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A bond issue sells for $875. The coupon rate is 7%, the bonds mature in 20 years, and interest is paid semi-annually. The tax rate is 35%. What is the after-tax cost of debt?
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Assume that the expected returns of the market portfolio and the risk-free rate are 15% and 5% respectively. If the expected return for stock A is 20% and the standard deviation for stock B is 15%, then which of the following is true? a) Stock A must have a greater correlation with the market portfolio than stock B d...
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Given a demand function, D(q)=-4q+600, and a supply function S(q)=2q, what price control will maximize Consumer Surplus?
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The short-run marginal cost curve always passes through: A. the minimum point of the short-run average variable cost curve. B. the maximum point of the short-run average variable cost curve. C. the minimum point of the short-run average total cost curve. D. the maximum point of the short-run average total cost curv...
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Over the last 10 years, a company's stock earnings grew from $2.00 per share to $4.00 per share. Earnings are projected to grow at a rate of 12 percent per year. Based on the constant growth dividend model, what rate of return are investors currently requiring on the stock?
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The price elasticity of supply equals the percentage change in quantity supplied divided by: a. the percentage change in price, b. the marginal revenue divided by the price, c. the change in price divided by the percentage change in the marginal cost, d. the percentage change in price divided by the marginal cost.
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A truck costing $45,000 with an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000, and a trade-in allowance of $22,500 is received. The old truck has been depreciated for three years using the straight-line method. The new truck...
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If the benchmark PE ratio is 13.4 and EPS is $2.28, what is the target share price in four years? Assume a 6.25 percent earnings growth rate.
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How many non-isomorphic groups of order $p^3$ are there when $p$ is prime, and can you prove why $G$ must have a subgroup of order $p^2$ and why $G$ must be abelian if it is not cyclic?
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If the beginning work in process is 2,700 units, the units started are 2,600, and the ending work in process is 420 units, what is the number of equivalent units of production for direct materials assuming the materials are added at the beginning of the process? a) 5,020 b) 3,500 c) 3,100 d) 5,500
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A firm has a capital structure with 20 percent preferred stock, 20 percent debt, and 60 percent common stock. The firm's cost of common equity is 14 percent, the cost of debt is 8 percent, and the cost of preferred stock is 10 percent. Required: What is the firm's weighted average cost of capital (WACC) if the firm's t...
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The budget for the month of May was for 9,600 units at a direct materials cost of $21 per unit. Direct labor was budgeted at 30 minutes per unit for a total of $115,200. Actual output for the month was 9,100 units with $133,500 in direct materials and $111,285 in direct labor expense. The direct labor standard of 30 mi...
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Currently, 49,000 shares of stock are outstanding for a company with the following Balance Sheet at December 31, 2012. Assets $4,500,000 Liabilities $2,500,000 Shareholders' equity 2,000,000 Total liabilities & Shareholders' equity $4,500,000 Total asset...
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A government bond with a coupon rate of 5.5 percent makes semiannual coupon payments on January 13 and July 13 of each year. The Wall Street Journal reports the asked price for the bond on January 28 at 100:06. What is the invoice price of the bond? The coupon period has 182 days.
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A small object is placed to the left of a convex lens at a distance of 20 cm. The lens has a focal length of 20 cm and is 10 cm from a convex lens with a focal length of 5 cm. What is the distance between the second lens and the final image?
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M&O Corporation needs a piece of equipment for the coming year and is considering two options: purchasing or leasing. The cost of the equipment is $400,000. M&O could borrow at 9% annual interest and finance the entire equipment purchase for 3 years. If M&O leases the equipment, it would have to make 3 payments of $150...
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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 Required: What is the number of conver...
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What is the selling price of a 1,000, 8 per cent, 20-year bond issued by Stockton Co. on January 1, 2000, if the market rate of interest is 8 per cent and the bond matures on December 31, 2019?
