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Which of the following is not an acceptable partnership tax year? (a) The tax year used by any principal partner (b) The tax year used by the partners who own a majority interest (c) A tax year that results in a {eq}2 {/eq}-month deferral of income for the partners (d) C's tax year if C owns more than {eq}50 \% {...
c
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ABC Corporation Income Statement For the Year Ended December 31, 2012 Sales$498,000 Cost of Goods Sold$237,000 Depreciation Expense$19,300 EBIT$241,700 Interest Expense$21,800 Taxable Income$219,900 Taxes$83,965 Net Income$135,935 Cash Balance January 1, 2012$5,000 Accounts Receivable January 1, 2012$39,00...
None
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Medical claims filed by patients insured by Blue Cross and Blue Shield (BCBS) of Oklahoma are assumed to have an underlying distribution with a mean of $4,000 and a standard deviation of $1,500. If a random sample of 35 claims is selected, what is the probability that these claims will have to be paid by BCBS of Oklaho...
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The preferred approach to addressing the principal-agent problem is to: A. provide good monitoring and incentive mechanisms. B. reduce the authority of the agent. C. reduce the scope of the agency relationship. D. limit access to relevant information.
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Use the CAPM to calculate a required return for a stock with a beta of 1.25. The market expected return is 11% and the risk free rate is 4%.
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The Hartford Company has two service departments and two producing departments. The following information has been gathered for the upcoming accounting period: Service Department Prodcuing Department Department A Department B 1 2 Direct overhead $21,600 $61,200 $80,400 $64,800 Number of employees 12 20 32 36 Number ...
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The consumer is in equilibrium when: A. the budget line is tangent to the indifference curve at the bundle chosen. B. {eq}MRT = MRS {/eq}. C. {eq}P_x/P_y = MU_x/MU_y {/eq}. D. All of the above.
D
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Evaluate the following iterated integral: {eq}\displaystyle \int_{1}^{5} \int_{2}^{e} \int_{1}^{2} \frac{y}{x} \: \text{d}x \: \text{d}y \: \text{d}z {/eq}
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How does $\left(1 - 3\frac{h}{2} + 3\frac{h^2}{2^2} - \frac{h^3}{2^3}\right) = \left(1 - h + \frac{3h^2}{2} - \frac{3h^3}{2}\right)$?
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Imagine that you are working for an investment bank that is preparing a financial plan for a firm. The bank is the only source of the financial plan and the firm has asked you to do the following: a. Determine the after tax cost of debt. b. Determine the cost of equity. c. Determine the after tax Weighted Average Co...
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Assume the market demand for pizza is given by the demand curve {eq}Q^d = 300 - 100P {/eq}. Suppose the marginal cost of producing pizza is constant at $2.00 per pizza and the pizza sellers have no fixed cost. What is the producer surplus generated by the market? a) $500 b) $200 c) $400 d) $100
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Determine the value of the constant $c$ for which the following integral converges: $$\int_{-\infty}^0 \frac{x^2+cx+6}{(e^x-3)^2} \, dx$$. Also, can someone explain why my attempted solution, which involved using L'Hopital's rule and finding the derivative of $e^x-3$, is incorrect? Specifically, why is it invalid to ev...
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How do you find the integral of #int (sin x)/(cos^2x + 1)dx#?
-arctan(cos x) + C
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At an individual firm in a perfectly competitive industry in long-run equilibrium: a. Price is equal to both marginal cost and average total cost. b. There are no economic profits to be made. c. All resources are being used efficiently. d. More than one of the above e. None of the above
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Suppose 1-year T-bills currently yield 5% and the future inflation rate is expected to be constant at 3% per year. What is the real risk-free rate of return, r*?
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What is the economic and mathematical rationale for breaking up long contracts into many shorter-term, repeatable contracts, like the one described in the provided example?
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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.25 .16 Repete Co. .95 .10 Assuming these securities are correctly priced, based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal p...
