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The random variable X is uniformly distributed on the interval (1, 5). Let Y=X^2. Find the density function of Y.
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Consider the following information: State of economy Probability of State of Economy Return on stock A Return on stock B Bust 0.10 0.13 0.20 Normal 0.60 0.12 0.06 Boom 0.30 0.09 -0.04 What is the standard deviation of a portfolio with half of...
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Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $238,600. At the end of the year, actual direct labor-hours for the year were 16,300 hours, manufacturing overhead for the year was underapplied by $16,400, and the...
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Let $f(x) = 2 \cos{(x)}$. Find the smallest value of $n$ for which the nth-order Taylor polynomial about $0$ for the function $f(x)$ approximates the value of $f(\pi/2)$ with an error no greater than $10^{-6}$.
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Write a cash budget for the month of April for the Royal Hotel. There will be no financing required for the month. Mayflower Hotel April Cash Budget Cash inflow: Cash from customers: $ 15,000 Total cash inflows: $ 15,000 Cash outflow: Interest paymen...
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Operating cash flow is a company's actual cash flow plus or minus the interest and taxes. True or False.
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Houston Company had the following account balances for 2020: Dec. 31 Jan. 1 Accounts receivable $37,500 $28,500 Accounts payable $45,000 $50,000 Houston reported a net income of $230,000 for 2020. Assuming no other changes in current account balances, what is the amount of cash paid to suppliers during 2020? a. $23...
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The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (30% completed) 4,000 units Completed units during June 65,000 units Ending inventory (60% complete) 7,000 units What is the number of conversion equivalent units of production in the June 30...
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An urn contains 5 green and 4 blue balls. Two balls are randomly picked without replacement. What is the probability of picking two balls of different colors?
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Pat has $25,000 in net operating income and the tax rate is 40%. He makes an investment in equipment costing $25,000 with a 5 year life for $7,500 after tax cash flow in each of the 5 years. The after-tax cash flows in years 1 through 5 are discounted back to the present at 8% giving a present value of $28,300.00. If t...
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A sample of {eq}n = 4 {/eq} individuals is selected from a population with {eq}\mu = 60 {/eq} and {eq}\sigma = 20 {/eq}. What is the probability that the sample mean will be greater than 70?
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If a company issues $100 million of 10-year debt and uses the cash to repurchase $100 million of equity, what is the impact on the debt ratio and the weighted average cost of capital? Show calculation.
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If an interval of time contains {eq}\pi{/eq} events, then its length must be greater than or equal to: a) 0 b) 1 c) {eq}\frac{\pi}{\mu}{/eq} d) {eq}\mu{/eq}
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Prehn Industries manufactures packing crates for sales to customers in 30 states. The company uses the variable cost approach to prepare its flexible budget and income statement. The company uses machine-hours as the basis for allocating both fixed and variable manufacturing overhead. Its budget for the first quarter ...
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A spaceship traveling toward Earth with a speed of 0.75c launches a probe toward Earth with a speed of 0.95c as measured by an Earth observer. Find the speed of the probe as measured by an observer at rest in the spaceship.
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ABC Co. has a capital structure, based on current market values, that consists of 30% debt, 20% preferred stock, and 50% common stock. If the returns required by investors are 10%, 12%, and 15% for the debt, preferred stock, and common stock, respectively, what is ABC's after-tax WACC? Assume that the firm's marginal t...
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You are given a sample size n = 47. You are asked for a 90% confidence interval. What value of t or z do you use?
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ABC Corp. uses LIFO inventory. Prices are increasing. If ABC Corp. uses FIFO, its net income would be higher. Given this situation, what other two financial statement amounts would be higher if ABC Corp. used FIFO? a. Cost of Goods Sold and Inventory b. Cost of Goods Sold and Retained Earnings c. Inventory and Net I...
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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 $954,000 Operating expenses (excluding depreciation) 627,600 Depreciation expense 51,300 Loss on disposal of equipment 22,800 602,700 Income before inc...
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If the euro appreciates from $1.25 euros per dollar to $1.30 euros per dollar: a. dollar will buy more euros. b. euros will buy more dollars. c. euros will buy fewer dollars. d. euros will be worth more.
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Locomotive Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm's debt-equity ratio is expected to rise from 50 percent to 70 percent. The firm currently has $8.5 million worth of debt outstanding. The cost of this debt is 8 percent per year. The firm expects t...
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An asset is purchased for $360,000 and is expected to have a useful life of 15 years. The firm's discount rate is 15%. If the asset is purchased, the following net cash flow (in thousands of dollars) will be associated with the asset's life: Year 0 1 2 3 4 5 6 7 8 ...