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Norris is single and has a taxable income of $68,000. He paid $8,500 of interest during the year on a home mortgage. What is the amount of mortgage interest deduction he may claim on his tax return? a) $8,500 b) $6,550 c) $5,450 d) $3,200
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A 1000 coupon bond matures in 20 years and is selling at par value. Interest is paid semiannually. The effective annual yield-to-maturity rate (r) is 6.5%. Assuming a 6.5% increase in market rates, the bond price will decrease by? (a) {eq}182.06. {/eq} (b) {eq}200.00 {/eq}. (c) {eq}81.44 {/eq}. (d) {eq}78.74 {/...
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In an economy at full employment, an increase in government spending would lead to: a. an increase in real GDP, but not an increase in the price level. b. an increase in real GDP and an increase in the price level. c. no change in real GDP and an increase in the price level. d. a decrease in real GDP and no change ...
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Gleason Power Tools would like to have $400,000 in funds at the end of five years to replace some existing manufacturing equipment. The company expects to earn 8% compounded semiannually. How much must Gleason deposit at the start of each 6-month period to fund this replacement? a. $33,420.20 b. $34,568.29 c. $45,89...
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A bond has a $1,000 par value and an 8% coupon rate, and it is selling for $1,080. What is its yield to maturity (YTM)? a. 9.32% b. 8.00% c. 7.25% d. 7.81%
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XYZ Company is currently selling 5,000 units a month. It has fixed costs of $48,000 and variable costs of $3.00 per unit. The current sales price is $15 per unit. If the sales price is increased by 25%, and variable costs are decreased by 40%, what is the new break-even point in units?
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Evaluate {eq}\int _ { C } \left( 4 x ^ { 2 } - y ^ { 2 } \right) \ dx + 3 x y \ dy{/eq} where C is the line segment from (-2, 1) to (2, 3).
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The equilibrium price of truffles in a perfectly competitive market is $12. When the market reaches equilibrium, the number of pounds purchased and sold is 500. Suppose a Mr. Smith has a monopoly on the supply of truffles, and he sets a price of $16. As a result, the price elasticity of demand for truffles is -2. What ...
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There were 192 millionaires in the US in 1982 and 3.9 million in 2012. If we assign a value of $1 trillion to the wealth of these millionaires in 1982, what would their value have to be in 2012 to reflect a $4 trillion growth in national wealth? a. about $20 trillion b. about $200 trillion c. about $8 trillion d. $...
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Two events occur in an inertial system at the same time, but 7635 km apart. However, in another inertial system, these two events are observed to be 14585 km apart. What is the time difference between the two events in this second inertial system?
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As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows: Project X Project Z Year Cash Flow Cash Flow 0 -$100,000 -$100,000 1 50,000 10,000 2 40,000 30,000 3 30,000 40,000 4 10,000 60,000 If Denver's cost of capital is...
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A block of mass {eq}m_1 {/eq} = 3.10 kg on a frictionless plane inclined at angle {eq}\theta {/eq} = 30.0 {eq}^{\circ} {/eq} is connected by a cord over a massless, frictionless pulley to a second block of mass {eq}m_2 {/eq} = 2.30 kg hanging vertically. What is the acceleration of each block? a = _____ m/s{eq}^2 ...
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Mitchell & Dixon incurred the following costs to produce 10,000 units of a subcomponent part in 2013. Direct Materials$45,000 Direct Manufacturing Labor$17,000 Variable Overhead$15,000 Fixed Overhead$22,000 Alternative Furniture Company has offered to sell Mitchell & Dixon the subcomponent part for $6.25 per unit. If...
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I have a problem of fundamental nature. I am doing something wrong, but I can't see what. We have a doublet at $z_1$ and a source at $z_2$. We want to determine the velocity field in the vicinity of $z_1$. So we superimpose a doublet at $z_1$ and source at $z_2$. We obtain $$\phi(x,y)=\frac{\Gamma}{2\pi}\arctan\frac{y}...
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Use a payoff matrix to determine the optimal choice for both firms when Firm A and Firm B are considering three possible pricing strategies: Pricelow, Pricemedium and Pricehigh. The expected market share losses for each possible pricing combination are given below. Firm A Firm B Pricel...