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Suppose you are the money manager of a $5.00 million investment fund. The fund consists of 4 stocks with the following investments and betas: Stock/Investment/Beta A/ $425,000 /1.50 B/ $560,000/- 0.50 C/ $1,380,000/1.25 D/ $2,435,000/0.75 If the market's required rate of return is 13% and the risk-free rate is 7%, wh...
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The smartest thing a firm involved in an oligopoly market could do is to cut their prices and capture more of the market share from their competitors. a) We learned in class that the best move would be to raise prices. b) We also learned that cutting prices on an elastic demand curve will be a smart way of getting...
c
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An accountant computed the flux of the vector field $F$ through the upward oriented surface $S$ with the equation $z = 4 -x^2 -y^2$. The accountant's work is shown below. Give the error(s) the accountant made. Flux of $F$ through $S$ = $\iint \limits_S F \cdot \hat{n} d\sigma$ where $\hat{n}$ is the unit normal vector...
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Isaacs Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.60 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.40 pounds. Materials cost $2 per pound, but Isaacs always takes the 2.00% cash discount all of...
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In a long-run equilibrium under monopolistic competition a. firms experience zero economic profit. b. competition occurs because of product differentiation. c. firms are maximizing profit where marginal revenue equals marginal cost. d. All of the above
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Assuming a 35% probability that your firm will raise $60 million by issuing equity and a 65% chance of borrowing $60 million, what is the expected value of your firm's debt?
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Calculate the expected return and standard deviation for a two-stock portfolio ($3,000 in Stock A and $7,000 in Stock B) in each of the three states of the economy (Recession, Normal, and Boom) given the following data: Rate of Return State of Economy Probability of Economy Stock ...
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Which of the following would not cause a shift in the aggregate demand (AD) curve? a) a major technological advance b) a decrease in the real interest rate c) an improved future income prospect d) a stock market crash
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E21-29 Martinez Corporation engaged in the following cash transactions during 2018. 1. Sale of land and building $154,000. 2. Purchase of treasury stock 37,000. 3. Purchase of land 31,000. 4. Payment of cash dividend 87,000. 5. Purchase of equipment 47,000. 6. Issuance of common stock 128,000. 7. Retirement of b...
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Company X has the following activities: Assembly of subassemblies, Setup time, Testing of subassemblies. It assigns overhead to products based on machine hours. Overhead costs associated with the three activities are as follows: Assembly of subassemblies = $120,000, Setup time = $140,000, Testing of subassemblies = $80...
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Determine the sample size necessary to estimate a population mean to within 1 with 95% confidence (using a confidence coefficient of 0.95) given that the population variance is known to be 360.
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How many people need to be sampled to estimate the proportion of smokers in the city with a margin of error of 0.06 and a 95% level of confidence, given that a recent study indicated that about 25% of the population are smokers?
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Interest rates in the U.S. have been abnormally low in recent years due to __________. A. A weak dollar, which makes U.S. exports more competitive abroad B. A decrease in the trade deficit as a percent of GDP C. An increase in investments in the U.S. D. None of the above.
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Evaluate the integral. {eq}\int_{1}^{4}\frac{e^{\sqrt{t}}}{\sqrt{t}}dt
2e(e-1)
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Which of the following statements is true? A. A market structure with no barriers to entry is referred to as a monopoly. B. When considering the factors of market structure, the amount of control each firm has over the market price is directly related to the number of other firms in the market. C. High entry barrier...
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Suppose your firm is considering investing in a project with the following cash flows, that the required rate of return on projects of this risk class is 12%, and that the maximum allowable payback and discounted payback periods are 2 and 3 years, respectively: Project X: Year 0: $10,000 Year 1: $2,000 Year 2: $3,0...
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A firm is currently selling its product for $300 per unit. Total fixed costs are $42,000 and total variable costs are $450,000 at a sales level of 1,000 units. What would be the effect on profit if it dropped its selling price to $280 per unit? A. decrease of $22,000. B. decrease of $18,000. C. increase of $18,000. ...
