and monetary policy would not be effective at increasing the level of output because: A) changes in the money supply have no effect on the interest rate. B) ...
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Find the value of the expression \frac{\sin^{4}{x}}{4}+\frac{\cos^{4}{x}}{3}+\frac{\sin^{2}{x}}{2}+\frac{\cos^{2}{x}}{1} for x= \frac{\pi}{16}. Express your answer as a common fraction.
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Wagner Company sold some machinery to Granger Company on January 1, 2007. The cash selling price would have been $568,620. Granger entered into an installment sales contract that required annual payments of $150,000, including interest at 10%, over five years. The first payment was due on December 31, 2007. What amount...
C
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Today, you deposited $10,000 in a risk-free savings account. Your plan is to withdraw $1,000 a year from your savings account, starting next year and continuing until the balance reaches zero. How long will it take your account to reach zero? Note: Your final deposit will be more than $1,000.
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Which of the following methods used in allocating joint product cost produces the highest dollar amount of cost for the "highest valued" product? a) Physical measure method b) Proportion of total sales method c) Market value at split-off method d) Estimated Net Realizable Value Method
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EXPLAIN WHY I. The price elasticity of demand is constant along the entire length of a linear demand curve. II. The price elasticity of demand is the special name that economists give to the slope of a demand curve. Select one: a. I is true, and II is false. EXPLAIN WHY b. I is false, and II is true. EXPLAIN WHY ...
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The higher the speed of which of the following economic variables, the more likely it is that imports will equal exports? a. GDP b. output c. inflation d. unemployment
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Suppose you deposit $900 cash into your checking account. By how much will the total money supply increase as a result when the required reserve ratio is 0.25?
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A nominal variable captures costs in terms of a. money. b. utility. c. time. d. some other good or service.
a
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Evaluate the integral \(\displaystyle \int_0^2 \int_x^{2x} \int_0^y 12xyz \ dz \ dy \ dx\)
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Suppose the marginal profit function of producing bags of hot Cheetos is MR = .4x + 2.50. Find the total revenue of producing 300 bags of Cheetos.
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The production department of a major manufacturer of plastic products asked the variance analysis department to perform an analysis of the factors that influence the prime cost of plastic resin (see the table below). A review of the records showed the following activity for the production of plastic resin in one of the...
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If a car is serviced on 30 May and an invoice is issued, the owner picks up the car on 31 May, the owner sends a cheque to the servicing firm on 4 June, and the firm banks the cheque on 7 June, income is recognized by the servicing firm on: a. 30 May b. 31 May c. 4 June d. 7 June e. none of the above
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An estimated loss on purchase commitments is reported: A. Under other expenses and losses. B. As a deduction from purchases. C. As a current liability. D. As an extraordinary item.
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For most students, the largest single cost of a college education is: a) The wages are given up to attend school, b) Tuition, fees, and books, c) Room and board, d) Transportation, parking, and entertainment.
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James walks a number of blocks equal to the distance around a circular block of radius 10 blocks. How many square blocks did he walk? Round your answer to the nearest whole number.
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Suppose that manufacturing a unit costs a company $30 in variable costs and the company has to pay $10 per unit for storage plus $10,000 per year for its factory. The storage cost is incurred for each year the item is stored in inventory, so if items are produced in December and sold in March, they incur storage costs ...
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Last year Alton Inc. had net income of $230,000 and dividends of $90,000. The average total assets for the year were $2,800,000. Alton's ROA is: A) 8.21% B) 8.27% C) 8.05% D) 8.13%
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You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.6%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 3% Liquidity premium = 1.2% Maturity risk premium = 2.45% Default risk premium...
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Suppose that 90% of male drivers when lost continue to drive rather than asking for directions. What is the probability that, in a sample of 100 lost male drivers, the proportion who continue to drive is within 0.15 of the population proportion?
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Which of the following would indicate a relatively large amount of market power? a. High price elasticity demand b. Low cross-price elasticity with other products c. Low Lerner index d. All of the above. e. None of the above.
b
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How many augmenting paths are there in a complete bipartite graph $G = (L \cup R, E)$ with $|L| = |R| = 20$, where each vertex in $L$ is connected to each vertex in $R$, starting from an initial matching $M$ of size 10?
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Calculate {eq}E = \displaystyle\int_C F \cdot \textrm{d}r{/eq} (line integral of vector field F along curve C) where {eq}F(x,y) = -y^2 \: \textrm{i} + 2xy \: \textrm{j}{/eq} and C is the curve {eq}y = x^3{/eq} from (1,1) to (-1,-1).