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Which of the following items are the investment center manager responsible for? a) invested assets b) costs c) sales d) all of the above e) none of the above
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Assume that today is December 31, 2014, and that the following information applies to Andrews Airline: 1. After-tax operating income [EBIT(1 - T)] for 2015 is expected to be $440 million. 2. The depreciation expense for 2015 is expected to be $20 million. 3. The capital expenditures for 2015 are expected to be $340 ...
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Rebel, Inc. is considering replacing an existing piece of equipment. This project involves doing the following: The new equipment will have a cost of $20 million and it will be depreciated on a straight line basis over a period of eight years (years 1-8). The old machine is also being depreciated on a straight line ba...
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According to the _____, an individual will choose to do that activity that gives the most _____, and no individual will be forced to do something that they don't want to do. A. Nobel Prize criterion; equity B. Keynesian model; equality C. Arrow-Debreu model; efficiency D. Nash equilibrium; utility
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In a competitive market, the demand and supply curves are {eq}Q=12-P {/eq} and {eq}Q=5P {/eq}, respectively. If output is fixed at {eq}Q=5 {/eq}, then the amount of the resulting deadweight loss is: a. {eq}0 {/eq} b. {eq}5 {/eq} c. {eq}10 {/eq} d. cannot be determined without more information
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What is the present value of a $1200 annuity payment over 5 years if interest rates are 8%?
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Calculate the surface integral of the vector field {eq}\mathbf F = x \mathbf i + z \mathbf k{/eq} over the part of the plane {eq}x + y + z = 4{/eq} that lies in the first octant, assuming an upward orientation.
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An engine does 140 J of work and exhausts 96 J of waste heat in each cycle. Calculate the efficiency of the engine.
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Perpetual Clothing Company plans to borrow $100,000 from a local bank. The bank is offering a 6% annual interest rate compounded quarterly. The loan is to be repaid in 3 annual installments. What will each installment be? a. $35,628 b. $36,828 c. $37,593 d. $38,189
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The integral $$\int \frac{1}{(x-1) (x+1) (x+2) } dx$$ is equal to? a) $2/3 \ln|x-1|-3/2 \ln|x+1| +1/6\ln|x+2| + C$. b) $1/3 \ln|x-1|-1/2 \ln|x+1| +1/6\ln|x+2| + C$. c) $1/3 \ln|x-1|-1/2 \ln|x+1| -1/6\ln|x+2| + C$.
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Which of the following options is correct? According to the substitution effect, an increase in the wage rate will lead the worker to A. work more hours if leisure is a normal good. B. work more hours if leisure is an inferior good. C. work fewer hours if leisure is a normal good. D. work fewer hours if leisure is...
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You are considering opening a new plant and the financial analyst provided you with the following forecast for the first three years of operations. Item Year 1 Year 2 Year 3 Total revenues $2,040,000 $2,380,000 $2,720,000 Variable costs 290,000 ...
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If you expect the euro to depreciate, you should a. borrow in euros and lend in U.S. dollars. b. lend in euros and borrow in U.S. dollars. c. lend and invest in both euros and U.S. dollars. d. lend in euros but not in U.S. dollars. e. lend in U.S. dollars but not in euros.
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Kiddy's has a pretax cost of debt of 7.68 percent and a target debt-equity ratio of 0.45. What weight should be used for the cost of debt when the WACC is being computed?
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Nelson Company produces two types of office chairs, Model A and Model B. It estimates the following results for next year. Model A Model B Sales $250,000 $350,000 Variable costs $150,000 $250,000 The company estimates the following costs for ...
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The following data relate to the direct materials cost for November of the current year for 4,000 units produced at Sampson Corporation: Standard direct materials per unit 0.75 lb. Standard cost per pound $2.00 Actual cost per pound $1.80 Materials efficie...
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A stock price is currently $40. Over each of the next two 6-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. What is the value of a 1-year 10-strike European call option using a binomial tree?
