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One bond has a coupon rate of 6.4%, another a coupon rate of 10.2%. Both bonds pay interest annually, have 14-year maturities, and sell at a yield to maturity of 8.5%. If their yields to maturity next year are still 8.5%, what is the rate of return on each bond? Enter your answers as a percent rounded to 1 decimal pla...
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Which of the following will result in a movement along the aggregate production function? A. a technological advance B. training of the workforce C. an increase in the country's capital stock
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C bills and on the delivery date the interest rate of T-bills is higher than you expected, you will have A. lost money on your long position in the futures market B. gained money on your long position in the futures market C. lost money on your short position in the futures market D. gained money on your short posi...
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We can say that a market is less risky when the correlation between two stocks is _____ and they are said to be _____. A. higher; highly correlated. B. lower; positively correlated. C. zero; correlated. D. zero; uncorrelated.
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Evaluate the line integral {eq}\displaystyle \int_C \mathbf F \cdot d \mathbf r{/eq}, where {eq}\mathbf F (x,\ y,\ z) = \langle z,\ 0,\ x\rangle{/eq} and C is the path consisting of line segments from (0, 0, 0) to (0, 0, 1), from (0, 0, 1) to (0, 1, 1), and from (0, 1, 1) to (0, 1, 0).
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Calculate the derivative of the function F(x) = (x^6 + 3)\binom{15}{6} at x = 1.
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When preparing a budget, managers may: a. overstated their budgeted cost but not their budgeted revenues. b. overstated both their budgeted costs and revenues. c. understated their budgeted costs but not their budgeted revenues. d. understated both their budgeted costs and revenues.
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A calendar-year corporation has a negative current E&P of $1000 and an accumulated positive E&P of $500. The corporation makes a $600 distribution to its sole shareholder. Which of the following statements is true? a) $100 will be a dividend because total earnings and profits are $500 b) $600 will be a dividend becau...
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Suppose that your firm receives revenues of $10,000 from product X and $30,000 from product Y. The own-price elasticity of demand for product X is -2, and the cross-price elasticity of demand between product Y and X is -1.8. If you raise the price of good X by 1%, what will happen to the total revenue generated by both...
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On July 1, 20X1, Hall Company borrowed $225,000 via a long-term loan. Terms of the loan require that Hall pay interest and $75,000 of principal on July 1, 20X2, 20X3 and 20X4. The unpaid balance of the loan accrues interest at the rate of 10% per year. Hall has a December 31 year-end. Compute Hall's total cash paid du...
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The cash account shows a balance of $33,000 before reconciliation. The bank statement does not include a deposit of $11,500 made on the last day of the month. The bank statement shows a collection by the bank of $3,500 and a customer's check for $1,450 was returned because it was NSF. A customer's check for $1,490 was ...
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Evaluate the line integral of the vector field {eq}\mathbf F(x, y, z) = \cos z \mathbf i - z \mathbf j + e^{x - y} \mathbf k{/eq} around the path {eq}C{/eq} consisting of two segments. The first segment goes from (0, 0, 0) to (0, 0, 2) along the z-axis. The second segment goes from (0, 0, 2) to (0, 2, 2) along the line...
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In order for a price-discrimination scheme to be effective at boosting profit, the seller must: a) have market power. b) prevent resale. c) restrict resale. d) be a monopolist. e) be selling a necessity.
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Baker Company pays its office supplies clerk $12 per hour plus 1% of the store's gross sales. Which of the following statements is true? a. The clerk's salary is a fixed cost. b. The clerk's salary is a variable cost. c. The clerk's 1% commission is a fixed cost. d. The clerk's 1% commission is a variable cost.
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The following data has been provided by Taylor Inc.: Beginning merchandise inventory $33,000 Ending merchandise inventory $41,000 Purchases $145,000 Purchase returns and allowances $2,000 Purchase discounts $4,000 Freight-in ...
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Eastwater Corp. reported the following information for 2012: Depreciation $25,000 Collections from customers 82,000 Interest received 21,000 Salaries paid 56,000 Sales revenue 84,000 Insurance expense 7,000 Rent expense 15,000 Interest expense 11,000 Dividends paid 10,000 Retained earnings, 1/1/12 60,000 Determine t...
