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An unbiased die is successively rolled. Let X and Y denote, respectively, the number of rolls necessary to obtain a six and a five. Find E[X].
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Divide $1,000,000 among three investment options: one with a 3% return, one with a 2% return, and one with a 1% return, so that your total annual return on all investments is $20,000. The amount placed in the lowest yielding investment should be twice the amount placed in the highest yielding investment. Let x, y, and ...
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In the short run, a permanent decrease in the world interest rate causes: a. a greater downward shift in the AA curve than that caused by an equal, but transitory, decrease. b. a greater upward shift in the DD curve than that caused by an equal, but transitory, decrease. c. a smaller upward shift in the DD curve tha...
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ABC Mining has not yet decided on the selling price of Gold; however, management wants a quick estimate of how profits might be affected by the selling price. Assume that $8 million of the fixed costs are unavoidable and that the other $2 million of fixed costs can be avoided if the Gold mine is not operated. The estim...
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For $p>0,$ find the value of $$ \lim_{\alpha\to\infty} \frac{\int_{0}^{\alpha} \frac{p x^{2p-1} e^{-x^p}}{\sqrt{1+x}}\mathrm{d}x }{e^{-\alpha^p}}. $$
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S&P 500 (a market cap weighted index) has a price of $1,100 and a divisor of 0.01. Your portfolio is comprised of 1,000 shares of General Motors (GM) and 5,000 shares of Apple (AAPL). The prices of these stocks are $10 and $300, respectively. The divisor for S&P 500 is changed to 0.0102. What is the new S&P 500 diviso...
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You have an opportunity to purchase a truck that will last 3 years and cost $30,000. The truck will allow you to serve pizza to homes and increase your net revenues (meaning net of associated variable costs) by $20,000 per year. Calculate the NPV using a discount rate of 10 percent.
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Find the rate at which the profit is increasing when the number of items is 10. (The number of items is given by x). Assume that all costs and revenue are in thousands of dollars. {eq}R(x) = 350x - 0.1x^2 {/eq} {eq}C(x) = 35x + 0.1x^2 + 480 {/eq}
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Roberto Corporation Income Statement Data For the Year Ended December 31, Year 2 Amount % Sales $300,000 100% Cost of goods sold $168,000 56% Gross margin $132,000 44% Selling expenses $55,000 18% Administrative expenses $40,000 13% Income before taxes $37,000 12% Income tax expense $15,000 5% Net inc...
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You borrow $300,000; the annual loan payments are $5,334.92 for 15 years. What interest rate are you being charged?
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According to the Keynesian framework, which of the following will not help a country to get out of a recession, but may help that country reduce inflation? a. a decrease in military spending b. an increase in military spending c. a decrease in spending by the government on healthcare d. an increase in spending by t...
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What is the expected number of times a fair 6-sided die is rolled until a 6 appears given that the previous two rolls were not 6?
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Suppose the interest rate on a 1-year T-bond is 6% and that on a 2-year T-bond is 7%. Assume that the pure expectations theory is CORRECT. Which of the following statements is CORRECT? a. The yield on a 2-year T-bond must be 6.5%. b. The yield on a 1-year T-bond must be 3.5%. c. The MRP on a 1-year T-bond must be 0.5%...
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Which of the following is a critical component of a sustainable competitive advantage? A. Valuable B. Attractive C. Not perfectly replicated by rivals D. a, b, c are all correct E. None of the above
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Consider a simple economy that produces only diamonds and pearls. The following table contains data from an imaginary year. Price per carat Quantity demanded Quantity supplied Diamonds $650 650 120 Pearls $20 750 300 If the government ...
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Assume that a consumer buys only two goods X and Y. Good X is priced at $2 and the good Y is priced at $1. Suppose that this consumer has $30 to spend on the two goods. If the utility-maximizing bundle is given by 5 units of good X and 20 units of good Y, then the utility derived from the last dollar spent on X is .......
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Assume the money supply equals $3,000 billion, the velocity of money equals 2.50, and the price level equals 1.00. If the velocity of money increases to 3.00, which of the following will be the impact on the money demand curve and real GDP? A. Real GDP will decrease and the money demand curve will shift to the right. ...