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You have been working for 15 years and want to retire. You have $100,000 in a retirement fund, which will earn an annual interest rate of 6.00%. How much more will you need in your retirement fund in 5 years if you retire at the end of 20 years (25 years from now)? In 5 years you will need $_____. (Round to the nearest...
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The cost to fly a distance of x miles at a certain airline is $0.92 + $0.00002x^2. The airline charges a fare of $0.70 per mile. Express the airline's net revenue as a function of the miles flown. (Revenue is the amount charged minus the cost.)
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If foreign currency gets stronger, then: a. domestic exports will increase b. domestic exports will decrease c. domestic imports will decrease d. domestic demand for goods will increase
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Evaluate $\lim_{x \rightarrow 0} (-1+\cos x)^{\tan x}$ without using L'Hôpital's rule.
1
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Consider the following information for a particular company: Dividends at time 0: $2.38 Flotation costs: $0.20 Current stock price: $50.00 Growth rate: 7% What is the cost of equity for this firm?
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How many days of accounts payable does the firm finance (Accounts Payable days-to-pay), if it has a net sales of $589,000, cost of goods sold of $460,000, and end-of-year accounts payable of $80,000, beginning-of-year accounts payable of $75,000, and end-of-year inventory of $85,000? a. 40.7 days b. 42.9 days c. 44....
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Yanik Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2020, at 97. The journal entry to record the issuance will show a: A. debit to Discount on Bonds Payable for $150,000. B. credit to Cash for $4,850,000. C. debit to Cash of $5,000,000. D. credit to Bonds Payable for $4,850,000.
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A company has a target capital structure of 40% debt and 60% equity. Its cost of equity is 15%, and the cost of debt is 7%. The relevant tax rate is 40%. Calculate the company's WACC.
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Comparing return on investment and residual income: Scenario 1: company net operating income = $25,000 ; total assets = $175,000 ; average operating assets = $140,000 ; interest rate = 14% Scenario 2: company net operating income = $30,000 ; total assets = $225,000 ; average operating assets = $180,000 ; interest rat...
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The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: 1. Sales at $520,000, all for cash. 2. Merchandise inventory on October 31 was $235,000. 3. The cash balance November 1 was $25,000. 4. Selling and administrative expenses are budgeted at $81,...
$520,000
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Your company uses the DDB method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On July 1, 20X1, your company purchases a machine for $200,000 with a useful life of 1...
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Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,500. The division sales for the year were $970,000 and the variable costs were $480,000. The fixed costs of the division were $530,000. If the backpack division is dropped, 40% of the fixed co...
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XYZ Corp just paid a dividend of $2.00 and its stock is now selling for $48 per share. Analysts have no growth expectations for the stock, that is, they believe the stock will pay a constant dividend forever (in other words g = 0). If the current risk-free rate is 6% and the market risk premium is 8%, then what is the ...
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Under the uncovered interest parity condition, an increase in the expected depreciation of the foreign exchange rate will lead to: A. an increase in domestic interest rate B. an increase in foreign interest rate C. a decrease in domestic interest rate D. a decrease in foreign interest rate
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The structure of the capital accounts of Al, Blaine, and Davenport is as follows: Al Blaine Davenport Balance, beginning $100,000 $650,000 $500,000 Direct investments 250,000 100,000 300,000 Interest on capital 5,000 7,500 10,000 Salaries 50,000 35,000 40,000 The partnership agreement provides for sal...
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A stock just paid a dividend of $1.41, has a required rate of return of 18%, and a constant dividend growth rate of 4%. What price should this stock be selling for? a. $5.66 b. $5.76 c. $10.47 d. $15.71
c
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For a particular compound, the longest wavelength of light that causes a transition from the ground state to the first excited state is 700 nm. Determine the energy required for this transition in kJ/mol.
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We have an $n \times m$ grid ($n \le m$) of points. Each point is assigned a unique integer $x$ such that $0 \le x < nm$. No two points share the same number. How many rectangles can be constructed whose corner points have the same remainder when divided by $n$, given that the only allowed movements are right or up?
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Assume that a company is considering purchasing a machine for $10,000, that it expects to last for 5 years, and that it expects to save $3,000 per year in labor costs. If the company's discount rate is 12%, then the present value of the savings is closest to: a. $1,000. b. $14,120. c. $15,000. d. $21,620. e. $12,0...
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Calculate the margin of error for your 95% confidence interval for the average price of all the textbooks sold by the bookstore using a t-confidence interval with the values x = 70.47, s = 22.35, and n = 45.
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Well-structured problems can be solved through the use of _____. a. heuristics only. b. algorithms only. c. natural concepts only. d. heuristics or algorithms.
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