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If $1,000 is deposited annually starting one year from today and the account earns 5% interest compounded annually, what will be the balance in the account 10 years from today?
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By definition, what is the standard deviation of the null distribution? a)1 b)0 c)σ d)μ e) It depends on the sample size and the standard deviation of the population.
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What should be the entry on the part of the lessee in recording the lease? a. Dr: Right-of-use-asset 410,500 Dr: Accumulated amortization 239,700 Dr: Lease liability 169,000 b. Dr: Right-of-use-asset 400,000 Dr: Accumulated amortization 229,700 Dr: Lease liability 167,500 c. Dr: Right-of-use-asset 400,000 Dr: Accumu...
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The number of degrees of freedom for a substance in gaseous state is a. 0 b. 1 c. 2 d. 3 e. 4 f. 5 g. 6 h. N
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From the rate equations, one can show that $$ \frac{dV}{dt} = \left(\frac{1}{\tau_1}+\frac{1}{\tau_2}\right) \left(V-V_1\right) $$ where $V$ is the voltage of a capacitor, $V_1$ is the voltage of the source, and $\tau_1$ and $\tau_2$ are the time constants of two parallel RC (or RL) branches that together form a source...
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A certain bond has a 7% coupon rate (semiannual payment), a $1,000 par value, and a market price of $960. What is the effective annual yield to maturity on this bond? A) 7.00% B) 3.50% C) 3.74% D) 8.16% E) None of the above.
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The money demand curve slopes downward because a rise in interest rates causes _____. (a) bonds to become more attractive (b) the Fed to decrease the quantity of money in circulation (c) the opportunity cost of holding money to decrease (d) investment spending to decrease (e) consumption spending to decrease.
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Forsyth Co. provides the following information for 2016: Total asset turnover 2.4 times Return on total assets 14% Current ratio 3:1 Asset turnover for Forsyth Co. in 2017 is expected to decrease to 2.2 times, and the return on total assets is expected to decrease to 11%. If the current ratio and profit margin re...
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The University of West Florida anticipates total costs for the academic year of 90,000 fixed costs plus 1000 variable costs per student. If current enrollment is 1500 students and there is a budgeted increase in enrollment of 100 students next year, what is the total cost that would be included in next year's master bu...
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Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: CostPercent Complete Materials costs$11,00060% Conversion co...
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Donna expects to receive $60,000 in 8 years. Her opportunity cost is 20% compounded monthly. What is this sum worth to Donna today? a) $12,275 b) $12,171 c) $13,954 d) $13,388
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The plane z=2x+3y intersects the positive x-, y-, and z-axes forming a tetrahedron in the first octant. Use calculus to find the volume of the solid.
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Suppose the call money rate is 4.2 percent, and you pay a spread of 2.2 percent over that. You buy 1,000 shares at $77 per share with an initial margin of 30 percent. One year later, the stock is selling for $81 per share, and you close out your position. What is your return assuming no dividends are paid? (Do not rou...
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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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The common stock of GM has a beta of 1.9 and expected returns of 12%. The expected return on the market is 6.5%. What is the risk-free rate? (Hint: Use the CAPM)
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Babcock Company has determined the following per unit amounts: Per Unit Variable manufacturing cost$57 Fixed manufacturing cost$43 Variable selling and administrative expenses$21 Fixed selling and administrative expenses$15 Desired ROI per unit$17 Use the absorption-cost approach to determine the markup percentage.
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A 9%, 1,000 par, 15-year bond selling at $1,120.00 has an annual effective yield to call of 8%. If the bond is callable in 6 years at a call price of $1,090, what are the annual coupon payments? A. $75 B. $84 C. $90 D. $108
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When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $28,080 and its estimated salvage value is $4,080. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage valu...
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Determine how many terms of the Maclaurin series for $\arctan x$ are required to approximate $\arctan(0.1)$ to within $0.0001$, then use those terms to approximate $\arctan(0.1)$.
