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An allowance account used to record estimated uncollectible accounts receivable is called a(n): a. Current asset account. b. Balance sheet account. c. Contra asset account. d. Income statement account.
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A bond with a coupon rate of 6.22 percent makes semiannual payments on January 15 and July 15 of each year. The Wall Street Journal reports the asked price for the bond on December 27 at 108:02. What is the interest rate, or yield to maturity (YTM), on this bond?
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Which of the following are considered fixed charges? A. taxes B. interest C. dividends D. all of the above
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The last dividend paid by Wilden Corporation was $3.75. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which time, dividends are expected to grow at a rate of 8.0% forever. The firm's required return is 12.0%. What is the best estimate of the current stock price? a. $93.49 b. $87.65 c...
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Cusic Industries had the following operating results for 2012: Sales$29,790 Cost of goods sold$19,820 Depreciation expense$5,310 Interest expense$2,650 Dividends paid$1,520 At the beginning of the year: Net fixed assets$17,280 Current assets$5,870 Current liabilities$3,350 At the end of the year: Net fixed assets...
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What do high-income countries have in common when it comes to health insurance? a. They all have universal health insurance. b. They all have one-payer systems. c. They all have some kind of mandatory insurance. d. They all have private insurance.
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The average number of wallboard manufacturing plant calls that can be handled by the family at home during a working day is 2. Assuming a Poisson distribution, what is the probability that 3 or fewer calls arrive during a day?
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Saxbury Corporation expects to receive a dividend of $1.22 in one year, and a dividend of $2.50 in two years. If the current price of the stock is $64.42, what is the implied return on investment, or expected return, on the stock?
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Heidenescher Company has a debt-to-equity ratio of 1.70. If it had no debt, its cost equity would be 9 percent. Its cost of debt is 7 percent. What is Heidenescher's cost of equity if the corporate tax rate is 34 percent? (Round your answer to 2 decimal places.)
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A project has a WACC of 9%, a 5-year life, $60,000 of free cash flow in year 1, and $10,000 of net working capital in year 0. What is the project's MIRR?
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You buy a new piece of equipment for $5,535, and you receive a cash inflow of $1,000 per year for 8 years. What is the internal rate of return?
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Suppose Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. The cost of capital is 13.78 percent. Given the following cash flows, should the company accept or reject this project? Year 0 = -$410,762 Year 1 = $125,893 Year 2 = $55,552 Year 3 = $147,597 Year 4 = $464,189 a. rejec...
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From the data shown below calculate the unemployment rate: Unemployment Survey Data Adult population 16 years of age and over 300,000 Total employed 200,000 Total unemployed 25,000
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I want to evaluate $\iint_D (x + y) \,dx \,dy$ where $D$ is the part of the circle $(x + 1)^2 + y^2 \leq 1$ that is above the $x$-axis. I parameterized the region using $x = r \cos t - 1$, $y = r \sin t$ with $r$ between $0$ and $1$ and $t$ between $-\frac{\pi}{2}$ and $\frac{\pi}{2}$, leading to the integral $\int_{-\...
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I have a Leontief production function $$F(K, L) = min(\alpha K, \beta L)$$ and I know the price of capital is $r$ and the wage is $w$. I know that the solution for the factor demands is $K^* = \frac{y}{\alpha r}$ and $L^* = \frac{y}{\beta w}$. How do I find the total cost of production $C(y)$ using factor demands $K^*$...
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XYZ Company prepared the following income statement for the year ended December 31, 2012: Sales revenue$800,000 Variable expenses$400,000 Contribution margin400,000 Fixed expenses300,000 Net operating income100,000 If XYZ Company sold 40,000 units during 2012, what was the unit contribution margin? A. $10 B. $12.50...
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$${x^12} + {y^4} + 25 = 0$$ $$0 \leqslant x \leqslant 1$$ Find the minimum and maximum values of $$y$$
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The country of Aquilonia has a tax system identical to that of Canada. Suppose someone in Aquilonia bought a parcel of land for $10,000 in 1960 when the price index equaled 100. In 2002, the person sold the land for $100,000, and the price index equaled 500. If the person must pay 20 percent of any capital gain in taxe...
