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Given: 1. Risk-free rate: 4.1% 2. Return on market portfolio: 9.1% 3. Beta of Stock A: 0.60 4. Beta of Stock B: 1.40 Calculate the difference in the required returns for Stocks A and B.
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What is the pH at the equivalence point when 25.0 mL of 0.10 M benzoic acid is titrated with 0.10 M KOH? The pKa of benzoic acid is 4.20. A) 6.10 B) 4.20 C) 7.00 D) 3.74 E) 8.42
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Carr Corporation, a calendar-year corporation, began operations in 2010 and reported the following taxable income for the years: Taxable Income 2010 $70,000 2011 40,000 2012 80,000 Compute Carr Corporation's regular tax on its taxable income for 2012.
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When we simplify {eq}\displaystyle (1 + x/n)^n {/eq} We obtain: a. {eq}e^{x/n} {/eq} b. {eq}e^{-x} {/eq} c. {eq}e^x {/eq} d. {eq}1 + x {/eq}
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Find the centroid of the region bounded by the curves {eq}y = e^x, y = e^{-x} {/eq}, and x = 1.
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How can I use Taylor's Theorem to prove $e^{-2x} \leq \frac{1}{2} - x + \frac{5}{24}x^2$ for $0\leq x\leq 1$?
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T Corp. had the following inventory transactions for 2018: Quantity Unit Price 1/2/18 Purchase 45 $33 5/7/18 Purchase 90 $34 9/12/18 Purchase 165 $38 12/28/18 Purchase 60 $39 An end-of-year physical count of inventory on 12/31/18 revealed that there were 80 units on hand. Calculate the lower of cost or market value...
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1. The mean height of women in a country (age group: 20-29) is 63.5 inches. A random sample of 85 women in this age group is selected. What is the probability that the mean height for the sample is greater than 64 inches? Assume {eq}\sigma {/eq} = 2.51
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Write a Python function count_vowels to return the number of vowels in a given word. Use a default argument of ' ' (a single space) for the end parameter. count_vowels("hello", end = "o") should return 2
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During one accounting year, a firm has: 75,000 shares of 5%, $100 par value, cumulative preferred stock. 50,000 shares of $5 par value common stock. 10,000 shares of $100 par value treasury stock. If the firm's average issue price for its common stock was $30 per share and the average price per share of treasury st...
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If the operating profit margin is 12 percent, the leverage ratio is 1.25, and the return on equity is 15 percent, what is the interest burden?
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Monopolistic competition is different from perfect competition because a. there are a few firms in the market. b. each firm has some degree of monopoly power. c. the firms advertise. d. each of the firms competes on price as well as on nonprice factors.
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An alternate derivation of Gauss's law for {eq}E(r) {/eq} starting from Coulomb's law, {eq}F = \frac{kQq}{r^2}\hat{r} {/eq}: Consider a sphere of radius {eq}r {/eq} centered at the charge {eq}Q {/eq}. The electric flux through a small area {eq}dA {/eq} on the surface is given by: a. {eq}E(r)dA {/eq}. b. {eq}E(...
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System S' has a velocity u=+0.76c relative to system S. The clocks of S and S' are synchronized at t=t'=0s when the origins 0 and 0' coincide. An event is observed in both systems. The event takes place at x=500m and at time t=5.8{eq}\mu {/eq}s, as measured by an observer in S. In the figure, the time t' of the event,...
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The NetPresentValue of the project is 136,726.75. This project should be (accepted/rejected) based on the NPV because: a. This is a good project that the company should accept. b. the return from this project is higher than the company's required rate of return. c. This is an average project for the company and shou...
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Company W Company X Company Y Company Z Net operating income $ 43,000 $ 46,000 $ 76,000 $ 60,000 Sales $ 200,000 $ 320,000 $ 450,000 $ 480,000 Average operating assets $ 750,000 $ 2,100,000 $ 525,000 $ 1,050,000 Required: Compute each company's return on investment (ROI).
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Use Stokes' theorem to evaluate $\int_C F\cdot dr$, where $F(x,y,z) = yzi - xzj + x^2yk$ and $S: z = 25 - x^2 - y^2$ is oriented upward.