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During its first year of operations, Cole's Electronics Inc. issued 1,000,000 shares of common stock for $25 per share and issued 20,000 shares of common stock to accountants for $500,000 of professional services. The articles of incorporation authorize 5,000,000 shares of common stock with a par value of $1 per share ...
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IBM stock is currently selling for $162 per share. The risk-free rate is 5.1 percent, compounded continuously. What is the price of a call option with a strike price of $170 and 160 days until expiration? Assume the stock will pay a dividend of $5.80 per share in 75 days.
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Firm P's factory consists of two departments, X and Y, which use the following activity cost pools: Factory-wide overhead rates Departments overhead cost Department X overhead cost Department Y overhead cost Setup $350,000 $100,000 $20,000 $50,000 Material handling $35,000 $15,000 $10,000 $15,000 Equipment dep...
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Project X has a cost of capital of 15% and a WACC of 16%. If Project X has a regular cash flow stream (that is, its cash flows change sign only once) and its NPV is negative, which of the following is true? A. Its PI must be less than 1.0. B. Its IRR must be less than 16%. C. Its MIRR must be less than 15%. D. Its ...
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Grassfed Co. ended its fiscal year on December 31, 2014. The following information was taken from the accounting records: Total cash received on account during 2014 $253,000 Cash collections from customers in 2014 (all sales were on account) $197,000 Accounts receivable balance, December 31, 2014 48,000 Accounts re...
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I am working on Exercise 16.5.4 from Analysis on Manifolds by Munkres: Use Stokes' Theorem to show that $$\frac{\partial F_3}{\partial x_1}+\frac{\partial F_2}{\partial x_2}+\frac{\partial F_1}{\partial x_3}=\int_{\partial \mathbb{D}^2} \frac{\bar{z} F_1(z)- zF_2(z) }{i}\frac{dz}{z}$$ where $$z=x_1+ix_2, \quad F_j(x_1...
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What is the asking price of a 90-day T-bill with a yield of 2.25% and a face value of $10,000?
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At time t=0s, a muon is created at rest in the laboratory frame of reference. The muon's average lifetime of 2.2 {eq}\mu s {/eq} is measured by a clock in the muon's own frame of reference. Calculate the distance in the earth's reference frame that the muon travels during its average lifetime as measured by clocks in ...
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I have a straight line graph (y=mx+c), and need to find the point on this line where it's distance from the origin is the largest. I have found this point to be (0, c) or (-m^2c/(m^2+1), m^2c/(m^2+1)). Given this information and a value for c, I need to find the value for m. I have found c=21, but not m.
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For the function $$ f(x)= \sum_{n=1}^\infty \frac{x^n}{n^2+n},$$ I showed that the radius of convergence is 1 using the ratio test. I am not sure how to show that the series converges for x=1 using Taylor's theorem.
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Out of 150 students, 10 are taking both Astronomy and Latin. If 65 students are taking Latin, what is the probability that a student selected at random is taking Astronomy, given that they are taking Latin?
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With which country, which was once an enemy of Germany, did Hitler sign the Non-Aggression Pact in 1939? a. Italy b. Japan c. the United States d. the Soviet Union
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Find the flux of the field {eq}F(x, y, z) = \left \langle z^2 , -z , x^2 + y^2 \right \rangle{/eq} across the portion of the cone {eq}x^2 + y^2 + z^2 = 1{/eq} that lies above the {eq}xy{/eq}-plane and is oriented outward.
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From an economic perspective, countries with strong equity markets and shareholder orientations tend to be _____. A) macro-uniform systems B) micro-based systems C) law-based systems D) tax-based systems
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Dunne Corporation, which maintains its accounting records on a cash basis, provided the following information for 2016. Decrease in wages payable, from January 1, 2016, to December 31, 2016$240 Cash collected from customers$290,000 Accounts receivable at December 31, 2016$20,000 Accounts payable at December 31, 2016$...
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You have gathered the following data on HiFi, Inc. Capital structure: 40% debt, 60% equity; Coupon rate on new debt: 7%; Common stock price: $75; Dividends paid last year: $1.20; Dividend growth rate: 12%; Tax rate: 30%; Retained earnings: $850,000; and Debt: $1,250,000. What is HiFi's Weighted Average Cost of Capital...