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Determine the MRSxy for the following utility functions and indicate whether it is diminishing, constant or increasing: {eq}U=x^{1/2}y {/eq}.
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The volatility of returns for the stock of BetaCorp is 25%. This means that: A. the standard deviation of returns for BetaCorp is 25%. B. the variance of returns for BetaCorp is 25%. C. the standard deviation of returns for BetaCorp is 5%. D. 95% of the time, Beta Corp's returns are between -50% and 0%.
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Assume that the government raises interest rates in a given year. Which of the following is true? A) There will be a movement along the IS curve to the left. B) There will be a movement along the IS curve to the right. C) The IS curve will shift to the right. D) The IS curve will shift to the left.
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Country A can produce 20 units of X or 80 units of Y with the same resources. Country B can produce 40 units of X or 40 units of Y with the same resources. Which of the following is true? A) Country A should produce more of good X and less of good Y. B) Country A should produce more of good Y and less of good X. C)...
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If consumers buy less at every price than before, a. demand increased. b. demand decreased. c. the market shifted toward equilibrium. d. all of the above.
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Please refer to the following information regarding bonds issued by Corporation: Face Value: $100,000 Issue Price: 105 Coupon Rate: 6% payable semiannually Market Rate: 5% The company uses the straight-line method to amortize any bond discounts or premiums. The bonds mature in 10 years. What is the carrying valu...
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Suppose g is odd, {eq}\int_{-2}^4 g(x) dx = 2,\ and\ \int_{-6}^{-4}g(x) dx = 3. Either find {eq}\int_2^6 g(x) dx, or show that there is not enough information to find {eq}\int_2^6 g(x) dx{/eq}
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For the following transactions, indicate whether it will result in an increase or a decrease in cash flow. State your answer as +, if it will increase cash flow or as - if it will decrease cash flow. (Write only + or - as your answer, do not state whether it will increase or decrease). 1. Sale of equipment at its boo...
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Assume the random variable X is normally distributed with mean {eq}\mu{/eq} = 40 and standard deviation {eq}\sigma{/eq} = 7. Find the 18th percentile.
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Bolivia (a monopoly) sells its product (X) at a price of 250 credits per unit. It has various types of customers, each with a different price elasticity of demand for X (from 10 to 14). Bolivia expects to make (in credits): A. More than $60 per unit sold on average B. Between $55 and $60 per unit sold on average C. ...
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Suppose that the interest rate is 10% per year. The price of a security that pays $100 in exactly one year and $1,000 in exactly two years is closest to: A. $830 B. $940 C. $870 D. $880
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Consider a capital market with two risky securities (J and K) and a risk free security. J has expected return of 11% and standard deviation of 18%. K has expected return of 15% and standard deviation of 24%. If the correlation coefficient of J and K is 0.52, what is the expected return and standard deviation of the mi...
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Lott Company income statement for the year ended December 31, 2014, reported sales revenue of $7,900,000, cost of goods sold of $4,500,000, operating expenses of $1,200,000 (including depreciation expense of $700,000), and an increase in accrued expenses payable of $150,000. What was Lott Company's cash flow from oper...
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The future value of a {eq}\$500 {/eq} investment today at 8 percent annual interest compounded semiannually for five years is _____. a. {eq}\$740.74 {/eq}. b. {eq}\$723.97 {/eq}. c. {eq}\$710.00 {/eq}. d. {eq}\$670.00 {/eq}.
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The bank statement shows a balance of {eq}\$8,861.40 {/eq}. The amount of unadjusted checks is {eq}\$1,500 {/eq} and the amount of unadjusted deposits is {eq}\$2,300 {/eq}. The cash account shows a balance of {eq}\$1,061.40 {/eq}. The unadjusted entries for deposits and checks already have been recorded. The ac...
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Martin Company expects to have a cash balance of $135,000 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows: Collections from customers: January $246,500, February $435,000. Payments for direct materials: January $155,000, February $240,000. Direct labor: January $90,000,...
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What is the effective annual rate of 13.95 percent compounded continuously?