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After the entry for sales returns and allowances is posted, what is the balance in the account? a. Debit balance. b. Credit balance. c. Zero balance. d. Neither debit nor credit balance.
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On January 1, 20X6, Marshall Co. (Marshall) and Sons Co. (Sons) had condensed balance sheets as follows: MarshallSons Current assets$40,000$30,000 Noncurrent assets$50,000$40,000 Current liabilities$10,000$10,000 Long-term debt$20,000$0 Stockholders' equity$50,000$40,000 On January 2, 20X6, Marshall borrowed $30,00...
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Bill's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Cost information for Xpert follows: Direct materials$35 Direct labor$6 Variable manufacturing overhead$4 Fixed manufacturing overhead$30 Variable selling and administrative expense$8 Fixed selling and administrative expense$21 If each...
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The Bigbee Company had the following information available as of December 31: Assets Liabilities Cash $400 Accounts Payable $1,200 Marketable Securities $1,000 Long-Term Debt $5,000 Accounts Receivable $2,000 Common Stock $3,...
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A firm has the following financial information at the end of the year: Prior yearCurrent year Net Income $850,000 $750,000 Depreciation Expense 150,000 150,000 Dividends Paid 500,000 450,000 Accounts Receivable 2,300,000 1,800,000 Inventory 2,100,000 1,500,000 Accounts Payable 750,000 500,000 Long Term Debt 10,30...
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A smoke detector contains 0.21 mg of Americium 241 (Am-241), which decays according to the formula f(t) = 0.21e^{−0.0047t}, where t is time in years. A technician tests the detector by exposing it to a source of particles and detecting the number of decays per minute. If there are no other sources of interference, how ...
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After selling 30 shares of a stock short at $30 per share, 300 shares of the same stock are purchased at $25 per share. What is the rate of return for this $3,000 investment if the price of the stock increases to $40 per share?
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The after-tax cost of debt for a firm is 5.12 percent. You know that the firm's pretax cost of debt is 6.40 percent and its tax rate is 30 percent. What is the firm's debt-equity ratio if the equity cost of capital is 15.05 percent?
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The materials price variance is usually the responsibility of A. the production manager. B. the purchasing manager. C. both the production and purchasing managers. D. neither the production or purchasing managers, since the variance is usually the result of a combined effect of several factors.
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Determine the payback period for the software, including the effect of interest using an MARR of 10%. (Round the answer to the nearest whole year) An engineering firm plans to buy new software to improve efficiency. The software has an initial cost of $5,000 and is expected to increase profits by $1,200 per year.
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Sithole Furniture receives a special order for 50 sofas for a special (total) price of $7,850. The materials and direct labor for each sofa are $210. In addition, the setup, supervision, and other overhead costs are $250 per sofa. If the company is currently operating at full capacity, what would be the opportunity cos...
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The demand function is p = -x^2 + 650. Find the consumer's surplus at market equilibrium, given the supply function is p = x^2 + 3x + 160.
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YGTB, Inc. currently has an EPS of $1.90 and an earnings growth rate of 5 percent. If the benchmark PE ratio is 18, what is the target share price in five years?
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Combustion gases with k = 1.33 enter a converging nozzle at stagnation temperature and pressure of 350 &{eq}^o{/eq}C and 400 KPa, respectively and are discharged into the atmosphere at 20 {eq}^o{/eq}C and 100 KPa. The lowest pressure that will occur within the nozzle is a) 13 KPa b) 100 KPa c) 216 KPa d) 290 kPa e...
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Which one of the following statements about preferred stock is true? A. If preferred dividends are non-cumulative, then preferred dividends not paid in a particular year will be carried forward to the next year. B. Unlike dividends paid on common stock, dividends paid on preferred stock are a tax-deductible expense...
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Pete's Pipers has just paid an annual dividend of $5.00 per share. The stock is selling for $40.00 per share and has a growth rate of 1.2 percent. What is the dividend yield?