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"Clicks and bricks" is another name for the _____ model of virtual organizations. A) star alliance B) virtual face C) virtual space D) virtual broker
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What would be the after-tax operating income (EBIT(1-T)) for a project with an EBIT of $2,000,000; a corporate tax rate of 40%; and a 50/50 debt/equity capital structure?
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Consider a vector space $\mathbb{R}^4$ with the following inner product defined on it: $$ \langle(x_1,y_1,z_1,w_1),(x_2,y_2,z_2,w_2)\rangle=2x_1x_2+y_1y_2+z_1z_2+w_1w_2. $$ I've been given the basis $\beta=\{v_1,v_2,v_3,v_4\}$ where $$ v_1=(1,1,0,0), v_2=(1,0,1,0),v_3=(0,1,1,0), v_4=(0,0,0,1). $$ I need to check if $\b...
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Approximate the slope of the graph of {eq}\displaystyle f(x) = x^2 {/eq} at the point (3,9) by finding the slope of the secant line through (3,9) and (3.1,f(3.1)).
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Which of the following would cause net income on the accrual basis to be different from (either higher or lower than) "cash provided by operating activities" on the statement of cash flows? a. Paid advertising expense. b. Purchased supplies for cash. c. Purchased land for cash. d. Paid dividends to stockholders.
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Assume that the risk-free rate is {eq}5.5 \% {/eq} and the market risk premium is {eq}4 \% {/eq}. What is the required return for the overall stock market?
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On June 28, 2018, Mingenback Company sells some equipment to G.O.D. Corporation. The two companies enter into an installment sale contract at a rate of 8%. The contract requires 8 equal annual payments with the first payment due on June 28, 2018. What type of compound interest table is appropriate for this situation? ...
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Investors require a 10 percent per year return on the stock of the Take-Two Corporation, which anticipates a non-constant growth pattern for dividends. The company paid a $2 per share dividend. The dividend is expected to grow by 15 percent per year until the end of year 4 (i.e., for the next 3 years) and 7 percent the...
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A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is: a. $105,000 b. $40,000 c. $65,000 d. $8,400
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Which of the following statements is incorrect regarding savings, investment, and government policies? A. A cut in the interest rate shifts down the AE curve, lowers the demand for money, and thus decreases the price level. B. A cut in the interest rate shifts down the AE curve, lowers the demand for money, and thus ...
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A sample of size 40 is taken from an infinite population whose mean and standard deviation are 68 and 12, respectively. What is the probability that the sample mean is larger than 70?
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A firm sold $500,000 in merchandise during the year. Accounts receivable at the beginning and end of the year were $80,000 and $110,000, respectively. Assuming a 365-day year, how long on average did it take the credit sales to be collected in days, given no bad debts? A) 75 days. B) 79 days. C) 83 days. D) 89 days...
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Hopewell Corporation's controller has gathered the following information: - Cost of goods manufactured for the current year was $320,000. - The company's inventories at the beginning and end of the year were as follows: Beginning of YearEnd of Year Work in process$12,000$17,000 Finished goods$230,000$195,000 The...
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Determine the work done on a charge of 2μC in moving it from (3, 3, 3) m to (2, 2, 2) m if F = (x + y + z) N.
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Back flush costing aims at reducing waste in the: A) accounting system. B) cost of goods sold. C) storage of raw materials. D) production process.
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Titan Football Manufacturing, has a target capital structure of 58% common stock and 42% debt. It's cost of equity is 16% and the cost of debt is 6%. The relevant tax rate is 35%. What is the company's WACC?
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Calculate the consumers' surplus at the indicated unit price {eq}\bar{p} {/eq} for the demand equation. (Round your answer to the nearest cent.) {eq}p = 12 - 2 q^{\frac{1}{3}}; \bar{p} = 8 {/eq}
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Show that the point {eq}x^* = (2,1){/eq} is a global maximum point of the function {eq}f(x_1, x_2) = -x_1^2 - x_2^2 + 4x_1 + 2x_2{/eq}. What is the maximum value of the function?
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Assume that interest rate parity holds. U.S. interest rate is 13% and British interest rate is 10%. The forward rate on British pounds exhibits a of %. a. Discount; 2.73 b. Premium; 2.73 c. Discount; 3.65 d. Premium; 3.65
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Which of the following statements is true? a. ROE is the return on investment less the cost of the firm's debt. b. ROI is the return on investment plus the cost of the firm's debt. c. The goal of capital budgeting is to maximize the firm's debt-equity ratio. d. An increase in the corporate income tax rate reduces t...