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The power radiated by a body is directly proportional to the square of the temperature of the body. If the temperature of a body is increased by 1%, then how much will the radiated power increase?
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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 500 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materi...
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I have data from a pre-test and a post-test for a group of 10 students. I know that the average pre-test score was 62, the average post-test score was 76, and the standard deviation is 15. I'm trying to determine if this is statistically significant and I'm using the effect size formula for the dependent t-test as we d...
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Jeeves purchased a computer on account for {eq}\$3,500 {/eq}. On the following day, Jeeves returned {eq}\$350 {/eq} worth of defective computer chips. The return was recorded with a debit to {eq}\$350 {/eq} of Merchandise Inventory and a credit to {eq}\$350 {/eq} of Accounts Payable. However, the actual return of ...
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Common stock has a beta of 1.4 and the risk free rate of return is 3.5%. Given this information, what is the expected return for the market (Round the answer to two decimal places).
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An investor expects to purchase a stock at $30 and sell it in 4 years at a price according to the formula g(t) = 20 + 1/30(t^3-24t^2), where t is in years and t=0 corresponds to the time the purchase is made. Find the rate of change of the stock price in 3 years.
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How can I evaluate the one-sided limits of $f(x) = \frac{\tan(x)}{x}$ as $x$ approaches $0$ without using the known formula $\tan(x) \sim x$?
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I have a company with 3 divisions. I am trying to allocate overhead to each division based on the amount of space they use. The total overhead is $3,600,000. Division A uses 10,000 square feet of space, Division B uses 25,000 square feet, and Division C uses 5,000 square feet. What is the overhead assigned to each divi...
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The 2014 income statement for Hot Coffee, Inc., shows the following: Net sales = $255,000; Cost of goods sold = $189,000; Depreciation = $16,000; Interest = $13,000; Taxes = $16,000. What is the amount of EBIT?
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Discounted Cash Flow Analysis Seether and the Giants have decided to buy a car. They are considering either leasing or purchasing a $50,000 car. The three-year lease requires a $5,000 security deposit, $1,600 of annual maintenance, and 3% annual increase per year in the lessee's interest rate. The three-year loan (w...
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Do average rates of return always understate a fund's compound rate of growth? If not, is there some circumstance under which the average rate of return will yield a number larger than the compound rate of growth? A) No, if the rate of growth is constant. B) Yes. C) No, if the rate of growth increases over the perio...
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Current yields on U.S. Treasury securities were 4.06% for 1-year securities, 4.31% for 2-year securities, and 4.43% for 3-year securities. What yield can an investor expect for a 3-year U.S. Treasury security if she expects the 1-year yield to remain stable over the next three years and there are no expected changes in...
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Suppose that an aggregate production function has the form {eq}Y = K^\alpha [A(L^\beta H^\gamma ) ]^{1-\alpha} {/eq} Suppose that L and H are fixed. Which of the following is correct? A) This production function exhibits decreasing returns to scale in K. B) This production function exhibits constant returns to sca...
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I need to find the local maxima and minima of the function g(x,y) = 4 - 3x^2 + y^2. I have found that D = -12 < 0 so I know there is a saddle point at (0,0), but this question involves "local maxima and minima" so I'm not sure if I have the right solution.
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Your firm is considering a project with the following expected cash flows: Year 0 Year 1 Year 2 Cash flow -$45,000 +$9,000 +$16,000 What is the project's IRR? a) 7.08% b) 8.51% c) 6.76% d) 5.89% e) The project has multiple IRRs.
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Bullock Gold Mining has a bond outstanding with a coupon rate of 6% and a current yield of 5.7%. If the bond has a YTM of 5.85%, what is its current price?
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Delta Company produces a single product. For the most recent year, the following data were available: - Units produced and sold: 12,000 units - Variable production costs: $5 per unit - Fixed production costs: $40,000 in total - Variable selling and administrative expenses: $2 per unit - Fixed selling and administr...
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Find the volume of the solid that is outside the sphere {eq}\rho = 1{/eq} and inside the sphere {eq}\rho = \cos(\phi){/eq}.