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Calculate {eq}\oint _{C}\overrightarrow{F}\cdot d\overrightarrow{s} {/eq} where F = 2x, -2y ,z; s is the circle: {eq}x^2 + y^2 = 4, z = 4 {/eq} taken counterclockwise viewed from above (the direction of the unit normal vector {eq}\widehat{n} {/eq} is {eq}0,0,1 {/eq}).
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Stainless Steel Inc., an all-equity firm, is considering issuing $2.0 million of 3.5 percent coupon bonds. The debt will mature in 10 years, and coupon payments are paid annually. The bond faces a $1,000 par value, and the yield-to-maturity is 3.45 percent. If the firm's tax rate is 30 percent, then what is the increme...
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For his birthday, Jan is given a 30.0-cm-long piece of clear plastic tubing and told to make a simple "saxophone" that will play the C scale (notes with frequencies of 131, 139, 147, 155, 164, 175, 185, 196, 208, 220, 233, and 247 Hertz). The 30.0-cm mark on the tube should be closed so that the air inside forms a clos...
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Merton Enterprises has bonds outstanding, which are selling for $868. The bonds have 10 years remaining to maturity, pay interest annually, and have a $1,000 par value. What is the yield to maturity on Merton's bonds? A. 7.0% B. 8.0% C. 8.2% D. 9.0%
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Silven Industries, which uses the weighted-average method, has prepared the following cost information for the month of December: Total cost of units completed and transferred to finished goods in December $27,480 Cost of production for December (including $24,000 in direct materials) $35,000 Beginning balance in wor...
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A British company is planning to raise $20 million by issuing bonds in both the British and U.S. markets. The bonds will have a coupon rate of 8%, a 10-year maturity, and semiannual coupons. The face value of the bonds in both markets is sterling. To save time, the company wants to set the coupon rate and maturity so t...
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An estimate of the unemployment rate involves a sample of 42,000 people. If the reported rate must be within 0.3% and the rate is known to be 9%, find the corresponding level of confidence.
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A division can sell externally for $69 per unit. Its variable manufacturing costs are $24 per unit, and its variable marketing costs are $15 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity? A. $30 B. $24 C. $45 D. $41
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ABC Company makes three models: Alpha, Beta, and Gamma. It uses an activity-based costing system. The annual budget for total overhead costs is $150,000 for Alpha and $160,000 for Beta and $140,000 for Gamma. Annual production and activity budgets are as follows: Alpha Beta Gamma Units ...
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Suppose that both the equilibrium price and quantity in a market decrease. Which of the following sets of circumstances could lead to this result? a. A relatively elastic supply and an inelastic demand b. An increase in demand and a decrease in supply c. A relatively elastic demand and an inelastic supply d. A decr...
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Baltimore Company has three product lines: X, Y, and Z. The following information is available regarding each of these product lines: Product X Product Y Product Z Selling price per unit $100 $100 $100 Variable cost per unit $65 $40 $20 ...
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If the overall elasticity of demand in a market is 2.0, a 28 percent increase in price will result in a(n): A) 5.6 percent decrease in total expenditures B) 5.6 percent increase in total expenditures C) 14 percent decrease in total expenditures D) 14 percent increase in total expenditures E) 2.8 percent decrease i...
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As the sample size increases, the standard error will: a. increase b. remain the same c. become a negative value d. decrease
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To what amount will a deposit of $100,000 be accumulated in 20 years if the deposit earns 7% interest compounded quarterly? a. 390,000 b. 358,942 c. 402,783 d. 409,101
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The following is a partial list of accounts from a company's December 31, 2013 adjusted Trial Balance. Accounts Receivable $12,000 Unearned Revenue $16,350 Interest Revenue 22,575 Retained Earnings (1/1/13) 132,725 Utilities Expense 5,900 Prepaid Expenses 4,600 ...
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A bond pays semi-annual interest payments of 5%, matures in 10 years, and was priced $5,636 to yield 10% to maturity. What is the price of this bond if the market interest rate falls to 7% per annum? a. $5,987 b. $6,143 c. $6,324 d. $7,044
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Stock A has a standard deviation of 30%, while stock B has a standard deviation of 18%. Stock A and B are in the same risk class. The weight of stock A in the minimum variance portfolio is 35.3%, and the weight of stock B is 64.7%. What is the correlation between the returns of A and B? A. 0.411 B. 0.357 C. 0.254 D...