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Consider a one-period binomial tree. Suppose the current stock price is 10, the risk-free rate is 4%, and the stock goes up by 10% or down by 5%. Find the price of a call option with exercise price K=10 using a two-period tree (i.e. three nodes in total). Round answers to two decimals. Use the following notation: -- u...
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Which of the following would reduce the marginal propensity to consume? A. A decrease in personal income taxes. B. An increase in personal income taxes. C. A decrease in personal savings. D. An increase in personal savings.
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Separating the plan generators from the plan implementers often leads to A) a more effective implementation. B) the development of plans that lower level managers begrudgingly try to implement. C) ensuring the wisdom and experience of those managers higher in the organization are included in the plan. D) all of the...
D
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Compute $$ \lim_{N\to\infty} \frac{1}{N} \sum_{n=1}^N \log(1+x_n), $$ where $x_n$ are i.i.d. $x_n \sim N(0,1)$.
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Roberts Corp., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $260,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The operat...
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Clover Cornhusker is considering a project that will produce cash inflows of $25,000 a year for three years followed by $15,000 in year four. What is the internal rate of return if the initial cost of the project is $55,000? a) 16.43 percent. b) 17.19 percent. c) 17.63 percent. d) 18.59 percent.
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Which of the following statements is true about the companies that engage in economies of scale? a. In order to achieve a large market share, firms must produce over a narrow range of output. b. Firms can expand without increasing their average cost of production. c. Firms can enjoy economies of scale only if they a...
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Sally purchased a municipal bond for $1,000. The bond pays no interest. At maturity, the bond pays the holder $1,040. What is Sally's after-tax rate of return if she is in a 35 percent tax bracket? a. 3.6% b. 4% c. 4.4% d. 7%
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Find the area in the appropriate tail of the t distribution for t=-2.018, df = 42.
0.025
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In an economy with a production possibilities frontier that is described by the production function Y = 16X0.25Z0.75, the marginal rate of technical substitution of X for Z equals a. 16(0.75/Z) - 0.25 (X/0.25). b. 16 (0.75Z)-0.25 (0.25 X). c. 16 (0.25Z) - 0.75 (0.75 X). d. 16 (0.25Z) (0.75X). e. 16 (0.75/Z) (0.25/...
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What is the present discounted value of a 10-year annuity of $5,000 per year given a discount rate of 8% per year, with the first payment 5 years from today (so the last payment is 14 years from today)?
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Suppose a U.S.-based firm wants to hedge against a potential dollar decline against the euro over the next three months. Which of the following hedging strategies would be most appropriate? a. a short forward contract to sell euros for dollars b. a short call option on euros c. a short put option on euros d. all of...
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Given the following sample of X, determine the 90% confidence interval to estimate the population mean: 20, 24, 22, 26, 32, 21, 27, 31, 22, 28, 30, 23, 31, 25, 26, 24, 27, 30.
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What is the sign and value of the tax multiplier if the government increases spending by the same amount as it reduces taxes? Assume marginal propensity to consume is 0.8. A. +1.6 B. +1 C. -1 D. -1.6 E. 0
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Suppose that {eq}A{/eq}, {eq}B{/eq}, {eq}X{/eq} are {eq}n\times n{/eq} matrices satisfying {eq}{{A}}^{{-1}}X{{B}}^{{2}} = B{{\left(AB\right)}}^{{-1}}{/eq}. Find an expression for {eq}X{/eq} in terms of {eq}A{/eq} and {eq}B{/eq}.
X = B^{-2}
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Consider the following information on the Hawk Corporation's capital structure. Bonds: 35% 4.5% coupon rate, semiannual pay, $1,000 par, 20 years to maturity. Stock: 65% 5.0% expected return. Assume the company's marginal tax rate is 40%. Calculate the firm's weighted average cost of capital.
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Find the minimum sample size you should use to ensure that your estimate is within the desired accuracy from a very right-skewed distribution with a mean of 46.7 and a standard deviation of 66, using a margin of error of 12 and a confidence level of 95%.
