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The theory of liquidity preference says that the interest rate rises when there is: a. An increase in wealth. b. A decrease in the stock of money. c. An increase in the expected price level. d. a and c e. b and c
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A bond has a $1,000 par value, an 8 percent annual coupon, and it matures in 30 years. The bond's current price is $800. The bond's current yield to maturity (YTM) is: A) 8.74%. B) 7.61%. C) 10.32%. D) 8.00%.
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The major degradation product of mRNA is: a. phosphate. b. di nucleotide. c. O-Methylated AMP. d. 3'-Pseudouridine. e. 5-methyl-Cytosine.
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The common stock of PM is selling for $36.40. The stock recently paid dividends of $1.60 per share and has a projected constant growth rate of 6.00%. If you purchase the stock at the market price, what is your expected rate of return? a. 10.56% b. 9.00% c. 11.56% d. 11.25% e. 10.85%
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If a company can supply 15,000 units for $20 per unit, and 25,000 units for $18 per unit then: a. marginal cost is $16 per unit. b. marginal cost is $22 per unit. c. average cost is $18 per unit. d. average cost is less than marginal cost.
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Select all the steps that are part of the cell-mediated (or T-cell) immunity. a. Dendritic cells collect foreign materials and migrate to a lymph node. b. T cells recognize an antigen presented by an infected cell. c. Cytotoxic T cells lyse a cell and release cytokines. d. Helper T cells respond to pathogens that l...
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When a domestic company sells the rights to use its brand or trademark in another country, this practice is called A. local marketing. B. export marketing. C. countertrade. D. foreign direct investment. E. licensing.
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Suppose the market for sunglasses initially has a supply described by {eq}P_{S} = 10 + 0.5 Q_{S} {/eq} and demand described by {eq}P_{D} = 200 - 2Q_{D} {/eq}. Then the price of the glass used to make sunglasses increases and so the new supply of sunglasses is given by {eq}P_{S} = 20 + 0.5Q_{S} {/eq}. What effect wil...
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Use combinatorial argument to prove that {eq}\binom{n}{k}\binom{k}{1} + \binom{n}{k+1}\binom{k+1}{1} = \binom{n+1}{k+1}\binom{n+1}{k}
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Evaluate the double integral {eq}\displaystyle I = \int_0^1 \int_y^{2y} (8x + 12y)\ \mathrm{d}x\ \mathrm{d}y{/eq}.
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If the last worker employed ($10/hour) produces 50 additional units of output per hour and the last unit of capital employed ($500/hour) produces 2,500 units of output per hour, how can the firm minimize the cost of its current output? a) hire more labor and less capital b) hire more capital and less labor c) hire m...
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What is the price of a call option with an exercise price of $55 if the current stock price is $60, the risk-free interest rate is 10%, and the option expires in three months? Assume the standard deviation of the stock is 45%.
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Nagoya Amusements Corporation places electronic games and other amusement devices in supermarkets and similar outlets throughout Japan. Nagoya Amusements is investigating the purchase of a new electronic game called Mystic Invaders. The manufacturer will sell 20 games to Nagoya Amusements for a total price of 176,000 Y...
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Edward's Manufactured Homes purchased some machinery 2 years ago for $63,000. The assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $16,000 to a foreign firm for use in its prod...
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A company's overall weighted average cost of capital is: a. More than the component cost of the debt. b. The same as its marginal cost of capital. c. Less than the component cost of equity. d. A weighted average of the cost of debt, preferred stock, and common stock.
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Pat Corp. has both fixed and variable costs. Fixed costs total $100,000 and the contribution margin ratio is 50%. The breakeven sales dollars are: A. $100,000 B. $200,000 C. Less than $100,000 D. More than $200,000
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What is the main difference between a firm with a stable dividend and a firm with a stable growth? A) A stable dividend is more risky. B) A stable growth is more risky. C) A stable dividend is more sensitive to interest rate changes. D) A stable growth is more sensitive to interest rate changes.