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A 2.5-mH inductor and a 2-kΩ resistor are connected in series to a 12-V battery of negligible internal resistance. The circuit also contains a switch, which is initially open. A. Immediately after the switch is closed, the current is closest to: A) 0 A B) 1.2 mA C) 2.4 mA D) 3.8 mA E) 4.6 mA B. After the switch i...
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Depreciation is a. The current value of a capital asset minus its future salvage value. b. The current salvage value of a capital asset minus its expected salvage value. c. The expected salvage value of a capital asset minus its current salvage value. d. The average of a capital asset's expected salvage value and i...
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New Age Corp. has a bond outstanding that has a coupon rate of 7.42 percent and a current yield of 7.15 percent. The bond makes semiannual payments. The bond has a yield to maturity (YTM) of: A. 6.84 percent B. 7.01 percent C. 6.93 percent D. 7.28 percent E. 7.15 percent
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During the first year of operations (January 1 through December 31, 2011), Heston Corporation issued 3,000,000 shares of common stock for $27 per share. The articles of incorporation authorize 5,000,000 shares of common stock with a par value of $2.50 per share and 500,000 shares of 6 percent, $100 par value cumulative...
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For the following reaction determine the value of x in the rate law: {eq}Rate = d|F|/dt = k[D]^m {/eq} Reaction: D → F + 2G Experiment[D]0t1/2 11.04.0 min 22.02.1 min
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Suppose that the current spot exchange rate is 0.90 euro/dollar. The one-year forward exchange rate is 0.89 euro/dollar. The one-year interest rate is 3.00% in euro-denominated terms. The one-year interest rate is {eq}r^*{/eq} in dollar-denominated terms. According to the IRP, a. {eq}r^*{/eq} must be greater than 3.00...
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Use Green's theorem to evaluate the integral {eq}\displaystyle \int_C (x^2-y^2) dx + 2xy \ dy {/eq}, where {eq}C{/eq} is the square with vertices {eq}\pm 3,\ \pm 3{/eq}, oriented counterclockwise.
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The Two Sisters has a 9% ROA and a 75% retention or plowback ratio. The ROE is 12%. At what rate can the firm grow its assets without the need for any external capital? a) 6.50% b) 6.75% c) 6.97% d) 7.24% e) 7.38%
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The following selected data are for Silver Company: Sales $20,000 Ending inventory of finished goods $3,000 Ending inventory of direct materials $2,500 Purchases of direct materials $6,000 Direct manufacturing labor wages $4,000 Manufacturing overhea...
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What type of form of organization is Starbuck's? What advantages do you think this type of form of organization offers its owners? a. Partnership b. Corporation c. Sole Proprietorship d. Not enough information
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Given the cash flow series below, find the cash flow at n=10. Year Cash Flow 0 1,000 1 -1,500 2 3,000 3 3,000 4 500 5 -1,000 6 500 7 -500 8 -500 9 500
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Suppose the cash flow from a fund increased by $10,000 each year, the interest rate was 8%, and the initial cash flow was $28,000 in year 1. If the fund was terminated at the end of 10 years, how much interest was earned during the 10-year period? A) $340,320 B) $408,450 C) $448,450 D) $500,000
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Thorn Industries has total assets of $1,500,000 and current assets of $700,000. It turns over its fixed assets 2.1 times a year. It has $500,000 of long-term debt with an interest rate of 11 percent and its return on sales is 4 percent. What is its return on stockholders' equity? a. 2.50% b. 1.49% c. 2.80% d. 1.26%
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How many months will it take for the annual depreciation expense to equal the salvage value when using the straight-line method of depreciation for a laser cutting machine purchased by Prospective Company for $100,000, with an estimated life of seven years and a residual value of $10,000? a. 2.5 years b. 5.0 years c...
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Conner Corp. expects to earn $48 per share next year. The firm's ROE is 12%, and its plow back ratio is 55%. If the firm's market capitalization rate is 9%, what is the present value of its growth opportunities? A. $95.56 B. $98.33 C. $87.11 D. $112.22
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The difference between the cost approach and the market approach is: a) The market approach uses the sales comparison method and the cost approach uses the income capitalization method. b) The market approach is based on current replacement value and the cost approach is based on depreciation and obsolescence. c) Th...