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Assuming the market risk premium (RPsi) to be 8% and its beta being 1.4, determine the expected rate of return for the asset if the risk-free rate (RF) is 3%.
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If the coupon rate on a bond is 4.50 percent, the face value of the bond is $1,000, and the bond is currently selling for $1,022.65, what is the bond's yield to maturity (YTM) if the bond matures in 15 years?
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A firm has net working capital of $575, net fixed assets of $2,325, sales of $6,500, and current liabilities of $850. How many dollars worth of sales are generated from every $1 in total assets? a. $11.68 b. $14.02 c. $13.24 d. $16.18 e. $10.88
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Brown & Sons has a capital structure that consists of 20 percent equity and 80 percent debt. The company expects to report $3 million in net income this year, and 60 percent of the net income will be paid out as dividends. How large can the firm's capital budget be this year without it having to issue any new common st...
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A state lottery game is played by selecting three numbers between 0 and 9, inclusive, with replacement. The winning numbers are selected in the same way. You win if your numbers match the winning numbers in any order. What is the probability that you win the lottery game if you buy a single ticket?
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The adjusting entry for rent expense included a debit to Prepaid Rent. The original journal entry recording the payment of the rent must have included a: - Credit to Prepaid Rent. - Credit to Rent Expense. - Debit to Prepaid Rent. - Debit to Rent Expense.
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A company purchased equipment for $20,000. The equipment had a 5 year useful life and a $5,000 residual value. What is the depreciation expense at the end of Year 1 if the company uses the double-declining balance depreciation method? A. $8,000 B. $6,400 C. $5,000 D. $4,000
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The firm's current assets, which consist of cash, marketable securities, accounts receivable, and inventories, are expected to grow at a rate of 18 percent. Cash requirements for the upcoming year will equal $1.36 million; marketable securities will increase by $240,000; accounts receivable will rise by $2.10 million, ...
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Use the Fundamental Theorem of Calculus to evaluate the following integral exactly: {eq}\displaystyle \int_0^2 \left ( e^ {t}+3t \right )^2(e+3) \ dt{/eq}
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Direct material and conversion costs are traced to each batch of product produced in a(n): A. Process-costing system. B. Standard-costing system. C. Job-order costing system. D. Operating costing system. E. Operation-costing system.
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Consider a perfectly competitive market where each firm is a price taker. The demand function for a typical firm is {eq}p = 8 - 2X {/eq}, and the marginal cost function is {eq}MC = 2X. {/eq} The market price is {eq}\$4 {/eq} per unit. Find the total revenue. (Hint: Revenue = Price * Quantity) Show all of your wor...
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Scenario Analysis. What is the probability of success in this scenario analysis if a payoff of $1,000 or more is considered a success? a. {eq}100\% {/eq} b. {eq}60\% {/eq} c. {eq}70\% {/eq} d. {eq}40\% {/eq} e. None of these
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Adam Corporation purchased 3,000 shares of Ozark Company's common stock for $12 per share as a long-term available-for-sale investment on June 30, 2020. Ozark declared and paid a cash dividend of $1.00 per share on its common stock on September 30 and had a closing fair value of $18 per share on December 31. Assuming t...
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Cardica Corporation makes a single product with the following characteristics: Annual production and sales: 7,500 units Selling price per unit $200.00 Fixed expenses total: $810,000 Required: The company's unit contribution margin is closest to: (Round your an...
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The following table pertains to Alpha and Beta Divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Alpha Division Sales $800,000 Variable costs 500,000 Contri...
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A 2-kW resistance heater wire with thermal conductivity k = 10.5 W/m.{eq}\displaystyle ^oC {/eq} has a total length of 200 m and a cross section of 0.5 mm{eq}^2 {/eq}. The wires are to be insulated with rubber insulation with k = 0.15 W/m.{eq}\displaystyle ^oC {/eq} having a thickness of 2 mm. The outer surface of t...