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The price elasticity of demand is always constant along the entire length of a linear demand curve. State whether the statement is true or false.
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In the case of __________, the average total cost (ATC) curve lies above the average variable cost (AVC) curve. a. the slope of the AVC is always greater than the slope of the ATC b. the AVC curve is always increasing c. the MC curve is always increasing d. the ATC curve is always increasing e. the MC curve lies a...
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Consider the following limit: {eq}\lim_{x \to\infty}\frac{2+2x+\sin(2x)}{(2x+\sin(2x))e^{\sin(x)}} {/eq} If we apply L'hospital's rule then we get: Since the function {eq}e^{-\sin(x)} {/eq} is bounded and {eq}\frac{4\cos(x)}{2x+4\cos(x)+\sin(2x)}e^{-\sin(x)} {/eq} tends to {eq}0 {/eq}. Furthermore, (referring to...
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Countercyclical monetary policy in the AS/AD Model involves: A. contractionary monetary policy no matter what the level of unemployment. B. expansionary monetary policy no matter what the level of unemployment. C. contractionary monetary policy during periods of high unemployment and expansionary monetary policy dur...
D
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A firm can produce its good using labor or capital. It has reached its optimal choice of labor and capital, given the prices of the inputs. If the price of labor increases, how does the optimal choice of labor and capital change? a. Use less labor and less capital. b. Use more labor and more capital. c. Use less lab...
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Assume that the price of gold is $\$1400$ per ounce (oz) on the spot market in the United States. In the futures market, one can buy a one-year futures contract on gold for $\$1360$ per oz. Currently the risk-free rate of interest is $5\%$ per year, compounded continuously. If gold can be stored at a cost of $\$5$ per ...
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Consider a project with free cash flows in one year of $130,000 or $180,000, with each outcome being equally likely. The initial investment required for the project is $100,000, and the project's cost of capital is 20%. The risk-free interest rate is 10%. What is the NPV of this project?
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The distribution of the sample mean is normal, and the mean and standard deviation are: A. μ = 40, σ = 20.738 B. μ = 40, σ = 2.074 C. μ = 37.333, σ = 2.074 D. μ = 37.333, σ = 2.0
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Which of the following is a critical flaw of the payback period method of project evaluation? a. The method does not take account of differences in the sizes of the projects. b. The method does not take proper account of differences in the sizes of the projects' cash flows. c. The method does not take proper account...
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Use implicit differentiation to find an equation of the tangent line to the devil's curve defined by: {eq}y^2(y^2 - 16) = x^2 (x^2 - 17) {/eq} at the point {eq}(0,-4) {/eq}.
y = -4
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Resource accounting focuses on: A. direct costs that are economically traceable to a specific cost object. B. allocating indirect costs to specific cost objects. C. determining a common allocation base for allocating costs to the specific cost object. D. establishing and following a predetermined overhead rate.
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If a firm receives $3,000 in cash when it issues a one-year $2,500 note, the journal entry that the firm makes is: a. Cash 2,500; Interest Revenue 500; Notes Payable 3,000 b. Cash 2,500; Interest Revenue 500; Notes Payable 2,500 c. Cash 3,000; Interest Expense 500; Notes Payable 2,500 d. Cash 3,000; Interest Expens...
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Why does Fubini's theorem fail for the function $f(x,y)=\dfrac{x^2-y^2}{(x^2+y^2)^2}$ over the region $D=\{(x,y)| 0<x^2+y^2<1\}$, even though $f$ is continuous on $D$, and how does changing the inner integration variable from $x$ to $r\cos\theta$ affect the result?
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Which of the following is not a major characteristic of monopolistic competition? A. Excess capacity B. Product differentiation C. Barriers to entry D. First-mover advantage
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Obed Cocoa Farms (OCF) is a manufacturing firm making raw cocoa powder. As part of an ongoing expansion program, the company plans to purchase a new processor costing $1 million. An additional $25,000 would be required to modify the equipment for factory use. Shipping and installation charges are $1,200 and $500, respe...