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Assume that during 2018, Cypress Semiconductor Corporation reported net cash provided by operating activities of $116,989,000, net cash used in investing activities of $159,920,000 (including cash spent for plant assets of $111,529,000), and net cash used in financing activities of $42,739,000. Dividends of $6,515,000 ...
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A car travels over a hill at a constant speed as shown in the figure. The top of the hill curve is a circle of radius 50 m. At the instant the car is at point p, the normal force exerted by the hill on the car is four-fifths of the weight of the car. What is the speed of the car at that instant? a. 4.47 m/s b. 9.80 m...
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Use spherical coordinates. Evaluate triple integral E xyz, where E lies below z=9-x^2-y^2, above z=- \sqrt{9-x^2-y^2}, and inside x^2+y^2+ z^2 =16.
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If the current market price of a share of the common stock of the Ferarri Company is $80, and the one-period call option price on this stock with X = $80 and a risk-free rate of 6% is $13, the implied value of the option's delta must be _____.
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The number of possible real roots of the equation {eq}4x^4 - 2x^3 - 16x^2 + 5x + 1 = 0 {/eq} is: (a) 0, 2, 4, or 6 (b) 0, 2, or 4 (c) 2 or 4 (d) 0, 2, or 6
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Suppose there are two stocks, one with expected return of 12% and beta of 0.9, the other with expected return of 6% and beta of 0.5. If the market's expected return is 8% and the risk-free rate is 3%, is there an arbitrage opportunity?
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Company Inc. is considering a project with an initial after-tax cash outlay of $30,000. Cash inflows are estimated to be $10,000 per year for 5 years. Net working capital of $1,000 is required to support the project. What is the net present value of the project if the required rate of return is 12%?
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Grolsch Co. provides the following information for the month of August: Physical units Materials Conversion Work in process, August 1 50,000 100% 80% Units started during August 90,000 Units completed and transferred out duri...
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The Pacific Coast Ski Company produces and sells a single product. Sales 200,000 Variable costs 120,000 Fixed costs 80,000 Net income $54,000 If variable manufacturing costs are reduced by $2.00 per unit, operating income will increase by: a. $42,000 b. $54,000 c. ...
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The demand function for a certain brand of CD is given by {eq}p = - 0.01 x^2 - 0.5 x + 9 {/eq} where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the consumers' surplus if the current market price is set at $3/disc. (Round the answer to...
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If a product is in the introduction stage of the product life cycle and is experiencing negative demand, which of the following strategies would be most appropriate to implement? A. Increase marketing effort B. Decrease production C. Stop production D. Increase production E. Do nothing
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X Company acquired a 30% interest in Y Company on January 1, 2016, at a book value equal to fair value. During 2016, X sold merchandise that cost $800,000 to Y for $1,000,000. One-third of this merchandise remained in Y's inventory on December 31, 2016. Y's reported a net income of $1,200,000 for 2016. X's income from...
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During a business cycle recession, which of the following factors would most likely lead to an increase in the quantity of loanable funds supplied and a decrease in the quantity of loanable funds demanded? a. interest rate b. government budget surplus c. business optimism d. consumer pessimism
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Loomis Inc. produces premium microphones for music schools around the world. Information on the income statement for last year follows: Total Per Unit Sales $5,000,000 $33.33 Variable costs 3,000,000 19.99 Contribution margin 2,000,000 ...
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An investor bought a bond for $6500 that was offering an annual interest of 6% for five years. If the investor sold the bond for $6800 at the end of five years, what is the total return for the investor? A. 1.74% B. 1.54% C. 4.00%
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Banner Corporation will not pay dividends until year 3, whereby it is expected to pay $5 in dividends. Dividends are then expected to grow at 20%, 10%, and 5% in years 4, 5, and 6. Afterward, dividend growth will stabilize at 2% consistently. If the rate of return is 10%, determine the stock price in year 3. A. $83.84...
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Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $8.00 per share and has announced that it will increase the dividend by $5.00 per share for each of the next four years and then never pay another dividend. If you require a 12 percent return on the company's stock, how much will you p...