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Let {eq}Y = \int_{X}^{2} \frac{dt}{t} {/eq}, where X is a continuous random variable having a distribution function F(x). Find the distribution function of Y.
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A long wire carries current I1 = 20 A along the x-axis. A second current I2 = 30 A flows through a wire making an angle of {eq}\theta = 60 ^o {/eq} to the first wire. In which direction should I2 flow in order that the force between the two wires be attractive? a) Up the page b) Down the page c) Out of the page d)...
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Jim has the following assets and liabilities that he transferred into ABC Corporation in exchange for $80,000 in cash and 90% of the stock in ABC Corp, (FMV of $220,000). Adjusted Basis FMV Building $ 210,000 $ 225,000 Equipment $ 45,000 $ 75,000 Vehicles $ 25,000 $ 30,000 Mortgage on building $ 20,000 $ 30,000 Calc...
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An annual coupon bond that matures in 10 years sells for $985.00. It has a face value of $1,000 and a yield to maturity of 5.830%. The bond's current yield is __________. a. 4.60%. b. 5.44%. c. 5.80%. d. 5.91%. e. 6.22%.
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Suppose the total cost of producing {eq}x {/eq} units of a certain commodity is {eq}C(x) = \frac{5}{4}x^2 + \frac{1}{2}x + 80 {/eq}. Find A(m), the average cost per unit.
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Assume that annual rates of return on U.S. treasury bills are normally distributed with a mean of 2.5 percent and a standard deviation of 5 percent. For what percentage of years will the rate of return on the treasury bills be less than 3.5 percent?
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Quigley Inc.'s bonds currently sell for $1,100.00 and have a par value of $1,000.00. They pay a $110.00 annual coupon and have a 20-year maturity, but they can be called in 5 years at a call price of $1,120.00. What is their yield to maturity, YTM (nominal comp. rate)?
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When the price level rises in the aggregate economy, the: A. AE Curve shifts up. B. AE Curve shifts down. C. AE Curve does not shift at all but moves up along the existing AE Curve. D. AE Curve does not shift at all but moves down along the existing AE Curve.
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Jester Company wants to get an idea of the performance of its salespersons. Each salesperson has a set of customers. The customers have different characteristics. Some are in a location where the salesperson will have to travel a lot. Some are potential repeat customers. Some are likely to be a loss leader. The salespe...
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Logan's Market sells fresh vegetables on a cash basis only. Purchases of vegetables are recorded at the time of sale on the EFT (electronic funds transfer) receipt. Sales are recorded at the time the money is received by EFT. The sales and purchases during 2018 were: Net sales - $820,000 Purchases of vegetables - $37...
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Sharon Corp. sold merchandise to a foreign customer on December 16, 2012, with payment of 2 million yen to be received on January 14, 2013. The following exchange rates applied: Date Rate December 16, 2012 $0.0104 per yen December 31, 2012 $0.0100 per yen January 14, 2013 $0.0098 per yen Assume that Sharon Corp. e...
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The function f(x) = x - e^{-x} has a relative minimum at what x value?
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What is the variance of a geometric distribution for a given probability?
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In 1990 the total worldwide production of all metals was about 1.9 billion tons. The top five metals were iron, aluminum, copper, lead, and zinc. The production of the first four of these exceeded the fifth production of zinc by 1.6 billion tons. The combined production of the first three was 1.1 billion tons greater t...
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For the following transactions, tell whether the opportunity cost of the resources is included in the stated dollar amount. 1. A lawn service charges $40 an hour for mowing a lawn. a) No opportunity cost included b) Opportunity cost included
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What is the probability that the number of chips drawn from a box of 400, where 60 are red, will be between 22.5% and 27.5% if a sample of 50 chips is randomly taken without replacement? Also, if the random sample is taken with replacement, what are the limits to keep the probability of this happening above 95%, assumi...
