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Assume fixed costs = $180,000, variable cost per unit = $15, and selling price per unit = $45. What is the break-even point (in units)?
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Given {eq}\sum\limits_{n=1}^{\infty }{{{2(n+3)} \over {{n^2}+3n}}} {/eq}, which of the following statements is true? a. the series diverges b. the series converges and the sum = 2ln(3) c. the series converges and the sum = 4ln(3) d. the series converges, but its sum cannot be determined e. the series converges an...
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Meston Press has a debt-equity ratio of 2.00. The pre-tax cost of debt is 9.10 percent and the cost of equity is 14.3 percent. What is the firm's weighted average cost of capital (WACC) if the tax is 34 percent? 10.80 percent 9.55 percent 8.77 percent 9.92 percent
8.77 percent
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When a society decides to increase its consumption of present goods: a. it necessarily must forgo some future goods, too. b. it necessarily must forgo some present and some future goods. c. it does not necessarily have to forgo some future goods, but it would be very silly of it to do so. d. it does not necessarily...
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A company using the perpetual inventory system purchased $10,000 worth of merchandise on July 13 and $11,000 worth on July 27. Both transactions were made with terms of 2/10, n/30. On July 15, the company returned $500 worth of merchandise. If the company paid its entire accounts payable balance on August 4, how much w...
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Let $(X, Y)$ have the joint pmf $p(x,y)=c(y+1)$ for $x=1,2$ and $y=0,1$. Find $E[2XY]$.
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Messana Inc. planned to use $156 of material per unit but actually used $159 of material per unit. And planned to make 1,050 units but actually made 1,020 units. The price variance for materials is: a. $2,700 unfavorable. b. $300 unfavorable. c. $2,700 favorable. d. $300 favorable.
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When a firm using more capital and less labor A. the isoquant becomes steeper. B. the isoquant becomes flatter. C. the shape of the isoquant does not change. D. the firm experiences diminishing marginal product. E. the shape of the isoquant is a straight line.
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M.T. Glass, Inc. employs a periodic inventory system and sells its inventory to customers for $14.25 per unit. At June 1, M.T. Glass had an inventory with a total cost of $75,000 on hand (note - the number of units in beginning inventory is intentionally not given). During June, M.T. Glass recorded the following purcha...
4.16
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Earnings per share from continuing operations will be higher when there is a _____. a) gain on disposal of equipment b) loss on disposal of equipment c) cash flow from financing activities d) change in cash flows from operating activities
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Biff Corporation's marginal cost of capital is 11%, and its marginal tax rate is 34%. The cost of its debt capital is: a) 7.92% b) 8.50% c) 9.20% d) none of the above Biff Corporation's marginal cost of capital is 11%, and its marginal tax rate is 34%. The cost of its equity capital is: a) 14.24% b) 12.86% c)...
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Balls A and B, which have identical sizes and masses, are simultaneously thrown horizontally from the roof of a building with the initial speed {eq}v_A > v_B {/eq}. Which ball lands first? a) A b) B c) both land at the same time d) neither lands
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Houston Corporation Income Statement For The Year Ended December 31, Year 2 Sales (all on account) $2,342,500 Cost of goods sold $1,141,700 Gross margin $1,199,800 Selling and administrative expenses $470,000 Depreciation expense $103,000 Income before taxes $626,800 Income tax expense $143,700 Net income $483,...
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If the accounts payable balance is $4,000 at the start of the year, purchases are $30,000, and the ending balance is $5,000, what is the amount of cash paid to suppliers? a. $29,000 b. $31,000 c. $33,000 d. $35,000
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A university has found that 20% of its students withdraw from completing the introductory statistics course. Assume that 20 students have registered for the course this quarter. What is the probability that more than three will withdraw?
0.5886
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The Superior Company produces a part used in the manufacture of one of its products. The unit product cost is $31, computed as follows: Direct Materials$10 Direct Labor9 Variable manufacturing overhead2 Fixed manufacturing overhead6 Unit product cost $31 An outside supplier has offered to provide the annual requ...
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The manager of Winter Park Hotel claims that the room rates for a weekend stay in a luxury hotel in this area have increased by more than $3.8. The data below is the sample room rates collected last week, for a sample of 10 luxury hotels. Use this data and the 0.01 significance level to test the manager's claim. $133 $...