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What is the error in the following calculation of arc length for the function $x^{2/3}-x$ from 0 to 8: $$\int_0^8 \sqrt{1+\left(\frac{2}{3}x^{-1/3}-1\right)^2} \, dx=\int_0^8 \frac{2}{3}\sqrt{x+\frac{4}{9x^{-2/3}}} \, dx = \left. \frac{1}{9}(x^{2/3}-\sqrt{x}+2x)\right|_0^8 = \frac{112}{9}-\frac{2}{\sqrt{3}}$$
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Claiming a loss on the exchange of like-kind property: a. involves giving up both the old property and cash and receiving the new property. b. results in a lower tax basis in the new property than if the property was sold. c. is a recognition of gain but not of a loss. d. is disallowed if the exchange has commercia...
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A company has net working capital of $790, net fixed assets of $2,040, sales of $6,040, and current liabilities of $830. How many dollars worth of sales are generated from every $1 in total assets? (Enter answer as directed, but do not round intermediate calculations.)
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What does the fraction $\frac{\sin(10000\pi t)}{\sin(\pi t)}$ converge to as $t\to\infty$?
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Management of a firm has the opportunity to invest in one of two mutually exclusive projects X and Y. Their cash flows and WACC are summarized below. Which project would you recommend based on the highest NPV criterion? Project X Project Y WACC 14% 12% Year 0 -3,500 -5,000 ...
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You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.2. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 1.55% Liquidity premium = 0.2% Maturity risk premium = 0.95% Default risk premi...
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For which values of p does the series \(\sum_{n=1}^∞ \frac{3^n}{n^p}\) converge?
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Rowan Co. has an account receivable of $320,000 and an allowance for doubtful accounts of $14,000 before adjustment on December 31, 2013. Management estimates that 4% of the net accounts receivable will be uncollectible. What amount of bad debt expense will be reported on the income statement for the year ended Decembe...
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At the end of the year, January, Granville Industries had the following operating data: Sales revenue, $670,000 Cost of goods manufactured, 480,000 Administrative expenses, 73,000 Selling expenses, 50,000 Manufacturing overhead variance, 3,600 Manufacturing overhead applied, 144,000 Raw materials inventory, Dece...
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The assets of Jasper & Co. consist entirely of current assets and net plant, property, and equipment. The firm has total assets of $2.9 million and net plant, property, and equipment equals $2.25 million. It has notes payable of $150,000, long-term debt of $840,000, and total common equity of $1.51 million. The firm do...
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Assume the following information is available for Post Corporation at December 31, 2013, before adjusting and closing the books: Retained earnings, January 1, 2013 $450,000 2013 net income 315,000 Cash dividends 60,000 Mergers & acquisitions 120,000 Common stock (par value $2) 50,000 Paid-in capital in excess o...
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Elliott Company provides the following information for 2014: Net Credit Sales of $3,600,000 Balance of Accounts Receivable at 12/31/14 = $550,000 Bad Debt Expense - 1% of net credit sales Allowance for Doubtful Accounts - credit balance of $3,000 before adjustment to uncollectible accounts on December 31, 2014. Wh...
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Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment? a. Establish overall strategy or objectives b. Select segmentation method c. Develop positioning strategy d. Evaluate segment attractiveness e. Select target marke...
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The seller of a manufacturing company is negotiating a sale for $750,000 to be collected in six months. The buyer in desperate need of cash is offering $675,000 in full payment today. The seller is concerned that the buyer will become bankrupt before six months is up. The seller and the buyer are in close touch and it ...
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What is the yield to call for a 10 percent coupon, $1,000 par 5 year bond selling at $1047.64 if the bond is callable in 5 years at a call price of $1,100?
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The Heavens are going to randomly choose a student in class to give a problem to solve. 1/5 of the students are in the Chemistry major, 1/6 of the students are in the Physics major, and 1/4 of the students are in the Biology major. The Chemistry majors are 3 times more likely to be chosen than other students in the Che...