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Consider an apartment building with two identical units. The monthly rent for each unit is $500. Each apartment can accommodate one or two people. The number of potential renters who have non-negative willingness to pay for the apartment is distributed uniformly between 0 and 50. Each of them has a utility function of ...
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Suppose a competitive market could be supplied at a constant marginal cost of $10. In this market, the demand is $100 - 4P. Which of the following statements is true? a. The socially efficient quantity is 30 units. b. If the market is left to operate unregulated, the market outcome is not socially efficient. c. This...
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If the trend noted in the ICCO report continues and century plans to maintain constant or increasing inventory quantities the most likely impact on century chocolate's financial statements related to it's raw materials inventory will be? A. a cost of sales that more closely reflects current replacement values. B. a h...
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The scores for a psychology exam were normally distributed with a mean of 67 and a standard deviation of 8. What is the probability that a randomly selected student scored below 50? Round the answer to two decimal places.
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Suppose the interest rate on a 1-year T-Bond is 4.0%, the interest rate on a 1-year T-Note is 3.5%, and the interest rate on a 1-year default-free corporate bond is 5.5%. The corporate bond has a spread over the T-Bond of 1.5 basis points. What is the credit spread on the T-Note versus the T-Bond?
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A $250,000 loan is to be amortized over 8 years at 10% interest with equal annual end-of-year payments. The annual payment that will fully pay off (amortize) the loan is closest to: a. $42,718 b. $25,670 c. $39,792 d. $41,762
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Consider the mechanical energy of a body at rest on the ground at the Earth's equator, at {eq}{{r}_{e}}=6400\text{ km} {/eq}. Consider the mechanical energy of the same body at rest on the ground at the South Pole, at {eq}{{r}_{e}}=6400\text{ km} {/eq}. For this problem, we consider the Earth to be spherical. (Remember...
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Business strategy concerns: A. the actions and approaches crafted by management to produce successful performance in one specific line of business. B. what set of businesses to be in and why. C. selecting a business model to use in pursuing business objectives. D. selecting a set of stretch financial and strategic ...
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Your bank offers you a $60,000 line of credit with an interest rate of 2.65% per quarter. The loan agreement also requires that 3% of the unused portion of the credit line be deposited in a non-interest bearing account as a compensating balance. Your short-term investments are paying 1/2 of 1% per month. What is your e...
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Use an appropriate semilog plot to determine the value of the constant $c$ in the following empirical formula: $$A(t)=e^{ct}$$ Where A(t) is in micrograms per milliliter and t is in days. The following data are taken from a serum sample that has been monitored for the presence of a newly discovered toxin produced b...
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Bleach is mostly water and sodium hypochlorite. The sodium hypochlorite can be titrated with iodide ion to produce tri-iodide ion according to the following reaction: {eq}\rm OCl^− (aq) + 2 I^− (aq) \to Cl^− (aq) + I_3^− (aq) {/eq} Assuming that the density of the bleach is {eq}1.01 \ g/mL {/eq}, calculate the nu...
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Find the value of n needed for the error estimate in the approximation to be less than or equal to 0.00001. {eq}\int^{1}_{0}e^{x^2} dx {/eq}
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Find the average value of the function {eq}f(x,y)=6x {/eq} on the triangular region with vertices (0,0), (0,1), and (3,0).
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Find the mass of the lamina that occupies the region D = {(x,y)| 3 ≤ x ≤ 7, 1 ≤ y ≤ 2} and has the density function ρ(x,y) = 4xy^2.
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Benjamin Company has a $100,000, 5% bond issue outstanding. They pay interest semiannually. It is now January 1, 2011 (5 years to maturity) and the market interest rate is now 5%. What is the new price of the bond?
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Evaluate the following double integral: {eq}\iint_D \frac{x}{\sqrt{x^2+y^2}}dA, where {eq}D is the region that lies inside the cylinder {eq}x^2+y^2 = 4 and outside the cylinder {eq}x^2+y^2 = 1.
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Humble Company reported the following information for 2013: Repaid long-term debt$125,000 Paid interest on notes payable $2,170 Issued common stock $75,000 Paid dividends $18,000 Compute net cash flow from financing activities.