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Braddock Corporation makes a product with the following standard costs: Particulars Standard Quantity/Hours Standard Price/Rate Standard Cost per unit (Direct material) (Direct labor) (Variable overhead) Direct materials 8.8 ounces $3 per oun...
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Which of the following is the correct statement? a. There is a direct relationship between interest rates and bond prices. b. A change in the expected future interest rate will always cause a change in a bond's price. c. The required rate of return on a bond is fixed in the sense that it does not change for the life...
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Oriole Company made the following journal entry in late 2018 for rent on property it leases to Danford Corporation: Cash 153,000 Unearned Rent Revenue 153,000 The payment represents rent for the years 2019 and 2020, the period covered by the lease. Oriole Company is a cash basis taxpayer. Oriole has income tax payabl...
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Jackson & Sons uses packing machines to prepare their products for shipping. One machine costs $850,000 and lasts about 3 years before it needs to be replaced. The annual operating cash flow per machine is $-10,000. What is the equivalent annual cost of one packing machine if the required rate of return is 9%? a. $32...
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Assume that the risk-free rate of return {eq}r_{RF} {/eq} is 6.0 percent and the market risk premium {eq}r(MRP) {/eq} is 5.0 percent. If a stock has a beta of 1.5, what is its expected rate of return?
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You are buying a stock that sells for $50 per share in an initial public offering (IPO) and you are setting up a stop loss order with the broker. What will your share be reequested at if you set your stop at 10% below the selling price of $50 per share? a. $40.00 b. $45.00 c. $47.50 d. $55.00
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Horace Company, which operates a retail store, deducted the following reserves for the current year from its income statement: $30,000 reserve for doubtful accounts, $40,000 reserve for merchandise returns and allowances, and $75,000 reserve for amounts due after the end of the year for merchandise sold on account. De...
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Evaluate the line integral {eq}\int_c y^2 dx + 2xy dy; c {/eq} is the segment of the parabola {eq}y = 2x^2 {/eq} from {eq}(2, 8) \enspace to \enspace (3,18) {/eq}.
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Two firms are considering merging into a single firm. The right-hand table shows the cost functions for each firm. The left-hand table gives the demand curve facing each firm. If the firms merge, the cost of the combined firm will be the sum of the two costs. What is the marginal cost for each firm in the merged firm...
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Last year the Black Water Inc. paid dividends $4.83. Company's dividends are expected to grow at an annual rate of 3% forever. The company's common stock is currently selling on the market for $91.56. The investments banker will charge flotation costs $4.51 per share. Calculate the cost of common equity financing usin...
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A company anticipates the following results for the year ending 31st December: pounds Direct Material purchases 250,000 Indirect Material purchases 54,000 Direct Wages 75,000 Indirect Wages 27,000 Hrs of machine use (at total of 7,500 hours during the year) 15,000 The actual results for the year are as follows: ...
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Complete three iterations of Newton's Method for the function {eq}f(x) = x^2 - 2{/eq} using the initial guess {eq}x_1 = 2{/eq}. Round your answers to four decimal places.
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Assume the random variable X is normally distributed, with mean {eq}\mu{/eq} = 30 and standard deviation {eq}\sigma{/eq} = 4. Find the 19th percentile.
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If the number of units produced is more than the number of units sold, which of the following statements is true when comparing overhead costs under absorption versus variable costing? A. Variable costing will produce higher fixed overhead costs on the income statement. B. Absorption costing will produce higher fixed...
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Suppose that consumers in the United States become pessimistic about their future employment and income. As a result, they decide to cut back on consumer spending. If the price level is sticky and the MPC is 0.80, then which of the following is true? a. The aggregate demand curve will shift to the right and the equil...
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At 25 degrees Celsius, for the reaction 2A(aq) {eq}\to {/eq} B(aq) + C(aq), the equilibrium constant is 1.80. If the concentration of B(aq) was 0.317 M and the concentration of C(aq) was 0.462 M, what would be the minimum concentration of A(aq) necessary in order to make this reaction spontaneous under these condition...