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Find the volume of the solid generated by rotating about the y-axis the region bounded by the parabola {eq}y = 4x^2 {/eq} and the line y = 36.
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Which of the following options is correct? To increase cardiac output, the _____ branch of the autonomic nervous system _____ in cells of the sinoatrial (SA) node. a. parasympathetic, increases K{eq}^+ {/eq} permeability b. sympathetic, increases cyclic AMP c. sympathetic, increases Ca{eq}^{2+} {/eq} release from...
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If the price level in the current period is less than anticipated, then according to the sticky-wage theory of the short-run aggregate supply curve: a) firms can reduce the amount of output they produce without laying off workers. b) firms will hire workers to restore their labor force to its expected size. c) labor...
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Ellison Corp. acquires Redstone Corp. because Redstone has unused production facilities that Ellison needs. This is an example of: a. Diversification b. Vertical integration c. Horizontal integration d. None
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Assume a company has a process with a learning curve percentage of 90% and the first unit produced takes 100 hours. A learning curve analysis can be used to estimate that the time required to produce the 20th unit would be: a. 74 hours. b. 81 hours. c. 75 hours. d. 90 hours. e. 88 hours.
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A firm needs to maintain an inventory of finished goods in order to meet seasonal demand. The firm's cost of carrying (storing) these finished goods can be calculated as {eq}C(Q) = K + hQ {/eq}, where K is a fixed cost and h is the per unit storage cost. The firm's ordering cost is {eq}D + \frac{Q^2}{2} {/eq}, where ...
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Which is the correct statement? a. The weighted average cost of capital is the right discount rate for most project cash flows. b. The weighted average cost of capital is the right discount rate for corporate cash flows. c. The weighted average cost of capital is the right discount rate for future investment. d. Al...
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What is the annual nominal rate for a bank account to which you deposit $3000 at the beginning of each year and which eventually contains $220,000 after 15 years? Assume annual compounding.
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To test if the money supply M2 is useful in forecasting the Consumer Price Index (CPI), the following regression was run using the data set from 1960 to 2014: CPIt = a0 + a1 M2t + ut The coefficient on M2 turned out to be zero. This could be due to: A) serial correlation in the error term. B) no relationship between...
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Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $3.80 per share and has announced that it will increase the dividend by $2.80 per share for each of the next four years and then never pay another dividend. If you require a return of 14 percent on the company's stock, how much will yo...
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Suppose your firm's opportunity cost is 11% and you can receive either $20,000 in year 1 and year 2 or $25,000 in year 1. Which option has the higher present value and by how much? a. $20,000 in year 1 and year 2; $574.92 higher b. $20,000 in year 1 and year 2; $895.75 higher c. $25,000 in year 1; $895.75 higher d....
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A buffer contains 1.000 moles of a weak acid HA (Ka = 1.00 x 10^-6) and 1.000 moles of its conjugate base in 1.000 L of solution. Which of the following will cause the pH to increase by 0.10 pH units? a. adding 0.010 moles of HCl b. adding 0.010 moles of NaOH c. adding 0.010 moles of HA d. making the solution 2.00...
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State University currently charges $100 per credit hour for students from the University area and $200 per credit hour for students from outside the University area. The University sets the credit hours based on the overall demand for the course. Currently, the University has 40 hours of classes per semester to be give...
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Serafini Restaurants is financing a new restaurant with a mortgage. The annual payments on the mortgage will be $230,000, payable at the end of each year. If the firm can borrow at 9% a year, how much will the restaurant's mortgage be worth in 10 years?
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During the year, ABC company generated $5,000 of gross income from rental of real estate. In addition to the gross income, ABC received interest of $2,500 and dividends of $10,000 from a long-term investment in stock. What is the amount and character of ABC's gain or loss for the year? a. $17,500 of long-term capital...
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As a stockholder, you are interested in maximizing your wealth. Assume you hold 200 shares of Gamma Corp., which is paying $4 in cash dividends annually. You are considering selling all of your shares of Gamma and buying 200 shares of Phi Corp. which is expected to pay $4.75 in cash dividends one year from now. Which o...