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Xeller Company makes electronic keyboards. The practice model price is $220 and variable expenses are $190. The deluxe model price is $340 and variable expenses are $250. The professional model price is $1,200 and the variable expense per unit is $800. Total fixed expenses are $187,000. Generally, Xeller sells 6 practi...
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Compute {eq}\displaystyle \iint_{R}f(x, y)dA where {eq}\displaystyle f(x,y) = xy^{2} and {eq}\displaystyle R is the triangle bounded by the lines {eq}\displaystyle y = 0, y = 3, x = 0, and {eq}\displaystyle x = \frac{1}{2}y.
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Beginning on April 1, 2011, $360,000 is borrowed and is to be repaid in 10 equal annual installments. The first payment is April 1, 2012. The annual interest rate is 6%. Compute the amount of the annual installment. a. $43,200 b. $39,522 c. $45,000 d. $42,617
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Which of the following is true of the trade-off theory of optimal capital structure? A) It states that the firm should strive to make its cost of equity equal to its cost of debt. B) It focuses primarily on the capital structure decision. C) It argues that the introduction of risk of bankruptcy raises the firm's cos...
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Let A and B be n × n invertible matrices. Then AB(A^t)^{-1} is similar to which of the following options: (a) B(A^t)^{-1} (b) A^t (c) B (d) A^{-1}BA^t (e) A^{-1}
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Leisure Lodge, Inc. has 22,000 shares of $5 par value common stock outstanding. On July 1, a stock dividend of 1,100 shares was declared and issued. What effect did this transaction have on the company? A. Decrease in total assets, no effect on total equity. B. Increase in total liabilities, decrease in total equity....
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In this game, which of the following is a Nash equilibrium? Select one: A. (High Price, High Price) B. (High Price, Low Price) C. (Low Price, High Price) D. (Low Price, Low Price)
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Stock A has settle into a constant dividend growth pattern of 7%. The current dividend is $1.72, its current price is $17.20. You are an analyst and believe that the required return on Stock B is the same as that of Stock A. If Stock B pays a constant (flat) dividend of $2.15, what is the estimate of Stock B's price?
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Use differentials to approximate the change in price when the quantity supplied is increased from 10,000 units to 10,500 units. price {eq}= \frac{450q^{2/3}}{1000} {/eq}
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How early can a breastfed infant discriminate the smell of his or her own mother compared to the smell of an unfamiliar female? a. At birth. b. Three days old. c. Three months old. d. Six months old
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As of 2006, the present discounted value of the long-run fiscal imbalance of Social Security and Medicare programs is approximate: a. $6 trillion b. $40 trillion c. $102 trillion d. $106 trillion e. $143 trillion
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You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12%. The current risk-free rate is 5.25%. Assume that you receive another $500,000. If you invest the money in a manner designed to reduce your portfolio's required rate of return to 11.75%, what does your new beta ha...
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At an activity level of 10,000 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $770,000 and its total fixed production engineering cost is $245,000. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 10,300 machine-...
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Assume the following prices at The Exotic Currency Exchange: 8,000 Hungarian forints = $1 1000 New Zealand dollars = $1 The current exchange rate of New Zealand dollars for Hungarian forints is 10 forints per New Zealand dollar. If the 1-year forward exchange rate is 12 forints per New Zealand dollar, according to u...
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Stiller Corporation paid a dividend yesterday of $2.25 per share. Stiller's dividend is expected to grow at a 5% annual rate into the foreseeable future. Stiller's stock price is currently $54. What is the stock's WACC assuming a 9% cost of debt and a 13% cost of equity?
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Halsey, Inc. has the following capital structure: Bonds, 8% = $800,000 Preferred stock, 5% = $200,000 Common stock = $1,500,000 The cost of common equity for the firm is 18%. The firm can raise up to $1 million of debt at an interest rate of 8%. If more than $1 million of debt is to be issued, interest payments wi...
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For the reaction: H2O(aq) + CO2(g) = H2CO3(aq) What is the equilibrium constant expression, K, for this reaction?