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The 80/20 rule: A) finds that 80% of revenues are generated by the top 20% of the customers. B) finds that 80% of profits are generated by the top 20% of the customers. C) can be graphed as the whale curve. D) finds that 80% of costs are generated by 20% of the customers.
A
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Mexico's capital stock fell from $525 billion in 2007 to $490 billion in 2008, despite positive investment, everything else equal. Which of the following explanations is possible? a. Mexico's depreciation was $35 billion greater than investment b. depreciation was $35 billion less than investment c. depreciation was...
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What are the different methods to evaluate the limit $$\lim_{n\to\infty} \frac{\sqrt[n]{e} + ... + \sqrt[n]{e^2} + \sqrt[n]{e^{2n}}}{n}$$ and which one is the most efficient?
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Suki's Salsa, Inc., produces salsa in batches of 200 lb. From past experience, Suki's knows that 3% of the batches are underfilled. A quality control inspector selects a sample of 50 batches each day. If two or more underfilled batches are found, Suki's stops production for the day and investigates the equipment. What ...
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Use the definition of an extreme point to prove that the extreme point of the function f(x) = x^3 is at x = 0.
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Does steady-state export imply that we can get out of this recession by promoting investment and creating export markets, or is there something else going on, like a lack of accounts payable? As such, if Congress does nothing, we could be in a debt deflationary process for the foreseeable future.
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According to the quantity theory, changes in the: A. quantity of money leads to proportional changes in the growth rate of aggregate output. B. price level leads to proportional changes in the quantity of money. C. quantity of money leads to proportional changes in the price level. D. velocity of money leads to pro...
C
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Find the limit of (tan 5x)^x as x approaches 0 from the right.
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Which of the following statements is correct? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio. b. If you are not an optimist, then the sharp ratio is the appropriate measure of a portfolio's riskiness, given your negative orientation...
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Suppose we have an asset that costs $40,000 and will have a salvage value of $10,000 at the end of its eight-year life. If we use the MACRS depreciation method to calculate depreciation expense, the depreciation expense in year 2 will be closest to _____. a. $2,188 b. $4,294 c. $5,625 d. $6,400
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You have $100,000 to invest in either Stock D, Stock E or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 10.80%. D has an expected return of 15% and E has an expected return of 9.60%. If you invest $30,000 in Stock D, how much will you invest ...
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A company has two equally available projects: Project A has a beta of 0.9, and Project B has a beta of 1.1. The firm plans to use a 12% WACC for Project A and a 14% WACC for Project B. If the risk-free rate increases by 1 percentage point, by how much will the WACC of Project B exceed the WACC of Project A? a. 4.00% ...
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A bond currently has a price of $1,050. The yield on the bond is 6.00%. If the yield increases 25 basis points, the price of the bond will go down to $1,030. The duration of this bond is _ _ _ years.
7.62
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In a representative sample of 400, it is found that 136 residents favor the use of hemp fibers in clothing materials. At the 95% confidence level, what is the confidence interval for the proportion of residents that favor the use of hemp fibers? a. (0.3178, 0.3962) b. (0.3032, 0.3918) c. (0.3152, 0.3888) d. (0.3066...
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Salazar Corp's most recent income statement appears below: Sales (all on account)$505,000 Cost of goods sold$275,000 Gross margin$230,000 Selling and administrative expense$157,000 Net operating income$73,000 Interest expense$25,000 Net income before taxes$48,000 Income taxes (30%)$14,400 Net income$33,600 The beginn...
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$$\int {{{3x + 3} \over {{x^2} + 4x + 3}}} \ dx$$
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Which of the following is NOT one of the mechanisms that can reduce the activity of a drug? a. Phagolysosomes. b. Altered target proteins. c. Decreased intracellular uptake. d. Active efflux. e. Enzymatic destruction.
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Given the information below for the first year of operations, Income Statement Data: Units produced this year: 60,000 Units sold this year: 50,000 Selling price per unit: $35 Direct materials cost per unit: $9 Direct labor cost per unit: $6 Variable manufacturing overhead per unit: $1 Fixed manufacturing overhea...