0.285 M
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The price of a zero-coupon bond with 10 years to maturity is 456. If the YTM remains constant, in one year the price of this bond will be _____. a. Less than 456 and closer to 500 b. 456 c. More than 456 d. None of the above
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If expectations of the future price level increase, the aggregate demand curve will shift to the: a. left, because a higher expected price level reduces the real value of current wealth and wealth decreases consumption. b. left, because a higher expected price level increases the real value of current wealth and weal...
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The P/E ratio for Dowd Chemical is 15.12. The firm just paid a $3.00 dividend. The firm's management expects earnings to grow at 10%. If you buy the stock, you plan to hold it for 5 years. What is the price of the stock?
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A coupon bond that matures in 10 years sells for {eq}\$950 {/eq}. The bond has a face value of {eq}\$1,000 {/eq} and a yield to maturity of 6.05%. The bond makes semiannual coupon payments. What is the bond's current yield? a. 5.72% b. 4.88% c. 5.02% d. 6.00%
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Capital Corporation uses standard costs for its manufacturing division, which consists of Product X and Product Y. The variable overhead cost rate for Product X is $3.00 per unit; it is $4.00 per unit for Product Y. Product X has a standard of 2 hours per unit, and Product Y has a standard of 3 hours per unit. All of t...
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Find the work done by the force field {eq}\mathbf{F} (x, y) = \left \langle xe^y, xy^2 \right \rangle{/eq} on a particle that moves along the curve {eq}y=1-x^2{/eq} from {eq}(1, 0){/eq} to {eq}(0, 1){/eq}.
16/105 - (e-1)/2
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You wish to borrow $2,000,000 to finance the construction of a small multi-family investment property. A lender is willing to give you a 10 year fixed rate fully amortizing loan at 4.5%. In what month will you have paid back exactly half of your principal balance?
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Fresh Brew coffee pays its rent of $12,000 annually for the next 10 years. The firm pays the rent in full each year at the start of the year. The cost of funds for the firm is 10%. The present value of the lease payments is: a. $87,234 b. $81,120 c. $75,787 d. $89,800 e. $72,000
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All of the following are characteristics of a zero-coupon bond except: A) It is sold at a discount and pays a specified return at maturity. B) The current yield will never vary. C) It pays interest only at maturity. D) It does not require any amortization of discount. E) Its yield is a realized return.
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Given the curve with equation {eq}r(t) = <8\cos(t), 8\sin(t), 2t> {/eq} where {eq}0<t<4\pi {/eq}, find the unit tangent vector {eq}T(t) {/eq} and the curvature {eq}\kappa(t) {/eq} at the point {eq}P(8,0,2\pi).{/eq}
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The following data, relating to direct materials costs for September of the current year, are taken from the records of Play Tyme Inc., a manufacturer of plastic toys: Quantity of direct materials used6,800 lbs. Actual unit price of direct materials $3.10 per lb. Units of finished product manufactured1,610 units ...
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Evaluate the double integral {eq}\iint_D 8xy \, dA{/eq}, where {eq}D{/eq} is the triangular region with vertices (0,0), (1,2) and (0,3)
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The dividend yield on Alpha's common stock is 4.9%. The company just paid a $2.60 dividend. The rumor is that the dividend will be $2.80 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock?
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The first step in the mechanism for the acid-catalyzed hydration of an alkene is the formation of a carbocation via a(n): A. Nucleophilic attack B. Proton transfer C. Loss of a leaving group D. Rearrangement
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Delta Corporation uses standard costs for its manufacturing division, which consists of the production of cellular telephones. The company is currently producing and selling 50,000 units of a single model of cellular telephone. The variable costs of production are $87 per unit, and the fixed costs total $120,000 per ye...
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The following information is available for May of the current year: Beginning inventory at retail: $ 210,000Net purchases at retail: 1,100,000Net markups at retail: 22,000 Net markdowns at retail: 21,000 Net Sales: 1,180,000 Beginning inventory at LIFO cost: $126,000 The retail inventory method would determine the en...
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Find the volume of the solid under the surface z = 10xy and above the triangle with vertices (1, 1), (4, 1) and (1, 2).