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Which of the following actions by a government would likely create the greatest tax revenue? a. Raising the excise tax on cell phones. b. Reducing the corporate tax rate. c. Raising the sales tax rate on gasoline. d. Raising the minimum wage to $7.00 an hour. e. Increasing the unemployment insurance benefit from $...
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You are provided the following information for James Company for the month of March. Retained earnings, March 1 $ 450,000 Dividends declared and paid during March 28,000 Net income for March 60,000 What is the balance in Retained Earnings on March 31?
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Consider the following data: Year Price of good X Quantity of good X Price of good Y Quantity of good Y 2012 1 10 1.2 20 2013 1.5 6 1.2 18 The base year is 2012. Compute nominal GDP for 2013.
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Which one of the following statements is most accurate? If the absolute value of the calculated test statistic is less than the critical value, the null hypothesis should be rejected. If the calculated test statistic is greater than the critical value, the null hypothesis should be rejected. If the absolute value of...
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What is the uncertainty in the position of an electron moving near a nucleus at a speed of 9.5 * 10^7 m/s? Assume the uncertainty in the speed of the electron is 3% the speed.
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The stock of Nogro Corporation is currently selling for $34.50 per share. Earnings per share in the coming year are expected to be $3.70. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 21% rate of return per year. This situati...
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Ritzy's Caverns, Inc., estimates that it can sell 1,450,000 cards per year at a price of $1.80 per card. The canes have a unit variable cost of $1.30 and fixed cost is $371,000. If the cards are sold to customers at a price of $1.80 per card, the annual net cash flow from the sale of the cards is _____. a. $320,000 b...
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If X and Y are substitutes and demand for X is {eq}Qxd = \alpha 0 + \alpha XPX + \alpha YPY + \alpha MM + \alpha HH {/eq}, then we know: a. {eq}\alpha X < 0 {/eq}. b. {eq}\alpha X > 0 {/eq}. c. {eq}\alpha Y < 0 {/eq}. d. {eq}\alpha Y > 0 {/eq}.
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Determine the maximum value of the function f(x) = 5^x - x^5 on the interval 0 ≤ x ≤ 2.
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Erling Corporation produces microwave units. The following per unit cost information is available: Direct materials$33 Direct labor$25 Variable manufacturing overhead$17 Fixed manufacturing overhead$37 Variable selling and administrative expenses$13 Fixed selling and administrative expenses$25 Its desired ROI per uni...
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If $30,000 is deposited for 3 years at 6% compounded quarterly, what would be its final value? A) $34,102.61 B) $1,002.61 C) $35,730.00 D) $5,730.00
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A moving electron has a kinetic energy of {eq}5.87 \times 10^{-17} {/eq} J. Calculate its de Broglie wavelength (in nm).
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A company incurs a cost of $360 per unit to produce a product. The selling price is $400. If the company produces and sells 1,000 units, which of the following is true? A) Total cost is $3,600,000 and profit equals $4,000,000 B) Total cost is $3,600,000 and profit equals $400,000 C) Total revenue is $3,600,000 and p...
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The town of York has a $2.5 million total debt outstanding. Its current ratio is 1.75 and its debt service coverage ratio is 1.75. If the town's interest rate is 4%, its principal and interest payment this year will be closest to: a) $175,000 b) $100,000 c) $75,000 d) $87,500
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How does $\int_{-1}^1 4xdx = 2x^2|_{-1}^1 = 2(1^2 - (-1)^2) = 2(1-1) = 0$ prove the Pythagorean theorem?
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Cullen Company produces three products: A, B, and C. The following data have been taken from the company's accounting system: Product A Product B Product C Sales $ 100,000 $ 120,000 $ 80,000 Variable manufacturing and marketing expenses 30,000 ...
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The Jacob Company is going to pay an annual dividend of 0.60 dollars per share next year. They expect that dividends will be 0.80 dollars per share next year and 1.20 dollars per share in year three. After that, Jacob expects dividends to grow at a constant rate. Assume that investors require 11% to 15% return on the s...
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Suppose that you are the money manager of a $100 million dollar pension fund that will make 10 end-of-year payments to pensioners of $5 million (note this is a perpetuity of $5 million per year). Your investment policy is to leave 90% of your assets in the market portfolio and 10% in T-Bills. The risk free rate is 6%, ...
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A $5,000 debt is amortized with 4 equal annual payments at 6% per annum. The amount of each annual payment is $1,500. The portion of the third payment that will go toward the interest on the debt is _____. A. $1,500 B. $1,440 C. $240 D. $1,350
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On September 2, 20X1, the Foggy Optics, Inc. (FOI), management concluded that it would be in the best interests of the shareholders to change from the FIFO inventory method to the LIFO inventory method. The following data are also available for FOI: FIFO LIFO January 1, 20X1: inventor...