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We know that the magnetic flux through the loop shown is changing with time. Which one of the following statements is correct? a. The magnetic field inside the loop is increasing. b. The current induced in the loop is in the clockwise direction. c. The emf induced in the loop is constant. d. The current induced in ...
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FIFO and LIFO Inventory Methods The beginning inventory of merchandise at Almond Co. on November 1, 2018, was 30,000 units at a cost of $8.00 each. During November, 120,000 units were purchased at a cost of $10.00 each and 115,000 units were sold for $400,000. Almond Co. uses a periodic inventory system. Required: Wh...
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Calculate the rank of a 3 x 6 matrix with eigenvalues {eq}\lambda = -3, -3, -2, -1, 1, 5 {/eq}. Is the rank of this matrix 4, as determined using the formula Rank(A) + nullity(A) = number of columns?
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Calculate the flux of the field F=(y, -x) across the plane curve C, where C is the closed counterclockwise passing around the rectangle with vertices at (0, 0), (5, 0), (5, 4), and (0, 4)
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Indicate which of the following statements concerning margin accounts is false. A) The maximum percentage of the total margin account value that may be borrowed is 50% if the account has been established for less than three months. B) Selling securities short will not affect the maintenance margin requirement. C) Th...
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If a firm hires additional workers and the marginal revenue product of these workers falls, the firm must be experiencing (Select one): A. increasing returns to labor B. decreasing returns to labor C. increasing marginal product of labor D. decreasing marginal product of labor
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Given the cost function C(x) = 16e^{-0.1x} + 19x - 120, find the marginal cost at x = 40 (to the nearest integer).
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Leaders who have only coercive or legitimate power may be able to use only _____ to influence followers. a. coalition tactics b. inspirational appeals c. consultations d. ingratiation
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The management of a firm wants to shift from a standard cost system to an actual cost system. Which of the following variances will now be closed to Cost of Goods Sold? a. Only the variances related to direct materials and direct labor. b. Only the variances related to variable overhead. c. Only the variances relat...
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Consider an economy with two periods (Period 0 and Period 1) and two states in Period 1 (State 1 and State 2). Consider two assets: Asset X is a security that pays 1 unit of consumption in Period 1 if the economy is in State 1 and pays 0 units of consumption in Period 1 if the economy is in State 2. Asset Y is a secu...
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Suppose booming economies in the BRIC nations (Brazil, Russia, India, and China) causes net exports (NX) to rise by 100 billion in the United States. If the MPC is 0.90, what will the change in equilibrium GDP be (billion)?
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J.B. Enterprises sold its receivables to Bakers Trust National Bank in a transaction that was both a factoring and a discounting of receivables. There was no recourse to J.B. Enterprises. J.B. Enterprises might report the transaction as: a. The sale of accounts receivable at fair value plus a loss on sale of accounts ...
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A $5,000 face value bond has a coupon rate of 6.0%, matures in 10 years, and has a market price of $5,530.76. What is the yield to maturity on the bond?
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In its first month of operation, Sweet Acacia Industries purchased 320 units of inventory for $5, then 420 units for $6, and finally 360 units for $7. At the end of the month, 400 units remained. Compute the amount of phantom profit that would result if the company used LIFO rather than FIFO.
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How would I calculate the producer surplus if the price is $44, given that the demand curve is downward sloping, the supply curve is upward sloping, and the quantity is 20 units?
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Two groups of participants were recruited for a study in which they had to detect a very small difference between two alternating pictures (participants saw Picture 1, then Picture 2, then Picture 1, then Picture 2, etc). One group was recruited from America and one group was recruited from China. For one pair of pictu...
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A 100-kg projectile is fired at an angle of 30 degrees above the horizontal from the top of a cliff 300 m high. At the instant the projectile is hit with a velocity of 100 m/s, a 50-kg person standing at the base of the cliff starts running at a constant speed of 6 m/s to catch the falling projectile. Neglecting fricti...
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Alpha's bond fund sold for $885 at the start of the year. The fund paid 3% in dividends and had a capital gain distribution of $32. The end-of-year fund asset value was $975. What was Alpha's total return? _____%
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