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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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The government wants to raise a fixed amount of tax revenue by imposing an excise tax in the market for beer and/or in the market for wine. Assume that the supply is perfectly elastic in the two markets, that neither the demand for beer nor the demand for wine is perfectly elastic, but that the demand for wine is more ...
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Josh has an opportunity to expand his business. He can purchase a new piece of equipment at a cost of $180,000 that will allow him to produce new products. The equipment will be depreciated on a straight-line basis over a five year period. He anticipates being able to sell the new equipment at the end of five years at ...
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Which of the following statements is True with regard to the ERR? a. For a simple investment, the approximate ERR is greater than the IRR. b. The precise ERR is a proxy for the IRR. c. For a simple investment, the precise ERR is greater than the IRR. d. The approximate ERR can be used to evaluate a project, whe...
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A favorable decrease in production volume is most likely to reduce an investment center manager's performance evaluation based on residual income if the manager: a. Deceases prices. b. Increases the cost of investments. c. Focuses on maintaining a favorable reputation for investment center performance. d. Reduces t...
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You sold a six-year, $1,000, 8.0% coupon bond for $986.15. The face value of the bond is in your pocket, so the bond owner has 6 more years to receive the coupons and face value from you. The par value is always paid at maturity. What is the total amount of cash you will receive from this bond? A. $1,432.40 B. $1,486...
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Smith Corporation expects to pay an annual dividend of $1.85 next year. Management estimates that the dividend will increase by 2% each year. The company's beta is 0.70, the risk-free rate is 7%, and the market risk premium is 7%. Using the DCF model, what is the estimated value of Smith's stock?
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The dollar value of the month-end inventory is $7,100 and the cost of the merchandise sold is $41,000. Compute the inventory turnover ratio using the LIFO inventory cost method and the FIFO inventory cost method.
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Is there a formula or theorem that gives the value of the integral {eq}\displaystyle \int_{\partial T} f ds {/eq} as a function of the area {eq}\displaystyle \int_T 1 dx\ dy {/eq} of the triangle {eq}\displaystyle T = \{(x,y)| 2x+y \leq 3, \ 3x+2y \geq 12, \ x-2y \geq -6\} {/eq} where {eq}\displaystyle f(x,y) = 3x +...
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Estimate the exchange rate of the Euro in two years from now. German Inflation: 3.81% US Inflation: 2.73% Current Exchange rate: $1.2912 Euros. Using the Relative PPP model.
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Eastern Telemarketers has experienced the following for the past three months: JanuaryFebruaryMarch Revenues $540,000$580,000$620,000 Variable Costs 324,000349,600375,200 Fixed Costs 81,00081,00081,000 A. If August's revenues are $570,000, what would be the company's projected operating profit? (Answer in thousands...
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Evaluate {eq}\int \int_{S}F.n dS{/eq} for the vector field {eq}F=\left ( x,2y,3z \right ){/eq} and S being the cylinder {eq}x^{2}+y^{2}\leq 9{/eq} cut off by the planes z = 0 and z = 3 using the Divergence Theorem.
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A deadweight loss arises when a government tax leads to: a. tax revenue that is greater than the benefits received by those who actually pay the tax. b. tax revenue that is less than the benefits received by those who actually pay the tax. c. a reduction in the total benefits received by all members of society. d. ...
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The current yield to maturity on a 1-year Treasury bill is 1.85 percent. The real risk-free rate is 1.7 percent. Using the expectations theory, determine inflation expected next year. Do not round intermediate calculations. Round your answer to 2 decimal places.
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The opportunity cost of purchasing a new component from a supplier is: a. its purchase price. b. the value of the next best alternative. c. the value of the next best alternative minus its purchase price. d. zero, because opportunity cost includes only explicit costs.
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Consider the supply curve of the form Q = a + bP. If b is a positive real number, and a = 0, then the inverse supply curve is: A. a horizontal line. B. a vertical line. C. not defined. D. none of the above
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Rosco Company manufactures a variety of products. Variable costs per unit total $76.50, and the breakeven point in dollars is $919,500. Variable costs represent 75% of the selling price per unit. If fixed costs total $2,030,000, then at the breakeven point total contribution margin is _____.