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Which of the following is the correct journal entry to record the transfer of finished goods from department 2 to department 1? Department 1 Department 2 Materials $100 $200 Conversion Costs $300 $150 a. Materials 200 Work-in-process-Department 1 200 b. Work-in-process-Department 1 200 Materials 200 c. Work-in-pro...
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In a Job Costing system, the costs of factory supplies issued to production and of direct labor employed should be charged to the particular job, and any indirect materials and indirect labor used should be charged to Factory Overhead control account and accumulated in the Factory Overhead account as a general cost poo...
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Suppose that there is a significant drop in the price of crude oil in the United States. In which of the following ways is the U.S. aggregate demand curve likely to change as a result? (a) The aggregate demand curve would shift to the right. (b) The aggregate demand curve would shift to the left. (c) The aggregate d...
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Sierra Company is considering a long-term investment project called ZIP. ZIP will require an investment of $121,000. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $78,000, and annual expenses excluding depreciation would increase by $40,000. Sierra uses the straight-line ...
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One disadvantage of the payback period is that: a. it is sometimes used as a crude measure of risk. b. managers may choose investments with quick payback periods to maximize short-term criteria on which their own bonuses, etc. may be based. c. it cannot be used for investments with unequal cash inflows. d. it canno...
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A company's earnings per share were {eq}\$3.6 {/eq} last year. A share of stock pays a quarterly dividend of {eq}\$0.8 {/eq} per quarter. Assuming a P/E ratio of 10, how much is the stock worth?
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Use stoke's theorem to find: {eq}\int_C F*dr {eq}where C is oriented counterclockwise as viewed from above. {eq}F = 3y^3 i -4x^3j +z^3k {eq}S: z=\sqrt{9-x^2-y^2} {eq}
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The yield-to-maturity on a 10 year T-bond is 4.125%. The yield-to-maturity on a same-day maturity corporate bond is 5.75%. The annual inflation expected to be averaged over the next 10 years is 2.1%. The real rate of return of the corporate bond is _____.
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The management accountant for Zoey's has prepared the following analysis: Sales price per unit $67 Variable costs per unit: Direct materials $22 Direct labor $8 Variable overhead $10 Contribution margin per unit $27 Fixed costs: Fixed manufacturing overhead $75,000 Fixed marketing and administrative $100,000 Tot...
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Which of the following is not a risk associated with distributed data processing? A. the loss of a paper audit trail B. inadequate segregation of duties C. decreased accountability D. Both A and B are not associated risks with distributed data processing. E. A, B, and C are all not associated risks with distribute...
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Under variable costing, which of the following costs would typically be included in the cost of goods sold? A. Factory depreciation only. B. Direct materials only. C. Direct materials and direct labor. D. Direct materials, direct labor, and variable factory overhead. E. Direct materials, direct labor, variable fac...
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Which of the following statements most appropriately describes how agency costs affect a firm's choice of capital structure? Explain. a. When firm owners borrow money, they have an incentive to engage in excessive risk taking (that is, investing in very risky projects) since they are managing someone else's money. b....
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Last year, your corporate investment in equity securities was $200,000 and you received dividends of $15,000. The market value of your holdings increased by $25,000. Your investment in debt securities was $1,000,000. You received interest of $200,000 and the market value of your holdings decreased by $150,000. What is...
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Suppose that you purchase a 10-year coupon bond with a face value of $1000 and a coupon rate of 10 percent. What is the amount of your annual coupon payment?
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Compute the t-statistics for the following hypotheses. Show all work. a) H0: μ = 50 and HA: μ > 50 b) H0: μ = 50 and HA: μ < 50 c) H0: μ = 50 and HA: μ ≠ 50 Given: Population standard deviation = 15 Sample size = 25 Sample mean = 58.5
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The estimated legal costs involved in forming a corporation are best described as: A) A development cost of the corporation. B) An ordinary business expense. C) Capitalized and amortized over the expected life of the corporation. D) Capitalized and amortized over five years.
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Find the present value of the annuity necessary to fund the withdrawal of $700 per month for 5 years, if the annuity earns 6% per year and if there are no more deposits after the annuity is established. (Round the answer to the nearest cent.)
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Astronomers have found an exoplanet (that orbits outside our solar system) that appears to be identical to the Earth. This planet appears to have continents, seas, and a breathable atmosphere. There is a single star (designated Alpha) in its solar system and the star appears to be identical to our Sun. Assuming that th...