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A company is in its first year of operations and has never written off any accounts receivable as uncollectible. When the allowance method of recognizing bad debt expense is used, the entry to recognize that expense: a. Increases net income. b. Decreases current assets. c. Has no effect on current assets. d. Has no...
b
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Calculate the balanced budget multiplier, if marginal propensity to consume is 0.6 and marginal tax rate is 0.25.
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Job Costing Use the following information to determine the underapplied or overapplied overhead for June. Actual Total overhead costs incurred$124,000 Estimated total overhead costs$120,000 Actual total direct labor hours6,400 Estimated total direct labor hours5,800 Actual direct labor hours at 120% of estimated t...
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Suppose you know that an investment portfolio you manage has a duration of 15 years, and you expect that interest rates will rise 50 basis points. Using the duration as a predictor of the percentage change in the market value of your portfolio, what is your expectation of the dollar change in the value of the portfoli...
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A sample of 20.0 mL of 0.100 M {eq}NH_3 {/eq} is titrated with 0.100 M {eq}HClO_4 {/eq}. What is the pH after the addition of 20.0 mL of acid? a. 9.24 b. 9.80 c. 7.02 d. 4.75 e. 5.13
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Which of the following factors affect the computation of a loan's periodic payment? Check all that apply. -Interest rate -Living expenses -Periodic payment -Term of the loan
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Let $f : \mathbb{C} \rightarrow \mathbb{C}$ be a holomorphic function. which of the following statement is True (A) $f( \bar z)$ is holomorphic; (B) Suppose that $f(\mathbb{R}) ⊆ \mathbb{R}$. Then $f(\mathbb{R})$ is open in $\mathbb{R};$ (C) the map $z \rightarrow e^{f(z)}$ is holomorphic; (D) Suppose that $f(\mathbb{C...
C
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Suppose that the price p (in dollars) and the weekly sales x (in thousands of units) of a certain commodity satisfy the demand equation 4p^3 + x^2 = 45,900. Determine the rate at which sales are changing at a time when x = 170, p = 10, and the price is falling at the rate of $90 per week.
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A company produces light bulbs that have a length life with a standard deviation of 10 hours. If the probability of a bulb lasting less than 180 hours is known to be .0681, what is the mean life of the bulbs?
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This year, Fido's earned $51,000 before interest expense and taxes. The company paid $34,000 in interest and $15,000 in taxes. Calculate the times interest earned for Fido's.
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Find the solid obtained by rotating the region bounded by the curves y = 25x - 5x^2, y = 0 about the y-axis. Sketch the region, and find the volume V of the solid.
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A firm is considering buying a machine that costs $150,000 and the machine will last for 10 years. The machine will produce sales of $40,000 per year and operating expenses will be $10,000 per year. Depreciation expenses will be $15,000 per year. The firm's marginal tax rate is 40%. What is the annual net cash flow fro...
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You have forecast that United Sports, Inc. will pay a dividend of $.50 next year (in time 1), $.80 two years from now (in time 2), and $1.20 three years from now (in time 3). For dividends beyond three years, you assume they will increase at 5% per year from the prior year. If the discount rate is 9%, calculate a fair ...
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The management accountant: A. Is responsible for setting company policies and procedures B. Works directly with other functional area managers C. Computes product costs for inventory statements D. Has no involvement in the planning or controlling functions of management E. None of these
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The workers at the Axme Corporation have divided into several cliques. Employees in each clique tend to stick together, sharing lunch and coffee breaks. The employees in one clique very seldom interact with workers in another clique. This type of situation may create _____ barriers that prevent effective communication....
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Which of the following situations would cause variable-costing income to be higher than absorption-costing income? a. Sales prices decreased by $5 per unit during the accounting period. b. Units sold and units produced were both 45,000. c. Units sold equaled 57,000 and units produced equaled 51,000. d. Units sold e...
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