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Which of the following is not an item that can be included in the computation of the cost of capital? A. Federal Income Tax B. Dividends C. Interest Expense D. Weighted Average Cost of Capital
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Which of the following statements is correct concerning the internal rate of return? A) The internal rate of return equates the present value of a project's cash inflows to the initial investment required for the project. B) The internal rate of return focuses on the magnitudes and timing of a project's expected cash...
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The controller of the Alpine Company believes that the ending inventory has been incorrectly computed. The following data has been accumulated: (a) Purchases $200,000 (b) Beginning inventory $50,000 (c) Sales $350,000 (d) Cost of goods sold $250,000 What is the correct amount for ending inventory? a. $50,000 b. ...
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Hanson's Beverage Corporation has the following capital structure: Debt: 22% of total capital Common stock: 78% of total capital The company plans to maintain its current capital structure as it issues new capital. To finance the planned expansion in total assets, 400 shares of common stock will be issued at $24 per...
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What is the cash flow from operations based on the following data? Assume a 365-day year. Net income: $35,000 Depreciation: $10,000 Increase in working capital: $2,500 Decrease in working capital: $1,000 Cash dividends paid: $5,000 Increase in stock: $10,000 Decrease in bonds: $7,000
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Use Green's Theorem in the vector form to evaluate the line integral ∫CF⋅dr where F(x,y)=15y^3i−25x^3j and C is the circle x^2+y^2=25 oriented counterclockwise.
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In 2016, 792 adults were sampled and 140 were against the gun control law. In 2017, 1121 adults were sampled and 308 were against the gun control law. What is the 95% confidence interval for the difference in proportions?
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Assume that the following data are given for Oxford Company: -Organizationally classified expenses: -Basic salaries: $1,000,000 -Other salaries: $100,000 -Commissions: $2,000,000 -Allocated expenses: -Corporate controller's office: $250,000 -Corporate accounting department: $750,000 -Virtual accountant's alloca...
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Net income for a period appears in all but which one of the following? a. Income Statement debit column of the worksheet. b. Statement of Retained Earnings credit column of the worksheet. c. Statement of retained earnings. d. Balance sheet.
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The manager of the deli section of a grocery store has determined that the length of time customers spend waiting in line for service is positively skewed with a mean of 6.8 minutes and a standard deviation of 2.5 minutes. What is the probability that the mean length of time spent waiting in line for a sample of 60 cus...
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An analyst has gathered the following information about two companies in the same industry. Company A Revenue per share $50.00 Cost of goods sold per share $35.00 Company B Revenue per share $60.00 Cost of goods sold per share $38.00 How does the relative profitability of the two companies compare? a. Company A...
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Which of the following statements is FALSE? a. The series {eq}\sum^\infty_{n=0}\frac{x^{3n}}{(3n)!} {/eq} converges for all x. b. The series {eq}\sum^\infty_{n=0}(\frac{1}{2} + \frac{n}{3})^n {/eq} converges. c. The radius of convergence of the series {eq}\sum^\infty_{n=0}(x-3)^{n+1} {/eq} is 1. d. The series {eq}\...
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Goodbye, Inc. recently issued new securities to finance a new TV show. The project cost $15.1 million, and the company paid $755,000 in flotation costs. In addition, the equity issued had a flotation cost of 6.6 percent of the amount raised, whereas the debt issued had a flotation cost of 2.6 percent of the amount rais...
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I. The current account surplus is financed by capital account deficit. II. Net capital outflow is zero. III. A closed economy would have net capital outflow = 0. A. I, II, and III are correct. B. I and II only. C. II and III only. D. I only.
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In the market for good X, demand is {eq}Q_d=40-2P {/eq} and supply is {eq}Q_s=-40+2P {/eq}. In addition, there is an identical market for good Y. What happens in each market if the price of Y rises by $5? A. {eq}Q_d {/eq} in both markets fall, {eq}Q_s {/eq} in both markets rise. B. {eq}Q_d {/eq} in both markets ...
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Power and influence have a _____ effect on job performance and organizational commitment. A. moderate positive B. strong negative C. moderate negative D. strong positive E. weak positive
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