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Market power is usually reduced when firms operate in a market with: a. many competitors offering close substitutes. b. differentiated products. c. product advertising. d. barriers to entry.
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On April 1, Sperazza, Inc. purchased 500 shares of Elijah Corporation stock at $22 per share. Sperazza plans to hold the investment for an indefinite period of time. At April 30, the market value of the stock is $25 per share. How should the investment be reported in Sperazza's April 30 balance sheet? a. Under Current...
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Jill has been working full-time for two years. During that time, her employer has withheld $30,000 for federal income taxes. Jill will have the opportunity to earn {eq}\$1,000 {/eq} more from her job next month. The tax on the extra {eq}\$1,000 {/eq} will be collected next month. If the government increases the withh...
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Refer to the following information and the table given below. The department had 4,000 equivalent units with respect to conversion in April. Units Percent Complete with Respect to Conversion Work in process April 1 50,000 80% Units started in April 80,000 ...
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A 20-year maturity bond with par value of $1,000 makes semi-annual coupon payments at a coupon rate of 8%. If the bond price is $950, calculate the effective annual yield to maturity.
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Assume that interest rate parity holds. U.S. interest rate is 8% and British interest rate is 10%. The forward rate on British pounds exhibits a discount of: a. 0.09% b. 1.63% c. 2.75% d. 1.75%
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A firm has an average collection period of 45 days and an operating cycle of 130 days. It has a policy of keeping at least $10 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of $20. Beginning receivables for the quarter amount to $35 and beginning accounts payable for the quar...
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Determine the point of inflection of the function f(x) = 5x^3 + 3x^2 - 9x + 12. a) (-1/5, 167/25) b) (1/5, -47/25) c) (-1/5, -47/25) d) (1/5, 167/25) e) (1, -7)
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White Products, Inc. currently has 240,000 units of part X113 in its inventory. These parts were produced in this amount in an earlier production run at a cost of $15 each. Currently, X113 is in stock, and no more units are expected. The company plans to produce 10,000 units of part X99 next year. Each unit of X99 wil...
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Apply the transformation u = x + y, v = x - y to the region bounded by 1 {eq}\leq{/eq} x {eq}\leq{/eq} 4, 0 {eq}\leq{/eq} y {eq}\leq{/eq} 2x to find its area.
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Given the following returns, what is the variance and standard deviation of returns for stock {eq}\text{A} {/eq}, stock {eq}\text{B} {/eq}, and the market portfolio? Year Market Stock A Stock B 1 9% 2% 12% 2 7% 3% 2% 3 ...
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A company had no beginning work in process inventory and a total of 6,000 units in production during a period. Of the 6,000 units, 4,000 were completed and transferred out and the remaining 2,000 are 25% complete as to conversion costs. If total manufacturing costs were $50,000 and the direct materials cost per unit is...
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Given $1234567890 \times 3=3703703700$, if a number is squared and the last ten digits of the square are all the same, what is the smallest possible number for that square?
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The expected number of typographical errors on a page is 2. What is the probability that at most two errors are found on a randomly selected page?
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An entrepreneur has to decide on a new business in which he can invest. The entrepreneur knows that there is a 40 percent chance that his business will be a success and a 60 percent chance that his business will fail. If the entrepreneur decides to enter the business and it succeeds, he will earn $50,000. If the entrep...
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The length of a line segment is 10 units. If one end of the line is at (2, -3) and the abscissa of the other end is 10, what are the two possible values for the ordinate of the other end?
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Which of the following statements is most correct? a) The statement of cash flows shows the movement of funds over a period of time but gives no indication of the financial condition at a specific point in time. b) The statement of stockholders equity provides a detailed breakdown of the changes in a firm's net incom...
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Use T accounts to record the transaction below, close the T accounts and construct a balance sheet to answer the question. (The company uses the cash basis of accounting.) What is the final amount in total liabilities? 1. Consume good or service and pay expense of $2,000.