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The price of a good or service in a free market is called the: Select one: a. profit-maximizing price. b. residual price. c. marginal price. d. none of the above
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Which of the following is the correct expression of the direct labor rate variance? A. {eq}(Actual Hours \times Actual Rate) - (Standard Hours \times Standard Rate) {/eq} B. {eq}(Actual Hours \times Standard Rate) - (Standard Hours \times Standard Rate) {/eq} C. {eq}(Actual Hours \times Actual Rate) - (Standard Ho...
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Which of the following is the present value of a $2,000 discount bond with five years to maturity if the yield to maturity is 6.4 percent? a. $1,658 b. $1,870 c. $1,690 d. $1,620
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You are analyzing the financial condition of Down and Out, Inc., and must calculate its return on equity (ROE) from the following data: Profit margin 8.50% Debt ratio 33% Total assets $4.8 million Total sales $7.4 million Total debt $1.6 million Total equity $3.2 million ROE: _____
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Consider two different inertial reference systems, A and B, moving at relative velocity v = 0.75 c along the x axis. At time t = t′ = 0, the origins of both systems coincide. At this time, an explosion occurs at x = 5000 m and x′ = 0 in the x direction. a. What is the time of the event as measured in system A? b. Wha...
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Assume that during 2017, Cypress Semiconductor Corporation reported net cash provided by operating activities of $120,020,000, net cash used in investing activities of $154,804,000 (including cash spent for plant assets of $99,360,000), and net cash used in financing activities of $26,816,000. Dividends of $5,000,000 w...
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Presented below is the information related to Rembrandt Corp. Date Inventory Units Unit Cost Total Cost Dec. 31, 2014 300 $128 $38,400 Dec. 31, 2015 400 $129 $51,600 Dec. 31, 2016 500 $139 $69,500 Dec....
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Jorge Stills is considering an investment in a stock with a beta of 0.20, but he is concerned that the market is overvalued. He would like to invest $6,000 in this stock and believes the market will decline by 15%. What will be his portfolio value if he invests $6,000 in the stock and $4,000 in the risk-free asset whic...
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A person purchases a good, X, at a price of $2.50 and a good Y at a price of $2.00. The marginal utility of the last unit of X purchased is 150 and the marginal utility of the last unit of Y purchased is 120. The consumer could maximize utility by a. increasing purchases of X and Y. b. purchasing more of X and less o...
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If output per person in the private sector grows at 2.6%, capital intensity grows at 0.4%, and labor composition grows at 1.3%, what was the growth rate of total factor productivity? a. 0.3% b. -0.3% c. 1.9% d. -1.9% e. 1.3%
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Suppose that the manufacturing technology has not changed and that the average number of VCRs manufactured in an hour is normally distributed with a mean of 470 and a standard deviation of 110. The owner of the plant, knowing that the consultant is testing the technology, wants to make sure that she has enough VCRs man...
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I want to calculate $Var(R_p)$ when $w_1 = 0.4$ and $w_2 = 0.6$. $R_1 = 0.25$, $R_2 = 0.2$. $\sigma_1 = 0.2$, $\sigma_2 = 0.3$. $Cov(R_1, R_2) = 0.015$. I do the calculation as follows: $Var(R_p) = (0.4)^2 * (0.2)^2 + (0.6)^2 * (0.3)^2 + 2 * 0.4 * 0.6 * 0.015 = 0.05416$ However, the answers says the correct answer is $...
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Eccles Corporation has 5,000 bonds outstanding at a coupon interest rate of 6% and a market price of $1,080. The firm also has 100,000 shares of common stock outstanding at a par value of $1.00 per share, with a market value of $34 per share. The firm's preferred stock has 10,000 shares outstanding at a par value of $1...
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A nonhomogeneous Poisson process has an intensity function $\lambda(t)=4t.$ What is the probability of observing exactly three events in the time interval $(0,2)?$
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A flexible manufacturing cell has the following (allocated) overhead costs: Cobalt $60,000 Watson 80,000 Allen 140,000 Total $380,000 The following activity base have been used to assign overhead costs to products: Activity Base Cobalt Watson Allen Number of parts 150,000 100,000 200,000 Machine hours ...