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M&T Bank, Inc. is currently considering two projects. Project A will generate earnings of $350,000 per year for seven years, which will be followed by an additional after-tax cash flow of $150,000 in year 8. Project B will generate earnings of $230,000 per year for nine years. The required return for both projects is ...
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For the last four years, R. Kray, Inc., carried net operating losses generated by the S corporation of 4,500. He was married and domiciled in Washington. This year his divorce was final. What amount may he apply to his single return this year?
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Allied Shirts can sell {eq}1000 {/eq} T-shirts when the price is {eq}\$10 {/eq} each, but only {eq}800 {/eq} T-shirts when the price is raised to {eq}\$15 {/eq} each. Determine the elasticity of demand for Allied?s T-shirt (use the simple formula for %-change, not the mid-point formula).
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For which values of $p$, the series $\sum_{n=1}^\infty (1- \cos\frac{1}{n^p})$ converges?
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The net income reported on the income statement for the current year was $80,000. Depreciation recorded on fixed assets for the year was $16,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below: End Beginning Cash $42,000 $49,000 Accounts receivable ...
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Grill Works and More has 8 percent preferred stock outstanding that is currently selling for $55 a share. The market rate of return is 11 percent and the firm's tax rate is 34 percent. What is the firm's cost of preferred stock? a. 14.55 percent b. 9.60 percent c. 13.22 percent d. 11.95 percent e. 8.73 percent
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If a random sample of size n = 400 is obtained from the population with mean = 85 and standard deviation = 30, describe the sampling distribution of x̄. a. The sampling distribution is skewed to the right, with mean μ = 85 and standard deviation σ = 30. b. The sampling distribution is approximately normal, with mean μ ...
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Bill's has a 5 percent profit margin and a dividend payout ratio of 20 percent. The total asset turnover is 1.6 and the debt-equity ratio is .4. What is the sustainable rate of growth? A. 9.60 percent. B. 9.84 percent. C. 11.20 percent. D. 9.26 percent. E. 10.89 percent.
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The Wallingford Farms bond pays an 8 percent coupon semiannually, has a 5.0 percent yield to maturity, and a face value of $1,000. What is the current rate of return on these bonds if they trade at $1066.24? a. 9.26% b. 4.59% c. 4.63% d. 8.00% e. 9.18%
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Sunset Acres reported a net income of $52.8 million. Included in that number were trademark amortization expense of $2.4 million and a gain on the sale of land of $4.3 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $3.9 million, $2.9 million, and $2.9 million, respectively....
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Solve for the unknown number of years given a present value of {eq}\$560 {/eq}, a future value of {eq}\$1,389 {/eq}, and an interest rate of {eq}11\% {/eq}.
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How large a sample is required to estimate the population mean within $100 at 99% confidence? (Use $5,750 as an estimate of the population standard deviation from prior studies.) (Round the z-values to 2 decimal places. Round up your answer to the next whole number.)
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Let \(R\) be the region bounded by the curves \(y=x^2\) and \(y=x\). Use the shell method to find the volume of the solid generated when \(R\) is revolved about the \(y\)-axis.
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Huluday Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in the beginning work in process inventory300 Materials costs$6,000 Conversion costs$8,800 Percent complete wit...
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Calculate the period-labor cost for producing the 10,000th unit given the following information: Setup cost = $1,000 Number of units = 100,000 Annual holding cost per unit = $10 Annual labor cost per unit = $40 Learning curve = 90%
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Find the probability that the sample proportion is less than 0.55 if p = 0.60 and n = 25.
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Is there a closed form for the integral of $\sin (x/(1+\epsilon))$, and is there an approach to obtain this closed form?
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The first Doctor of Psychology degree (Psy.D.) was offered by the: a. California School of Professional Psychology (CSPP) b. University of Illinois c. American Psychological Association (APA) d. Vail Institute
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For a firm using FIFO inventory, an LIFO (Last In First Out) method of allocating overhead is preferred if: a. actual overhead is less than allocated overhead. b. actual overhead is greater than allocated overhead. c. there is a steady or increasing price level. d. there is a steady or decreasing price level.