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The December 31, 2010, balance sheet of Schism, Inc., showed $268,000 in the common stock account and $2,720,000 in the additional paid-in capital account. The December 31, 2011, balance sheet showed $301,000 and $2,950,000 for the common stock and additional paid-in capital, respectively. If the company paid out $154...
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What is the largest number of starting clues for a Sudoku game that does not guarantee a unique solution?
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Your investment club has only two stocks in its portfolio, $20,000 is invested in a stock with a beta of 0.7, and $35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta?
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The {eq}B_1 {/eq} pump with blade outlet angle of {eq}45^\circ {/eq} and rotor diameter of 800 mm is to be used to pump water at {eq}20^\circ C {/eq} with the desired volume flow rate of {eq}0.15\ m^3/s {/eq}. Determine the necessary rotational speed of the impeller and the ideal power input to the pump.
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I am the sister company of Costello Manufacturing and have the following information available: Dec. 31, 2014 Dec. 31, 2015 Ending inventory $87,000 $79,000 Prepaid rent 6,000 4,000 Accounts payable 9,000 13,000 Accrued expenses payable 7,000 3,000 Costello prepaid insurance equal to one year's premium during 2...
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A charge {eq}q = 1 \times 10^{-5} \ C {/eq} is placed at the center of a cube with a side length of {eq}2 \ m {/eq}. Find the electric flux through one side of the cube.
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Rate from table is .50663. Compute the issue price of each of the following bonds. Round your answers to the nearest dollar. $10,000,000 face value, 6% coupon bonds due in 10 years, with interest paid semiannually, priced on the market to yield 8% compounded semiannually.
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Determine the opportunity cost of a cash purchase of a machine over the purchase of a lease on the machine. a. cost of lease minus the cost of the machine b. interest that could have been earned if the money had not been spent to purchase the machine c. the difference between the present value of the lease payments ...
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Use Leibniz's Rule to find the derivative of \(y = \int_{-x}^{x} e^{t^{2}} dt\)
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A firm's capital structure is the mix of which of the following? A. debt, equity, and preferred stock B. bonds, long-term debt, and equity C. long-term debt and common stock D. long-term debt and equity
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Suppose you are evaluating a project with the cash inflows shown below. Your boss has asked you to calculate the project's NPV. You don't know the project's initial cost, but you do know the project's regular payback period is 2.2 years. If the project's WACC is 10%, the project's NPV is: Year 1 $250,000 Year 2 $500,...
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A particle of mass m and a charge q is subjected to a uniform electric field E and a uniform magnetic field B. Then (A) a force q(B X E) is exerted on the charged particle. (B) a force q( E + B) is exerted on the charged particle. (C) the particle will move undeflected if (B X E)/q = v (D) none of the above statements ...
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A 10-year, 12% semiannual coupon bond with a par value of $1,000 sells for $1,100. What is the approximate yield to maturity?
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Money Corporation issues 1000, 5 year, 8% bonds at 103. The bonds are dated January 1, 2009 and pay interest semiannually at January 1 and July 1. The journal entry to record the bond issuance would include a: a) credit to Bonds Payable of $103,000 b) credit to Bonds Payable of $106,000 c) credit to Premium on Bonds...
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Explain why a lower exchange rate would make us likely to import more and export less, assuming a perfectly flexible exchange rate. a. A lower exchange rate makes US dollars cheaper, so Americans can buy more foreign goods for the same dollars. b. A lower exchange rate makes US dollars more expensive, so Americans ca...
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In its first month of operation, Vermont Company purchased 110 units of inventory for $10, then 310 units for $8, and finally 230 units for $5. At the end of the month, 240 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
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Kelln Corporation's most recent comparative balance sheet and income statement appear below: Comparative Balance Sheet Ending BalanceBeginning Balance Assets: Cash and cash equivalents $23 $22 Accounts receivable64 58 Inventory55 58 Property, plant, and equipment 666 510 Less accumulated depreciation 295 30...
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Polaris, Inc. experienced the following costs in 2010. Materials purchased $150,000 Direct labor 200,000 Factory overhead 400,000 Direct materials used 120,000 Direct labor hours worked 150,000 hours Machine hours used 200,000 hours S...