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The sum of the debits is less than the sum of the credits in the current account and private capital account. This country has a: a. positive value in the official settlements account. b. balance of payments surplus. c. balance of payments equilibrium. d. balance of payments deficit.
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The price of a 1000 bond that matures in 20 years and has a coupon rate of 7% is 850. What is the yield to maturity for this bond? a. 8.7% b. 9.1% c. 7.3% d. 5.5%
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Find the minimum sample size that would limit the margin of error to within 0.02 of the population proportion for a 95% confidence interval.
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If the dollar required return for a particular investment is 7.25% and the investment offers a real return of 5.15%, what is the approximate inflation rate?
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On April 1, 2013, the date of the owners' meeting, the partner accounts of Weber & Company had the following balances: Total Cash: $38,000 Walter: $25,000 Timothy: $13,000 During the year ended December 31, 2013, the firm earned $150,000 and the partners made the following drawings: Walter, $30,000; Timothy, $20,000...
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You are in the market for a used 2013 Honda Accord. You know that half of the 2013 Accords are lemons and half are peaches. If you could be assured that the Accord you were buying were a peach, you would be willing to pay up to $12,000. On the other hand, you would only be willing to pay $4,000 for a lemon. You have no...
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How do I calculate the value of the summation $ \sum_{i=1}^n \frac{1}{2i-1} - \frac{1}{2i} $?
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In 20X6, the Anderson Corporation had outstanding 10,000 shares of $100 par value, 8 percent, non-cumulative preferred stock and 100,000 shares of $1 par value common stock. In 20X6 the preferred stock was convertible into 300,000 shares of common stock. During 20X6, Anderson declared and paid preferred and common divi...
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On January 1, 2015, Aaron's Automotive had a cash balance of $46,800. During 2015, the company had cash receipts of $225,200 and cash disbursements of $208,600. The company's accountant would report the 2015 activities as follows on the statement of cash flows: A. Cash balance, January 1, 2015 $46,800 Cash receipts 2...
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Appliance for Less is a local appliance store. It costs this store $21.26 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 607 units. Each order costs $87. The company is using Economic Order Quantity model in placing the orders. What is the ave...
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Munson, Inc. reports the following standard costs for one of their products, year-wide. Standard hours per unit 2.50 Standard rate per hour $10.50 Standard cost per unit $26.25 During the year, the company produced 5,000 units and incurred the following actual ...
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Choose the best answer. The demand for a good or service shows: a. what the market is willing to pay. b. how much of the good or service is demanded at different prices. c. the relationship between the price of a good or service and its marginal value. d. Both (b) and (c).
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SoC ($1.16) = SoA($1) x (1+ eRor Rate) SoC($1.18) = SoA($1) x (1+ eRor Rate) Solving gives eRor Rate = 2% Is this correct?
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The release of inventory that is directly associated with customer orders is called: a. putaway b. cycle stock c. order picking d. safety stock e. finished goods inventory
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Based on the Business Travel sheet showing regression results for the amount spent on entertainment on average daily hotel room rate for a random sample of 9 of the 25 most visited U.S. cities, we might believe that (a) Boston is a potential outlier (b) San Jose is an influential observation (c) San Jose may be an outl...
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West Co. recorded the following inventory information during the month of February: Units Unit cost Total cost Units on hand Balance on 2/1 800 $2 $1,600 800 Purchased on 2/8 1,000 $3 $3,000 1,800 Sold on 2/14 1,500 300 Purchased on 2/17 2,000 $1 $2,000 2,300 Sold on 2/23 1,600 700 Purchased on 2/28 800 $4 $3,200...
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As an advisor to Vinyard & Cork, you have been assigned to determine the project's WACC, which currently employs $10 million in 10% annual interest rate debt, $2 million in preferred stock with a 12% annual dividend rate, and $8 million in common stock sold at a market price of $12 per share. The firm has a marginal ta...