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On a sheet of graph paper, draw a graph showing the market for books (with price on the vertical axis and quantity on the horizontal axis). On the graph, shade and label the area that represents consumer surplus. Assume that the equilibrium price is $5. Then, the equilibrium quantity is 50 units. Finally, the area t...
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A company is considering a new project which they expect to have a 3-year payback period. If they require an 8% return on their investment and the project's cost is $3,750, what is the expected net cash flow at the end of year 1?
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A surface current on the xy plane is described by the current density $$ \vec{K} = 10^5 x\hat{y} A/m $$ Find the current passing through the plane z = 3m, between x = 0 and x = 2 m and y = 0 and y = 4 m.
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GS Cookie Co. forecasts cash receipts for January and February of $9,000 and $10,000, respectively. Cash payments of $4,000 and $5,000 are expected in these two months. GS Cookie's Cash balance at the beginning of January was $5,000 (a level that it attempts to maintain). At the beginning of the year, GS Cookie has a $...
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Consider a current-carrying wire with a current I (in the positive z-direction) oriented along a z-axis in the center of a coil. The current in the wire increases at a constant rate. The coil has N turns and is oriented in the xy plane. The center of the coil is a distance D away from the wire. The resistance of the co...
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Humble Company started operations in 2015. The following information relates to the company's inventory for 2015. Beginning inventory goods in transit purchased (in transit all year)Goods held on consignment from Northwest Supply (net cost $45,000) $120,000$165,000$135,000 Ending inventory goods in transit sold (in t...
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How can I compute {eq}\int_{\mathbf{C}} \frac{e^{1/z}}{z} \;dz{/eq} using Cauchy's Theorem, where C is the circle of radius 2 centered at the origin, oriented counterclockwise, and taking into account the singularity at $z = 0$?
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Wilson Ltd. makes three models of computer monitors, regular (R), deluxe (D), and super (S). All monitors are sold to distributors throughout the United States. The unit contribution margins for each model are as follows: R D S Unit contribution margin $50 $70 $85 Currently, the company is selling two units of regu...
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Why is $\lim \limits_{n \to \infty} \frac{a^{1/n}}{1 + b/n^2} = \frac{1}{e^{qb}}$, given the limit $\lim \limits_{n \to \infty} \frac{a^{1/n} - 1}{b/n^2} = \frac{a^q - 1}{2qb}$ in the method of finding the radius of convergence $R$ for the power series $\sum a_n (x-c)^n$, and assuming $a = e^q$ and $b > 0$?
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Assume that today is December 31, 2014, and that the following information applies to Good Morning Corporation (GMC): 1) After-tax operating income EBIT(1 - T) for 2015 is expected to be $300 million. 2) The depreciation expense for 2015 is expected to be $150 million. 3) The capital expenditures for 2015 are expect...
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Company D has a new machine that has an estimated life of six years and an estimated residual value at the end of that life of $1,500. Assuming a 6% interest rate, what is the present value of the estimated residual value? a. $1,738.28 b. $972.81 c. $880.55 d. $1,543.00
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Given the hypothesis test {eq}H_0: \mu = 80 {/eq} versus {eq}H_A: \mu < 80 {/eq}, a random sample of size {eq}n = 25 {/eq} is selected from the population, and the sample mean is {eq}\overline{x} = 74.8{/eq}. Assuming the population standard deviation is {eq}\sigma = 12 {/eq}, what is the p-value? Round the answe...
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The distribution of income in some large cities is not positively skewed but, rather, negatively skewed. That is, it is more common for incomes to be lower than average than higher than average. The distribution of incomes in a certain city does not appear to be exactly normal, but it is more symmetric than the skew di...
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By how much will profit change if you decrease price by 5 percent and increase advertising by 10 percent, given that your firm's current sales are $20,000 per week and the current price elasticity of demand is 1.5? The current marginal cost is $1 per unit, and you are currently earning $10,000 per week in advertising r...