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Your company has a customer who is closing down a production line, and it is your duty to dispose of the extrusion machine. The company could keep it in inventory for a possible future product and estimates that the reservation value is $250,000. Your dealings on the secondhand market lead you to believe that there is ...
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In a period of rising prices, which inventory method generally results in the lowest balance sheet amount for inventory? a. LIFO b. FIFO c. average-cost method d. specific identification
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Recognition by Components (RBC) theory would predict that an object in an unfamiliar orientation will be recognized _____ than it would be in a familiar orientation. What would template theory predict? a. RBC: slower; Template: slower b. RBC: faster; Template: slower c. RBC: at the same speed; Template: slower d. R...
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Once financial statement fraud is suspected, how should the fraud investigator proceed? a. Call the district attorney to begin criminal proceedings. b. Determine whether the financial statements agree with the general ledger balances. c. Perform a Benford's Law test. d. Interview the accounting department staff.
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Calculate $$\int^{t}_{0} (s-t)^2 \mathrm{d}w_s$$ and explain why it is $-2(t-w_s)(t-s) + \frac{1}{2}(t^2-s^2)$.
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Cole Publishing has a line of credit with its bank and must keep a $10,000 minimum balance each month. There is no outstanding loan at the beginning of January. Loans can be borrowed and repaid in any amount. The cash balance on January 1 is expected to be $13,000. Sales were $38,000 in December and are budgeted to be ...
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A firm has an EBIT of $300,000 and a tax rate of 40%. The cost of debt is 6% and the firm is financed 75% by equity and 25% by debt. What is the firm's weighted average cost of capital? (Show calculations) a. 4.55% b. 5.31% c. 7.67% d. 9.07%
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Molteni Motors Inc.'s free cash flow to the firm was $32 million in its most recent fiscal year that just ended. The company's FCF is expected to grow at 7% per year in perpetuity. The company's WACC is 11%. The market value of the company's debt equals 31% of its total value, and the rest is the value of its common st...
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Choose $n$ numbers uniformly at random from the interval $[0,1]$. Let $S_n$ be the sum of their squares. Find the limit of the distribution function $F_{S_n}(x)$ at $0$.
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Consider a company that has two classes of stock: common stock and preferred stock. The stock is publicly traded, and the beta for the common stock is 1.5. The company's capital structure calls for the common stock to be financed with 40% of the company's total capitalization, and the preferred stock to be financed wit...
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Big Blue Enterprises has agreed to buy Little Red Industries for $160,000 in an all-cash deal. Both firms are unlevered. Big Blue was trading at $25 per share on the stock market before the announcement and has 28,000 shares of stock outstanding. Little Red Industries was trading at $15 per share before news of the buy...
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Evaluate the surface integral {eq}\int_{S} \int F \cdot dS{/eq} for the vector field {eq}F(x, y, z) = x^2 i + 5y^2 j +z^2k{/eq} and the positively oriented surface S, which is the part of the cone {eq}z = \sqrt{x^2 + y^2}{/eq} below the plane z = 2.
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The three product lines are: A $90,000 B $60,000 C $70,000 Joint fixed costs $80,000 Required: If product C is dropped: The product margin will: a. decrease by $10,000. b. decrease by $20,000. c. increase by $70,000. d. increase by $20,000. e. increase by $40,000.
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Jim purchased a {eq}\$100,000 {/eq} US T-bill at {eq}3\% {/eq} discount rate for {eq}97 {/eq} days. He converted his proceeds to British pounds at the exchange rate of {eq}0.55 {/eq} pound per dollar. After {eq}97 {/eq} days, Jim received the {eq}\$100,000 {/eq} plus interest in pounds. What is his yield in GBP?
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Assume that today is December 31, 2013, and that the following information applies to Artic Supply: 1. After-tax operating income [EBIT(1 - T)] for 2014 is expected to be $450 million. 2. The depreciation expense for 2014 is expected to be $180 million. 3. The capital expenditures for 2014 are expected to be $400 mi...
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If a June futures price is 96-64, the implied annual storage cost (assuming a 360-day year) is closest to: a. 1.07% b. 1.47% c. 1.95% d. 0.97%
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A clothing retailer is considering closing a store in a down economy and relocating it when the economy recovers. The lost revenues of the existing store are $150,000 per year, while the new store is expected to produce revenues of $200,000 per year. The additional net operating income per year between the new and old ...