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Use implicit differentiation to find the arc length of the cycloid x=a(θ-sinθ), y=a(1-cosθ)
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If the beta of portfolio A is 1.2 and that of portfolio B is 0.6, then which of the following statements is correct? a) Portfolio A is expected to have a higher rate of return than portfolio B. b) Portfolio B is expected to have a higher rate of return than portfolio A. c) Portfolio A is expected to have a lower lev...
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Boles Corporation needs to raise $500,000 for one year to supply capital to a new store. Boles buys from its suppliers on terms of 3/10, net 90, and it currently pays on Day 10 and takes discounts; but it could forgo discounts, pay on Day 90, and get the needed $500,000 in the form of costly trade credit. Alternatively...
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Show that in any network with $n$ nodes, there is a cutset containing no more than $n-1$ edges.
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A company is considering a project with the following free cash flows: year 0: -$347,000 year 1: +87,000 year 2: +105,000 year 3: +123,000 year 4: +141,000 The cost of capital for the project is 8%. The WACC is 14%. What is the MIRR for the project?
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How is equity capital best defined? a. percent of the total assets that are financed by the owners of the business b. share of the total income earned by owners c. net income plus depreciation d. profit per share of common stock outstanding
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What is the probability that between 20 and 30 professors are part-time, given that there are 70 professors and 30% are full-time?
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Suppose the line segment C is given by the parameterization: {eq}\displaystyle r(t) = (t+1)i + 2tj, \ \ 0 \leq t \leq 3 {/eq}. Evaluate the integral {eq}\displaystyle \int_{C} \left \langle x^2, -y \right \rangle dx {/eq}.
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A portfolio is composed of two stocks A and B. Stock A has a standard deviation of return of 35 %while stock b has a standard deviation of return of 18%. Stock A comprises 60% of the portfolio while stock B comprises 40% of the portfolio. If the correlation coefficient between the returns on A and B is -1 the variance ...
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Required: Determine which choice is more economically favorable (A or B) using the incremental rate of return method. A: Initial investment: $50,000 Annual benefit: $15,000 Service life: 5 years Salvage value: $5,000 Annual M&O cost: $500 B: Initial investment: $65,000 Annual benefit: $16,000 Service life: 5...
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Fresh Foods manufactures 24 oz. boxes of organic breakfast cereal. The selling price per box is {eq}\$4 {/eq}. There are {eq}\$12.500 {/eq} in fixed cost and variable cost per box is {eq}\$1 {/eq}. If the company issues {eq}100,000 {/eq} shares of common stock when they go public next week, what should the per shar...
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To provide supplemental income to you, your boss has decided to give you a free lunch at the office. Over the course of a week you choose to take 3 free lunches per day at a cost of $2 per lunch. Over a month (20 work days), your consumption of lunches increases from 10 to 30, and your boss increases the price of lunch...
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An analyst has gathered the following information regarding Baker Company: 2013 2012 Balance sheet: Total assets $238,000 $228,000 Total liabilities $160,000 $150,000 Income statement: Revenue $120,000 $1...
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Your firm is planning to purchase a machine with a useful life of 10 years. The machine will cost $55,000 upfront and will have no salvage value. The machine will generate revenues of $10,000 per year and has operating costs of $3,000 per year. Use the MACRS method to calculate depreciation for each year of the machine...
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Which of the following statements is true from Friedman's perspective? a. The economic justification for Friedman's position is based on an environment in which citizens can both invest their funds in the capital markets and make personal gifts to social causes. b. The economic justification for Friedman's position i...
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The hot and neutral wires supplying the D.C. power to a light rail commuter train carry 750 A and are separated by 70.0 cm. What is the magnitude of the force between 45.0 m of these wires?
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A firm has EBIT of $21,500, interest expense of $5,000, and net income of $15,000. Its times interest earned ratio is: a. 4.30. b. 6.55. c. 3.70. d. 0.23. e. Some other value.
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Hunt Sales has total sales for the year of $625,000 and cost of goods sold of $480,000. The beginning inventory was $87,000, and the ending inventory was $68,000. What was the length of the days' sales in inventory? Show your work.
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Calculate the percent of volume that is actually occupied by spheres in a body-centered cubic lattice of identical spheres. You can do this by first relating the radius of a sphere, r, to the length of an edge of a unit cell, l. (Note that the spheres do not touch along an edge but do touch along a diagonal passing thr...
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If the Fed conducts an open market _____ of government securities, _____. A. sale; M2 will rise. B. purchase; M2 will rise. C. sale; M2 will decline. D. purchase; M2 will decline. E. sale; M1 will rise.
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