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Estimated costs for a project come from a PERT network analysis and are shown in the table below. Optimistic Most likely Pessimistic Activity 1 3 5 9 Activity 2 2 4 8 Activity 3 2 3 4 Activity 4 2 4 ...
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Assume that the aggregate labor market is such that the labor demand curve is upward sloping and steeper than the labor supply curve. If pessimistic expectations are widespread among workers in an economy with this type of labor market: a. real wages will fall while aggregate output will increase. b. aggregate output...
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You have been assigned the task of evaluating two mutually exclusive projects with the following net cash flows: 01234 Project X -$100,000$20,000$30,000$50,000$20,000 Project Y -$100,000$10,000$20,000$40,000$60,000 The company cost of capital is 10%. Which of the following statements is correct? a) Both projects...
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Find the curvature of the cycloid {eq}x=a-cos \theta, y=1+sin \theta{/eq}.
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During May, Crayola Company wrote off the following outstanding cheques: Check No. 2343 for $240, dated May 22, was recorded correctly in the cash payments journal but was not cashed until June 5. Check No. 2346 for $350, dated May 26, was recorded in the cash payments journal in the amount of $150 but was properly c...
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What is the present value of $10,000 per year perpetuity discounted back to the present at 8 percent? a. $125,000 b. $80,000 c. $12,500 d. $8,000
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Jan Tuttle is the inventory manager of an art supply store. She uses a periodic review system for all oil paints. The number of days between orders P for red paint is 16 workdays. Demand=36 units/work day Standard deviation of daily demand- 5 units/workday Lad-time=5 workdays The z value =1.38 for the desired cycle...
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Consider a profit-maximizing firm that manufactures ballpoint pens in a competitive market. We will assume that this firm has a small amount of fixed cost ($75) which it must incur regardless of the level of production. The variable cost, consisting of materials and labor, changes along with production levels. ...
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Scott, Inc., is considering a project that will produce cash inflows of $120,780 a year for five years followed by $81,120 in year six. What is the internal rate of return if the initial cost of the project is $422,460?
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Assume the table below shows the quantities of bananas and pineapples that a plot of land can produce in a growing season in Columbia and the Philippines. Bananas Pineapples Columbia404 The Philippines2032 Suppose each country has 2,000 plots of land and consumes the following (per season) without trade from alloca...
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$$ \lim_{n \to \infty} \frac{\frac{1}{3}+\frac{1}{4}+\cdots+\frac{1}{n}}{n-\frac{3}{4}-\frac{1}{5}-\cdots-\frac{1}{n}}$$ Where does I have to use the harmonic series? How to solve it?
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Maximum is reviewing an agreement with purchase provisions for Specialty Motors. Specialty currently is in bankruptcy and the Bankruptcy Code requires that: a. An agreement be limited to purchase of specific assets owned by Specialty as of the date of the executory contract. b. The buyer must pay for any additional a...
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Where did I make a mistake in my calculation, given that $p$ is prime and $a$ is an integer not divisible by $p$, and I need to calculate the sum $1+a+a^2+\cdots+a^{p-2}$ modulo $p$? My calculation proceeds as follows: I note that $(1+a+a^2+\cdots+a^{p-2})(1-a)=1-a^p$ and use the theorem that says $a^p \equiv a \pmod{p...
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In the following game, does either player have a dominated strategy? Player B Player A L R U 1, 1 0, 0 M 5, 4 3, 3 D 6, 3 1, 4 Select one: a. Yes, only player A has a dominated strategy b. Yes, only player B has a d...
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Which of the following has the greatest probability? (a) P(t > 2) if t has 5 degrees of freedom. (b) P(t > 2) if t has 2 degrees of freedom. (c) P(z > 2) if z is a standard Normal random variable. (d) P(t < 2) if t has 5 degrees of freedom. (e) P(z < 2) if z is a standard Normal random variable.