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Which of the following are the consequences of a currency appreciation? A. a reduction in net exports and a movement up along the AD curve B. an increase in net exports and a movement down along the AD curve C. a reduction in net exports and a shift of the AD curve to the left D. an increase in net exports and a sh...
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How large a sample is required to estimate the population mean to within 1 with 95% confidence? Assume the population standard deviation is 8.3. (Round the z-value to 2 decimal places. Round up your answer to the next whole number.)
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Required: LeMay Department Store, Inc., paid $120,000 for a 15 percent common-coupon stock in Weatherall Company on January 2, 2015. On February 15, 2015, LeMay received $1,400 in cash dividends from Weatherall. Weatherall's income for the fiscal year ending December 31, 2014, was $480,000. LeMay's balance sheet at De...
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I'm trying to calculate the integral $$\int_\gamma\frac{\cos(z)}{z^2}dz$$ where $\gamma$ is the unit circle. My calculation is as follows: $$\int_\gamma\frac{\cos(z)}{z^2}dz = \int_0^{2\pi}\frac{\cos(e^{it})}{e^{2it}}ie^{it}dt = i\int_0^{2\pi}\frac{\cos(e^{it})}{e^{it}}dt.$$ I am unsure of how to integrate $\cos(e^{it}...
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Direct material costs and direct labor costs together make up which of the following costs: A) Product cost B) Conversion cost C) Period cost D) Committed cost E) None of the above
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To reduce cost, a firm decides to discontinue purchasing a component from an outside supplier and to manufacture it themselves. Last year, they spent $25,000 total for the purchase of these items, which were bought in batches of 1,500 units. Inventory carrying cost was calculated as $50 per unit per year. The ordering ...
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Windsor Manufacturing Company reported the following data at year end: Land$100,000 Land (held for future use)360,000 Buildings750,000 Inventory450,000 Equipment350,000 Furniture150,000 Accumulated depreciation250,000 What is the total amount of property, plant, and equipment that will appear on the balance sheet? A...
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The present value of a single future payment will be a. higher if the interest rate is low. b. higher if the number of periods is low. c. higher if the future payment is small. d. Both a and b are correct. e. None of the above.
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This year Burcher Corporation had net operating income of {eq}\$150,000 {/eq} and net cash flow provided by operating activities of {eq}\$175,000 {/eq}. The company's comparative balance sheet revealed the following: Asset/ Liability Year 2 Year 1 Cash $25,000 $20,000 ...
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The indicated function $$ y_1(x) = e^x \sin x $$ is a solution of the given differential equation. Use reduction of order or the formula $$ y_2(x) = y_1(x)\int \frac{e^{-\int P(x)dx}}{y_1^2(x)}dx = y_1(x)\int \frac{e^{-\int \frac{2}{x}dx}}{y_1^2(x)}dx $$ to find a second solution $$ y_2(x) $$ of the given differential ...
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We consider the merton model with {eq}L(t)=e^{X(t)} {/eq} where {eq}X(t) {/eq} follows a brownian motion with drift 1 and variance 4. Which of the following gives the expected value of {eq}L(t) {/eq} (in the risk neutral world) when {eq}t=1 {/eq}? (round your answer to two decimal places).
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Zytelco uses the modified internal rate of return (MIRR) when evaluating projects. The firm uses an 11 percent cost of capital. Today, they are evaluating a project with a net investment of $1,460,000. The project will generate a cash flow of $750,000 in year one, and $1,025,000 in year two. How do I calculate the MIRR...
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The income statement is prepared from: a) both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheet b) either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet c) the adjusted trial balance d) the Income Statement columns of the end...
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Ramsden Company manufactures a single product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses a process costing system to accumulate manufacturing costs and compute the amount of cost that should be assigned to e...