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PQR Corporation reported the following amounts during 2015: Sales Revenue $7,700,000 Cost of goods sold $4,900,000 Gross profit $2,800,000 Operating expenses $1,150,000 Net income $1,650,000 Additional information is as follows: Accounts receivable increased $200,000 during the year. Inventory decreased $500,000 du...
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How early can a breastfed infant discriminate the smell of his or her own mother compared to the smell of an unfamiliar female? a. At birth. b. Three days old. c. Three months old. d. Six months old
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The following information pertains to a single product for which task times have been recorded: Average observed time per unit = 1.2 minutes Number of units produced = 400 Rate of performance = 100% Allowance for personal time = 10% What is the standard time for the task?
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McDermott Inc., needs to raise $560,000 for one year to supply capital to a new store. The company plans to do this by forgoing its 2% cash discount on its accounts payable and by borrowing from its bank at a 10% interest rate. The company currently pays on the last day of the credit period and its terms of sale are 2/...
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A firm using a periodic review system anticipates needing 1,200 units of product in a period, on average. The lead-time for delivery from the supplier is two weeks. What will be the appropriate reorder point if the firm desires a service probability of 95 percent and the review period is four weeks? Assume that demand ...
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Let $P$ be a polyhedron in $\mathbb{R}^n$ defined as $$P=\lbrace x\in \mathbb{R}^n\mid Ax\leq b \rbrace $$ for some $A\in \mathbb{R}^{m\times n}$ and $b\in \mathbb{R}^m$. Prove that the dimension of the linear subspace $Z=\lbrace (x,t)\in \mathbb{R}^n\times \mathbb{R}\mid Ax+b t e=0\rbrace $ is at least the dimension o...
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Maximum output of a production process is 300 units per day. Labor and material costs total $3,000 per day. The selling price for the firm's output is $12 per unit. The firm can sell as many units of output as it produces. The CEO requires a break-even analysis of this operation. What is the minimum price at which the ...
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At the instant a current of 0.20 A is flowing through a coil of wire 35 turns and radius 15 cm, the magnetic field in the center of the coil is 2.0 micro Tesla. Assuming each turn of the coil contributes additively to the net field, what is the rate of change of the current in the wire?
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Year to date, De-Sharon Industrial Supply has earned 5% on its investments. The market price of the common stock increased from $25 to $34 during the year. The company paid $1.00 per share in dividends. This year, the return on investments is: a. 9% b. 12% c. 17% d. 20% e. 25%
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An acetate buffer is prepared by mixing 200.0 mL of 0.200 M acetic acid and 200.0 mL of 0.200 M sodium acetate. Acetic acid has a pKa = 4.74. The pH of the buffer is: Select one: a. 4.74 b. 5.12 c. 4.02 d. 2.87 e. 4.44
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The following information was drawn from the accounting records of Taylor Company: Static BudgetFlexible BudgetActual Results Sales$6,000$7,200$7,700 Cost of goods sold$2,500$3,600$3,400 Gross margin$3,500$3,600$4,300 Variable cost$2,000$2,400$2,500 Fixed cost$1,500$1,200$1,800 Net income$1,000$2,400$3,000 Based on t...
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For the problem of finding the smallest integer n for which the Midpoint approximation M_n to the integral ∫_1^2 1/x^2 dx is such that |I - M_n| ≤ 10^-4, where I is the exact value of the integral, give your answer to the nearest integer and verify your answer numerically.
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Consider the titration of 80.0 mL of 0.22 M ammonia with 0.31 M HCl. Calculate the pH after 80.0 mL of HCl has been added.
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$\lim_{x\rightarrow 0^+}\left ( \frac{\pi}{2}-\arctan x \right )^{\tan x}$ Why can't I solve it by substituting $x$ with $\arctan t$? Specifically, why does the substitution $\arctan x = t \Rightarrow x = \tan t$ lead to an incorrect conclusion when evaluating the limit as $t \rightarrow 0^+$, and what is the mistake i...
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Assume that an investment of $1,000 produces a future cash flow of $2,000. If the discount factor for this future cash flow is 0.95, then the net present value is: a. $2,000 b. $950 c. $1,000 d. $1,050 e. None of the above.
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