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At the instant a ball is thrown horizontally with a non-zero velocity, another ball is dropped from the same height. Which ball has a higher speed when it hits the ground? A. The dropped ball B. The thrown ball C. Both of the balls have the same speed D. The thrown ball's speed can't be compared to the dropped ball...
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Company has provided the following information relating to its standard cost system: Standard Actual Direct material $2.50 $2.20 Direct labor $2.00 $1.90 Variable overhead $0.80 $0.85 Fixed overhead $1.25 $1.30 ...
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The general managers of four divisions of a large corporation all have the same financial performance for 20X1: sales $1,600,000, variable expenses $1,000,000, contribution margin $600,000, fixed expenses $800,000, and operating income (loss) $(200,000). The total common fixed expenses of the corporation were $400,000 ...
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When the audience does not care about the outcomes, using a combination of _____ can help lessen negative reactions to the feeling that one is dictating outcomes. A) ingratiation and personal appeals B) pressure and exchange C) legitimacy and ingratiation D) exchange and rational persuasion E) inspirational appeal...
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The fixed costs of operating a water park (including a complex computer system to control lifeguards, housekeeping, and staffing) are $5000. The marginal cost of operating the park for the nth day is given by $C'(n)=10+0.01n$. On the first day the park is open, it earns revenue of $5000. Find the net profit of operatin...
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Fiam Industries projects the following revenues from their competitor's possible strategies choices: Competitor's strategy Probability of competitor's strategy Revenue ($ millions) Expand Production 0.27 1,664.7 Reduced production 0.37 2,620.7 Fiam...
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D&D, Inc. has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 12%, and the cost of debt is 6%. The relevant tax rate is 35%. What is the company's WACC?
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A person with a dislocated shoulder applies a 200N force to move it back into place. If the force is applied to the arm at a point 20cm from the joint, what is the torque acting on the shoulder joint?
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Given a prime $p$, how many solutions are there to $x^3 + x^2 + 3x + 4 \equiv 0 \pmod p$?
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Suppose a firm produces only one product. It is a monopoly with demand curve P = 12 - Q. The firm's fixed cost is $32 and its constant marginal cost is $2. What is its Lerner Index at its profit maximizing price?
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Refer to the table below. Between 100 and 90 sandwiches, demand for hot dogs is Quantity of Hot Dogs Demanded Price of Hot Dogs Quantity of Sandwiches Demanded Price of Sandwiches 100 $4 300 $6 90 4 310 6 80 4 320 6 ...
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The project has a salvage value of 4,000. Compute the accounting rate of return for this project. Consider the following information: Net investment 10,000 Life of project 5 years Depreciation method Straight line Salvage value 4,000 Book value at end of life 4,000 Income before depreciation 4,000 Tax rate 35...
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Your friend will put 100 balls with 5 different colors in a bag and tell you the number of balls for each color. Then you will randomly choose a ball and guess its color. After seeing the ball, if your guess is correct, you will take the ball. If not, then your friend will take the ball. This game will continue until a...
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The authors of Psychology: A Journey, 5th Edition recommend several books that might be of some assistance in developing your skill set, which of the following is not one of these books? a. Procrastination: Why you do it, what to do about it. b. Psychology and your life's goals (4th ed.) c. Thinking critically (10th...
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How would you compute the volume of the solid bounded by the planes $z = 0, x = 0, y = 0, x + \frac{1}{2}y + z = 1$, given that $\displaystyle\iiint_{E}\cos zdV$ is required, where $E$ is the solid mentioned? Specifically, how do you find the projection of the solid on the $xy$-plane, and what are the limits of integra...
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Use the Root Test to determine if the series: summation from n=1 to ∞, (n-1) * 4n/(n+2)^n, converges or diverges.
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Evaluate the surface integral. {eq}\; \iint_{S} x \, \mathrm{d}S, \; S {/eq} is the triangular region with vertices {eq}(1, \; 0, \; 0), \; (0, \; -2, \; 0) {/eq}, and {eq}(0, \; 0, \; 4){/eq}
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