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The top product-line manager for a global network of country managers was recently given his performance evaluation. He was told that his revenues, income, and assets were all growing, but the firm was not meeting its strategic goal of increasing its profit margin. In other words, his product-line revenues and costs we...
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Find the area between the graphs of the polar curves r=2+sin θ and r=3sin θ.
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The naive multiplier and the "real world" multiplier would move closer together if: a. k falls and/or er rises b. rr falls and/or k falls c. None of the listed options is correct. d. k falls and/or er falls e. k rises and/or er rises
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Bogle Mutual Fund has a portfolio of 5 stocks which is valued at $45 million. The portfolio beta is 1.20. The risk-free rate is 7%, and the expected return on the market portfolio is 15%. Bogle pays an annual dividend on its stock of $2.25 per share. The firm is considering replacing one of its stocks (which makes up 1...
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Compute the line integral {eq}\int f \, ds{/eq} where {eq}f(x) = 4x^{3} + x + 1{/eq} and the curve {eq}C{/eq} is defined by the parametric equations {eq}r(t) = (\sin t, \cos t){/eq} with {eq}0 \leq t \leq 2\pi{/eq}.
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A firm has $250,000 of sales, $100,000 of net income, and $50,000 of net fixed assets. The firm's current assets equal 40% of sales. What is the amount of net working capital?
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Zumbrunn Company's income statement contained the condensed information below. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017 Service revenue $966,000 Operating expenses, excluding depreciation $618,900 Depreciation expense $54,400 Loss on disposal of equipment $23,900 $703,200 Income before ...
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Find the maximum and minimum values of the function f(x, y) = x^2 + y^2 subject to the constraint x^4 + y^4 = 18.
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Alpha Video has a new project that will sell for {eq}\$26 {/eq} per unit. The projected variable costs are {eq}\$12 {/eq} per unit. Based on the following table, what is the accounting break-even level of production? Sales $260,000 Variable costs $90,000 Fixed costs ...
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Assume that a company has developed a new computer application that will be marketed to small businesses. This application is a high quality and efficient time management software package. The expected sales are 50,000 units in year 1; 75,000 units in year 2; and 30,000 units in year 3. The selling price is $55 per uni...
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A rental car company wants to put cars in for rent. The company has determined that 10% of the time the engine will need to be rebuilt. If the company owns 2,000,000 rental cars, determine the probability that more than 190,000 of these engines need to be rebuilt.
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Land's End has 10% coupon bonds outstanding with a current market price of $914.34. The yield to maturity is 11.12% and the face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?
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Consider a homogeneous economy that produces only the two types of output: steel (S) and food (F). Labor (L) and capital (K) are the two inputs used to produce goods. Each country has 100 units of capital and 100 units of labor. The production functions for the two goods are S = 12L^{1/2} K^{1/2} F = 24L^{1/2} K^{1/...
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Lester Corp. desires to have $30,000 a year after taxes to maintain its current operations. It currently earns $40,000 in revenue. Lester is subject to a 25% tax rate. Compute Lester's break-even level of sales.
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McCormac, Inc. is considering a new project with estimated depreciation of $66,000, fixed costs of $26,100, and total sales of $60,700 and total variable costs of $43,500. The tax rate is 35 percent. What is the operating cash flow, OCF, for this project?
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For the following cash flows, what is the payback period? {eq}\begin{array}{ccc} \text{Year} & \text{Cash Flow} \\ 0 & -$5,000 \\ 1 & $1,000 \\ 2 & $1,000 \\ 3 & $2,000 \\ 4 & $1,000 \\ \end{array} {/eq}
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Presented below is selected information from the new broad platform costing system adopted by Calvin, Inc., near the beginning of the current accounting year: Cost and expense account Manufacturing overhead Cost/Expense Driver Direct materials: Number of parts used ...
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