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Compute the flux of the vector field \(\vec F = 3y\hat{i} + 5\hat{j} - 3xz\hat{k}\) through the surface \(S\), which is the surface \(y = x^2 + z^2\), with \(x^2 + z^2 \leq 4\), oriented in the positive \(y\)-direction. Flux =
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At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $12 million. $8 million of the purchase price was allocated to the building. Depreciation for 2014 and 2015 was calculated using the straight-line method, a 25-year useful life, and a $2 million residual value. In 2016, the estimates of usefu...
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Regulation Q was the main vehicle used by the Federal Reserve System in the 1930s and 1940s to ration checking accounts among competing uses, or ration credit. A. True. B. False.
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Which of the following is an incorrect statement regarding the tax consequences of a section 306 stock disposition? a. In a sale of section 306 stock, the shareholder generally recognizes ordinary income equal to the fair market value of the preferred stock on the date it was acquired in the stock dividend. b. No los...
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Linke Motors has a beta of 1.50, the T-bill rate is 3.00%, and the T-bond rate is 5.00%. The annual return on the stock market during the past 3 years was 7.00%, but investors expect the annual future return on the market to be 11.00%. Using the SML, what is the required rate of return on Linke Motors' stock? a) 10.00...
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Find the value of a if the lines 2x - 3y + 10 = 0 and 3x + ay - 8 = 0 are perpendicular.
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Suppose you take a path from one end of a long narrow solenoid to the other end by going through the center of the solenoid along an axis. What is the line integral of magnetic field along this path?
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Conducting an experiment with a 534 nm wavelength green laser, a researcher notices a slight shift in the image generated and suspects the laser is unstable and switching between two closely spaced wavelengths, a phenomenon known as mode-hopping. To determine if this is true, she decides to shine the laser on a double-...
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Woolcrest Ltd. provides costs for its single product using process costing. Direct material is added at the beginning of the production process and conversion activity occurs uniformly throughout the process. Physical units Materials Conversion Work in process, August 1 50,000 1...
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Find the equation of the tangent plane to the curve given by the vector function {eq}r(u,v)=u^2i+2\sin(v)j+u\cos(v)k{/eq} at the point where {eq}u=1,v=\pi{/eq}.
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A clock mechanism at rest has a period of exactly 1.0 s. When this clock is observed while moving with a speed of 0.81c, what is its period?
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What is the relationship between AFC, ATC, and AVC?
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Consider a population with a normal distribution and standard deviation of 10. What is the maximum sampling error you can expect with a sample size of 16? Please specify your answer in two decimal places (e.g. 0.51).
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Peterson Company's December 31, Year 1 balance sheet showed $2,200 cash, $300 accounts payable, $800 common stock, and $1,000 retained earnings. The company experienced the following events during Year 2. (1) On April 1, Year 2, the company paid $2,200 cash to rent office space for the coming year starting immediately...
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I know that a bad punster is a source of great shame for all language, but I can't help but be reminded of the fact that the derivative of $arctan(x)$ is $\frac{1}{x^2+1}$ and so they are inverse functions in a sense. Given that $arctan(x)$ is equal to $tan^{-1}(x)$ I thought that it might be possible to prove the foll...
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A positive integer n is a fixed point of the function F(x) = x / f(x) if n = F(n), where f(x) denotes the sum of the digits of x. For example, 1 is a fixed point of F(x) since f(1) = 1 and 1 / 1 = 1. For which positive integers b does the function F(x) have a fixed point?
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Given the limit $$\lim_{n\to + \infty} \int_{-1}^1 \frac {arcsin(x)}{(1+x^2/n)^n} \, dx,$$ and the inequality $$\frac {arcsin(x)}{(1+x^2/n)^n} \le \frac {\pi}{2} e^{-x^2}$$ and the inequality $$\frac {arcsin(x)}{(1+x^2/n)^n} \ge \frac {arcsin(x)}{e}$$ in different intervals, can we conclude that the limit is 0 by apply...
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A service department has an adjusting entry to allocate its expenses between operating departments and other service departments. Operating Department Expense: a. Increases b. Decreases c. Remains unchanged d. May increase or decrease e. Cannot be determined
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A cylinder-piston device containing water that is initially at 600 kPa and 70% quality is heated at constant pressure until it becomes saturated vapor. Determine the heat transfer to the cylinder needed for this process, in kJ/kg. Use the thermodynamic table for water.
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