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Assume an initial demand for US dollars of 100MM. For each item below, state how much the quantity demanded for dollars will change. If the price of goods in US is 10% higher than in Europe (other things equal): a. Increase by 5MM b. Decrease by 5MM c. Increase by 10MM d. Decrease by 10MM
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At rest, a clock reads {eq}10:00{/eq}. When the clock is moving at {eq}2.0 \times 10^8 \ m/s{/eq} to the right, an observer moving with a velocity of {eq}0.96c{/eq} in the same direction observes a time interval of {eq}36 \ s{/eq}. How long does the moving clock take to strike {eq}11:00{/eq} according to the observer?
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Two circular disks spaced 0.53 mm apart form a parallel-plate capacitor. Transferring 7.0 109 electrons from one disk to the other causes the electric field between them to be 1.1 105 N/C. What is the diameter of each disk?
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Find all values of $k$ for which the equation $k(\sin^4x+\cos^4x)+k(\sin^2x+\cos^2x)+2k = 0$ has no real solutions.
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Taco Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in the beginning work in process inventory200 Materials costs$900 Conversion costs$7,000 Percentage complete with...
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A company will be able to get monopoly power in the market for its product if: A. it can successfully prevent others from entering the market. B. the market demand curve is inelastic. C. the company can produce the product at a lower cost than competitors. D. the market demand curve is elastic.
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If a firm is producing a good or service whose marginal cost exceeds the price that people are willing to pay, then the firm is: A. maximizing its revenues B. maximizing its profits C. minimizing its losses D. incurring an economic loss E. making an economic profit
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Granite Construction provides the following data for 2015: Cost of construction labor $750,000 Contingency $40,000 Cost of other construction materials $180,000 Cost of building permits $16,000 Direct overhead costs $10,000 Indirect overhead costs $60,000 Total estimated overhead $124,000 Granite uses ...
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Thirteen annual deposits in the amount of {eq}\$3,000,\ \$5,000,\ \$7,000,\ \$9,000,\ {/eq} and so forth, are made into a fund that pays interest at a rate of {eq}8\% {/eq} compounded annually. Determine the amount in the fund immediately after the twelfth deposit.
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Four years ago, at the advice of J.T. Lindseth, her financial planner, Ali purchased a $1000 face value, 6.60 percent, semiannual coupon bond with four years to maturity priced to yield 8.50 percent of $906.70. Now, the bond has matured, and Lindseth calls Ali and informs her that because he had invested the coupons at...
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Toland Inc. issued 5%, 10-year bonds payable for $100,000 when the market interest rate was 8%. Assuming straight-line amortization and a carrying amount of $90,000 on December 31, 2011, what should be the journal entry for the payment of interest on December 31, 2012? a. Interest Expense 8,000 Cash 8,000 b. Interes...
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LeFevre Incorporated reports the following income statement for 2014: Product A Product B Total Sales $80,000$90,000$170,000 Variable expenses 30,00045,00060,000 Contribution margin 50,00045,000110,000 Fixed expenses30,00025,00045,000 Income (loss) from operations $20,000$20,000$65,000 Assume no change in the s...
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A company has a standard cost system in which direct materials and direct labor are allocated to production based on the standard direct labor hour (DLHr.) per unit of output. The standard cost card for the product follows: Standard direct labor hour per unit of output 1.75 DLHrs. Standard cost per DLHr. $10.50 Stand...
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Sweet Acacia Industries is evaluating a proposal to buy a new machine. The proposed machine costs $46,960 and would have a useful life of 4 years. Based on the data below, should the new machine be purchased? Year Cash Inflow Cash Outflow 1 $13,730 $4,690 2 ...
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ABC Industries produces an expensive watch that is both popular and profitable. Each watches sells for $1000 and has unit variable costs of $600. ABC is considering replacing a manually operated machine with a computer-controlled one that would reduce direct labor by $225 per unit but increase annual fixed costs by $10...
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